# Turbo Tax: Business vs Actual expenses



## Al John (Mar 14, 2016)

Greetings!

As drivers, if we choose to use the "Standard Mileage Rate" as the form of deduction. Are we able to write off our "Business Expenses" (I don't mean Actual Expenses). Business Expenses would include gas, cell phone bill, Lyft commission and repairs? I only ask because I chose the Standard Mileage Rate, and after was able to put Business Expenses. What is the difference of Business Expenses to Actual Expenses. I know we are only given the option to choose Standard Mileage Rate and Actual Expenses. But in Turbo Tax, if we chose Standard Mileage Rate, we're also able to put down "Business Expenses". Business Expenses and Actual Expenses seem to be two different categories in Turbo Tax. If anyone could clarify this for me, I would be in total gratitude! Thank you in advance!


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## UberTaxPro (Oct 3, 2014)

Al John said:


> Greetings!
> 
> As drivers, if we choose to use the "Standard Mileage Rate" as the form of deduction. Are we able to write off our "Business Expenses" (I don't mean Actual Expenses). Business Expenses would include gas, cell phone bill, Lyft commission and repairs? I only ask because I chose the Standard Mileage Rate, and after was able to put Business Expenses. What is the difference of Business Expenses to Actual Expenses. I know we are only given the option to choose Standard Mileage Rate and Actual Expenses. But in Turbo Tax, if we chose Standard Mileage Rate, we're also able to put down "Business Expenses". Business Expenses and Actual Expenses seem to be two different categories in Turbo Tax. If anyone could clarify this for me, I would be in total gratitude! Thank you in advance!


There are two methods to deduct the business use of your car: mileage reimbursement or actual car expenses. The costs that are included in the standard mileage deduction are gas, maintenance, oil, repairs, tires, insurance, registration fees, licenses, and depreciation or lease payments.


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## UberTaxPro (Oct 3, 2014)

Al John said:


> Greetings!
> 
> As drivers, if we choose to use the "Standard Mileage Rate" as the form of deduction. Are we able to write off our "Business Expenses" (I don't mean Actual Expenses). Business Expenses would include gas, cell phone bill, Lyft commission and repairs? I only ask because I chose the Standard Mileage Rate, and after was able to put Business Expenses. What is the difference of Business Expenses to Actual Expenses. I know we are only given the option to choose Standard Mileage Rate and Actual Expenses. But in Turbo Tax, if we chose Standard Mileage Rate, we're also able to put down "Business Expenses". Business Expenses and Actual Expenses seem to be two different categories in Turbo Tax. If anyone could clarify this for me, I would be in total gratitude! Thank you in advance!


By the way, for most Uber drivers the standard mileage deduction is the way to go!


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## Al John (Mar 14, 2016)

UberTaxPro said:


> There are two methods to deduct the business use of your car: mileage reimbursement or actual car expenses. The costs that are included in the standard mileage deduction are gas, maintenance, oil, repairs, tires, insurance, registration fees, licenses, and depreciation or lease payments.


I chose the Standard Mileage Rate. But for some reason in Turbo. It still allows me to write off "Business Expenses". The category "Actual Expenses" is totally blocked off as soon as I chose Standard Mileage. I guess to make it simple. What's the difference to Business Expenses to Actual Expenses.


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## UberTaxPro (Oct 3, 2014)

Al John said:


> I chose the Standard Mileage Rate. But for some reason in Turbo. It still allows me to write off "Business Expenses". The category "Actual Expenses" is totally blocked off as soon as I chose Standard Mileage. I guess to make it simple. What's the difference to Business Expenses to Actual Expenses.


The Actual Expenses is blocked because you chose standard mileage rate. Business Expenses is where you can include other business expenses like your phone, water bottles, puke bags etc....


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## Al John (Mar 14, 2016)

UberTaxPro said:


> The Actual Expenses is blocked because you chose standard mileage rate. Business Expenses is where you can include other business expenses like your phone, water bottles, puke bags etc....


That makes total sense! So like "Non-Vehicle Expenses"? The weird thing is on the Business Expenses category in Turbo Tax, gas & maintenance were included as a deduction. I know for Actual Expenses gas & maintenance would be the big deductions. So why are these two things listed for Business Expenses


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## UberTaxPro (Oct 3, 2014)

Al John said:


> That makes total sense! So like "Non-Vehicle Expenses"? The weird thing is on the Business Expenses category in Turbo Tax, gas & maintenance were included as a deduction. I know for Actual Expenses gas & maintenance would be the big deductions. So why are these two things listed for Business Expenses


I don't actually have a copy of turbo tax opened in front of me so I'm just making educated guesses here! Turbo Tax is written to be used for most business types not just Uber drivers. It would be possible for another type of business to have a vehicle using the standard mileage deduction but still have gas and maintenance expenses for other equipment like lawn mowers and tractors for example.


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## Al John (Mar 14, 2016)

UberTaxPro said:


> I don't actually have a copy of turbo tax opened in front of me so I'm just making educated guesses here! Turbo Tax is written to be used for most business types not just Uber drivers. It would be possible for another type of business to have a vehicle using the standard mileage deduction but still have gas and maintenance expenses for other equipment like lawn mowers and tractors for example.


Gotcha that makes perfect sense! Thank you so much! You've made definitely clarified this for me. Have a great day!


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## Al John (Mar 14, 2016)

UberTaxPro said:


> I don't actually have a copy of turbo tax opened in front of me so I'm just making educated guesses here! Turbo Tax is written to be used for most business types not just Uber drivers. It would be possible for another type of business to have a vehicle using the standard mileage deduction but still have gas and maintenance expenses for other equipment like lawn mowers and tractors for example.


Sorry one last question! But since I have to pay commissions to Lyft, can I write those commissions off in my Business Expenses? Thank you in advance!


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## UberTaxPro (Oct 3, 2014)

Al John said:


> Sorry one last question! But since I have to pay commissions to Lyft, can I write those commissions off in my Business Expenses? Thank you in advance!


If the commissions were included in your gross 1099 amount like uber does, yes.


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## Jim Sniffins (Mar 24, 2016)

Does Uber provide drivers with mileage logs that can be used for tracking and calculating mileage deductions?


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## LAuberX (Jun 3, 2014)

Jim Sniffins said:


> Does Uber provide drivers with mileage logs that can be used for tracking and calculating mileage deductions?


NO.

Uber only provides the "paid miles". That figure is less than 1/2 of the "business miles" you drive for Uber. Keep a daily log of "app on" odometer start/ending miles for tax time.


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## Jim Sniffins (Mar 24, 2016)

Is their a log of some kind that shows all of my drive history: fare, location, destination, mileage..etc.??


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## LAuberX (Jun 3, 2014)

Jim Sniffins said:


> Is their a log of some kind that shows all of my drive history: fare, location, destination, mileage..etc.??


NO.

Uber only provides the "paid miles". That figure is less than 1/2 of the "business miles" you drive for Uber. Keep a daily log of "app on" odometer start/ending miles for tax time.


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## RichR (Feb 12, 2016)

LAuberX said:


> Keep a daily log of "app on" odometer start/ending miles for tax time.


Not just "app on" but _Online _so you're either transporting a rider or you're online and able to receive a ride request.

Before you Go Online and after you Go Offline, you're not working. Just like commuting to/from a day job, those miles are not deductible. That's my interpretation, at least.


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## UberTaxPro (Oct 3, 2014)

Jim Sniffins said:


> Is their a log of some kind that shows all of my drive history: fare, location, destination, mileage..etc.??


Nothing that works as good as you doing it yourself.


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## KekeLo (Aug 26, 2015)

UberTaxPro said:


> If the commissions were included in your gross 1099 amount like uber does, yes.


What do you mean commission. How do you write off the commission?


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## UberTaxPro (Oct 3, 2014)

the fee that uber charges....20% or 25%. commission is probably not the best word


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## KekeLo (Aug 26, 2015)

Thank you, very much UberTaxPro.


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