# what % do you take out of your weekly earnings?



## Bwood (Oct 7, 2016)

Just started ubering, I guess this is more for my fellow Californians. What percentage should I be taking out every week? I only do part time 10-12 hours if that makes a difference.

Thanks!


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## Older Chauffeur (Oct 16, 2014)

Bwood said:


> Just started ubering, I guess this is more for my fellow Californians. What percentage should I be taking out every week? I only do part time 10-12 hours if that makes a difference.
> 
> Thanks!


If you have a regular job with payroll withholding, and usually get a refund, it shouldn't cause you any problems with the IRS. Be sure to keep track of all miles with the app on, (an odometer log) as that expense alone will lower your taxable income from self employment significantly. Hope you have rideshare insurance.


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## Bwood (Oct 7, 2016)

Older Chauffeur said:


> If you have a regular job with payroll withholding, and usually get a refund, it shouldn't cause you any problems with the IRS. Be sure to keep track of all miles with the app on, (an odometer log) as that expense alone will lower your taxable income from self employment significantly. Hope you have rideshare insurance.


Hey a fellow simi driver!

thanks for responding. sorry if I'm misunderstanding you, but are you saying I don't have to take taxes out if I already have a normal full time job? and I do not currently have rideshare insurance...

any advice or information is very appreciated


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## Older Chauffeur (Oct 16, 2014)

Bwood said:


> Hey a fellow simi driver!
> 
> thanks for responding. sorry if I'm misunderstanding you, but are you saying I don't have to take taxes out if I already have a normal full time job? and I do not currently have rideshare insurance...
> 
> any advice or information is very appreciated


If you are self employed and the driving is your only source of income, and will wind up owing over $1000.00 ( I think that's the threshold) then the IRS wants you to make quarterly estimated tax payments. This is like an employer paying in your withheld taxes over the course of the year. 
You will add a Schedule C to your tax return to show your income and expenses from driving. You can claim $0.54 per business mile, plus cell phone costs related to Uber. You do need to keep good records. You may be surprised how that mileage can add up, especially the "dead" miles with no pax.


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## Bwood (Oct 7, 2016)

I'm still a littler confused...so don't take any % out and just make sure to track all my expenses and I'm good to go??


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## Older Chauffeur (Oct 16, 2014)

Bwood said:


> I'm still a littler confused...so don't take any % out and just make sure to track all my expenses and I'm good to go??


It would be a good idea to put some money aside, but you don't need to file quarterly at this point. You should check with whoever does your tax returns, or if you do yourself with Turbo Tax, etc, they will figure it out for you.


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## tohunt4me (Nov 23, 2015)

Bwood said:


> Just started ubering, I guess this is more for my fellow Californians. What percentage should I be taking out every week? I only do part time 10-12 hours if that makes a difference.
> 
> Thanks!


As much as you can afford to.
When I first started,I socked away thousands in the bank.
Now I have $25.00 ,have become disillusioned,hate to see the Mile's fly on my odometer so fast.
Now I work enough to pay bills,then sit back in disgust. My car is 2 years old.Hopefully, I earn enough to pay it off before I wear it out. They have flooded the market with new drivers. All the things I learned the hard way,through my time and expense,Uber gives away to new drivers. " go here at these times for maximum earnings". So all the crap work I do as a full timer,the best of it is given away.
Save as much as you can. I need new tires soon. That will be $500.00-$600.00. I have a traffic cam ticket due soon for $150.00. I have $25.00 in the bank.


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## Bwood (Oct 7, 2016)

my mother in law owns a tax firm ironicallyand is my accountant. she tells me to take 25% of each weekly pay out which I think is a bit much...but I know she is an amazing accountant and wants me to do things right. I'm just trying to figure out a way to get the most bang for my buck because when I take out those taxes every week and consider the gas I'm spending, I'm just not making the side income that I want to.


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## Older Chauffeur (Oct 16, 2014)

Bwood said:


> my mother in law owns a tax firm ironicallyand is my accountant. she tells me to take 25% of each weekly pay out which I think is a bit much...but I know she is an amazing accountant and wants me to do things right. I'm just trying to figure out a way to get the most bang for my buck because when I take out those taxes every week and consider the gas I'm spending, I'm just not making the side income that I want to.


Does she understand that your dead miles are going to roughly match your paid miles? Driving for Uber generates cash flow, but not a lot of profit for a lot of drivers. Example: drive a pax 40 miles to LA, fare roughly $40 minus 25% to Uber leaves you $30. Deadhead back to Simi and you have now driven 80 miles, for which you can deduct $43.20 in mileage on your Schedule C, giving you a loss of $13.20. Of course this won't happen all the time, but enough that you won't show much profit to pay tax on. If you make a profit of at least $400, there will be FICA taxes of 15.3% in addition to income tax. But you get credit for half that elsewhere in your return.

The cash is basically coming to you courtesy of the equity you have in your car. Driving part time may lessen the effects, and many experienced drivers recommend doing just that. But take her advice and save the money; if you don't have to pay it out in taxes or car repairs, you will have something to show for your efforts.


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## Bwood (Oct 7, 2016)

Older Chauffeur said:


> Does she understand that your dead miles are going to roughly match your paid miles? Driving for Uber generates cash flow, but not a lot of profit for a lot of drivers. Example: drive a pax 40 miles to LA, fare roughly $40 minus 25% to Uber leaves you $30. Deadhead back to Simi and you have now driven 80 miles, for which you can deduct $43.20 in mileage on your Schedule C, giving you a loss of $13.20. Of course this won't happen all the time, but enough that you won't show much profit to pay tax on. If you make a profit of at least $400, there will be FICA taxes of 15.3% in addition to income tax. But you get credit for half that elsewhere in your return.
> 
> The cash is basically coming to you courtesy of the equity you have in your car. Driving part time may lessen the effects, and many experienced drivers recommend doing just that. But take her advice and save the money; if you don't have to pay it out in taxes or car repairs, you will have something to show for your efforts.


I don't think she understands how uber works so maybe she's treating me like a full time sole proprietor. I think I'll take out maybe 15% just in case and keep really good track of my mileage and what not for when it's time to submit all of that stuff. Thanks for helping me with this!


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## Older Chauffeur (Oct 16, 2014)

Bwood said:


> I don't think she understands how uber works so maybe she's treating me like a full time sole proprietor. I think I'll take out maybe 15% just in case and keep really good track of my mileage and what not for when it's time to submit all of that stuff. Thanks for helping me with this!


Good luck! Are you getting much in the way of business so far? (You may have noticed my signature- I drive privately, not for Uber/Lyft.

Re rideshare insurance, you really need to understand the risks you are taking going without it.

Here's an example of what can happen, posted by Chamoysito, who is left out in the cold after an accident involving another Uber driver. Neither of them has rideshare insurance, and the guy who hit her gphas AAA, which will not cover a rideshare accident, period.

If the link doesn't work, look in cities for LA/OC, then LAX Accident.
https://uberpeople.net/threads/lax-accident.111561/page-4#post-1604090


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## jester121 (Sep 6, 2016)

Bwood said:


> my mother in law owns a tax firm ironicallyand is my accountant.


What's ironic about that? I expect the vast majority of tax firm owners have a son- or daughter-in-law....


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## Bwood (Oct 7, 2016)

Older Chauffeur said:


> Good luck! Are you getting much in the way of business so far? (You may have noticed my signature- I drive privately, not for Uber/Lyft.
> 
> Re rideshare insurance, you really need to understand the risks you are taking going without it.
> 
> ...


I will have to look into rideshare insurance for sure. Times are tough right now which is why I am here in the first place.

Business has been pretty good so far. It's obviously hit or miss in the Ventura County area but usually I will eventually get a ride down south were requests are more likely.

I uber 3 nights a week for a grand total of 10-12 hours. Two weeks in and I've made over 200 each week which was pretty much my goal. Anything helps and I find it exciting/easy work. The fact you can start and finish whenever you want is awesome too. Just trying to learn all the tricks and traits from the pros here so I can get the most out of this experience until I'm in a position in life where I no longer have to uber.


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## Bwood (Oct 7, 2016)

jester121 said:


> What's ironic about that? I expect the vast majority of tax firm owners have a son- or daughter-in-law....


I meant ironic because I am on a forum asking about taxes rather than just listening to my mother in law hahaha. I am listening to her but I am being stubborn and trying to find a way out of taking 25% out of my profits like she is suggesting...


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## Older Chauffeur (Oct 16, 2014)

Bwood said:


> I will have to look into rideshare insurance for sure. Times are tough right now which is why I am here in the first place.
> 
> Business has been pretty good so far. It's obviously hit or miss in the Ventura County area but usually I will eventually get a ride down south were requests are more likely.
> 
> I uber 3 nights a week for a grand total of 10-12 hours. Two weeks in and I've made over 200 each week which was pretty much my goal. Anything helps and I find it exciting/easy work. The fact you can start and finish whenever you want is awesome too. Just trying to learn all the tricks and traits from the pros here so I can get the most out of this experience until I'm in a position in life where I no longer have to uber.


Ok, so if you total the miles you drove ( I hope you are keeping a record of start/end odometer readings each shift) to get that $400 deposited in your account, and multiply that number by $0.54 you'll have a rough idea of your profit.


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## jester121 (Sep 6, 2016)

Bwood said:


> I meant ironic because I am on a forum asking about taxes rather than just listening to my mother in law hahaha. I am listening to her but I am being stubborn and trying to find a way out of taking 25% out of my profits like she is suggesting...


Gotcha. Well, she's just talking about putting aside the 25% in your savings account in case you need it when she files your taxes. If it's not needed to pay your tax liability, it's a nice little windfall for you, and you don't have to way for the Treasury to get around to sending you a refund check.


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