# New Uber Driver



## chileman (Jan 7, 2016)

Hello all I am going to start uber driving in my spare time maybe 5 hours a week, im looking to possibly make an extra 50 dollars a week, I am wondering what will i need to keep track of as far as tax information i understand uber does not withold any taxes and you need to keep track, so lets say my goal here is to make about 200 extra dollars a month which would put me at an income of 2,400 for the year any advice would be great thank you =D


----------



## StarzykCPA (Aug 6, 2015)

The most important thing to track is your mileage. So long as you are tracking all information needed, you can keep track of your mileage any way you choose. You need to track the following information:

Date
Destination/Area
Business purpose
Miles for the trip (ideally with starting and ending odometer readings)
Description and amount for any relevant expenses for the trip
Following are a couple examples of methods you can use:

The old-fashioned method: keep a journal in your car and jot down your beginning and ending odometer readings and other required information. You can later transfer this to an excel sheet to do the calculations for you.
There are also several apps available to help you. Some track mileage using a GPS, others act as a way to input your needed information. Examples include Expensify, TripLog, SherpaShare Driver, Ride Companion, Drive Companion, among many others.
With only working a few hours a week, chances are your net profit will not be substantial enough to worry about tax estimates and what not (though this does depend on your specific situation).


----------



## chileman (Jan 7, 2016)

Thank you this is great advice, so as far as tax saving from my income how should i calculate it? i have been reading on this thread and it seems the smart thing to do is take a bit out of the income you get and set it aside for tax season what pecernt should i take out of my pay out? and I should use the pay out i get from uber correct? after the fee they take out? I also plan on getting new tired for my car for driving since i dont think i will pass the inspection without? is that tax deducitble?


----------



## StarzykCPA (Aug 6, 2015)

chileman said:


> Thank you this is great advice, so as far as tax saving from my income how should i calculate it? i have been reading on this thread and it seems the smart thing to do is take a bit out of the income you get and set it aside for tax season what pecernt should i take out of my pay out? and I should use the pay out i get from uber correct? after the fee they take out? I also plan on getting new tired for my car for driving since i dont think i will pass the inspection without? is that tax deducitble?


There are too many variables to tell you how much to save from your Uber income. For example, your filing status, how much other income you earn, dependents, whether or not you are itemizing deductions, what state you live in... just to name a few. Something around 20%-25% of your net payout from Uber could get you pretty close, but who knows. Of course, this also depends on how profitable your driving is. For some people, because of the mileage and other deductions, their Uber driving barely adds anything to their tax bill.

If you are using the standard mileage rate, the cost of new tires is not deductible.

Edit: check out the IRS withholding calculator, maybe it will help you: https://apps.irs.gov/app/withholdingcalculator/


----------



## UberTaxPro (Oct 3, 2014)

chileman said:


> Hello all I am going to start uber driving in my spare time maybe 5 hours a week, im looking to possibly make an extra 50 dollars a week, I am wondering what will i need to keep track of as far as tax information i understand uber does not withold any taxes and you need to keep track, so lets say my goal here is to make about 200 extra dollars a month which would put me at an income of 2,400 for the year any advice would be great thank you =D


Hey chileman when you drive for Uber you're gonna have self employment income *if* you have a profit. You can learn a lot about being self employed and taxes here: http://www.irsvideos.gov/SmallBusinessTaxpayer/virtualworkshop
Get that mileage log going and get out there and uber a few weeks then you'll be in a better position to find answers to your questions.


----------



## chileman (Jan 7, 2016)

Thank you both for all the information, this is all very helpful!


----------

