# Taxes



## Mikemik01 (Apr 21, 2018)

Help Uber Nation. When Uber makes my deposit do they withhold state and federal taxes, or should I take 20% of the deposit and put it aside for taxes. Also does Uber send a 1099 and the amount we made to the IRS if we don't make 20k. I have called and always tried to speak to someone but I guess I didn't translate well.

Thank you Uber Nation

Mike


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## UberGoomba (Mar 28, 2018)

They do not withhold taxes as you’re an independent contractor and not an employee. Make sure to document ALL your expenses for maximum deductions come tax time!


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## KD_LA (Aug 16, 2017)

Mikemik01 said:


> Help Uber Nation. When Uber makes my deposit do they withhold state and federal taxes, or should I take 20% of the deposit and put it aside for taxes. Also does Uber send a 1099 and the amount we made to the IRS if we don't make 20k. I have called and always tried to speak to someone but I guess I didn't translate well.
> 
> Thank you Uber Nation
> 
> Mike


They withhold nothing, so it's on you to save in preparation.

Lyft seems to give a 1099K (I got one despite being well below 20K), but Uber definitely does not when under 20K. Both give you a "summary" that shows potentially confusing details.

What's important to understand and keep in mind: they don't report to the IRS just the money they paid you, they report the total of what your passengers were charged-- which is the basis of a 1099-K form. Because of this, you need to keep detailed records of all your expenses, which include all fees and commissions Lyft/Uber took out.


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## Mikemik01 (Apr 21, 2018)

Thank you so much. Very much appreciated

Mike


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## KD_LA (Aug 16, 2017)

One more thing, keep keep keep: gas receipts, exact total mileage for the year, and detailed records of your "Uber/Lyft working" miles.

Working miles are deductible on your taxes, but not just the miles when you have a passenger. Miles in between passengers also count, as do miles you drive to get yourself from home into a location (for example, the airport) in order to attract passengers (even if you're not online) as well as the miles to get back to that location. Hope this part makes sense.

I started out with a logbook (I tried and hated the mile tracking apps) where for each shift start (when I leave home) I record date/time/miles, and when my shift is over I record time/miles when I reach home. This is for one shift with no break where there are no non-work miles. If there's a need for non-work miles, end the shift in the log, do your non-work thing, and start a new shift.

I gave up on the logbook because I almost lost it with all that info in it. Now instead I carry a 3x5 index card in my shirt pocket, one card per week.


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## Atom guy (Jul 27, 2016)

If you do Uber part time and have another primary job, you may not make enough Ubering to worry about the mileage deduction etc (you could just increase your tax withholding at your primary job to cover any taxes on your Uber income). If you don't earn enough money with all your jobs to bother itemizing your deductions, then the mileage deduction doesn't matter. 

BUT, if Uber is your main source of income and you are driving a lot, then you need to follow the other commenter's advice - keep a daily mileage log and keep all your gas and maintenance receipts so you can deduct everything on your taxes. If you're driving full time, you'll have enough mileage deduction to almost completely offset your earnings, and you'll likely not pay any taxes.


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## KD_LA (Aug 16, 2017)

Atom guy said:


> If you do Uber part time and have another primary job, you may not make enough Ubering to worry about the mileage deduction etc (you could just increase your tax withholding at your primary job to cover any taxes on your Uber income). If you don't earn enough money with all your jobs to bother itemizing your deductions, then the mileage deduction doesn't matter.
> 
> BUT, if Uber is your main source of income and you are driving a lot, then you need to follow the other commenter's advice - keep a daily mileage log and keep all your gas and maintenance receipts so you can deduct everything on your taxes. If you're driving full time, you'll have enough mileage deduction to almost completely offset your earnings, and you'll likely not pay any taxes.


How much you make at another job has no bearing on whether the mileage matters or not-- regardless you had business income and you incurred business expenses, and the bottom line is for the expenses to get deducted from the income.

So, if you do rideshare, you need to track mileage details regardless and you will use it in your tax return regardless.


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## Phoenix123 (Sep 2, 2016)

Also use one credit card to purchase gas and everything car related it makes it so much easier when you get statements every month


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## UberTaxPro (Oct 3, 2014)

Atom guy said:


> If you do Uber part time and have another primary job, you may not make enough Ubering to worry about the mileage deduction etc (you could just increase your tax withholding at your primary job to cover any taxes on your Uber income). If you don't earn enough money with all your jobs to bother itemizing your deductions, then the mileage deduction doesn't matter.
> 
> BUT, if Uber is your main source of income and you are driving a lot, then you need to follow the other commenter's advice - keep a daily mileage log and keep all your gas and maintenance receipts so you can deduct everything on your taxes. If you're driving full time, you'll have enough mileage deduction to almost completely offset your earnings, and you'll likely not pay any taxes.


Business expenses are not related to itemized deductions. Your're perhaps confusing with "employee expenses" which are subject to limitations. Business expenses are found on schedule c, employee expenses on form 2106 and schedule a.


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## Stevie The magic Unicorn (Apr 3, 2018)

Phoenix123 said:


> Also use one credit card to purchase gas and everything car related it makes it so much easier when you get statements every month


It's even better with a cash back credit card...


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