# Are the taxes I paid to the IRS this year "returnable" to me next year?



## Urbanappalachian (Dec 11, 2016)

Since most people who work regular jobs or get paid per diem or salary (not an independent contractor) have their taxes automatically taken out with each paycheck and thus they get a return of that money come tax day, I'm curious if independent contractors would also get a tax return the following year instead, or does the money go to social security, medicare, and so on? I guess I won't be getting back my $1900 I had to pay to the IRS this year, huh?


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## Older Chauffeur (Oct 16, 2014)

Urbanappalachian said:


> Since most people who work regular jobs or get paid per diem or salary (not an independent contractor) have their taxes automatically taken out with each paycheck and thus they get a return of that money come tax day, I'm curious if independent contractors would also get a tax return the following year instead, or does the money go to social security, medicare, and so on? I guess I won't be getting back my $1900 I had to pay to the IRS this year, huh?


The taxes you paid this year are based on your 2017 income, and they are gone. What you make this year you will file a return on in 2019. The usual way to get a refund is file a tax return showing that you overpaid. You can pay quarterly estimated taxes, and if the $1900 you paid was your total liability and paid with your return, that's something you might consider. There also refundable credits if you qualify.
As an independent contractor, you do pay 15.3% of your net profit on Schedule C toward Social Security and Medicare.

Disclosure: I am not a tax professional.


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## Urbanappalachian (Dec 11, 2016)

Are you saying Lyft and Uber drivers actually pay more in taxes than if we were to work minimum wage jobs (like at a McDonald's) and actually get a return each year? Or is it actually about the same? I'm curious if those "regular jobs" (minimum wage jobs) actually give people back the entire tax $ that was automatically taken out from their bi monthly paychecks?


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## UberTaxPro (Oct 3, 2014)

Urbanappalachian said:


> Are you saying Lyft and Uber drivers actually pay more in taxes than if we were to work minimum wage jobs (like at a McDonald's) and actually get a return each year? Or is it actually about the same? I'm curious if those "regular jobs" (minimum wage jobs) actually give people back the entire tax $ that was automatically taken out from their bi monthly paychecks?


Ride share drivers are considered self employed and pay the same tax rates on* income *as W2 jobs. When you work a W2 job your employer pays half of your social security and medicare taxes. As a rideshare driver you'll have to pay all of the *social security* and *medicare taxes* yourself because you are your own employer. 50% of the *social security* and *medicare taxes* you pay as a self employed rideshare driver will be deductible on your 1040. So yes, rideshare drivers that actually have positive income will pay more social security and medicare taxes than a W2 employee with the same income.


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## henrygates (Mar 29, 2018)

I think what you are asking is if taxes paid can be refunded the following year if your deductions well exceed the next years income. No.


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## UberTaxPro (Oct 3, 2014)

henrygates said:


> I think what you are asking is if taxes paid can be refunded the following year if your deductions well exceed the next years income. No.


True, but deductions not used can in many situations be carried forward and used the next year.


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