# How to Pay Zero (or Close to Zero) Taxes Driving Uber & Lyft



## John Thomas

Many/most Uber/Lyft Drivers do no realize that they are subject to Federal, state, and local income taxes, along with 15.3% Self Employment tax. Almost all of the Uber/Lyft Drivers I run into that realize they have to pay these taxes wait until the end of the year to collect gas receipts, maintenance receipts, and other documentation that they think they can deduct, along with trying to calculate the amount of depreciation of their car they can deduct - all of this based on an estimated % of business use v. private use (which the IRS always will question).

If Uber/Lyft Drivers want to pay $0 (or close to it) taxes, all they need to do is set up an Excel spreadsheet with the following columns for daily amounts:
1) a) Beginning Mileage when you turn on your app - even if at home (zero based on your trip odometer at zero); b) Ending Mileage - when you turn off your app - even if that is arriving home (based on your ending trip odometer); c) Deductible Miles (same as b)); d) Tolls; e) Other Deductible Expenses.

2) Total Expenses (Deductible Miles x $.54 ($.575 in 2015) plus Tolls and plus Other Deductible Expenses)

3) a) Uber Revenue; b) Uber Tips; c) Lyft Revenue; d) Total Revenue.

4) Taxable Income/Loss (Total Revenue minus Total Expenses).


Taxable Income will almost always be near $0 or less. The IRS will rarely question a contemporaneously prepared document (Excel spread sheet or manual), while they will almost always question expenses and the allocation of such expenses between personal and business).

Note that:
1) The Standard Mileage Rate will almost always be more beneficial and questioned less by the IRS.
2) Other Expenses can include car washes (inside and out), drinks/snacks for passengers, cell phone allocation of business use, etc. (Note that the IRS will question the allocation).
3) Use Schedule C to list these revenues and expenses.
a) The 1099 will include revenue that you did not receive from Uber/Lyft ("Gross amount"), which you list on Line 1 of Schedule C.
b) List the total "Fees" from Uber/Lyft on Line 10 (the net of these two amounts should be the amount you received.
c) List the calculated car mileage expense and other non-maintenance car expenses on Line 9 and complete Schedule IV.
4) All miles driven from home (beginning work) to back to home (ending work) are arguably tax deductible. This includes miles to your first pick-up and "dead-end" miles.
a) This is substantially more than the miles provided by Uber/Lyft.
b) The miles driven from home to the first pick-up may be questioned; however these miles should be deductible as the pick-up is a "temporary" destination and not subject to the "business stop rule" where the first stop is considered a non-deductible commuting expense.
5) Make sure that the total miles deducted do not exceed the miles the IRS could calculate using other information - like recorded miles on oil changes, etc.

Since most Uber/Lyft Drivers are substituting short-term cash for long-term negative equity, it is important not to lose more money by paying taxes on this short-term cash.


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## Roguehype

Thank you for the advice. If you would not mind would you copy and paste a raw form spreadsheet into google sheets and share with the rest of us?


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## UberTaxPro

"Since most Uber/Lyft Drivers are substituting short-term cash for long-term negative equity, it is important not to lose more money by paying taxes on this short-term cash." Yes! not paying attention to your tax issues could turn a thunderstorm into a hurricane!


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## Gung-Ho

Why on earth would you declare uber tips?


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## Louisvilleuberguy

First of all tips are taxable and are income as far as irs is concerned. I would claim tips mainly because something such as a return that has uber schedule c that has zero tips can be used as a red flag to audit. I owned multiple income preparation offices and have been doing business taxes for years. 

Yes I understand that you can probably get away without including tips for many years but the one time your caught it will more than likely cost you more than that one year. It will probably cost you 3 years plus of taxes, interest and penalty. Plus when audited then everything can be examined In previous years and all deductions can get called into question.

I agree with original poster. You can do a spreadsheet or there are easy programs out there that you can track your expenses on. If your going to use a app or a website just be sure you understand what your doing.


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## Flarpy

How would they prove you received any tips?


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## Louisvilleuberguy

It's hard to prove if you received tips but they don't have too to make your life miserable. They just have to do a full audit and during a full audit it's very hard in the majority of cases not to loose. They sit down initially with you and go over all your proof and the proof has to be in the format they want it. You can't bring in a shoebox of receipts because They will not accept that it needs to be electronic and organized. After first interview you then think your safe and out of the woods and tbey call in to meet with a supervisor and then the fun begins. Don't think for a second this will be fair because they will try to say deductions are not valid even though they are. There job is win. Vast majority of time taxpayers give up and just try to let the win be the least money as possible. Also during this process if they only audited you for one year they will send you notice that you now have to also prove the same thing on the previous 3 years worth of returns. They look at everything and normally find items you cannot prove. They know to hire someone is going to cost you so they figure you will agree to pay at least some no matter what to avoid hiring a professional.

So no maybe they cannot prove a cash tip but they can say if you reported no tips and worked all year that it is highly doubtful any driver works an entire year and gets no tips. In the end you don't want to go through the audit process. Hi honestly even with tips your more than likely in a loss situation.

So it's up to the oerson. For me I put down my tips. I have a complicated return with several businesses and I have been in the tax preparation business prior owning 8 stores. I've represented many a client who said the exact same things I'm hearing here about how the IRS cannot prove I made this income. Almost 100 percent of them who are audited wish they would of listened to me prior to filing those returns.

I could write a book with the stuff I have seen clients do and what I have seen the thugs at its do.


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## Louisvilleuberguy

I've seen them disallow a ton of mileage to a tax cab driver because she did not have every mile documented as far as starting point and ending point on every single ride. 

Once again they audited a total of 4 years and eventually she gave in and paid them around 3k if I remember correctly. She had great records and it was a case of the IRS supervisor refusing to loose. She had to hire someone or pay the IRS and the IRS took payments. Plus they wore her out and scared her saying tbey could force her to pay much more but they were trying to work with her. No it was a fleecing.


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## renbutler

Gung-Ho said:


> Why on earth would you declare uber tips?


I hear that a lot, and whoever asks the question has NO BUSINESS every calling anybody else cheap or questioning anybody else's integrity.

Just report your freakin' tips. It's easy, and it's the law.


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## Gung-Ho

renbutler said:


> I hear that a lot, and whoever asks the question has NO BUSINESS every calling anybody else cheap or questioning anybody else's integrity.
> 
> Just report your freakin' tips. It's easy, and it's the law.


I also jaywalk and tear the tags off of pillows and mattresses.


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## renbutler

Gung-Ho said:


> I also jaywalk and tear the tags off of pillows and mattresses.


I approve of this comeback. 

Really, though. Report your tips. Even if your conscience doesn't bother you, the tax expert's warning should.


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## MrA

What tips? maybe 1 out of 20 uber riders will tip, a buck or two. On the subject of taxes, do we, as drivers, have to pay into social Security, Medicare, state SDI, local income taxes, etc? WTF is left after uber fees, federal income taxes, state income taxes. I have a feeling i'm screwed come tax time.


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## Gung-Ho

renbutler said:


> I approve of this comeback.
> 
> Really, though. Report your tips. Even if your conscience doesn't bother you, the tax expert's warning should.


With my taxi business tips usually run about 25% to 30% of meter. Some days even more. With the livery it's more like 15% to 20%. At tax time I salute the flag and be a good American and pay my fair share.

But with uber my tips this summer are about 1% to 2%. Frankly I'd be embarrassed to report them they're such a sad pathetic reminder of this useless endeavor.


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## renbutler

MrA said:


> What tips? maybe 1 out of 20 uber riders will tip, a buck or two. On the subject of taxes, do we, as drivers, have to pay into social Security, Medicare, state SDI, local income taxes, etc? WTF is left after uber fees, federal income taxes, state income taxes. I have a feeling i'm screwed come tax time.


Wow, what's going on out there? I get tipped on 13% of trips, an average of about $7 per tip, raising my revenue by 5-8%. (To cut off any criticism from anywhere: No, I'm not bragging, because I don't do anything special beyond driving safely, knowing my way around, and being pleasant. Maybe it's a geographical/cultural thing.)

Anyway, just keep track of it and pay for it, even if it's a tiny amount. In fact, if it's tiny, it won't be much taxes at all -- so don't be cheap. Some of you guys make it sound like you're trying to justify tax cheating, even if it's at a very, very low level.

As for payroll taxes, you don't owe them unless your net profit after expenses comes to $400+ for the year (actually, $433.13 before the multiplier). Most people won't reach that because they use the standard mileage rate, despite the fact that their true profit is more than that using real-world mileage numbers.

Last year, I showed a net negative profit, but by driving smarter this year (XL rides and surge X only), I'm showing a taxable profit. But I'm going to try to keep the taxable profit under $433.13 to legally avoid payroll taxes. (I pay a lot of payroll taxes through my real job, so it's not like I'm paying nothing into the system.) BTW, my _actual_ profit is already close to $1000, driving just a couple hours on most weekends only.


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## MrA

Thanks for the response, but, I'm not asking about payroll taxes. I'm asking about Social Security, Medicare taxes State Disability taxes. all the BS that is in addition to federal and state income tax. I've already driven more than on ce in San Francisco. now I'm supposed tp get a city business license that from what I'm reading, costs a few thousand dollars! AND, I got a red light camera ticket! Yea, Drive all day, and all night, get one red light ticket, all those fares turn to ZERO!


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## renbutler

MrA said:


> Thanks for the response, but, I'm not asking about payroll taxes. I'm asking about Social Security, Medicare taxes ...


Social Security and Medicare ARE payroll taxes. They are taken out of (almost) everybody's paycheck at the same rate. So we were talking about the same thing.

https://en.wikipedia.org/wiki/Payroll_tax#United_States

So what I said applies to Social Security and Medicare.

I don't know anything about your particular disability tax though.


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## Gung-Ho

renbutler said:


> Wow, what's going on out there? I get tipped on 13% of trips, an average of about $7 per tip, raising my revenue by 5-8%. (To cut off any criticism from anywhere: No, I'm not bragging, because I don't do anything special beyond driving safely, knowing my way around, and being pleasant. Maybe it's a geographical/cultural thing.)
> 
> Anyway, just keep track of it and pay for it, even if it's a tiny amount. In fact, if it's tiny, it won't be much taxes at all -- so don't be cheap. Some of you guys make it sound like you're trying to justify tax cheating, even if it's at a very, very low level.
> 
> As for payroll taxes, you don't owe them unless your net profit after expenses comes to $400+ for the year (actually, $433.13 before the multiplier). Most people won't reach that because they use the standard mileage rate, despite the fact that their true profit is more than that using real-world mileage numbers.
> 
> Last year, I showed a net negative profit, but by driving smarter this year (XL rides and surge X only), I'm showing a taxable profit. But I'm going to try to keep the taxable profit under $433.13 to legally avoid payroll taxes. (I pay a lot of payroll taxes through my real job, so it's not like I'm paying nothing into the system.) BTW, my _actual_ profit is already close to $1000, driving just a couple hours on most weekends only.


I'm so disappointed in you.  Here you are blasting away at people not reporting tips and yet you gleefully brag about how you game the system to not pay taxes. It matters not how much you pay at your "other " job there is no "I already pay enough amount" when it comes to the Great Old U. S.of A. Perhaps you should only declare your actual costs and pay your FAIR share. Shame shame shame. [sigh] I thought you were one of the good ones.


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## renbutler

Game the system? Gleefully brag? Surely you troll.

The IRS gives us this gift of 54 cents per mile. We all use it.

I can _estimate _that it costs 25 cents/mile to operate my Uber vehicle, but only a small portion of my driving is for Uber, so the true cost to operate the vehicle for _Uber_ can only be an estimate. So I use exactly what the IRS says to use.

It's not gaming the system. It's following the law to the letter.

But I think you knew that.


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## Strange Fruit

MrA said:


> Thanks for the response, but, I'm not asking about payroll taxes. I'm asking about Social Security, Medicare taxes State Disability taxes. all the BS that is in addition to federal and state income tax. I've already driven more than on ce in San Francisco. now I'm supposed tp get a city business license that from what I'm reading, costs a few thousand dollars! AND, I got a red light camera ticket! Yea, Drive all day, and all night, get one red light ticket, all those fares turn to ZERO!


It costs $91/year. It's difficult to find out how necessary it is (is it being enforced & when/where?), but they have "TNC driver" on the checklist of businesses, so they're definitely requiring it. No one seems to know for sure how serious it is. A couple weeks ago there was supposedly a crew of police checking all the drivers. Those are SFPD and they could have checked for the license. $91 seems worth not having to worry.

About the red light: exactly. I would change your habit towards yellow lights as I have done. 2&1/2 years with no red light tickets. Taking the chance of making it is usually a safe risk, but if you're on the road for hours doing this job, the risk goes up with more rolls of the dice. Better to get in the habit of slowing for yellows. Takes some will power at first, but eventually you just do it automatically. There will be another green in less than a minute.


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## Strange Fruit

renbutler said:


> Wow, what's going on out there? I get tipped on 13% of trips, an average of about $7 per tip, raising my revenue by 5-8%. (To cut off any criticism from anywhere: No, I'm not bragging, because I don't do anything special beyond driving safely, knowing my way around, and being pleasant. Maybe it's a geographical/cultural thing.)
> 
> As for payroll taxes, you don't owe them unless your net profit after expenses comes to $400+ for the year (actually, $433.13 before the multiplier). Most people won't reach that because they use the standard mileage rate, despite the fact that their true profit is more than that using real-world mileage numbers.
> 
> Last year, I showed a net negative profit, but by driving smarter this year (XL rides and surge X only), I'm showing a taxable profit. But I'm going to try to keep the taxable profit under $433.13 to legally avoid payroll taxes. (I pay a lot of payroll taxes through my real job, so it's not like I'm paying nothing into the system.) BTW, my _actual_ profit is already close to $1000, driving just a couple hours on most weekends only.


Are you really saying $400 total per year? I know that's what you _said_, but it seems so small I can't help thinking I misunderstand. I'm totally ignorant regarding this, so forgive me if it's annoying to be questioned on what you already clearly wrote. I assume you meant that, since you say your actual profit is almost $1000, and only working a couple hours per week. $400 per year is profitable enough to pay payroll taxes?! It's not even enough to _eat_ for the year. I assume most businesses don't function like an Uber driver, which is considered to be: "substituting short-term cash for long-term negative equity", technically meaning we profit less than $0 (if I understand the definition of "profit"). It seems strange that we need to pay any taxes on Uber income, if that statement is true. I haven't done the math to know if the statement is true, but it seems to be the common conclusion.


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## renbutler

Yes, you have to start paying SS and Medicare on your self-employment profits once your profits exceed $433.12 -- which is exactly $400.00 after applying their multiplier.

Here's a link to the form -- there's a lot on it, so just focus on *LINE 4 *at the bottom of the first page.

https://www.irs.gov/pub/irs-pdf/f1040sse.pdf

The bad thing is that you don't pay taxes only on the amount ABOVE $433.12. No, once you make another penny, you also have to go back and pay the taxes on that first $433.12! So staying under $433.13 is important, as the next penny will cost you about $60 in taxes! That's the government for you.

But, again, most of you won't owe any taxes at all for ride-sharing, because you're driving at a tax loss (although your real-world profits should still be positive). I drive surges only and XL, with very low overhead, so I usually turn a _profit_ of at least 50 cents per mile driven (both dead and with passengers). So I have to deal with this stuff.


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## Strange Fruit

renbutler said:


> Yes, you have to start paying SS and Medicare on your self-employment profits once your profits exceed $433.12 -- which is exactly $400.00 after applying their multiplier.
> 
> Here's a link to the form -- there's a lot on it, so just focus on *LINE 4 *at the bottom of the first page.
> 
> https://www.irs.gov/pub/irs-pdf/f1040sse.pdf
> 
> The bad thing is that you don't pay taxes only on the amount ABOVE $433.12. No, once you make another penny, you also have to go back and pay the taxes on that first $433.12! So staying under $433.13 is important, as the next penny will cost you about $60 in taxes! That's the government for you.
> 
> But, again, most of you won't owe any taxes at all for ride-sharing, because you're driving at a tax loss (although your real-world profits should still be positive). I drive surges only and XL, with very low overhead, so I usually turn a _profit_ of at least 50 cents per mile driven (both dead and with passengers). So I have to deal with this stuff.


I must seem stupid, but it seems too unbelievable, considering all the times I was employed at low wage jobs, I always got decent refunds at the end of the year, since it turned out I didn't make enough to be taxed on all my income. Since it's withheld all year, you get some of it back. I looked at the form you so graciously shared for our lazy convenience. $400/YEAR!!!! You're right. I profited $1117 last week, if I am only deducting $.54 cents per mile from my deposit (I'm counting all miles, not just with a rider in the car). So there goes my dream of _legally_ profiting $0. How the hell are most of us "driving at a tax loss" if all revenue after $.54/mile is considered profit? (The $1000 sign on bonus pretty much puts us all over $400/year, but anyway...) If it's true, why are they doing this? I realize we take home more than the $.54/mile cost would suggest, but even then. It's a whole year! If you drive 500 miles in a week, you have to make <$270 to profit $0. So $700 for that week puts you over the yearly profit line. There are 2,080 hours in a year of 40hr work weeks. You have to make about 19 cents an hour to make only $400 per year. I could probably find 19 cents an hour walking around San Francisco with my eyes to the ground. That this is so ridiculous makes me think I am actually not understanding. It's that, or it really is that ridiculous. I give whole $1s, and an occasional $5 to beggers. (that's an -er, as in they are literally doing the verb, to beg, as one who runs is a runner. I'm not calling them "beggars".)

renbutler, thanks for being a smart person who doesn't insult people for being ignorant. I guess your Hoffer quote is fitting.
I could look it all up, but it will be convoluted, and a plain writing person who knows is much more pleasant to ask. Though I'll have to find the details eventually when/if I file. So go ahead and ignore this if I've become too tedious to bear. I'm just expressing flabbergastedness, as I think I am understanding correctly and it really is ridiculous. But how is $400/year taxable, when a low-wage earner doesn't get taxed on the first $3000 (or something like that), which results in a refund at the end of the year? I can deduct my living expenses, then, right, because that's like paying my one employee, Me, a living wage out of the revenue left over after the $.54/mile. _Me_ has to like, eat and pay rent. If nothing else than to keep me alive and showered so me can keep the business going. Whatever is necessary to keep the business going is a cost, not a profit. The feeding and housing of me is an expense right, not a profit? Because I have little choice about whether or not to eat, and I _could_ live outside, but it would make it much more difficult to run the business while living in a tent with police making me move all the time and hiking to places to take a shower. It's not even legal to sleep outside, so that's technically not a legal choice either. And not this year, but eventually I will have to buy another vehicle to continue this business. That's how vehicles are. That would be a cost in a future year, but it comes from the revenue generated in this and following years. Like an R&D cost. Is that supposedly part of the $.54/mile, the future purchase of a replacement vehicle? There must be more to it than just deducting $.54/mile and calling the rest "profit".


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## Adbam

I have read multiple articles this year that states the irs is having major issues. They will be focusing the majority of audits on higher income $200k and up.

I would highly doubt if an uber driver making 25k a year will receive an audit. Maybe .1% of uber drivers will be audited.

You can't bleed a rock.


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## Strange Fruit

Adbam said:


> I have read multiple articles this year that states the irs is having major issues. They will be focusing the majority of audits on higher income $200k and up.
> 
> I would highly doubt if an uber driver making 25k a year will receive an audit.


You're just feeding my excuses to not file. I assumed that, when I didn't file the last two years. It's been reported for years that they have a very low budget to work with. What a waste of their resources to come after whatever 4 digit number they can get from someone like me. But people get all heavy when I say I haven't filed, as if a world of trouble is just around the corner for me, so it makes me think I may be deluded. And here comes a weird fantasy animal feeding my delusion.
Thank you Adbam.


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## Adbam

I still think u should file. I am just saying that I wouldn't worry to much about full tip reporting and what not.


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## renbutler

Strange Fruit said:


> I must seem stupid, but it seems too unbelievable, considering all the times I was employed at low wage jobs, I always got decent refunds at the end of the year, since it turned out I didn't make enough to be taxed on all my income. Since it's withheld all year, you get some of it back. I looked at the form you so graciously shared for our lazy convenience. $400/YEAR!!!! You're right. I profited $1117 last week, if I am only deducting $.54 cents per mile from my deposit (I'm counting all miles, not just with a rider in the car). So there goes my dream of _legally_ profiting $0. How the hell are most of us "driving at a tax loss" if all revenue after $.54/mile is considered profit? (The $1000 sign on bonus pretty much puts us all over $400/year, but anyway...) If it's true, why are they doing this? I realize we take home more than the $.54/mile cost would suggest, but even then. It's a whole year! If you drive 500 miles in a week, you have to make <$270 to profit $0. So $700 for that week puts you over the yearly profit line. There are 2,080 hours in a year of 40hr work weeks. You have to make about 19 cents an hour to make only $400 per year. I could probably find 19 cents an hour walking around San Francisco with my eyes to the ground. That this is so ridiculous makes me think I am actually not understanding. It's that, or it really is that ridiculous. I give whole $1s, and an occasional $5 to beggers. (that's an -er, as in they are literally doing the verb, to beg, as one who runs is a runner. I'm not calling them "beggars".)
> 
> renbutler, thanks for being a smart person who doesn't insult people for being ignorant. I guess your Hoffer quote is fitting.
> I could look it all up, but it will be convoluted, and a plain writing person who knows is much more pleasant to ask. Though I'll have to find the details eventually when/if I file. So go ahead and ignore this if I've become too tedious to bear. I'm just expressing flabbergastedness, as I think I am understanding correctly and it really is ridiculous. But how is $400/year taxable, when a low-wage earner doesn't get taxed on the first $3000 (or something like that), which results in a refund at the end of the year? I can deduct my living expenses, then, right, because that's like paying my one employee, Me, a living wage out of the revenue left over after the $.54/mile. _Me_ has to like, eat and pay rent. If nothing else than to keep me alive and showered so me can keep the business going. Whatever is necessary to keep the business going is a cost, not a profit. The feeding and housing of me is an expense right, not a profit? Because I have little choice about whether or not to eat, and I _could_ live outside, but it would make it much more difficult to run the business while living in a tent with police making me move all the time and hiking to places to take a shower. It's not even legal to sleep outside, so that's technically not a legal choice either. And not this year, but eventually I will have to buy another vehicle to continue this business. That's how vehicles are. That would be a cost in a future year, but it comes from the revenue generated in this and following years. Like an R&D cost. Is that supposedly part of the $.54/mile, the future purchase of a replacement vehicle? There must be more to it than just deducting $.54/mile and calling the rest "profit".


That's a lot to deal with, but I think there's still some confusion.

I was talking only about payroll taxes -- social security and medicare. Everybody (with a couple exceptions that don't apply to us) who makes at least $1 in income as a regular employee gets charged for this. It's 6.2% plus 1.45%. Your employer also pays the same amounts, but you don't have to worry about that.

Now, the self-employed also pay 6.2% plus 1.45% -- but ONLY if they have a net profit of at least $433.13. Unfortunately, they also pay the employer's share (as they are also their boss -- go figure). So it's a ridiculous 15.3% total! (A portion of this is deductible elsewhere as a business expense, but again, that's too much for this discussion.)

So don't get this confused with INCOME TAXES. You are correct that the first few thousands dollars are exempted from INCOME taxes. That's why so many low-wage workers get money back every April -- because they don't make enough money to owe any INCOME taxes.

I hope that clears things up. Bottom line, there are a lot of taxes, and it's complicated. The government makes it far more difficult than it needs to be, particularly for business owners.

This is one of the most important reasons why we should go to a national sales tax, with the basics of life (food, utilities, etc.) exempted from the tax. This would easily pay for everything we need, it would massively reduce tax evasion, and it would simplify everybody's life immensely.


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## MrA

I didn't just try and make it. I was following a big delivery truck in my compact car. Truck was moving, i was right behind it. As the truck turned, I saw the flash, and the light was red. No ticket in the mail, yet read it take 2-3 weeks to show up ion the mailbox.


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## acanas

I track all my Uber/Lyft miles with Triplog and save all my receipts (other than gas). If I'm out specifically to do ridesharing I track miles from the moment I leave home to the moment I get back. I find that about 50% of all miles are empty miles (which is pretty average in this business) and deduct all of them. Between that the very low rate Uber/Lyft pay and the 50% empty miles my tax liability is zero. Essentially Lyft/Uber produces tax free cash flow if tracked properly at least in my area. I use Quickbooks SelfEmployed to keep track of the taxes.


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## rubivroom

Hi everyone,

Great advice and very useful!

I just started driver for Uber about 1 month ago. Today I started using the Stride Drive app to calculate my miles and other tax deductibles. I was stunned to see that on my first trip out today I made more in 'mile deductions' as I did in 'driving earnings'. If it continues this way, I'm assuming I won't be paying much or anything in taxes.

My deductable miles were 105 miles X $o.54 = 56.78
My Uber earning were $55.08
For a difference of $1.70

I do turn the app on and off (which accounts for the time difference between the two screem shots), but I still consider myself working if I'm in the car traveling to another destination to find fares with the app off. Sometimes I need to be in a certain spot and will turn the app on when I get there.

Plus, this doesn't even account for any of the other deductions that I've incurred.

Do I have this assumption right, that if it continues this way I won't have much to pay in taxes?

Thank you all in advance!


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## MrA

rubivroom said:


> I do turn the app on and off (which accounts for the time difference between the two screem shots), but I still consider myself working if I'm in the car traveling to another destination to find fares with the app off. Sometimes I need to be in a certain spot and will turn the app on when I get there.


I commute regularly for my "day" job. I have been writing off expenses for years. Driving to your work location is not deductible. Driving from your office location, once you get there, is. I have no idea if uber 1099 includes time logged on. This is not a profitable business. I would not consider driving full time even for average NYC average earnings of $90K a year. Reading through posts, and my own experience, gross fares paid, after Uber fee, is about 50 cents a mile. That's 180,000 miles on a vehicle! In ONE year! That $90k quoted is before uber takes their 25%. before uncle sam wants his cut, your social security, medicare. So what if you can deduct 56 cents a mile. That means you spent 56 cents a mile, if not more, to earn 50 cents. Best way to drive Uber is with a fake ID and a stolen car!


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## SEAL Team 5

Strange Fruit said:


> You're just feeding my excuses to not file. I assumed that, when I didn't file the last two years. It's been reported for years that they have a very low budget to work with. What a waste of their resources to come after whatever 4 digit number they can get from someone like me. But people get all heavy when I say I haven't filed, as if a world of trouble is just around the corner for me, so it makes me think I may be deluded. And here comes a weird fantasy animal feeding my delusion.
> Thank you Adbam.


You're right, they won't come after you. You're not worth it to them. But now your name and SS are in a data base just waiting for you to gain any tangible assets. Once the IRS deems you net worthy of an audit they will levy any bank monies, lien any property, attach any wages and then notify you of what they have already done. You have 2 weeks after that notification to file any disputes or grievances. And the worst part, it never goes away. It just keeps growing exponentially with interest and penalties.


----------



## SEAL Team 5

Adbam said:


> I have read multiple articles this year that states the irs is having major issues. They will be focusing the majority of audits on higher income $200k and up.
> 
> I would highly doubt if an uber driver making 25k a year will receive an audit. Maybe .1% of uber drivers will be audited.
> 
> You can't bleed a rock.


You're absolutely correct. The IRS doesn't want to audit anyone making poverty wages. But they will still attach a levy or lien to anyone owing.


----------



## Amsoil Uber Connect

Strange Fruit said:


> You're just feeding my excuses to not file. I assumed that, when I didn't file the last two years. It's been reported for years that they have a very low budget to work with. What a waste of their resources to come after whatever 4 digit number they can get from someone like me. But people get all heavy when I say I haven't filed, as if a world of trouble is just around the corner for me, so it makes me think I may be deluded. And here comes a weird fantasy animal feeding my delusion.
> Thank you Adbam.


I won't get all heavy about you not filing. It's everyone's jealousy because they won't take the time to understand certine code sections of Title 26. And an ill found belief they have a requirement to do so when like UFO stories everyone has a friend or knows someone who has a horror story. It's not the end of the world like they want you to believe. Now a days the service will actually work with you in making payments.

Actually I'm proud of you. I just hope you know how the "Assessment procedure" works and the time line of when there computer generated letters come unsigned like section 6065 requires them to do so. As I don't think Seal Team or anyone else here understands how it all works. I could be wrong on that.

Just make sure you keep very little in the bank and your not working for an employer. You can show a hardship and they will put you in an uncollectable status. Then when the 10 yrs runs out, "Assessment Procedure", your free and clear for that year. Matters not how much is claimed to be owed in any given years. This is how Optima Tax relief and Tax Resolution works.

However the Lien notice has the dates of the Assessment. I have been able to still get credit and buy my Uber car with that notice on file, even the dealer saw it and still granted the loan. So the laws must have changed.

ps, just do your schedule C the right way and you will have no Audit worries.


----------



## Amsoil Uber Connect

Tips ? laughing. Uber is actually doing us a favor by not having that in the app. Treat an Uber tip as a gift and it becomes none taxable. I am surprised the IRS is not all over ubers A about requiring them to have it in the app.


----------



## Amsoil Uber Connect

And just tell them that Uber says the tip is included in the fare. So it's already reported on the 1099.


----------



## Strange Fruit

Amsoil Uber Connect said:


> I won't get all heavy about you not filing. It's everyone's jealousy because they won't take the time to understand certine code sections of Title 26. And an ill found belief they have a requirement to do so when like UFO stories everyone has a friend or knows someone who has a horror story. It's not the end of the world like they want you to believe. Now a days the service will actually work with you in making payments.
> 
> Actually I'm proud of you. I just hope you know how the "Assessment procedure" works and the time line of when there computer generated letters come unsigned like section 6065 requires them to do so. As I don't think Seal Team or anyone else here understands how it all works. I could be wrong on that.
> 
> Just make sure you keep very little in the bank and your not working for an employer. You can show a hardship and they will put you in an uncollectable status. Then when the 10 yrs runs out, "Assessment Procedure", your free and clear for that year. Matters not how much is claimed to be owed in any given years. This is how Optima Tax relief and Tax Resolution works.
> 
> However the Lien notice has the dates of the Assessment. I have been able to still get credit and buy my Uber car with that notice on file, even the dealer saw it and still granted the loan. So the laws must have changed.
> 
> ps, just do your schedule C the right way and you will have no Audit worries.


Thanks. I haven't looked at these things either, but figured what I already said above that I figure, I'm not worth it, and there bound to be so many just like me that it's kind of an odds game of suffering a penalty by being caught. So I gamble a bit. I left Riverside about ten years ago. Haven't been there since.
And we are definitely inside a nightmare. Been trying to wake up for a long time, but no success. I think I'm lucid though. And lately, I'm pretending to be my own boss.


----------



## renbutler

Amsoil Uber Connect said:


> Tips ? laughing. Uber is actually doing us a favor by not having that in the app. Treat an Uber tip as a gift and it becomes none taxable. I am surprised the IRS is not all over ubers A about requiring them to have it in the app.


Well, sure. In fact, treat ALL your income like a gift and pay nothing. In fact, if you play your cards right, you can create a net negative income tax, and continue to benefit from income redistribution. _It's the new American way...

_


----------



## Amsoil Uber Connect

Strange Fruit said:


> Thanks. I haven't looked at these things either, but figured what I already said above that I figure, I'm not worth it,....


Yes but you still have to play the game until the letters stop. And if you don't update your current address you can bet those letters are still coming to the last know address.


----------



## Amsoil Uber Connect

renbutler said:


> Well, sure. In fact, treat ALL your income like a gift and pay nothing. In fact, if you play your cards right, you can create a net negative income tax, and continue to benefit from income redistribution. _It's the new American way...  _


Clearly section 3402, sub section (a) and (c) of USC Title 26 has not been read. Oh sorry, Code of Federal Regulations, CFR's has the weight of what the law says.


----------



## djangoswango

Why not just use the Everlance app to do all this?


----------



## 22531

So if my mileage rate is always exceeding my actual earnings, does this mean I will probably keep all my earnings / pay 0 taxes on uber income?


----------



## Older Chauffeur

yamafx4dude said:


> So if my mileage rate is always exceeding my actual earnings, does this mean I will probably keep all my earnings / pay 0 taxes on uber income?


If you make over $400 net after deducting for mileage and other expenses, you will have to pay some self employment taxes, at the very least. 
I'm not a tax pro; read what they have to say in other "taxes" threads.


----------



## Mars Troll Number 4

yamafx4dude said:


> So if my mileage rate is always exceeding my actual earnings, does this mean I will probably keep all my earnings / pay 0 taxes on uber income?


Depending on what market you drive in, this is possible that you are losing money on paper, IE not making a profit. It is possible that you are in fact losing money on paper according to IRS standards and you can get away with not paying any taxes.


----------



## pomegranite112

If tips are paid in cash, NO ONE WILL KNOW YOU RECEIVED TIPS. You don't have to tell the IRS you received tips in cash



renbutler said:


> I hear that a lot, and whoever asks the question has NO BUSINESS every calling anybody else cheap or questioning anybody else's integrity.
> 
> Just report your freakin' tips. It's easy, and it's the law.


You sound like one of those kids in school that would rat on any kid over the smallest thing. Sure the teacher liked you but you had no friends.


----------



## renbutler

pomegranite112 said:


> If tips are paid in cash, NO ONE WILL KNOW YOU RECEIVED TIPS. You don't have to tell the IRS you received tips in cash


Integrity is what you do when nobody is watching.



pomegranite112 said:


> You sound like one of those kids in school that would rat on any kid over the smallest thing. Sure the teacher liked you but you had no friends.


Ha, pretending you know anything about a stranger has been a thing on the Internet since 1995. 

Unless somebody was directly impacting me negatively, I was never a "rat," and I had no issue making friends. I also have no plans to report anybody here for non-compliance.

But if it pleases you, and if you think it somehow makes your argument less weak, by all means please continue to believe it! That's just the kind of thing some people have to do to get along.


----------



## pomegranite112

renbutler said:


> Integrity is what you do when nobody is watching.


Nobody likes paying taxes when it's used for shit no one agrees with. stfu let him keep his tips.


----------



## renbutler

pomegranite112 said:


> Nobody likes paying taxes when it's used for shit no one agrees with. stfu let him keep his tips.


Instead of breaking the law, I work to elect smart spenders and fair taxers, and promote fair legislation.

If we just stop paying the taxes on the books now, everything breaks down and everybody suffers.

Vote for small but effective government!

*Trust me, "stfu" has never made anybody "stfu." Nobody is intimidated by it, guy.


----------



## pomegranite112

renbutler said:


> Instead of breaking the law, I work to elect smart spenders and fair taxers, and promote fair legislation.
> 
> If we just stop paying the taxes on the books now, everything breaks down and everybody suffers.
> 
> Vote for small but effective government!
> 
> *Trust me, "stfu" has never made anybody "stfu." Nobody is intimidated by it, guy.


Well we don't have fair taxers and smart spenders. We have crooks and thieves that steal in the billions while you waste your time over nickels and dimes not being reported to the IRS


----------



## renbutler

pomegranite112 said:


> Well we don't have fair taxers and smart spenders. We have crooks and thieves that steal in the billions while you waste your time over nickels and dimes not being reported to the IRS


It took virtually no time at all to add my tips to my taxes.

And I'm certainly not so greedy that I break the law just to save a couple minutes and a few nickels and dimes.

BTW, maybe we could have more fair/smart politicians if everybody didn't feel like they're playing for a team that must defeat the other team, or constantly expect handouts from the nanny state.


----------



## 22531

Now they aren't showing all the fees, esp with lyft it is quite difficult to track income and fees. Now I am just tracking miles. Screw it. Have to wait for the 1099Ks. Funny how they claim to have made earnings more transparent yet now I have no idea whats going on.


----------



## UberSelect07

I didn't read all three pages of comments... but, for what its worth... I cut my taxes significantly by tracking miles and expenses. I used to use a manual log and then tried MyRideTrac and use that to track miles and expenses. I send myself a report every month and one complete report (1/1-12/31) at the end of the year. It gives me a summary in the email and attaches a detailed spreadsheet with all of my trips. 5 minutes and I am done with my reporting. Just key a couple of numbers into Turbo Tax and I am done! Took about 80% of my income off my reporting. Cool.


----------



## MyrtleBeachDriver

UberSelect07 said:


> I didn't read all three pages of comments... but, for what its worth... I cut my taxes significantly by tracking miles and expenses. I used to use a manual log and then tried MyRideTrac and use that to track miles and expenses. I send myself a report every month and one complete report (1/1-12/31) at the end of the year. It gives me a summary in the email and attaches a detailed spreadsheet with all of my trips. 5 minutes and I am done with my reporting. Just key a couple of numbers into Turbo Tax and I am done! Took about 80% of my income off my reporting. Cool.


Is there an app I can start using going forward to track mileage and expenses going forward, along with entering information from the months passed? Currently I track everything manually and enter in spreadsheets

Thanks


----------



## Trafficat

pomegranite112 said:


> If tips are paid in cash, NO ONE WILL KNOW YOU RECEIVED TIPS. You don't have to tell the IRS you received tips in cash


I don't know what the IRS has to do to prove it, but I think anyone knows that an Uber driver makes some tips, even if most trips are not paid. I'd be surprised if there is an Uber driver out there (in the USA) that has not made at least a $1 tip every 20 trips he has done.


----------



## pomegranite112

Trafficat said:


> I don't know what the IRS has to do to prove it, but I think anyone knows that an Uber driver makes some tips, even if most trips are not paid. I'd be surprised if there is an Uber driver out there (in the USA) that has not made at least a $1 tip every 20 trips he has done.


Has to be proven. Irs can't go by hunches. You could say the same about finding random money on the ground. Irs cant prove it though


----------



## KathrynR

MyrtleBeachDriver said:


> Is there an app I can start using going forward to track mileage and expenses going forward, along with entering information from the months passed? Currently I track everything manually and enter in spreadsheets
> 
> Thanks


I use Stride Drive. You can impute previous data and use it going forward.

Stride Drive: Mileage Tracker


----------



## UberSelect07

I use MyRideTrac. It's not free, but they don't try to sell me insurance or track me and sell my data. Pretty easy and a good value. 

MyRideTrac


----------



## Gorman

I use Quick Books, self employed app. It tracks every mile, and all of my income and expenses. I've made $1,900 in the 3rd quarter so far and only owe $64.00 in taxes. I hope at the end of the quarter, this amount will be $0.00.


----------



## Micro

Gorman said:


> I use Quick Books, self employed app. It tracks every mile, and all of my income and expenses. I've made $1,900 in the 3rd quarter so far and only owe $64.00 in taxes. I hope at the end of the quarter, this amount will be $0.00.


I dont see how that is possible. I'm at $1571 in earnings and I already owe $203 in taxes. How are you calculating yours or how many miles have you driven? I dont see how you could have that much in deductions and expenses...


----------



## PrestonT

pomegranite112 said:


> If tips are paid in cash, NO ONE WILL KNOW YOU RECEIVED TIPS. You don't have to tell the IRS you received tips in cash


By rule, you must report all sources of income, whether they are independently documented or not.

So, the correct answer is that rideshare drivers do not receive cash tips.


----------



## Gorman

Micro said:


> I dont see how that is possible. I'm at $1571 in earnings and I already owe $203 in taxes. How are you calculating yours or how many miles have you driven? I dont see how you could have that much in deductions and expenses...





Micro said:


> I dont see how that is possible. I'm at $1571 in earnings and I already owe $203 in taxes. How are you calculating yours or how many miles have you driven? I dont see how you could have that much in deductions and expenses...


What are you reporting for deductions?

I report my millage - 3,296 miles, my interest on my car note, my insurance on the car, fuel, maintenance, and car washes. So my deductions are sitting at $1,785.00

So here is where I am sitting today.
Income - $2,037
Spending - $1,262
Profit - $775
Millage - 3,296
Deductions - $1,785
Tax Payment for 3rd Qtr - $77.00


----------



## Micro

I was under the impression you cant use mileage and fuel. How are you calculating fuel and what are you putting it in as? Also how are you writing off insurance? What are you putting in half the cost of your policy?


----------



## Older Chauffeur

Gorman said:


> What are you reporting for deductions?
> 
> I report my millage - 3,296 miles, my interest on my car note, my insurance on the car, fuel, maintenance, and car washes. So my deductions are sitting at $1,785.00
> 
> So here is where I am sitting today.
> Income - $2,037
> Spending - $1,262
> Profit - $775
> Millage - 3,296
> Deductions - $1,785
> Tax Payment for 3rd Qtr - $77.00


You have to choose- either the Standard Mileage Rate ($0.535 for 2017) or actual expenses of operating your car, not both.
Your 3296 miles gives you an SRM deduction of $1763. (Not sure what you mean by "spending " $1262.) Also, if your profits are over $400, you will owe Self Employment taxes (FICA) of 15.3% on all profits.

Disclosure: I'm not a tax pro, but member UberTaxPro is, and hopefully he will see your post and respond.


----------



## Gorman

You are correct, I track both to see which one works out the best for me.

As for Car insurance, if your car is used 100 percent in your business, figuring your deduction is easy -- every expense is deductible. However, if you split the use of your car between your business and your personal life, you can only deduct your business car expenses. To substantiate this, the IRS requires you to keep a dated mileage log that shows all of the trips in your car and their business purpose, along with your odometer readings. You can then divide the total number of business miles driven by the total number of miles driven to find your business use percentage. For example, if you drive your car 14,531 miles per year and 9,669 of them are business miles, your business use percentage is 66.54 percent.

There are other deductions you can take as well. Cell Phone purchase, Cell Phone plan, AAA Memberships, and Depreciation.


----------



## Older Chauffeur

Okay, so the $1262 is your actual expenses for operating your car, per the list you posted? In that case, the SRM gives you the higher deduction. But you haven't included depreciation, taxes/registration, etc. Probably most drivers will find it easier to use the SRM. But you have to use it the first year you use the car for business in order to have the option to switch to actual expenses in any future year. (If you lease, there's no switching- you gotta' dance with the girl you came with.)

I see you're in Louisville. One of my grandsons will graduate next Spring with a degree in chemical engineering from U of L .


----------



## Gorman

Older Chauffeur said:


> Okay, so the $1262 is your actual expenses for operating your car, per the list you posted? In that case, the SRM gives you the higher deduction. But you haven't mentioned depreciation, taxes/registration, etc. Probably most drivers will find it easier to use the SRM. But you have to use it the first year you use the car for business in order to have the option to switch to actual expenses in any future year. (If you lease, there's no switching- you gotta' dance with the girl you came with.)


Thanks for the info, this is my first year driving...


----------



## Older Chauffeur

You are very welcome. One of the most important things is good record keeping, which you mentioned. The IRS wants to see a log to support the business mileage/expenses deduction. Good luck.


----------



## Taxi2Uber

I need to cap my income, and I may be getting close. So I need to track daily where I stand for the year. 
Calculating Gross Income (expected 1099 amount): Is it as simple as the Sum of my Weekly Earnings + Service Fees for each Ride?
With Upfront pricing and service fees varying greatly, do I need to look up and total, ride-for-ride, each service fee?


----------



## UberTaxPro

Taxi2Uber said:


> I need to cap my income, and I may be getting close. So I need to track daily where I stand for the year.
> Calculating Gross Income (expected 1099 amount): Is it as simple as the Sum of my Weekly Earnings + Service Fees for each Ride?
> With Upfront pricing and service fees varying greatly, do I need to look up and total, ride-for-ride, each service fee?


If you need to cap your income why wouldn't you track your net income instead of gross income?


----------



## Taxi2Uber

UberTaxPro said:


> If you need to cap your income why wouldn't you track your net income instead of gross income?


To accurately calculate my net income, I need to know my gross income.


----------



## Older Chauffeur

UberTaxPro said:


> If you need to cap your income why wouldn't you track your net income instead of gross income?


Maybe for SSDI qualifying? They base it on gross earnings from a job or self employment, don't they?


----------



## UberTaxPro

Older Chauffeur said:


> Maybe for SSDI qualifying? They base it on gross earnings from a job or self employment, don't they?


SSDI counts only net earnings (before taxes) if you're self employed. "Gross pay" if you have a job. Wouldn't seem fair to count gross earnings if you're driving for Uber or have another business that is losing money!
http://www.investmentnews.com/artic...security-earnings-limits-apply-to-gross-wages
I would assume that disability would use the same rules as the article mentions but I'm gonna keep checking....


----------



## UberTaxPro

Older Chauffeur said:


> Maybe for SSDI qualifying? They base it on gross earnings from a job or self employment, don't they?


Wow! SSDI uses "Countable Income Test" or the "Three Tests." to determine income eligibility. Pretty complicated....
https://www.ssa.gov/OP_Home/cfr20/404/404-1575.htm


----------



## Older Chauffeur

UberTaxPro said:


> Wow! SSDI uses "Countable Income Test" or the "Three Tests." to determine income eligibility. Pretty complicated....
> https://www.ssa.gov/OP_Home/cfr20/404/404-1575.htm


No kidding! Not written for clarity and simplicity, is it?


----------



## Taxi2Uber

Older Chauffeur said:


> ....





UberTaxPro said:


> ....


The amount on the 1099 will be my gross earnings, correct?
I'm hoping to make some calculations to see where I currently stand.
Could one of you confirm that gross income is the sum of my Weekly Earnings + the sum of Service Fees?
I'm planning to see a tax person soon, and I'm hoping to be somewhat prepared.
Other deductions besides SMD on my dedicated uber car:
DMV registration & other DMV fees?
Car insurance?
Phone
Business License
Anything I may have missed?
Can I write off rent and travel expenses to work in Vegas? I could not drive uber and make a living in the city I live. Not sure how that works. Thanks.


----------



## Mars Troll Number 4

Taxi2Uber said:


> The amount on the 1099 will be my gross earnings, correct?
> I'm hoping to make some calculations to see where I currently stand.
> Could one of you confirm that gross income is the sum of my Weekly Earnings + the sum of Service Fees?
> I'm planning to see a tax person soon, and I'm hoping to be somewhat prepared.
> Other deductions besides SMD on my dedicated uber car:
> DMV registration & other DMV fees?
> Car insurance?
> Phone
> Business License
> Anything I may have missed?
> Can I write off rent and travel expenses to work in Vegas? I could not drive uber and make a living in the city I live. Not sure how that works. Thanks.


Will make comments on each one.



Taxi2Uber said:


> Other deductions besides SMD on my dedicated uber car:
> DMV registration & other DMV fees? (NO!)
> Car insurance? (NO!)
> Phone (% of use unless you have a separate cell plan 100% for work. I go 50/50)
> Business License (YES)
> Anything I may have missed?
> (TOLLS TOLLS TOLLS)
> (Parking fees)
> (turkey money {AKA bribery, deduct from cash tip}
> Can I write off rent and travel expenses to work in Vegas? I could not drive uber and make a living in the city I live. Not sure how that works. Thanks.


----------



## Uber Duber Chick

I'm not a CPA but I'm pretty sure for tax purposes, you CAN'T deduct BOTH mileage AND "fuel, maintenance, and car washes" It's an either or situation.


----------



## UberTaxPro

Uber Duber Chick said:


> I'm not a CPA but I'm pretty sure for tax purposes, you CAN'T deduct BOTH mileage AND "fuel, maintenance, and car washes" It's an either or situation.


You're right!


----------



## Taxi2Uber

Uber Duber Chick said:


> I'm not a CPA but I'm pretty sure for tax purposes, you CAN'T deduct BOTH mileage AND "fuel, maintenance, and car washes" It's an either or situation.


Thanks. That one I learned from an earlier post in this forum somewhere. I was religiously saving all my gas receipts for tax purposes all for nothing lol. I think I'm all set with the info I need to bring to the CPA.


----------



## Older Chauffeur

Taxi2Uber said:


> Thanks. That one I learned from an earlier post in this forum somewhere. I was religiously saving all my gas receipts for tax purposes all for nothing lol. I think I'm all set with the info I need to bring to the CPA.


It doesn't hurt to save receipts for anything and everything related to operating your car. You might have a bad year repair-wise and want to go with actual expenses, if that means a deduction that's larger than the SRM. You can switch between them as long as you used the SRM for the first year you used the car for business. One caveat- you still need a mileage log to show the percentage of business use, and you would deduct only that share of the total actual expenses. For example, your log shows 80/20 business over personal use, and you spend $500 on a repair- only $400 would be deductible. For most rideshare drivers it's hard to beat the SRM.


----------



## Taxi2Uber

Older Chauffeur said:


> It doesn't hurt to save receipts for anything and everything related to operating your car. You might have a bad year repair-wise and want to go with actual expenses, if that means a deduction that's larger than the SRM. You can switch between them as long as you used the SRM for the first year you used the car for business. One caveat- you still need a mileage log to show the percentage of business use, and you would deduct only that share of the total actual expenses. For example, your log shows 80/20 business over personal use, and you spend $500 on a repair- only $400 would be deductible. For most rideshare drivers it's hard to beat the SRM.


I keep track of everything for my own knowledge of operating costs, I was referring to tax purposes. This is my first year, so SMD makes sense for me. I learned too late to keep a mileage log, but I think I'm OK because the car I bought is strictly for Uber, so all miles are for business. I know how many miles were on it when I bought it, and intervals of oil changes, which I do myself. Hope that is enough. ~13,000 miles in 13 weeks full time so far, so the SMD would exceed my costs....I would hope.


----------



## Taxi2Uber

UberTaxPro said:


> If you need to cap your income why wouldn't you track your net income instead of gross income?


Yeah, I was wrong. I was thinking this:
"When we work with someone who gets a *regular paycheck*, we tell them that we have to look at "gross" income. "
when I should have considered this:
"When we talk about INCOME for people who are SELF-EMPLOYED, we are really talking about NET PROFIT. "

Looks like federal rules apply, so after deductions (SMD, etc), my net income is quite low, so I don't have to worry.
----------------------------------------------------------------------------------------
Finally spoke to tax guy from large firm today. I was concerned with estimated quarterly tax and he said my tax won't be over $1000 so don't worry. He said there might be quarterly tax through NV Business License(?), and I would be informed in the mail.

He gave some wrong advice on some things like deducting DMV reg fees, insurance, etc. but once I relayed some info I learned from this forum's posts, he looked some things up and confirmed the forum advice was correct. Well Done Guys!

I bought my car cash, outright, and he said the state sales tax on the purchase is deductible. Thoughts?

Its been said here, we are responsible for 15.3%(2x 6.2% SSI + 2x 1.45% Medicare) + Fed

He printed up "Uber Partner Reporting Guide" and some 1099K (for TNC drivers) forms. Very helpful.

He lastly said I might get a refund from my "Personal tax" which is separate from my "Business tax". I thought there is just "Income tax" reporting. I have to file twice? Now I'm confused again LOL. I Uber full time with no other source of income. He said, "just come back in April. Just wait for the packet from Uber, it'll be all clear." Clear? From Uber? Um....OK. LOL.

How much in strip club earnings does it take before they send you a W-2 or whatever it is. (I think it was $500 each club, right?)


----------



## Mars Troll Number 4

Taxi2Uber said:


> Yeah, I was wrong. I was thinking this:
> "When we work with someone who gets a *regular paycheck*, we tell them that we have to look at "gross" income. "
> when I should have considered this:
> "When we talk about INCOME for people who are SELF-EMPLOYED, we are really talking about NET PROFIT. "
> 
> Looks like federal rules apply, so after deductions (SMD, etc), my net income is quite low, so I don't have to worry.
> ----------------------------------------------------------------------------------------
> Finally spoke to tax guy from large firm today. I was concerned with estimated quarterly tax and he said my tax won't be over $1000 so don't worry. He said there might be quarterly tax through NV Business License(?), and I would be informed in the mail.
> 
> He gave some wrong advice on some things like deducting DMV reg fees, insurance, etc. but once I relayed some info I learned from this forum's posts, he looked some things up and confirmed the forum advice was correct. Well Done Guys!
> 
> I bought my car cash, outright, and he said the state sales tax on the purchase is deductible. Thoughts?
> 
> Its been said here, we are responsible for 15.3%(2x 6.2% SSI + 2x 1.45% Medicare) + Fed
> 
> He printed up "Uber Partner Reporting Guide" and some 1099K (for TNC drivers) forms. Very helpful.
> 
> He lastly said I might get a refund from my "Personal tax" which is separate from my "Business tax". I thought there is just "Income tax" reporting. I have to file twice? Now I'm confused again LOL. I Uber full time with no other source of income. He said, "just come back in April. Just wait for the packet from Uber, it'll be all clear." Clear? From Uber? Um....OK. LOL.
> 
> How much in strip club earnings does it take before they send you a W-2 or whatever it is. (I think it was $500 each club, right?)


The Strip club earnings... that depends on how they are paying you. If they are slipping you a $20 every time you drop someone off, you need to report that in "tips" if they are properly documenting it and cutting you a check, or giving you a receipt, 1099? (really? Kinda shocked at the formality here) then it's simply adding another 1099 to your income.

_*Your tax % will NOT be 15% of the payments you receive*_,

_it will be 15% of the payments minus your deductions,_* which could very easily be ZERO or even NEGATIVE*_ depending on your unpaid/paid mileage ratio and the local uber pay rates and what % of your trips are surge or not._

Depending on your market rates, you could end up owing LESS on your primary job than you would have if you weren't driving for uber, it just depends.

Depending on the rates... it could be anywhere between $1.00 for every $15.00 you make or -$1.00 for every $1.00 you make.

_*Honestly what market you are in will affect how big your tax bill is MORE than ANY other factor, including how much you worked...*_

And another thing... you'll be LUCKY TO GET A 1099 FROM UBER. Some people i know had to fight weeks to get uber to send it. At the end the docs that uber sent are a gross understatement of the total miles you drove. My last one from uber was about 55% less miles than it should have been.

Now that we have thrown logic down the trash... any other questions?


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## Taxi2Uber

Mears Troll Number 4 said:


> The Strip club earnings... that depends on how they are paying you. If they are slipping you a $20 every time you drop someone off, you need to report that in "tips" if they are properly documenting it and cutting you a check, or giving you a receipt, 1099? (really? Kinda shocked at the formality here) then it's simply adding another 1099 to your income.
> 
> _*Your tax % will NOT be 15% of the payments you receive*_,
> 
> _it will be 15% of the payments minus your deductions,_* which could very easily be ZERO or even NEGATIVE*_ depending on your unpaid/paid mileage ratio and the local uber pay rates and what % of your trips are surge or not._
> 
> Depending on your market rates, you could end up owing LESS on your primary job than you would have if you weren't driving for uber, it just depends.
> 
> Depending on the rates... it could be anywhere between $1.00 for every $15.00 you make or -$1.00 for every $1.00 you make.
> 
> _*Honestly what market you are in will affect how big your tax bill is MORE than ANY other factor, including how much you worked...*_
> 
> And another thing... you'll be LUCKY TO GET A 1099 FROM UBER. Some people i know had to fight weeks to get uber to send it. At the end the docs that uber sent are a gross understatement of the total miles you drove. My last one from uber was about 55% less miles than it should have been.
> 
> Now that we have thrown logic down the trash... any other questions?


Clubs are very formal here. All properly documented. Last night I luckily had 2 guys go to a club I've never dropped. Had to fill out W-9 and physically show my Social Security card. In years past as a cabbie, it was the same deal, but I never received anything from the clubs at year's end for tax purposes. I seem to remember the other cabbies mention it had to be over $500 before you get anything.

By year's end, I expect around $20,000 on 20,000 miles, so I'll be far from paying zero in taxes.

Yeah, uber only shows paid miles. Actual and deductible miles on the job will be much higher.


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## Gmbbody

Quick question, if renting a vehicle can you still deduct mileage


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## UberTaxPro

You can deduct rental car fees plus gas costs. You can't take Standard Mileage because that amount includes an allocation for depreciation. 


Gmbbody said:


> Quick question, if renting a vehicle can you still deduct mileage


You can deduct rental car fees plus gas costs based on business % use. You can't take SMD because it includes depreciation. A long term lease is different, you can use the SMD with a lease.


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## Gmbbody

UberTaxPro said:


> You can deduct rental car fees plus gas costs. You can't take Standard Mileage because that amount includes an allocation for depreciation.
> 
> You can deduct rental car fees plus gas costs based on business % use. You can't take SMD because it includes depreciation. A long term lease is different, you can use the SMD with a lease.


Thanks for your response!


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## Doctorsookie

MrA said:


> What tips? maybe 1 out of 20 uber riders will tip, a buck or two. On the subject of taxes, do we, as drivers, have to pay into social Security, Medicare, state SDI, local income taxes, etc? WTF is left after uber fees, federal income taxes, state income taxes. I have a feeling i'm screwed come tax time.


If I am understanding correctly I think they mean cash tips. Money Uber doesn't list on you ride receipt as tips.


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