# Taxes for 2018 (Filed in 2019)



## mangoman808 (Aug 20, 2016)

OK, so....I've been reading Rideshare Guy as well as other sources and I need other parties to confirm what I am reading here, and if its correct information. 

1. Milage deduction is increased to $0.545 for 2018 compared to $0.535 in 2017.
2. Tax rates are lowered for each tax bracket. Ex. 15% down to 12%. 22% down from 25%. 
3. We can deduct 20% of "pass through" income.
4. Standard deduction DOUBLED from $6000 to $12,000.

These are HUGE deduction increases for us small business owners. 

I'm not understanding what the 20% deduction on the "pass through" income means however. 

Lets say I have $90,000 deposited in my account after Uber/Lyft commissions. I drove 85,000 miles. 

85,000 miles X $0.545 = $46,325 standard milage deduction.

$90,000 - $46,325 = $43,675 left in taxable income.

Subtract $12,000 standard deduction = $31,675

Do I multiple this left over taxable income of $31,675 X 20% = $6335 then subtract that from $31,675? 

Leaving me with $25,340 in taxable income subject to federal tax, state tax, and self employment tax? 

My state has no state income tax, and $25,340 would put me in the 12% federal tax rate, in addition to the 15% self employment tax for a total of 27% tax rate on my income. 

$25,340 X 27% = $6,842 in taxes owed

Am I understanding this correctly?


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## UberTaxPro (Oct 3, 2014)

mangoman808 said:


> OK, so....I've been reading Rideshare Guy as well as other sources and I need other parties to confirm what I am reading here, and if its correct information.
> 
> 1. Milage deduction is increased to $0.545 for 2018 compared to $0.535 in 2017.
> 2. Tax rates are lowered for each tax bracket. Ex. 15% down to 12%. 22% down from 25%.
> ...


 I believe the new 199A deduction will be 20% of $43,675 ($8735) in your example above. As I understand it the 199A deduction will be 20% of your net business income before you transfer from schedule c to 1040. 
The other items are correct except that the standard deduction didn't quite double. It was $6350 in 2017 and will be $12,000 in 18. Close enough to call it doubling I guess!!!


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## Older Chauffeur (Oct 16, 2014)

UberTaxPro said:


> I believe the new 199A deduction will be 20% of $43,675 ($8735) in your example above. As I understand it the 199A deduction will be 20% of your net business income before you transfer from schedule c to 1040.
> The other items are correct except that the standard deduction didn't quite double. It was $6350 in 2017 and will be $12,000 in 18. Close enough to call it doubling I guess!!!


Also, doesn't the standard deduction come off on the Form 1040, rather than amounts on the Schedule C, as was done in the example?


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## UberTaxPro (Oct 3, 2014)

Older Chauffeur said:


> Also, doesn't the standard deduction come off on the Form 1040, rather than amounts on the Schedule C, as was done in the example?


yep, that's what I was trying to say!


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## OrlUberOffDriver (Oct 27, 2014)

" this new tax break is so complex even tax experts are befuddled by it."

http://www.cpapracticeadvisor.com/n...gh-income-deduction-more-complex-than-thought

Let a pro CPA do their job.


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