# Do I have to hire a CPA to do my taxes?



## soupergloo (Jul 24, 2015)

I've always had a "real job" where I got a W2 in the mail and was able to file on my own via turbotax (or similar), but I don't have a clue how to file once I get my 1099 from Uber & Lyft. I had a full-time job where taxes were being taken out for half of 2015 (I claimed "0" and had them taking an additional $50 from each paycheck), and then I quit that job to work for Uber/Lyft full-time; I was doing ridesharing full-time from August 2015 to current.

I didn't keep a mileage log in 2015, but I specifically purchased my car to be a TNC driver, so all of the miles that are currently on it were used for Uber/Lyft. I did keep receipts for all expenses on my car (maintenance, gas, etc.), however.

And lastly, I am a full-time student at SFSU so I can also write off school expenses.

I'd prefer to continue filing on my own, but would love some opinions on what would be best for my situation.


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## UberTaxPro (Oct 3, 2014)

soupergloo said:


> I've always had a "real job" where I got a W2 in the mail and was able to file on my own via turbotax (or similar), but I don't have a clue how to file once I get my 1099 from Uber & Lyft. I had a full-time job where taxes were being taken out for half of 2015 (I claimed "0" and had them taking an additional $50 from each paycheck), and then I quit that job to work for Uber/Lyft full-time; I was doing ridesharing full-time from August 2015 to current.
> 
> I didn't keep a mileage log in 2015, but I specifically purchased my car to be a TNC driver, so all of the miles that are currently on it were used for Uber/Lyft. I did keep receipts for all expenses on my car (maintenance, gas, etc.), however.
> 
> ...


Even though you purchased your car to be a TNC driver and are claiming 100% business use you still must keep a mileage log! I think you could figure out how to file on your own. You'll need turbo tax or something similar. Be sure to get the version that does Schedule C. There is a ton of help on here also so read up and ask questions.


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## Older Chauffeur (Oct 16, 2014)

In spite of some posts to the contrary, TT Deluxe does include Schedule C. I got it at Costco for $39.95 just after Christmas, but don't know if it is still on sale. TT's website says you have to buy the CD version, the online deluxe version doesn't have it.
Re the mileage, I think I read here that you can use Uber's records for miles with pax, but that won't include your empty/dead miles. TT (or a CPA) will ask if you have another vehicle for personal use if you are claiming 100% business use.


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## soupergloo (Jul 24, 2015)

Sorry for the dumb question, but what is "Schedule C?"


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## UberTaxPro (Oct 3, 2014)

soupergloo said:


> Sorry for the dumb question, but what is "Schedule C?"


A Schedule C is used to report profit or loss from your uber/lyft business.


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## soupergloo (Jul 24, 2015)

UberTaxPro said:


> A Schedule C is used to report profit or loss from your uber/lyft business.


Thank you! Will the program walk me through how to determine if I experienced a profit or loss from driving?


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## StarzykCPA (Aug 6, 2015)

soupergloo said:


> Thank you! Will the program walk me through how to determine if I experienced a profit or loss from driving?


You'll have an opportunity to enter your income and expenses, which will determine whether or not you have a profit. Make sure you include whatever expenses you are entitled to.

If you are doing your taxes on your own, definitely take your time since it's your first experience with it. Read up on anything you're not sure of.


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## joeactuary (Oct 8, 2015)

If you're unsure, I recommend going somewhere like H&R Block. Have them do and file the taxes for you this year. For your peace of mind, it does't cost that much. You'll get a paper copy. Go get Taxact for free. Fill it in until it matches. Voila!, You now know how to file a tax form with Schedule C. You'll be all set for next year. If you liked the experience, you can go back to H&R Block the next year.

CPA's are great. It means they have an excellent background in accounting, but their specific expertise may not be personal taxes. You'll need a CPA, if you have complex accounting issues of which taxes is one facet of the services you need. The CPA worked hard for their accounting degree and will of course charge appropriately for that so a CPA might be overkill in your particular case. If a title is important to you, I would rather work with an "Enrolled Agent" instead of a CPA. Or simply someone who's done a thousand returns for a company like H&R Block would be a good choice, IMO


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## Amywoodlands (Dec 5, 2015)

I did my with h and r block it was easy and if you have questions you can call but I did not need that.


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## UberTaxPro (Oct 3, 2014)

Amywoodlands said:


> I did my with h and r block it was easy and if you have questions you can call but I did not need that.


how much did it cost?


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## StarzykCPA (Aug 6, 2015)

UberTaxPro said:


> how much did it cost?


I was wondering the same thing. The h&r block that I called to get a quote said fees started at $250 with a Schedule C. But it is largely based on location, plus it depends on what else you have going on...

For those interested, check out my thread for what is most likely a cheaper option: https://uberpeople.net/threads/tax-questions-answers-and-services-for-members-of-up.47522/


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## ClevelandUberRider (Nov 28, 2015)

soupergloo said:


> I've always had a "real job" where I got a W2 in the mail and was able to file on my own via turbotax (or similar), but I don't have a clue how to file once I get my 1099 from Uber & Lyft. I had a full-time job where taxes were being taken out for half of 2015 (I claimed "0" and had them taking an additional $50 from each paycheck), and then I quit that job to work for Uber/Lyft full-time; I was doing ridesharing full-time from August 2015 to current.
> 
> I didn't keep a mileage log in 2015, but I specifically purchased my car to be a TNC driver, so all of the miles that are currently on it were used for Uber/Lyft. I did keep receipts for all expenses on my car (maintenance, gas, etc.), however.
> 
> ...


I would highly encourage you to engage a good CPA to prepare your tax return for you. If TNC earnings were your only 2015 non-W2 income, that professional tax prep shouldn't cost you more than a few hundred dollars.


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## mls55 (May 27, 2015)

A CPA firm in any major metropolitan area is not going to cost you a couple of hundred dollars. Even most small firms have a minimum price of $500 - $750 for a 1040 tax return.

The cost of a top tier tax program such as Prosystem, Gosystem Tax or even a second tier program such as Lacerte (owned by Intuit, the QuickBooks people) can run $20,000 and above. Many firms will charge $100 - $200 or more just in computer processing charges for an individual tax return, excluding kid returns. The required preparation, review, processing time and partner sign-off will just rack up the time.

If you just have a W-2, some itemized deductions, and your rideshare Schedule C, I would go to H & R Block, they will charge about $200-$300 or use a small self-employed enrolled agent or CPA. They usually use a cheaper tax program such as the pro version of TurboTax or Drake


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## soupergloo (Jul 24, 2015)

Well shoot .. I already bought Turbotax Home & Business.


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## ClevelandUberRider (Nov 28, 2015)

Have English language terms changed since I graduated from high school? This is the second time in as many weeks people got confused with "a couple"' "a few", and "several".

Different dickies and different people may give you different interpretations, but this is how I use the terms and how I have observed others use them:

A couple--I have always used it to mean "two", though many use it to mean a few, even several.

A few--I usually use this to mean three to five. Some people use it to mean anywhere from two to one dozen, sometimes even more.

Several--I use it to mean five to eleven (notice the overlap of the number five for my use of a few and several). Some people use it to mean three to a dozen or even more. 

Just for fun, not for argument. I read and write most of the day, so it is interesting to me, these things. I am into interesting things, not seeking to go into any arguments or to win. Learning is my primary passion and focus.


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## StarzykCPA (Aug 6, 2015)

mls55 said:


> A CPA firm in any major metropolitan area is not going to cost you a couple of hundred dollars. Even most small firms have a minimum price of $500 - $750 for a 1040 tax return.
> 
> The cost of a top tier tax program such as Prosystem, Gosystem Tax or even a second tier program such as Lacerte (owned by Intuit, the QuickBooks people) can run $20,000 and above. Many firms will charge $100 - $200 or more just in computer processing charges for an individual tax return, excluding kid returns. The required preparation, review, processing time and partner sign-off will just rack up the time.
> 
> If you just have a W-2, some itemized deductions, and your rideshare Schedule C, I would go to H & R Block, they will charge about $200-$300 or use a small self-employed enrolled agent or CPA. They usually use a cheaper tax program such as the pro version of TurboTax or Drake


Having worked at two large CPA firms, there is some truth here. I can tell you the minimum fee for one of them was $500 and the other was $750.

I used Prosystem and now use Drake. I am also familiar with Proseries and Lacerte. Yes, Prosystem is pretty good. Cost typically starts around $2,500 and go up from there depending on returns processed, number of users, number of offices, etc. I find Drake to do everything that Prosystem does, but it is not as intuitive. Thus, as an experienced tax preparer - I have no issues with it. In the end though, the data should look the same on the tax form and that is what I look at when preparing/reviewing tax returns.


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## StarzykCPA (Aug 6, 2015)

ClevelandUberRider said:


> Have English language terms changed since I graduated from high school? This is the second time in as many weeks people got confused with "a couple"' "a few", and "several".
> 
> Different dickies and different people may give you different interpretations, but this is how I use the terms and how I have observed others use them:
> 
> ...


Few has always been just and only 3 to me. Maybe I'm weird.


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## Uber 1 (Oct 6, 2015)

soupergloo said:


> I've always had a "real job" where I got a W2 in the mail and was able to file on my own via turbotax (or similar), but I don't have a clue how to file once I get my 1099 from Uber & Lyft. I had a full-time job where taxes were being taken out for half of 2015 (I claimed "0" and had them taking an additional $50 from each paycheck), and then I quit that job to work for Uber/Lyft full-time; I was doing ridesharing full-time from August 2015 to current.
> 
> I didn't keep a mileage log in 2015, but I specifically purchased my car to be a TNC driver, so all of the miles that are currently on it were used for Uber/Lyft. I did keep receipts for all expenses on my car (maintenance, gas, etc.), however.
> 
> ...


I do my taxes "old school" style.....Pen and paper....nothin' fancy....(you can pick up all the forms you need typically at the post office or you can download and print them off the IRS website...there is even an instruction guide to help you fill out the paperwork but much of it is common sense but you will need some info from the actual instructions themselves (like std deduction amounts etc... this stuff can change year to year).

All you need to do is do it once then from then on you should be able to do it yourself fairly quickly and easily.

Why pay hundreds ?....it takes WAY too many hours Ubering to make enough to pay for somebody else to do it....it is easy enough to do while watching TV (or just wait for the commercials to do them).

Oh...A friend of mine suggests sending in taxes on April 15 as late as possible....the theory being have your taxes mixed in with everybody else's to lessen the chance of being audited.....

Andy


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## UberTaxPro (Oct 3, 2014)

Uber 1 said:


> I do my taxes "old school" style.....Pen and paper....nothin' fancy....(you can pick up all the forms you need typically at the post office or you can download and print them off the IRS website...there is even an instruction guide to help you fill out the paperwork but much of it is common sense but you will need some info from the actual instructions themselves (like std deduction amounts etc... this stuff can change year to year).
> 
> All you need to do is do it once then from then on you should be able to do it yourself fairly quickly and easily.
> 
> ...


Wow! I'm impressed! I've often wondered if anyone still did their taxes this way. Makes sense to me. Good for you!
As far as filing as late as possible to avoid audits...... I don't think it matters. They mostly use computers to select returns for review and I don't think the computer cares when you file.


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## soupergloo (Jul 24, 2015)

Just out of curiosity, is it typical for Uber drivers to get audited?


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## UberTaxPro (Oct 3, 2014)

soupergloo said:


> Just out of curiosity, is it typical for Uber drivers to get audited?


Probably less of a chance than if your a conservative republican! LOL Seriously, Uber drivers have only been around for a few years so there wouldn't be much data to go on. Uber drivers are self-employed and self-employed people tend to get audited more.


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## ClevelandUberRider (Nov 28, 2015)

StarzykCPA said:


> Few has always been just and only 3 to me. Maybe I'm weird.


I think you are right.

If the IRS's sole goal of audit is to recover taxes (it is not; other goals likely include fairness and deterrent effect), then they should audit as many waiters and waitresses as possible. For two reasons.

A. Many waiters and waitresses under-report or even do not report their cash tips at all.
B. It is not very difficult for the IRS to come up with a rough estimate of the tip rates for waiters and waitresses (credit card spending's tip % and those who report tips on their returns would be two good starting points)


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## soupergloo (Jul 24, 2015)

ClevelandUberRider said:


> If the IRS's sole goal of audit is to recover taxes (it is not; other goals likely include fairness and deterrent effect), then they should audit as many waiters and waitresses as possible. For two reasons.
> 
> A. Many waiters and waitresses under-report or even do not report their cash tips at all.
> B. It is not very difficult for the IRS to come up with a rough estimate of the tip rates for waiters and waitresses (credit card spending's tip % and those who report tips on their returns would be two good starting points)


I think that goes for anyone receiving cash tips .. hotel bellman too.


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## Uber 1 (Oct 6, 2015)

ClevelandUberRider said:


> If the IRS's sole goal of audit is to recover taxes (it is not; other goals likely include fairness and deterrent effect), then they should audit as many waiters and waitresses as possible. For two reasons.
> 
> A. Many waiters and waitresses under-report or even do not report their cash tips at all.
> B. It is not very difficult for the IRS to come up with a rough estimate of the tip rates for waiters and waitresses (credit card spending's tip % and those who report tips on their returns would be two good starting points)


HA....at LAST a "positive" reason for NOT having a tipping option on the app .....

THANKS Travis! ;-O

Andy


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## ClevelandUberRider (Nov 28, 2015)

soupergloo said:


> I think that goes for anyone receiving cash tips .. hotel bellman too.


You are right. But there is more potential tax recovery from waiters and waitresses than from hotel door persons, pizza deliver persons, hair dressers, etc. (group by group wise) due to the sheer number of the first group. You are right though, every group should be made to pay their share of taxes, and we shouldn't just target the first group.


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## ClevelandUberRider (Nov 28, 2015)

Uber 1 said:


> HA....at LAST a "positive" reason for NOT having a tipping option on the app .....
> 
> THANKS Travis! ;-O
> 
> Andy


Finally, one more Travis supporter on UP! Do we even have a dozen of Travis admirers here on UP?


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## Older Chauffeur (Oct 16, 2014)

StarzykCPA said:


> Few has always been just and only 3 to me. Maybe I'm weird.


For me "few" means 5 and "several" means 7. Anything else I have to get specific. On a slightly different issue I am annoyed by the press when they leave out "of" as in "a couple things." Or the latest goof, mostly noticed in political candidates' speech, where they say "less" when they mean "fewer." 
Okay, their is my rant. Thanks for the opportunity to vent!


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## UberTaxPro (Oct 3, 2014)

Uber 1 said:


> HA....at LAST a "positive" reason for NOT having a tipping option on the app .....
> 
> THANKS Travis! ;-O
> 
> Andy





ClevelandUberRider said:


> Finally, one more Travis supporter on UP! Do we even have a dozen of Travis admirers here on UP?


No I think we exchanged the last dozen with ISIS for our own prisoners.


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## ClevelandUberRider (Nov 28, 2015)

Older Chauffeur said:


> For me "few" means 5 and "several" means 7. Anything else I have to get specific. On a slightly different issue I am annoyed by the press when they leave out "of" as in "a couple things." Or the latest goof, mostly noticed in political candidates' speech, where they say "less" when they mean "fewer."
> Okay, their is my rant. Thanks for the opportunity to vent!


You are right on all of the above! Also, "a large number of people" has degenerated into "a large amount of people." Compared to just ten years ago, news articles contain many more mistakes per 1,000 words. It is partly (not wholly) explained by the fact that it used to be an article written by a reporter passed thru a page/section editor and a copy editor. Now a lot of articles, fighting to be the first one among competitors to go online, entirely depends on the reporter who wears all these hats--reporter, editor, and copy editor.

A famous British newspaper mogul once said, the most important workers in the newspaper business are also the lowest paid employees in the business, and it just isn't right (copy editors).

It kind of reminds me of TNC drivers in the TNC business.

Every entrepreneur and businessman knows (yes, that include Travis) that in terms of customer's experience, in the service industry, the front line workers are the most important workers in their company. But they pay those workers according to what the market will bear, not how important they are to the customers' experience.


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## ClevelandUberRider (Nov 28, 2015)

UberTaxPro said:


> No I think we exchanged the last dozen with ISIS for our own prisoners.


You cracked me up!


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