# Taxes



## Tjphilly2 (Feb 2, 2017)

The CPA who does my taxes SAYS that should I gross 35 grand a year as a Uber partner that I would owe approximately $4,000 at the end of the year.

That sounds terribly high to me. I estimated I will be driving about 750 miles a week and do multiple car washes a month and buy detailing stuff, as I keep very good cosmetic care of my vehicle. I'm pretty well acquainted with the usual deductions .

I read of guys on here paying as little as $200 in income tax Plus the FICA. Does 4 grand on 35,000 sound high to any of you who have filed taxes? It seems ridiculous to me. Anybody who can give some input all would be appreciated. Thank you .

Tim


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## UberTaxPro (Oct 3, 2014)

Tjphilly2 said:


> The CPA who does my taxes SAYS that should I gross 35 grand a year as a Uber partner that I would owe approximately $4,000 at the end of the year.
> 
> That sounds terribly high to me. I estimated I will be driving about 750 miles a week and do multiple car washes a month and buy detailing stuff, as I keep very good cosmetic care of my vehicle. I'm pretty well acquainted with the usual deductions .
> 
> ...


 Grossing $35,000 will be the hard part! 
750 x 52 weeks = 39,000 miles. 39,000 x .535(SMD) = $20,865 SMD. $35,000 - $20,865 = $14,135. So you'll have $14,135 NET income to pay taxes on based only on your SMD deduction.
You can take it from there.....subtract your other deductions for schedule C, use the standard deduction or itemized expenses, etc... for your 1040 all depending on your personal situation. 
Don't forget Self employment tax. You'll pay that on your net income but you'll also gain a deduction for it on your 1040.
Here's a SE tax calculator https://www.calcxml.com/calculators/self-employment-tax-calculator


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## Tjphilly2 (Feb 2, 2017)

I'm easily doing 35k at this rate after only two months.

This a a crazy country. Billionaires who've ostensibly gone broke for years yet become mind dazzlingly wealthy pay nothing or close to nothing.

BUT the guy slogging away in a Uber cab making a subsidence living - HE'S THE ONE we worry about!

God bless America.....sure, yeah, right.


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## UberTaxPro (Oct 3, 2014)

Here's the way I see it.... Most Uber drivers that aren't afraid of hard work and putting in some serious hours will do well early on. After 3 to 6 months the novelty of it starts to wear off and expenses start showing up. You'll notice that Uber is constantly recruiting for drivers everywhere because they know drivers will be leaving as fast as they can recruit new ones. You should ask yourself " If this Uber thing is so great why are they always looking for more drivers?" And... "What hidden expenses could pop up and bite me where I don't want to be bitten?"

There are many things out of your control when your operating your own car service under the Uber umbrella. Here's a few for example:
1 Mechanical problems or damage to your car. Either one could cost you $ and put you out of work for a period of time. While your car is being repaired you'll be out of business and your income will stop also. So if you have a $1000 repair bill, and you make $750 week, and it takes a week to fix your car, the actual damage to your business will be more like $1750. Having a back up car would be helpful. 
2. Uber controls the rates. At anytime Uber can reduce the rates and cut your income and there is nothing you can do about it. They reduce rates often. In my area the rates have been cut in half from the day Uber started here. 
3. Back trouble - Talk to some truckers about back issues after sitting in a vehicle for long periods of time.
4. hemorrhoids - they'll make you start looking for a stand up job fast! 

Taxes will be the least of your problems in this business if you keep a mileage log and a few records. Uber drivers actually make out better than most in the tax department and rightfully so. Your'e providing public transportation at a discount rate and taking the burden off government subsidized transportation like buses and trains! So don't worry, you'll be in the lowest tax bracket. It's the least the government can do for all your help

The federal poverty level for a single person in 2017 is $12,060, your estimated net income of $14,135 isn't far off. The standard deduction of $6300 will put you well into the poverty range so you'll owe very little or 0 in income tax. You might have to pay a little SE taxes but that's your social security and medicare insurance that you might get back someday. 

I don't mean to discourage you! Just having some fun and trying to show you a little bit of the dark side of Uber in case you're not aware.


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## leosc (Sep 27, 2014)

Tjphilly2 said:


> The CPA who does my taxes SAYS that should I gross 35 grand a year as a Uber partner that I would owe approximately $4,000 at the end of the year.
> 
> That sounds terribly high to me. I estimated I will be driving about 750 miles a week and do multiple car washes a month and buy detailing stuff, as I keep very good cosmetic care of my vehicle. I'm pretty well acquainted with the usual deductions .
> 
> ...


$4000 way too much

750 miles per week? 
Did you keep a mileage log for all of the miles?


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## Tjphilly2 (Feb 2, 2017)

UberTaxPro said:


> Here's the way I see it.... Most Uber drivers that aren't afraid of hard work and putting in some serious hours will do well early on. After 3 to 6 months the novelty of it starts to wear off and expenses start showing up. You'll notice that Uber is constantly recruiting for drivers everywhere because they know drivers will be leaving as fast as they can recruit new ones. You should ask yourself " If this Uber thing is so great why are they always looking for more drivers?" And... "What hidden expenses could pop up and bite me where I don't want to be bitten?"
> 
> There are many things out of your control when your operating your own car service under the Uber umbrella. Here's a few for example:
> 1 Mechanical problems or damage to your car. Either one could cost you $ and put you out of work for a period of time. While your car is being repaired you'll be out of business and your income will stop also. So if you have a $1000 repair bill, and you make $750 week, and it takes a week to fix your car, the actual damage to your business will be more like $1750. Having a back up car would be helpful.
> ...


I'm a former cab driver so I'm used to long hours and such and I just like the lifestyle.

Also, I have income from other sources that pays my basic housing and utilities so ride share is just another income stream. I'm many ways, ride share is easier than traditional taxis - believe me.

I love what I do. Always did.

I'll say this though...it takes a certain sort of person with tough skin to be a cabbie (and thats what Uber drivers are if they arent "hobbyist" drivers just making a few bucks on the side).

I wish people could be more positive. If we did this right, we'd do alright at least until robocars which are many years away from being mass transit systems.

I think at least some of the complaints and negative attitudes come from people who thought this would be easy money. It never was - never.

It WAS better when taxi drivers had a union until the 70s - that got destroyed when America's socio- political climate became essentially anti- labor in the early 1980s and since then, it's become harder and harder to be "average" in this in many other "bread and butter" jobs.

My grandfather told me once "Timmy, there's only one thing worse than being in a union - NOT being in one and letting the bastards steamroller you anytime and anyway they want!" He had a been truck driver in the 20s and 30s before unionization was more common. He knew the difference.

My grandfather was in it and back then, cab drivers had some rights and made decent money. It was never an easy life but it got in your blood and if you were the type "you just liked it."

Even with union representation it still took a man with guts, determination, great people skills, and a willingness to be a bit daring. Some might say a little crazy - but you had no boss to deal with - at least most of the time - nor did you have to deal with office politics and all that bullcrap.

I have a degree yet I love driving a cab because I hate the CRAP going on in confined work spaces. I'm a generally kind person who's not the type to play people one against the other - I hate plotting and scheming and many if not most workplaces are absolute hotbeds of calculated and often underhanded scratching and clawing, with people angling at each other for even the slightest real or perceived advantage. In the age of PC - it's even worse. I endured it for 8 years in my last job...hate it.

Ok..back to the point.

I used to rent my cab and medallion on a 24/7 lease - cost was 2000 a MONTH when I stopped. Gas was another 200 to 250 a week (huge V8 engine, police package Ford Crown Vic weighing 5400 pounds, 9 mph maybe - engine check light on all the time, 72 hours a week on average - some guys did 80 to 90!).

At its peak, taxi leases were even higher - 1000 a WEEK. Plus gas. Plus long hours. Plus DANGER. Plus...plus.

We need some kind of organized reprentation with real power to deal with the ride share companies.

Peace of Christ all..

Tp



leosc said:


> $4000 way too much
> 
> 750 miles per week?
> Did you keep a mileage log for all of the miles?


I have a module that plugs into my analyst port creating a paper trail of all miles. I have two cars and one is used only for rideshare.


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## UberTaxPro (Oct 3, 2014)

Tjphilly2 said:


> I'm a former cab driver so I'm used to long hours and such and I just like the lifestyle.
> 
> Also, I have income from other sources that pays my basic housing and utilities so ride share is just another income stream. I'm many ways, ride share is easier than traditional taxis - believe me.
> 
> ...


Sounds like you know what your doing and understand whats happening! Also sounds like we're kindred souls. I also have a degree but *chose *to operate a small 7 car cab company until 2013. No corp BS for me! I started in 1997 with one cab and gradually grew to the 7 cars. I sold it to a couple of guys that used to work for me and they're still running it today. Driving and being out and about was the part I enjoyed most! To me the 70 to 80 hour work weeks were better than being trapped in an office somewhere with other people that don't want to be there either!
Taxes were a real headache for me at first and I got tired of paying accountants large sums of money for what seemed like very little work. The last five years in the taxi business I learned on my own how to do my bookkeeping and bussiness taxes. Once I gained an understanding I actually started to enjoy it! After selling the business I signed on with Uber mostly out of curiosity. I had some money from the sale and my wife has a real job so like you I was blessed with some other income to take the pressure off. I used my time in between calls (there was a lot of time between calls when Uber first started here) to study for the Enrolled Agent exam with the IRS. After passing 3 tests I finally (1/17) got my E.A. license.
Now I'm starting a new business doing tax returns and representing people that are getting nasty letters from the IRS. If you ever want to do your taxes yourself to save some money and need some help just ask, I'd be happy to help you. 
Peace of C to u also Timmy


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## cfjphd (Sep 12, 2016)

To Net this out, if someone sees I do not "get it" , your insight would be appreciate

From the Monthly 1099 breakdown the following fees are all completely and totally deductable ?

"Split fare"
"Airport fee"
"Uber Booking Fee"
"Uber Service Fee"
"On trip Mileage"

The sum of all the above fees, plus our actual payout will match the gross amount on our 1099.

Thanks to the people who have already posted in this thread for getting me to the point where I found all the information to get to the bottom of "Uber math"


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## steveK2016 (Jul 31, 2016)

You are earning roughly $1 a mile. Most Drivers, who don't drive Surges or higher end platforms get paid around $0.60 a mile, so when taking into account $0.52 deductions, that's why some drivers pay very little.

Take solace in knowing that you are paying more in taxes because you made more than those drivers that only paid $200 in taxes.


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## leosc (Sep 27, 2014)

Tjphilly2 said:


> The CPA who does my taxes SAYS that should I gross 35 grand a year as a Uber partner that I would owe approximately $4,000 at the end of the year.
> 
> That sounds terribly high to me. I estimated I will be driving about 750 miles a week and do multiple car washes a month and buy detailing stuff, as I keep very good cosmetic care of my vehicle. I'm pretty well acquainted with the usual deductions .
> 
> ...


Again $4000 is way too much...

Hope you redo it.


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## Mars Troll Number 4 (Oct 30, 2015)

Tjphilly2 said:


> The CPA who does my taxes SAYS that should I gross 35 grand a year as a Uber partner that I would owe approximately $4,000 at the end of the year.
> 
> That sounds terribly high to me. I estimated I will be driving about 750 miles a week and do multiple car washes a month and buy detailing stuff, as I keep very good cosmetic care of my vehicle. I'm pretty well acquainted with the usual deductions .
> 
> ...


Well here's the thing that the tax guys don't get.

If you grossed 35 a year you probobly would owe that much in any other IC job.

However 750 miles a week is $20,865 in deductible miles a year, which reduces your TAXABLE income down from $35,000 to $15,000. The effect on THIS is it will lower your tax burden and i believe knock you down a tax bracket or 2.

In some markets... (including orlando) driving uberX generates a flat zero in taxable income because you generate deductible miles faster than you generate income. Some markets are the reverse.

What you need to do is calculate how much you are generating in taxable income by comparing your deductible miles to your actual revenue.


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