# Self-Employment Tax (Long)



## Aw Jeez (Jul 13, 2015)

Uber sent me a 1099 last year, and so I had to file federal income taxes for 2021. I wanted to itemize and deduct the cost of using my car for the business, so that meant I had to use the “long form” 1040. In addition to the usual 1040 form, I also needed some cross-referenced forms:

1) Schedule C “Profit and Loss From Business
2) Schedule 1 “Additional Income and Adjustments to Income
3) Schedule 2 “Additional Taxes”
4) Schedule SE “Self-Employment Tax

I ended up with a profit of $6,700 on Form C. The only place that number can go on your 1040 form is Line 8, but Line 8 directs you to attach Schedule 1, So now you move to Schedule 1, which asks for your Form C income ($6,700).

To fill out Schedule 1, you are asked on Line 15 to enter the deductible part of your self-employment tax, which you get from filling out Schedule SE. Jeez, another form! So I fill out the convoluted Schedule SE and in my case, my self-employment tax ended up being $950!

On the front of my 1040, it worked out that I did not have any tax liability. My taxable income was zero. Great! Oh? NOT SO FAST, bubba. Turn the form over. Line 23 “Other taxes” asks for your self-employment tax from Schedule 2. No way around it, I have to enter that $950 on Line 37 “amount you owe” of my 1040. Dammit.

So even if you get your taxable income down to zero with deductions, you’re still going to owe a self-employment tax. I now understand why people are paid big money to handle these things for us.


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## Rampage (8 mo ago)

A good accountant doesn’t cost money…it saves you money.


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## Aw Jeez (Jul 13, 2015)

Admittedly, I could have gotten my Form C income down by claiming more business miles than just those listed by Uber and therefore getting a higher deduction. But for a number of reasons I could not do that. I will be able to do that in 2022, since both Uber _and_ Lyft will be sending me 1099's, presumably.


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## Judge and Jury (Oct 19, 2019)

Aw Jeez said:


> Admittedly, I could have gotten my Form C income down by claiming more business miles than just those listed by Uber and therefore getting a higher deduction. But for a number of reasons I could not do that. I will be able to do that in 2022, since both Uber _and_ Lyft will be sending me 1099's, presumably.


Keep your own mileage records. 

From the time you log on until you log off. 

I log on before I leave my driveway and log off after I return. 

Guessing the apps only record active time miles.


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## Ted Fink (Mar 19, 2018)

TurboTax handles SE and C flawlessly. I recommend it.


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## Uber's Guber (Oct 22, 2017)

Rampage said:


> A good accountant doesn’t cost money…it saves you money.


And the cost of utilizing an accountant is also a write off as well.


Aw Jeez said:


> I could have gotten my Form C income down by claiming more business miles than just those listed by Uber


Mileage “listed by Uber” is insufficient for the purposes of claiming that tax deduction. You need to personally maintain a detailed mileage log that will satisfy Joe Burden’s new compliance army of 87,000 agents that’s coming to pick your pockets. It’s part of Joe Burden’s so-called “Inflation Reduction Act.”


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## Atom guy (Jul 27, 2016)

Yes. The only way I have ended up not owing anything in self employment tax is because I ended up getting a refund on my Obamacare premiums because all my deductions took my income below what I had put in on the ACA website, which offset the self employment tax I owed.


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## groovycora (6 mo ago)

Just a side note that Gridwise is a decent app. It tracks my mileage for free and I can download the mileage in a CSV format when taxes are due. I just click "start tracking" on the app before my shift and then sign out. I have only been at it for 2 months but put on about 500 miles a week and it is a lot of hassle to keep track of every trip and Uber does a crap job at it. The tax man will always fine comb everything to rake you of what they can. Gridwise also has a paid version and honestly it may be worth it. I am new at this "self employment" tax write off so may pay someone...esp if it saves me several hundred bucks or even more.


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## bobby747 (Dec 29, 2015)

I pay this every year. only way around it is if you have dependents and would be getting a refund....the self tax is taking out of refund..


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## oldfart (Dec 22, 2017)

Aw Jeez said:


> Uber sent me a 1099 last year, and so I had to file federal income taxes for 2021. I wanted to itemize and deduct the cost of using my car for the business, so that meant I had to use the “long form” 1040. In addition to the usual 1040 form, I also needed some cross-referenced forms:
> 
> 1) Schedule C “Profit and Loss From Business
> 2) Schedule 1 “Additional Income and Adjustments to Income
> ...


Self employment tax is paid based on your self employment income; before you enter the numbers on your 1040. But you know that now. If you get your schedule C income (business profit) down to under $400 you wont owe any self employment tax, 

So If you can (if you have your mileage log) I'd file an amended return. 

On the other hand, consider this:. The more self employment tax you pay over the years, the more your Social Security income will be when you retire


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## bobby747 (Dec 29, 2015)

If you are a big profit. And file LLC or s corp. One of these but no self employment tax. I asked my accountant. She says last year with all said I done. It's not worth it for me at this point giant earner no SELF.TAX


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## Ted Fink (Mar 19, 2018)

bobby747 said:


> If you are a big profit. And file LLC or s corp. One of these but no self employment tax. I asked my accountant. She says last year with all said I done. It's not worth it for me at this point giant earner no SELF.TAX


clarification:

are you saying either 

a) you are LLC or S corp and therefore have no self employment tax or...

b) you are NOT LLC/S Corp but still didn't owe SE tax (because of deductions, I assume?)


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## bobby747 (Dec 29, 2015)

hey ted...still didn't owe SE tax (because of deductions, I assume? owed some acc. said i would have saved only a few hundred in tax if i became an s corp..so not worth it ..driver still many years..maybe 2 more. a young 60...plus i got this wav thing all figured out with my own people too,




this guy is good,,


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