# New Driver have Tax questions



## Italnstallion99 (Sep 5, 2015)

Hi Everyone,

I am a new uber driver here and I am looking to get some tax questions answered.


- I notice the uber app underestimates mileage driven for passenger pick up/drop off. For example I did (2) 15 mile trips last week and uber stated I only drove 13 miles for each trip. Now I logged myself what my odometer read. Will I be able to deduct what I have when it comes tax time or does the IRS go off of what uber states?

- Dead Mileage and Dead tolls. I had to run some errands last week about an hour away from my house. When I was done, i turned my app on and did a few rides. However I also had to drive back to my house when I was done driving, I had mileage and tolls. Can I deduct this?

Deductions: How do I determine what percentage I can deduct? For example my cell phone is used by uber and personal use. How do i figure out what percentage of the bill/device I am able to deduct?

Filing Taxes: How do determine if i need to file estimated taxes or not? I have a full time job where I get paid on a W2. I have always used online tax software. Can I still use online tax software for this? I know at the end of the year, I will file my W2 in addition to the 1099 I get from Uber. The estimated taxes part for me is unfamiliar territory. Also if I picked up passengers in states other than NJ, would I need to file taxes in that state as well? I am just trying to get all my ducks in order as I don't want to complicate things.


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## Old Rocker (Aug 20, 2015)

You should record your odometer miles each day when you start and when you stop Ubering. Then you recorders so you can deduct all your Uber related miles on your Federal return. Since you will probably be using the standard mileage rate for 2015 of 57.5 cents per mike, you can't deduct other items like dead tolls.

As for the 1099, when you do your taxes, add that you are also self-employed. That's where you will add your 1099 income and deduct your expenses. With TurboTax, you'll have to pay for a higher level product than the basic package if you have self-employment on your return.


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## makinthemagic (Oct 8, 2015)

What Old Rocker said is right.


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## EscUber (Oct 12, 2015)

One more question to add to this. 

I have read on here that we should also deduct the srf because uber reports it on the 1099 as gross income. Where do we add this deduction? If I make 200 trips by the end of the year, in my area at 1.75 srf. That's another $350 I can deduct. Or am I wrong on this?


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## StarzykCPA (Aug 6, 2015)

EscUber said:


> One more question to add to this.
> 
> I have read on here that we should also deduct the srf because uber reports it on the 1099 as gross income. Where do we add this deduction? If I make 200 trips by the end of the year, in my area at 1.75 srf. That's another $350 I can deduct. Or am I wrong on this?


You would likely include this deduction on the "Commissions and fees" line on Schedule C.


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## Stevie G (Nov 5, 2015)

what is "srf"?
Thanks


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## Fuzzyelvis (Dec 7, 2014)

Old Rocker said:


> You should record your odometer miles each day when you start and when you stop Ubering. Then you recorders so you can deduct all your Uber related miles on your Federal return. Since you will probably be using the standard mileage rate for 2015 of 57.5 cents per mike, you can't deduct other items like dead tolls.
> 
> As for the 1099, when you do your taxes, add that you are also self-employed. That's where you will add your 1099 income and deduct your expenses. With TurboTax, you'll have to pay for a higher level product than the basic package if you have self-employment on your return.


Tolls and parking are separate from mileage. They are not a "vehicle" expense the same way. It costs you the same gas and depreciation to drive a mile regardless of if you go through a toll.

NOTE: If you go from one job to another that is not commuting and is tax deductible, as are the tolls. I think it's publication 463.
https://www.irs.gov/
Here is the page from.the IRS:


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## Old Rocker (Aug 20, 2015)

Fuzzyelvis said:


> View attachment 17565
> 
> Tolls and parking are separate from mileage. They are not a "vehicle" expense the same way. It costs you the same gas and depreciation to drive a mile regardless of if you go through a toll.
> 
> ...


Tolls are a reimbursed expense, so you can't deduct them at all, I just realized.


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## Fuzzyelvis (Dec 7, 2014)

Old Rocker said:


> Tolls are a reimbursed expense, so you can't deduct them at all, I just realized.


Your tolls TO a pax are. Or if you are app on and moving to a better area. So coming BACK to town on Westpark fir instance. Also tolls from your regular job to another as well as the mileage is deductible.

Uber will likely include the tolls in your 1099 anyway so you will be deducting them.

I print out my ez tag statement each month and mark which tolls are uber.

Trips for medical reasons and to do volunteer work are also deductible. The rates vary. I deduct ALL of this. I take foster cats to adoption events and that mileage is deducted. I go to get my teeth cleaned it's deducted.

I've been self employed since 1991. I keep track of every mile on my car. If you do this long enough it's second nature.

I've done all my own taxes. The first year self employed I read all the IRS info. It took a while. Now I just keep up with changes.

I don't ever lie but I deduct every last legal penny I can.


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## Fuzzyelvis (Dec 7, 2014)

Old Rocker said:


> You should record your odometer miles each day when you start and when you stop Ubering. Then you recorders so you can deduct all your Uber related miles on your Federal return. Since you will probably be using the standard mileage rate for 2015 of 57.5 cents per mike, you can't deduct other items like dead tolls.
> 
> As for the 1099, when you do your taxes, add that you are also self-employed. That's where you will add your 1099 income and deduct your expenses. With TurboTax, you'll have to pay for a higher level product than the basic package if you have self-employment on your return.


One of the problems with using software blindly is you may answer questions incorrectly.

For instance, Dominos pays me 27 cents per mile for gas. One of our drivers told me tgat she didn't understand how I could deduct mileage because when she told TurboTax she didn't have any unreimbursed vehicle expenses it didn't let her deduct mileage.

I explained that she DID have unreimbursed expenses: the difference between the 27 cents and the deductible cost which was 55 or 56 cents back then I think.

So you still need to know what you're doing or you could lose a deduction.


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## EcoboostMKS (Nov 6, 2015)

I do this full time and receive better write offs by just deducting all work related expenses. The price of car, gas, tolls, cell phone, repairs, maintenance, etc. Anything work related, I write off. I don't even bother tracking the miles traveled for tax purposes. Just keep all your receipts.


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## Fuzzyelvis (Dec 7, 2014)

EcoboostMKS said:


> I do this full time and receive better write offs by just deducting all work related expenses. The price of car, gas, tolls, cell phone, repairs, maintenance, etc. Anything work related, I write off. I don't even bother tracking the miles traveled for tax purposes. Just keep all your receipts.


It depends on your situation.and how many miles you drive. But you have to keep track of mileage regardless unless you ONLY use the car for business. You can't deduct ALL car expenses otherwise.

For almost everyone the mileage is the better deduction for their vehicle. But you can still deduct tolls, % of cell phone etc. (Or all of the uber phone if you use it).


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## EcoboostMKS (Nov 6, 2015)

Fuzzyelvis said:


> It depends on your situation.and how many miles you drive. But you have to keep track of mileage regardless unless you ONLY use the car for business. You can't deduct ALL car expenses otherwise.
> 
> For almost everyone the mileage is the better deduction for their vehicle. But you can still deduct tolls, % of cell phone etc. (Or all of the uber phone if you use it).


True. My car is only used for business. Probably not the case with most here.


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## Old Rocker (Aug 20, 2015)

Fuzzyelvis said:


> Your tolls TO a pax are. Or if you are app on and moving to a better area. So coming BACK to town on Westpark fir instance. Also tolls from your regular job to another as well as the mileage is deductible.
> 
> Uber will likely include the tolls in your 1099 anyway so you will be deducting them.
> 
> ...


Didn't think about taking toll roads to pick up a pax since I've never done it. Good point.


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## UberBlackDriverLA (Aug 21, 2014)

Old Rocker said:


> You should record your odometer miles each day when you start and when you stop Ubering. Then you recorders so you can deduct all your Uber related miles on your Federal return. Since you will probably be using the standard mileage rate for 2015 of 57.5 cents per mike, you can't deduct other items like dead tolls.
> 
> As for the 1099, when you do your taxes, add that you are also self-employed. That's where you will add your 1099 income and deduct your expenses. With TurboTax, you'll have to pay for a higher level product than the basic package if you have self-employment on your return.


Actually, UberX drivers cannot deduct .575 per mile. Uber pays the commercial insurance while you use your car commercially. You can only use the mileage deduction if you are paying ALL your car costs, but you are not.


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## Old Rocker (Aug 20, 2015)

UberBlackDriverLA said:


> Actually, UberX drivers cannot deduct .575 per mile. Uber pays the commercial insurance while you use your car commercially. You can only use the mileage deduction if you are paying ALL your car costs, but you are not.


A unique point of view.


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## UberBlackDriverLA (Aug 21, 2014)

Old Rocker said:


> A unique point of view.


It's pretty basic. You cannot claim a deduction for an expense you do not incur.


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## Old Rocker (Aug 20, 2015)

UberBlackDriverLA said:


> It's pretty basic. You cannot claim a deduction for an expense you do not incur.


I'll be taking my 57.5 cent standard mileage tax deduction. If you want to be the only one who doesn't based on some erroneous information you received from who knows where, then that's your personal choice.


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## UberBlackDriverLA (Aug 21, 2014)

Old Rocker said:


> I'll be taking my 57.5 cent standard mileage tax deduction. If you want to be the only one who doesn't based on some erroneous information you received from who knows where, then that's your personal choice.


I don't Uber. Hope you don't get audited! haha.


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