# First time tax review



## Terrapin Bound (Mar 4, 2019)

This will be the first time I'm filing against my Uber income.
I made less than $20k, so will only be receiving a 10990-NEC.

I'll round off the numbers for this example.

1099-NEC box 1: $2000

From the Uber Tax Summary:
Gross Trip Earnings $13,000
Total Additional Earnings $2000 (As also reported on 1099-NEC)
Total $15000

Expenses, Fees, and Tax $6000

Net Earnings $8950
Reimbursements: Tolls, Airport fees and Surcharges $50

So best I can tell, I earned $15000 total, which is the amount I report as income..

Then I deduct the $6000 in Uber expenses.
Other deductions: Mileage, not including "commuting" miles (of which I have very few).
Dedicated cell phone expenses (yes, I have a dedicated tablet).
Dashcam I purchased in 2021.
Can I deduct tolls while en-route to a pickup? It won't be much, but if so I'll keep better track this year.
Anything else I'm missing?

Mileage will bring my tax burden down, but it will still be > $0.00, so I'm pretty sure I owe SS and medicare too. Maybe even a penalty for not paying estimated taxes thru the year. Not sure where exactly to enter it all in Turbotax, but am I basically on track with my understanding of all this?

Also, the $2000 "Additional Earnings" is also listed on the Tax Summary Table 2 as "Incentives". I didn't earn anywhere near that much in incentives. Even adding a few cleaning fees, it's still way below $1000. What else would be included in this category? Is this where tips are captured? I thought they were included in the Gross Trip Earnings category.

Thanks in advance to anyone who wants to help decipher and explain any of this.


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## MyJessicaLS430 (May 29, 2018)

First of all I am not a tax expert but I have been filing mine using Turbotax.

Yes, there is a row in expenses where you can enter the toll you paid related to work. You can also add other expenses in the same page. For example, if you are making car payments, you can enter the interest you paid. Turbo tax will calculate the amount that can be deducted based on the percentage you use the car for work.

I don't think there is a breakdown of SS or medicare in Turbotax. You should only be able to see a number on top of the interface indicating how much refund / tax owe to expect. If you have a full time job through which a W2 is issued, there is not much to worry. Always compare between the miles you record and Uber's figure since they may deviate significantly. Miles driven is the most significant factor that can lower your tax liability. Furthermore, you can also deduct expenses including phone plans and car wash in Turbotax despite using the standard mile deduction method.










Tips are included under gross earning. You will see a breakdown of base ride earnings, tips and surge. Sorry I am not sure what the incentive is about. The only possible scenario I can come up with is referral of new drivers. However this is not likely given that how apparently every market is saturated by now. Hope my experience can be of use.


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## Terrapin Bound (Mar 4, 2019)

MyJessicaLS430 said:


> First of all I am not a tax expert but I have been filing mine using Turbotax.
> 
> Yes, there is a row in expenses where you can enter the toll you paid related to work. You can also add other expenses in the same page. For example, if you are making car payments, you can enter the interest you paid. Turbo tax will calculate the amount that can be deducted based on the percentage you use the car for work.
> 
> ...


Thanks. It ain't rocket surgery, I just haven't gone thru the process before. I appreciate your taking the time to read and answer my post.


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## Seamus (Jun 21, 2018)

Terrapin Bound said:


> Can I deduct tolls while en-route to a pickup?


Only if you weren’t paid for them by Uber. 


Terrapin Bound said:


> SS and medicare too. Maybe even a penalty for not paying estimated taxes thru the year.


Yes that’s the Self Employment tax. Highly unlikely you will have to pay a penalty on what you owe. Most drivers don’t file quarterly as the tax they owe is relatively small.


Terrapin Bound said:


> What else would be included in this category? Is this where tips are captured?


Any money paid to you that is collected from pax is 1099k money. Money paid to you directly by Uber that isn’t collected from pax or isn’t a result of driving pax is 1099 NEC money. Examples are bonuses, quests payments, guarantees collected, referrals, etc.etc.. Tips would not be included in the 1099 NEC


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## Terrapin Bound (Mar 4, 2019)

Seamus said:


> Only if you weren’t paid for them by Uber.
> 
> Yes that’s the Self Employment tax. Highly unlikely you will have to pay a penalty on what you owe. Most drivers don’t file quarterly as the tax they owe is relatively small.
> 
> Any money paid to you that is collected from pax is 1099k money. Money paid to you directly by Uber that isn’t collected from pax or isn’t a result of driving pax is 1099 NEC money. Examples are bonuses, quests payments, guarantees collected, referrals, etc.etc.. Tips would not be included in the 1099 NEC


Thanks for that clarification Seamus. 

Since it wasn't bonuses, quests payments, guarantees collected, referrals, etc.etc,, it must've been all those long pickup fees!

Best I can tell, Uber only pays the toll when the pax is in the vehicle, not enroute to pickup. Either way, it's only a handful of $0.75 tolls, but I'll deduct what's legit. And keep better records this year.

Thx again


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

Tolls are deductible on a federal level, no clue about on the state level. They are in vehicle expenses in parking/tolls I believe.


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