# State Taxes



## Nick K (Nov 8, 2015)

I'm new to driving with Uber and, thanks to reading several articles online, I have a pretty good understanding on federal taxes, what deductions I'm allowed, and how to report and pay them. However, I can't seem to find any information on self-employed state taxes. For the record, I live and drive in Ohio. Prior to engaging in Uber, I always had simple tax returns without any "extra" stuff, so I never needed help filing and never really had any questions.

My primary question is when determining my income, do I pay state taxes on the full amount I received from Uber, or can I deduct expenses from that total like I do on Schedule C with federal taxes? So, for a simple example, if I earn $1,000 from Uber and I determine that I can deduct $200 in mileage, do I pay state taxes on the $1,000 or the $800?

Thanks in advance.


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## StarzykCPA (Aug 6, 2015)

Nick K said:


> My primary question is when determining my income, do I pay state taxes on the full amount I received from Uber, or can I deduct expenses from that total like I do on Schedule C with federal taxes? So, for a simple example, if I earn $1,000 from Uber and I determine that I can deduct $200 in mileage, do I pay state taxes on the $1,000 or the $800?


In most states you would pay state tax on the $800. States often use the federal amounts/calculations to determine the base for state taxes.


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## UberTaxPro (Oct 3, 2014)

Nick K said:


> I'm new to driving with Uber and, thanks to reading several articles online, I have a pretty good understanding on federal taxes, what deductions I'm allowed, and how to report and pay them. However, I can't seem to find any information on self-employed state taxes. For the record, I live and drive in Ohio. Prior to engaging in Uber, I always had simple tax returns without any "extra" stuff, so I never needed help filing and never really had any questions.
> 
> My primary question is when determining my income, do I pay state taxes on the full amount I received from Uber, or can I deduct expenses from that total like I do on Schedule C with federal taxes? So, for a simple example, if I earn $1,000 from Uber and I determine that I can deduct $200 in mileage, do I pay state taxes on the $1,000 or the $800?
> 
> Thanks in advance.


In most states, the income tax base-that is, the types of income that are subject to the tax-looks a lot like the federal income tax base. In practice, this means that income taxpayers can calculate their federal taxes first, and then simply copy their total income from the federal tax forms to their state form. Thirty states link to federal adjusted gross income (AGI), which is income before exemptions and deductions, and then allow their own special exemptions and deductions. Six states link instead to federal taxable income, which means that these states adopt the generous federal exemptions and deductions, and then apply their own tax rates. A few states do not link to the federal tax base at all.
The SBA has some good info on state taxes. You can go to this site and find the link for Ohio to get specific info for your state. https://www.sba.gov/content/learn-about-your-state-and-local-tax-obligations


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