# Simplified Employee Pension (SEP)



## GoJoe (Oct 18, 2014)

I would like to know if anyone has experience setting up a SEP using their uber earnings. Can you tell us about how you did, how you are calculating what you put in there?


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## Baron VonStudley (Jun 20, 2014)

I know a lot of drivers have "retired" from Uber


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## GoJoe (Oct 18, 2014)

I am really looking at the tax part. I am only looking for $1k or so a month from uber and would like to put as much of that as I can into a retirement account.


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## puber (Aug 31, 2014)

You will learn everythimg about sep from this guy
http://www.clarkhoward.com/


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## chi1cabby (May 28, 2014)

It's simple. You set up the account at a brokerage. Mine is at TD Ameritrade. There is a limit of how much of your self employment income you are allowed to contribute. You contribute any time before filing your taxes. You get to deduct a certain percentage of your contribution in your return.
I'm little hazy on the exact numbers, it's been a couple of years since I've contributed.


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## CowboyMC (Aug 26, 2014)

You can only put money in SEP on the profit you make for that year. So far, for this year, I made $126. remember you use $0.56 a mile for tax purposes even if your actual costs are lower (maybe $0.38 a mile). So first make a taxable profit.
Here is the IRS website about SEP: http://www.irs.gov/Retirement-Plans/Plan-Sponsor/Simplified-Employee-Pension-Plan-(SEP)


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## DriverJ (Sep 1, 2014)

GoJoe said:


> I am really looking at the tax part. I am only looking for $1k or so a month from uber and would like to put as much of that as I can into a retirement account.


I'd keep it handy for the new car you'll be buying soon, and a jumbo tube of 'K-Y Jelly.' You'll be needing both.


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## GoJoe (Oct 18, 2014)

Why do you say "new car I will be buying?"


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## GoJoe (Oct 18, 2014)

I did contact Fidelity, and I expect to get more details there. I am also going to go ahead and get a Tax Professional so I can figure this out a bit before the end of the year and look to make adjustments. I'll post up what I find. I do understand the .56, but I need to get my miles tracking system set up ASAP and I also need to get a clear indication on what can and cannont be used for miles (loaded vs. empty). Be be at net zero on miles alone I need to drive 357 miles a week or around 120 a day (which seams reasonable for the airport runs I do).


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## Orlando_Driver (Jul 14, 2014)

You need to talk to a CPA...


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## CowboyMC (Aug 26, 2014)

GoJoe said:


> I do understand the .56, but I need to get my miles tracking system set up ASAP and I also need to get a clear indication on what can and cannont be used for miles (loaded vs. empty). Be be at net zero on miles alone I need to drive 357 miles a week or around 120 a day (which seams reasonable for the airport runs I do).


Here is what I use for business miles. I turn on Uber app in the morning and wait for a ping. I had recorded my previous days mileage and had reset my mileage indicator on my car to zero. Drive to pick-up location, drive client to their location, drive home (may get pinged along the way then would take job), hang out at home waiting for ping, get pinged and do it all over. At the end of my work day I record the mileage indicator and reset to zero. Now if I had to use the car for personal reasons, before doing that I record my mileage so far that day. Do my personal thing and then reset mileage indicator. Now if I have to go to Uber, say pickup new Iphone, I record that mileage to and from and keep a separate record of that. I would also save mileage going to a store to pick-up new smart phone to replace the rented one. So any mileage you do for business purposes is good. I waiting for us to have a convention and then I'll drive to that and save that mileage  Hope this helps you out. Currently I use a spreadsheet software to kept track of mileage. but I thinking of also using one of the fancy online trackers, maybe sherpashare.

Note: I do taxes during tax season (H&R Block) and Uber the rest of the year.


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## GoJoe (Oct 18, 2014)

Right on. That is helpful! I am going to go ahead and hire a pro to plan now. I'll post up any info found. I like what your working on though Cowboy. Are you using the .56 deduction? Ideally, I would like to show a loss to offset some other income.


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## CowboyMC (Aug 26, 2014)

Yes, I will use the $0.56 per mile deduction on my taxes for 2014.


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## DriverJ (Sep 1, 2014)

GoJoe said:


> Why do you say "new car I will be buying?"


Different car?


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## uberdriver (Aug 4, 2014)

DriverJ said:


> I'd keep it handy for the new car you'll be buying soon, and a jumbo tube of 'K-Y Jelly.' You'll be needing both.





GoJoe said:


> Why do you say "new car I will be buying?"


Because your current car will be falling apart to pieces after all that Uber driving.


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## scrurbscrud (Sep 11, 2014)

I can hardly believe there is actually a driver who thinks that he's making a profit with Uber. WTF?! If you can't pencil whip your numbers to have no taxes to pay you shouldn't even be driving.


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## GoJoe (Oct 18, 2014)

As I said, I would post the info. Had a good meeting with the tax guy yesterday. Helped with some "re-routing." Game plan will be hiring an employee and handling mileage better. How the miles (loaded/unloaded) will be up to you. Seems to be info on both in here. Either way, what matters is the tracking and reports. I will be tracking all my miles moving forward, personal, business and health. My employee will be one of my family members and I will move money into a UGMA. Between paying my employee and the mileage deduction, I will have a loss, as expected.


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## scrurbscrud (Sep 11, 2014)

GoJoe said:


> As I said, I would post the info. Had a good meeting with the tax guy yesterday. Helped with some "re-routing." Game plan will be hiring an employee and handling mileage better. How the miles (loaded/unloaded) will be up to you. Seems to be info on both in here. Either way, what matters is the tracking and reports. I will be tracking all my miles moving forward, personal, business and health. My employee will be one of my family members and I will move money into a UGMA. *Between paying my employee and the mileage deduction, I will have a loss, as expected*.


Ah! I see you have a very good accountant. Excellent.

p.s. Don't forget to call your personal auto insurance company to see if a straight personal auto insurance company legally covers your arrangements. You may have an even bigger tax write off with a legit policy.


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## GoJoe (Oct 18, 2014)

Cowboy - appreciate you making this a productive post. Good stuff. You're spot on.
The retirement part will come from other work. I do see a consulting start up in the future, which would require some driving that for the most part, I already do. Mixed with an interest I already have.


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## scrurbscrud (Sep 11, 2014)

GoJoe said:


> Cowboy - appreciate you making this a productive post. Good stuff. You're spot on.
> The retirement part will come from other work. I do see a consulting start up in the future, which would require some driving that for the most part, I already do. Mixed with an interest I already have.


**** your cowboy derogatory language.

If yer ridin' naked on the insurance reference, I might suggest that your retirement account could be too small to cover yer saddle.


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## Older Chauffeur (Oct 16, 2014)

GoJoe,
Just wondering if your CPA advised you to use the actual permanent odometer, rather than the resettable trip meter, to record your various categories of mileage. My CPA insists on that for business use of my cars. He may be just playing safe, as he is the conservative type- which is why I have used him for years!


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## CowboyMC (Aug 26, 2014)

It doesn't matter how you determine your mileage, as long as it is accurate. The trip meter and the odometer have the same accuracy. If you want, you can use both and verify it.


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