# How much do I need to pay irs



## Eric1981 (Apr 13, 2017)

I drive for uber and lyft for 2 month. I use QuickBooks self employed. Now I see tax due on June 15 is $965. While my profit is $3200 and mileage deduction is $1900.

For my understanding will the taxable amount be 3200-1900=1300. 

So do I still pay $965, that is huge if that the case.


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## tohunt4me (Nov 23, 2015)

Are you head of household ?
Deduct your home office expense ?
Cell phone ?
Cell phone rate plan ?
Uniforms ?


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## UberTaxPro (Oct 3, 2014)

Eric1981 said:


> I drive for uber and lyft for 2 month. I use QuickBooks self employed. Now I see tax due on June 15 is $965. While my profit is $3200 and mileage deduction is $1900.
> 
> For my understanding will the taxable amount be 3200-1900=1300.
> 
> So do I still pay $965, that is huge if that the case.


start up expenses? are you going to continue driving? do you have a w2 job also? do you have any other businesses?


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## Eric1981 (Apr 13, 2017)

I am the head of household, will continue driving . This is the only job that I have currently. Do you mean that I can deduct the utility bill and phone bill? For the expense with the car , can I just put mileage deductible amount in the expense?


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## UberTaxPro (Oct 3, 2014)

Eric1981 said:


> I am the head of household, will continue driving . This is the only job that I have currently. Do you mean that I can deduct the utility bill and phone bill? For the expense with the car , can I just put mileage deductible amount in the expense?


$3200 sounds like your *GROSS REVENUE* not your *PROFIT*. When determining how much to pay for *income tax* you don't need to include tax-exempt income. In 2016 for example, if you are under age 65 and head of household, you must earn *$13,350 *( *profit* for you) or more, which is the sum of the 2016 standard deduction for a single taxpayer plus one exemption, to owe any income tax at all. You will have to pay *Self Employment tax* on all of it however. 
The expenses you can deduct for your home office include the business percentage of deductible mortgage interest, home depreciation, property taxes, utilities, homeowners insurance and home maintenance that you pay during the year. For example, if your home office occupies 15% of your home, then 15% of your annual electricity bill becomes tax deductible.
Yes, $1300 is the approximate amount you'll need to pay tax on. You probably can come up with a few more deductions to lower the amount. $965 is way off, 30% would be $390 and a more reasonable amount. Until your total profit reaches $13,350 you'll only owe about 15% for self employment taxes. If you plan on making more than $13350 you should estimate around 30% per quarter. If you'll make below $13,350 just send in 15.3% .
Here is a handy self employment tax calculator https://www.calcxml.com/calculators...56E38B1E3A2E602BD15F06DB5CEBB1F2?skn=#results


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