# Tax Question



## Markbrla (Oct 16, 2014)

Is my math correct in the following example?

Gross earnings (your 80% take): $10,000
Miles driven: 15,000
Mileage deduction: $8,400 (15,000 x .56c/mile)
Taxable income: $1,600
Tax owed (assuming 25% tax rate): $400

Fuel, maintenance, wear and tear and depreciation are included in the .56c/mile deduction, per IRS guidelines.

So, I would owe the IRS $400?


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## Elmoooy (Sep 3, 2014)

I think at end of this - IRS will owe me money, maybe several thousand of dollars.


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## iumichael (Sep 3, 2014)

I would also deduct car washes, a portion of your cell phone bill, and any water/snacks given to passengers. Just be careful with the 25% assumption. My marginal tax rate is 25% for federal, but I'll also have to pay 3.4% state, 1.1% county, and about 14.5% self-employment (SSI and Medicare). About 44% of my net income.


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## Brady (Oct 6, 2014)

iumichael said:


> , and about 14.5% self-employment (SSI and Medicare).


Right. 1099's always seem to forget about SSI & Medicare. They're taken out of W-2s. You still need to pay them when you're 1099.


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## pUber_driver (Nov 2, 2014)

Do you have a 1099 from previous year? Does it include the $1 riders fee in your income?


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## Markbrla (Oct 16, 2014)

Thanks iumichael... I forgot about the self-employment tax.


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## CowboyMC (Aug 26, 2014)

Don't forget to deduct cost of tolls and parking.


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## John_in_kc (Sep 30, 2014)

and your marketing miles you drove to pass out your business cards


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## Piotrowski (Sep 9, 2014)

There's a lot more you can take. Keep in mind tax law are written the way they are, there are no such things as loopholes, they were baked in for a reason. The people that get screwed the most are people that are employees. That's why I laugh when people think it would be so cool if Uber made them one. I haven't been an employee in a long long time and it made me scream when I saw the tax that my employees got hit up for. (and me too as I had to pay a big chunk of them... money that I could not give them). Trust me, Taxes are the least of your problems if you do it right.


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