# New Driver



## DrUber1 (Apr 5, 2019)

Hi there,
I have just started doing uber this Jan 2019 - full time - , and I am a little bit confused about should I pay my taxes quarterly or annually?
Also, I don't have form 1099, so do i still pay for IRS or wait till next year and pay my 2019 taxes? I am keeping track of my mileage, etc.. thanks to everyone who recommended that.


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## Taksomotor (Mar 19, 2019)

Quoterly, if you think that at any point of time during the year you might owe more than $1000 in taxes.


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## DrUber1 (Apr 5, 2019)

- Roughly from Jan-March made around 6K and mileage was around 5000 between trips and dead miles.

owing more than $1000 you mean per quarter or since i started driving period?!

Thanks for your reply, still pretty new to this!


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## Taksomotor (Mar 19, 2019)

IRS, as far as I remember, says that if you feel like you owe more than $1000 in taxes since the beginning of the year, you should start filing before the end of the year, i.e. quoterly. Plus quoterly filings are not for the past, but based on your projected earning for the next 3 months. So, in January you file taxes on your projected $6000 earning during the Jan - Mar period. Then in April you file taxes for your projected Apr - May period, etc. Then, by April of the next year you will either have a return or additional pay based on actual past year earnings.


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## DrUber1 (Apr 5, 2019)

That's very helpful!
thanks a lot.

I will keep reading and trying to learn about miles deduction, etc.
This forum is amazing!


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## Older Chauffeur (Oct 16, 2014)

If you owe more than $1000 at tax filing time next year, (on top of any withholding you may had,) then the IRS may charge you a penalty. Here's a link:
https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes
Using the numbers you gave, and assuming no other taxable income and that you continue at that rate for the remainder of the year, here's how it might look next April. Example: 5000 miles @ $0.58 per mile is $2900, leaving you $3100 for the quarter before deducting any other expenses, such as cell phone bills. That's $12,400 for the year, and the standard deduction for a single person is $12,000. So probably little if any income tax. But there's another wrinkle. You have to pay self employment contributions (SECA) for net profits if they are at least $400. The rate is 15.3%, so on your hypothetical $12,400 you would owe nearly $1900. You do get credit for half that amount on your 1040.
Bottom line- it might be a good idea to pay estimated quarterly taxes of $500-600 this first year, and see how you come out. Reading through the tax forums here, it seems a lot of drivers owe very little, if any, taxes. If you owe anything it's likely to be well under the $1000 threshold, and you may instead get a nice refund.

Disclaimer: I'm not a tax professional. OTOH, @UberTaxPro is, and he has been generously answering questions for members here: https://uberpeople.net/threads/tax-time-ask-me-anything-about-ride-share-taxes.314261/


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## UberTaxPro (Oct 3, 2014)

DrUber1 said:


> Hi there,
> I have just started doing uber this Jan 2019 - full time - , and I am a little bit confused about should I pay my taxes quarterly or annually?
> Also, I don't have form 1099, so do i still pay for IRS or wait till next year and pay my 2019 taxes? I am keeping track of my mileage, etc.. thanks to everyone who recommended that.


Your mileage deduction will be your largest deduction at tax time. You can get a daily rough estimate of your taxable income for each day by comparing your miles to income. If you made $200 dollars one day and drove 350 miles it would look like this:
.58 x 350 = $203 worth of deductible miles 
$200 - $203= -$3
So for this day you'd have a loss of $3 and 0 tax owed. Basically the same formula for weekly, quarterly, yearly


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

I paid the IRS quarterly for years and they never gave me any crap as long as i had it paid up by the end of the year.


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