# still owe tax after deduction?



## azndriver87 (Mar 23, 2015)

I was charged with $3000 in tax but after put my mileage in, I only deducted less than $500 in tax?


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## Older Chauffeur (Oct 16, 2014)

azndriver87 said:


> I was charged with $3000 in tax but after put my mileage in, I only deducted less than $500 in tax?


Can you provide a little more info? Sorry, but it doesn't make sense the way you have stated the numbers.

Do you mean you owed taxes totaling $3000 on Uber/Lyft income alone? Or was that your gross earnings?

"Tax" is what you owe after taking "deductions " from your "income/gross earnings."

You should be using Schedule C to figure your self employment/business profit and loss. The result then goes to your income and withholding, if any, from a regular job, to determine taxes owed.

How many miles did you drive for business? If you're still working on last year's return(?) the rate is $0.57, so a $500 deduction would mean you recorded approximately 877 business miles. That doesn't jibe with Uber driving. Now if you grossed $3000, and drove approximately 4385 miles, you would deduct $2500 and owe income tax on $500. In addition, you would have to compute the self employment tax (FICA) of 15.3% on that $500. This is just in very general terms.

You should probably consider seeking help from a tax professional, which I am not.


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