# Tax Questions, Answers, and Services for members of UP



## StarzykCPA (Aug 6, 2015)

Hello everyone! My name is Joe Starzyk. I am a tax CPA (Certified Public Accountant) specializing in helping individuals and small businesses taking part in the sharing economy. This includes Uber and other rideshare drivers. Many may recognize me from helping people with their tax questions on this forum. I am here now to tell you about the tax services I offer and the exclusive pricing available to members of Uber People.

I know taxes can be confusing and/or complicated. So why not get professional help? Now you can hire a CPA who cares about you and your tax situation for a fraction of the cost. Included in my tax product are the following:

Preparation and electronic filing of your tax return
A digital copy of your tax return
A secure source for providing me your tax information electronically
Year-round consultation for your tax questions
Peace of mind
If needed, I also have a mileage log template (in excel) that I can provide my clients to help track your expenses.

In order to provide fair pricing for members of UP, I've put together a fixed pricing model based on the most common tax situation I see:

Tax facts: Individual, has a job, does Uber part-time, maybe has some interest and dividends from their investments, and lives in a state that requires a tax return. Or, in tax terms, has up to two Form W-2s, maybe received a Form 1099-INT or Form 1099-DIV, needs a Schedule C for their Uber business, and is required to file a state income tax return.

My price for the above scenario for members of UP: *$300*

Compare this to the price of Turbo Tax Self-Employed @ $89.99 + $19.99 (to e-file 1 state return) = $110. Am I more expensive? Yes. Is it worth it? Well, I think so, but I cannot make that decision for you. Not everyone will fit into the sample price above, but hopefully this will give you a great reference point.

Have a question? Just ask. Post here, send me a private message, or you can e-mail me directly at joe (at) starzykcpa.com. Feel free to browse my website as well. I look forward to working with you!

*I live in X state, can you help me with my return?*
Yes - I can file your tax return regardless of where you live.

*I have a special tax situation (e.g. own rental property or moved from one state to another). Could you provide me with a fixed quote for my tax return?*
Yes! Send me a PM or e-mail me at joe (at) starzykcpa.com. I will do my best to stick by the quoted price.

*How do I know I can trust you?*
CPAs are held to high levels of standards. Rest assured, your information is safe and will remain confidential. I am licensed in Maine, Massachusetts and Virginia. You can verify my CPA license here: https://cpaverify.org/ (please note: my full name is Joseph Starzyk).

*Does this mean you are going to stop answering questions on the forum?*
Nope!  Ask away! Always happy to help.


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## gaj (Nov 11, 2014)

Thanks Joe!

I have been telling people for a long time that spending money on a professional (accountant, attorney) always pays for itself in the long run. 

It looks like your prices are reasonable as well.

Yes, there are people who are capable of doing their own taxes. They know the right questions to ask and the right way to fill out the forms. (Speaking about a reasonably simple Schedule C for Uber.)

Another great thing about having a CPA is that you have someone knowledgeable to ask your questions, who will give you the correct answers. That, and a good CPA will have lots of questions about details you would never think of to ask YOU when preparing your taxes. A really good CPA will also be available to represent you should you be unfortunate enough to be audited.

g


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## StarzykCPA (Aug 6, 2015)

gaj said:


> Thanks Joe!
> 
> I have been telling people for a long time that spending money on a professional (accountant, attorney) always pays for itself in the long run.
> 
> ...


Thanks for the input. It seems we both look at this in the pretty much the same way. In fact, I'm thinking about putting together an online course to help people file taxes on their own - even though that means less business for me!


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## JMBF831 (Aug 13, 2015)

Thank you Joe, you are the man. I do have a basic question first. Do you have to file quarterly tax payments as a sole proprietor?


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## StarzykCPA (Aug 6, 2015)

JMBF831 said:


> Thank you Joe, you are the man. I do have a basic question first. Do you have to file quarterly tax payments as a sole proprietor?


No problem!

As a sole proprietor, you are required to make quarterly estimates if you expect to owe at least $1,000 in taxes for the year. This is assuming you have no other sources of income and/or withholdings. For example, if Uber is your only source of income and you make about $20k in net income for the year, you would be required to pay estimates because your expected tax will be around $3,600. In which case, you can make quarterly estimates of $900 (alternatively, you can base your estimates on prior year tax owed).

If you have a job, you can increase your withholdings from your job to cover any additional tax that may be owed from your sole proprietorship.


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## JMBF831 (Aug 13, 2015)

StarzykCPA said:


> No problem!
> 
> As a sole proprietor, you are required to make quarterly estimates if you expect to owe at least $1,000 in taxes for the year. This is assuming you have no other sources of income and/or withholdings. For example, if Uber is your only source of income and you make about $20k in net income for the year, you would be required to pay estimates because your expected tax will be around $3,600. In which case, you can make quarterly estimates of $900 (alternatively, you can base your estimates on prior year tax owed).
> 
> If you have a job, you can increase your withholdings from your job to cover any additional tax that may be owed from your sole proprietorship.


Thanks a lot, I feel like with all the advice you give out we should be paypaling you at least some amount of money lol

You have been very helpful and I truly appreciate it.


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## JMBF831 (Aug 13, 2015)

StarzykCPA said:


> No problem!
> 
> As a sole proprietor, you are required to make quarterly estimates if you expect to owe at least $1,000 in taxes for the year. This is assuming you have no other sources of income and/or withholdings. For example, if Uber is your only source of income and you make about $20k in net income for the year, you would be required to pay estimates because your expected tax will be around $3,600. In which case, you can make quarterly estimates of $900 (alternatively, you can base your estimates on prior year tax owed).
> 
> If you have a job, you can increase your withholdings from your job to cover any additional tax that may be owed from your sole proprietorship.


I am sure there is a reason for this, but why can't we just wait until the end of the year to pay taxes? Why do they want us to pay quarterly? Thank you again.


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## StarzykCPA (Aug 6, 2015)

JMBF831 said:


> I am sure there is a reason for this, but why can't we just wait until the end of the year to pay taxes? Why do they want us to pay quarterly? Thank you again.


Mostly so the Treasury can budget and use the funds throughout the year. This only brings sole proprietors on par with employees/employers, who remit payroll taxes on a quarterly basis.


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## JMBF831 (Aug 13, 2015)

StarzykCPA said:


> Mostly so the Treasury can budget and use the funds throughout the year. This only brings sole proprietors on par with employees/employers, who remit payroll taxes on a quarterly basis.


Thanks a lot Joe, I sent you an e-mail inquiring about your services


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## sweetmoneyfast (Jan 19, 2016)

Do new members qualify?


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## notfussy (Oct 14, 2015)

Help I don't understand this stuff. I will be looking at a professional this year. I havent kept a log of miles but i could go back on dashboard and get it? I didnt keep receipts cus i have online banking is that suffient? My car is not registered commericial and i only do it part time but i also got several bonus for referring people? What is the best way to file? I have 2 kids also? my car is 2013 Ford Focus 40,000 financing it!


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## KrazyKlownz (Mar 22, 2015)

Hello and thank you for making yourself available!

So far this year I have worked multiple On Demand services stopping at #7. Will I file all, or only a few claims?

Thanks again!


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## notfussy (Oct 14, 2015)

I'm confused what are you saying I was asking a question


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## StarzykCPA (Aug 6, 2015)

sweetmoneyfast said:


> Do new members qualify?


Yes.



notfussy said:


> Help I don't understand this stuff. I will be looking at a professional this year. I havent kept a log of miles but i could go back on dashboard and get it? I didnt keep receipts cus i have online banking is that suffient? My car is not registered commericial and i only do it part time but i also got several bonus for referring people? What is the best way to file? I have 2 kids also? my car is 2013 Ford Focus 40,000 financing it!


You will need a Schedule C for all of your Uber items. The standard mileage rate will probably work better for you. I will send you a PM for some details.



KrazyKlownz said:


> Hello and thank you for making yourself available!
> 
> So far this year I have worked multiple On Demand services stopping at #7. Will I file all, or only a few claims?
> 
> Thanks again!


Anything that you made money from - so likely all of them.


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## G3tOv3rH3r3 (Jul 3, 2015)

*"This message is to remind you that as an independent contractor using the Uber Platform, you may be required to register your business with the Office of Finance of the City of Los Angeles and obtain a Tax Registration Certificate. The City of Los Angeles Office of Finance has more information on the rules for registration at this website ."*

This was in the email I got a few days ago in the Uber Partner weekly emails. I started Uber in June 2015, I do drop off and pick ups in downtown L.A. once in a while, so I know this does apply to me. Is this a must? sorry if it came off as a dumb question.


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## StarzykCPA (Aug 6, 2015)

G3tOv3rH3r3 said:


> *"This message is to remind you that as an independent contractor using the Uber Platform, you may be required to register your business with the Office of Finance of the City of Los Angeles and obtain a Tax Registration Certificate. The City of Los Angeles Office of Finance has more information on the rules for registration at this website ."*
> 
> This was in the email I got a few days ago in the Uber Partner weekly emails. I started Uber in June 2015, I do drop off and pick ups in downtown L.A. once in a while, so I know this does apply to me. Is this a must? sorry if it came off as a dumb question.


It appears this is still a bit of a grey area, but you're probably best off applying for a license. Per this page, http://finance.lacity.org/content/SmallBusinessExemptionFAQ.htm, if your total gross receipts are under $100,000 you will not owe any taxes anyways (but you still need to file). You do not get that benefit if you do not file - meaning possible interest/penalties.


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## Casuale Haberdasher (Dec 7, 2014)

StarzykCPA said:


> Hello everyone! My name is Joe Starzyk. I am a tax CPA (Certified Public Accountant) specializing in helping individuals and small businesses taking part in the sharing economy. This includes Uber and other rideshare drivers. Many may recognize me from helping people with their tax questions on this forum. I am here now to tell you about the tax services I offer and the exclusive pricing available to members of Uber People.
> 
> I know taxes can be confusing and/or complicated. So why not get professional help? Now you can hire a CPA who cares about you and your tax situation for a fraction of the cost. Included in my tax product are the following:
> 
> ...


POST # 1/StarzykCPA : "Ahoy!" and Welcome to the UP.Net Forums
from Sunny, 71°F, Blue-skied Marco Island
on Florida's Wild SSW Coast.

Glad to have You Aboard.

$ponsor$hip Pay$! Where is "Well-Known"
UberTaxPro ?


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## arich35 (Mar 11, 2016)

As someone who will probably only being doing this for a few months before I get a job (in an unpaid internship right now), when would I need to file taxes and would I have to do quarterly? I am only expecting to make $200 a month for a few months (not planning on going all out with this) and not sure what I will have to do taxes wise. I live in Missouri if that helps anything.
Thank you


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## UberTaxPro (Oct 3, 2014)

arich35 said:


> As someone who will probably only being doing this for a few months before I get a job (in an unpaid internship right now), when would I need to file taxes and would I have to do quarterly? I am only expecting to make $200 a month for a few months (not planning on going all out with this) and not sure what I will have to do taxes wise. I live in Missouri if that helps anything.
> Thank you


You only need file estimated quarterly taxes if your making a profit and expect to owe more than $1000 at the end of the year. For a quick estimate take your miles driven for the week and multiply by .54 (standard mileage deduction) and subtract from your weekly earnings ($200) . For example, if you drove 200 miles, 200 x .54 = $108. $200- 108= 98. $98 x 12 (months) = $1176 taxable income. In this example you wouldn't have file estimated taxes because your tax bill on $1176 would be well under $1000.00. You'll also have some other deductions but this is just a quick estimate. Since you live in Missouri its best to just show you!


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## Friendly Jack (Nov 17, 2015)

StarzykCPA said:


> No problem!
> 
> As a sole proprietor, you are required to make quarterly estimates if you expect to owe at least $1,000 in taxes for the year. This is assuming you have no other sources of income and/or withholdings.


Joe, since many Uber drivers are first year drivers and, in addition, possibly doing Uber this year after losing a full-time job last year, it may be worthwhile noting the other conditions asidie from the $1000 owed threshold; that is, you expect your withholding and refundable credits to be less than the smaller of:

 90% of the tax to be shown on your current year's tax return, or
100% of the tax shown on your prior year's tax return.
This second qualification, in particular, may negate the need for quarterly filings for many drivers. Just trying to help. You are the professional and may want to comment further.


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## UberTaxPro (Oct 3, 2014)

Friendly Jack 
"This second qualification, in particular, may negate the need for quarterly filings for many drivers" That is actually part 2 of the 2nd qualification. The first qualification is the $1000 threshold and *both must apply.* The IRS buts the burden on the taxpayer here by using the word *"expect" *If you "expect" incorrectly you'll be paying penalties at the end of the year if you owe more than $1000.00

You *must make* estimated tax payments for the current tax year *if both *of the following apply:

You *expect* to owe at least $1,000 in tax for the current tax year after subtracting your withholding and refundable credits.
You* expect* your withholding and refundable credits to be less than the smaller of:
90% of the tax to be shown on your current year's tax return, or
100% of the tax shown on your prior year's tax return. (Your prior year tax return must cover all 12 months.)


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## StarzykCPA (Aug 6, 2015)

Friendly Jack said:


> Joe, since many Uber drivers are first year drivers and, in addition, possibly doing Uber this year after losing a full-time job last year, it may be worthwhile noting the other conditions asidie from the $1000 owed threshold; that is, you expect your withholding and refundable credits to be less than the smaller of:
> 
> 90% of the tax to be shown on your current year's tax return, or
> 100% of the tax shown on your prior year's tax return.
> This second qualification, in particular, may negate the need for quarterly filings for many drivers. Just trying to help. You are the professional and may want to comment further.


Thank you, yes, I made a mention to that towards the end of my post "(alternatively, you can base your estimates on prior year tax owed)." Though admittedly I could have provided more detail. The article linked does explain that, but UberTaxPro did a fine job in his reply :



UberTaxPro said:


> Friendly Jack
> "This second qualification, in particular, may negate the need for quarterly filings for many drivers" That is actually part 2 of the 2nd qualification. The first qualification is the $1000 threshold and *both must apply.* The IRS buts the burden on the taxpayer here by using the word *"expect" *If you "expect" incorrectly you'll be paying penalties at the end of the year if you owe more than $1000.00
> 
> You *must make* estimated tax payments for the current tax year *if both *of the following apply:
> ...


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## StarzykCPA (Aug 6, 2015)

arich35 said:


> As someone who will probably only being doing this for a few months before I get a job (in an unpaid internship right now), when would I need to file taxes and would I have to do quarterly? I am only expecting to make $200 a month for a few months (not planning on going all out with this) and not sure what I will have to do taxes wise. I live in Missouri if that helps anything.
> Thank you





UberTaxPro said:


> You only need file estimated quarterly taxes if your making a profit and expect to owe more than $1000 at the end of the year. For a quick estimate take your miles driven for the week and multiply by .54 (standard mileage deduction) and subtract from your weekly earnings ($200) . For example, if you drove 200 miles, 200 x .54 = $108. $200- 108= 98. $98 x 12 (months) = $1176 taxable income. In this example you wouldn't have file estimated taxes because your tax bill on $1176 would be well under $1000.00. You'll also have some other deductions but this is just a quick estimate. Since you live in Missouri its best to just show you!


Correct, you probably do not need to file anything quarterly with the numbers provided. Also true if you usually get a tax refund on your return since this will cover some (or all) of the tax owed. You'll only have to worry about it when it actually comes time to file your tax return (it will get a little more complicated with the required Schedule C).


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## arich35 (Mar 11, 2016)

StarzykCPA said:


> Correct, you probably do not need to file anything quarterly with the numbers provided. Also true if you usually get a tax refund on your return since this will cover some (or all) of the tax owed. You'll only have to worry about it when it actually comes time to file your tax return (it will get a little more complicated with the required Schedule C).


So just an update: 
I have made $95.59 in 3 days with 216 miles logged. Since the mile deduction is around $115, what would I need to do if I kept up that pace for the month and ended up with let's say $250 made?


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## StarzykCPA (Aug 6, 2015)

arich35 said:


> So just an update:
> I have made $95.59 in 3 days with 216 miles logged. Since the mile deduction is around $115, what would I need to do if I kept up that pace for the month and ended up with let's say $250 made?


Nothing. Just keep tracking those miles.


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