# Question about taxes and "breaking even"



## Kerplunkenstein (Sep 3, 2015)

I read all the time on this message board about figuring out your NET pay and how it pertains to taxes and "breaking even"

If I drive enough that my miles = enough not to pay taxes on my pay, how does that automatically mean I broke even? I drive a 2009 Civic and even with gas and wear/tear I'm sure I'm not "breaking even"


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## gofry (Oct 20, 2015)

Ignore the strategy of driving for Uber for tax benefits. You would have to drive thousands of miles and drive for many hours to claim even a small amount of expenses to offset taxable income.

Besides, the idea of a job isn't to break even, it's to make as much money as possible after expenses. If you're paying taxes, you're making money.


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## Mars Troll Number 4 (Oct 30, 2015)

Kerplunkenstein said:


> I read all the time on this message board about figuring out your NET pay and how it pertains to taxes and "breaking even"
> 
> If I drive enough that my miles = enough not to pay taxes on my pay, how does that automatically mean I broke even? I drive a 2009 Civic and even with gas and wear/tear I'm sure I'm not "breaking even"


There are markets paying way way WAY less than yours...

That's the most important thing you have to understand.

Some pay as little as 53c a mile 8c a minute.


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## Oscar Levant (Aug 15, 2014)

Kerplunkenstein said:


> I read all the time on this message board about figuring out your NET pay and how it pertains to taxes and "breaking even"
> 
> If I drive enough that my miles = enough not to pay taxes on my pay, how does that automatically mean I broke even? I drive a 2009 Civic and even with gas and wear/tear I'm sure I'm not "breaking even"


You might be on paper if you take the $0.54 per mile deduction but in fact you'll make money so it won't be a lot


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## SEAL Team 5 (Dec 19, 2015)

Kerplunkenstein said:


> I drive a 2009 Civic and even with gas and wear/tear I'm sure I'm not "breaking even"


Hell no you're not breaking even. You're raking in the dough!!! Don't listen to these people in this forum. Just listen to Uber. They're the professionals. They care about your well being and would never steer you wrong into "breaking even".


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## emillsguitar (Nov 22, 2017)

All the miles you drive getting to your spot, coming back, and driving pax is tax deductible. A lot of these apps only calculate miles driven when driving to the pax and with the pax. Just wanted to go along with this tax bogus I hear. Keep a log and calculate every mile. You will never come close to breaking even. Good luck!!!


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## ShinyAndChrome (Aug 18, 2017)

You drive 100 miles, this includes dead miles and pax miles.

IRS says you can deduct $53.50.

Uber actually paid you $60 for the 100 miles total.

You thus pay taxes on $6.50.

If you get $.25/mile, you had $25 operating costs. Therefore 100 miles = $35 actual profits minus the tax on $6.50.

Be forwarned tax on 1099 is sky high; it will be taxed at your highest bracket (assuming you have a regular job) and also full pay roll taxes (e.g. social security). My 1099 tax rate is about 50%.

In another scenario if it took 112 miles instead of 100 to reach $60 in earnings, 112 miles deducted is $60, so you "break even" from a tax perspective.


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## RamzFanz (Jan 31, 2015)

gofry said:


> Besides, the idea of a job isn't to break even, it's to make as much money as possible after expenses. If you're paying taxes, you're making money.


This is 100% untrue.

Actual profit and earnings are unrelated to taxes paid.


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