# How Are You Tracking Miles for Taxes??



## skytessa

Okay, I'm new to the Uber thing, but I've done a lot of reading on how to keep my financial ducks in a row. I've tried MileIQ and honestly, it sucks. I've noticed it has completely wrong paths driven for my log. I did a comparison one day with my odometer and it was waaaaay off. Like 10 miles off on a day I drove 105. I'm guessing it's cuz it doesn't use GPS to track?

I was considering buying an actual device that you plug in the car, but I wanted to check here to see if y'all had suggestions. The Mileage Ace is my top consideration since they dropped their price. Anyone use it? Thoughts?


----------



## UberTaxPro

Why spend money? All you need is a few pens and this:


----------



## LAuberX

paper and pen. write down starting and ending odometer readings with the date.

keep forever, or at least 7 years.

simple.


----------



## UberTaxPro

LAuberX said:


> paper and pen. write down starting and ending odometer readings with the date.
> 
> keep forever, or at least 7 years.
> 
> simple.


As a rule you need to keep your records until the statute of limitations runs out for filing returns or filing for refunds. For most taxpayers that means three years. Unless you under report your income by more than 25% shown on your return. In that case you need to keep the records for six years. If you file a fraudulent return or no return at all you'll need to keep your records forever.


----------



## skytessa

Lol. Tried the paper thing. I always forget and just had to fudge my numbers in the past. I'm better off with something automatic. Anyone here use a device to track? That was my original question.


----------



## Danny3xd

Sky, have been using "Hurdlr" (sp)

I really like it. Its actually free and not pretend free with pay to continue bs.

At the end of the day, it asks personal or business miles. 

I like it a lot. Lots of posts about it, here. 

Just my preference and 2 cents. But do suggest ya check it out.


----------



## DCadran

Guys, guys; use Stride Drive. It records your mileage in the background and automatically figures out what it translates into tax wise. In addition, it stores a map of every drive (talk about the ultimate back up if you get audited). Why use pen and paper?! We're supposed to be on the cutting edge.


----------



## jester121

DCadran said:


> In addition, it stores a map of every drive (talk about the ultimate back up if you get audited).


That's a terrible idea, unless you want to claim precisely the number of miles you drove with no fudge factor.


----------



## Altima ATL

I use 'mile-iq' runs in the background and logs all your trips, and can class as either business or personal.

Costs about $6 a month - and is deductible too.


----------



## DCadran

jester121 said:


> That's a terrible idea, unless you want to claim precisely the number of miles you drove with no fudge factor.


Why would I need to fudge? Isn't that only done when you don't have accurate record keeping?...


----------



## DelaJoe

I log everything into a spreadsheet..including my earnings and gas cost. I keep stats on my earnings per hour and earnings for the year. Make sure everything matches up to the 1099.


----------



## jincuteguy

DelaJoe said:


> I log everything into a spreadsheet..including my earnings and gas cost. I keep stats on my earnings per hour and earnings for the year. Make sure everything matches up to the 1099.


Can you just log the mileage? and dont worry about gas and other stuff?


----------



## DCadran

Guys, there's no point in tracking your gas. Take the standard mileage deduction. It's worth a lot more.


----------



## jincuteguy

Are you serious? or trolling?


----------



## jester121

DCadran said:


> Why would I need to fudge? Isn't that only done when you don't have accurate record keeping?...


Yes, you're right. No one would bump their mileage deduction by a little bit to save a few bucks on taxes or pad the refund check.


----------



## Older Chauffeur

jincuteguy said:


> Can you just log the mileage? and dont worry about gas and other stuff?


For most drivers the standard mileage rate seems to be best. It wouldn't hurt to track all vehicle operating expenses, just to see. If you have high maintenance and drive a gas guzzler but keep the dead miles to a minimum, who knows? But consider that if you use the same car for Uber and personal use, actual costs have to be allocated by the percentage of type of use, based on your mileage log, which is still required.


----------



## skytessa

My best friends mom is a CPA and she warned me against the actual deduction plan for your auto. Turns out you still need a log if you get audited bc the IRS will only give you the % of miles/deduction you use for business, and you prove that with a log. 

This thread has got me curious. I'm going to do a field test with an app, a paper log and a dedicated gps tracker. I want to see what saves me the most money and all the other pros/cons. I'll post back here after a week or so. 

Cheers .


----------



## Danny3xd

Cool, Tessa. Thanks and looking forward to your findings.

The thing about using hurlr or that got me to try it was just that. You can export the documents and email them to yourself. After each start and stop and at the end of the day, you tell it business or personal. That and it is actually free. Honestly the only down side of it is it, like any of em, is it is a battery drain.

Thing I found most surprising is I only use this car for working and how many miles that I couldn't ethically write off. Also, I didn't know the drive home was not deductible. (I'm a team player and believe in paying my share)

I have not done it but you can also tie all expenses into the app and banking if you choose so all pertinent information for tax purposes are in one spot. I just use basic mileage, car washes, cleaning supplies, water etc. I found itemising and keeping receipts to be a pain and not at all advantages, in my case. 

All neat and tidy and in one place should an audit be needed. Back in the dark ages, I did the log thing.I always seemed to have forgotten some thing or lost that envelope of receipts. With an app approach, go more than 10 MPH and it turns on.

I did try 2 or 3 other free apps and they were just fine. Right up until they informed me my free trial was almost up, lol.
(Hate that bait & switch bs)


----------



## UberTaxPro

Danny3xd said:


> Cool, Tessa. Thanks and looking forward to your findings.
> 
> The thing about using hurlr or that got me to try it was just that. You can export the documents and email them to yourself. After each start and stop and at the end of the day, you tell it business or personal. That and it is actually free. Honestly the only down side of it is it, like any of em, is it is a battery drain.
> 
> Thing I found most surprising is I only use this car for working and how many miles that I couldn't ethically write off. Also, I didn't know the drive home was not deductible. (I'm a team player and believe in paying my share)
> 
> I have not done it but you can also tie all expenses into the app and banking if you choose so all pertinent information for tax purposes are in one spot. I just use basic mileage, car washes, cleaning supplies, water etc. I found itemising and keeping receipts to be a pain and not at all advantages, in my case.
> 
> All neat and tidy and in one place should an audit be needed. Back in the dark ages, I did the log thing.I always seemed to have forgotten some thing or lost that envelope of receipts. With an app approach, go more than 10 MPH and it turns on.
> 
> I did try 2 or 3 other free apps and they were just fine. Right up until they informed me my free trial was almost up, lol.
> (Hate that bait & switch bs)


"Also, I didn't know the drive home was not deductible." Establishing a home office can often help to turn those miles into deductible miles. You might want to check that out for your 2016 taxes coming due soon.


----------



## Danny3xd

Great point, UTP. I had given it a lot of thought but was warned against by a few articles on avoiding IRS red flags and subsequent/possible audit.. In my particular circumstance, a home office deduction is really enticing. (and thank you for pointing it out)

An accountant, tax pro is so worth the $! If for nothing else, peace of mind. A few years back, I filed fed and state and then paid $80 bucks to have checked by a pro a few days later. I just plain got compulsive but did feel infinitely more comfortable.


----------



## Danny3xd

Just a side note. A few years back I was getting finger printed for a passenger endorsement on my DL. (So by choice this time, lol)

But the detective who was helping me explained how they use cell phones GPS to map where drug dealers/enthusiasts had been and cross reference the addresses to get bigger targets. Kinda freaked me out, the big brother is watching deal. Not that I would be impacted by this practice. But dang, if wanted, "they" can know where ya been, when you were where and who ya talked to while doing it.

Sorry about the "off-topic", Tessa.


----------



## jincuteguy

UberTaxPro said:


> "Also, I didn't know the drive home was not deductible." Establishing a home office can often help to turn those miles into deductible miles. You might want to check that out for your 2016 taxes coming due soon.


So if the drive home is not deductible, then how do you keep track of it? So you have to write down the Stop ODO before you're going home everyday?


----------



## Mars Troll Number 4

I keep a little memo book. 99c at dollar general,

3 collums
start date/time- Stop date/time
Start Odo
Stop Odo

Just do a single line like this for every time you go out and write in your odo readings.
December 16 5:00 pm- december 17 8:00 am 187689- 187890



I got audited when i was doing this with my taxi and the IRS agent briefly glanced at it, asked to see other years, checked the log for my current year and confirmed that the ODO matched my current reading on the car.

About 5 minutes total of looking at my logs, more to make sure that the process was right than actually denying the numbers. As long as you have documentation that corresponds with your actual odometer readings they won't say anything.


----------



## jincuteguy

Mears Troll Number 4 said:


> I keep a little memo book. 99c at dollar general,
> 
> 3 collums
> start date/time- Stop date/time
> Start Odo
> Stop Odo
> 
> Just do a single line like this for every time you go out and write in your odo readings.
> December 16 5:00 pm- december 17 8:00 am 187689- 187890
> 
> I got audited when i was doing this with my taxi and the IRS agent briefly glanced at it, asked to see other years, checked the log for my current year and confirmed that the ODO matched my current reading on the car.
> 
> About 5 minutes total of looking at my logs, more to make sure that the process was right than actually denying the numbers. As long as you have documentation that corresponds with your actual odometer readings they won't say anything.


So you still count the miles that you drive home by doing this. And I thought the miles that you drive home are not "deductible"?


----------



## UberTaxPro

jincuteguy said:


> So you still count the miles that you drive home by doing this. And I thought the miles that you drive home are not "deductible"?


Everyone's circumstances are different. Some drivers have justifiable business miles all the way home, some start working right from their home or home office at the beginning of their work shift. Others drive to a far off city before they start work. Having a home office can make it easier to justify business miles to and from your home.


----------



## Karen Stein

I'll explain what I do. I will really appreciate folks pointing out any errors or omissions to my method.

I bought a simple "composition book." The notebook with the pages sewn in. That's my log book.

I start each day on a new page. My first entry is 'leave home.' I reset the trip odometer in my car to "0" and note the time. Receipts get taped to the back of the page.

I log my trips. I also log waiting periods, time logged off, etc. When I get back home, I note the miles and reset the trip odometer.

I take the log in with me. On my computer I have a spreadsheet with green columns for income, pink columns for expenses, and a red column for miles. The form also has space for notes.

With this arrangement I can easily spot trends. Trend #1? My mileage deduction is WAY more than my gas & other expenses. 

Maybe I can use those "excess" miles to offset income from my regular job. If so - I don't know that I can - then I really 'get' why Uber stress as driving as a supplement to your regular job.


----------



## UberTaxPro

Karen Stein said:


> I'll explain what I do. I will really appreciate folks pointing out any errors or omissions to my method.
> 
> I bought a simple "composition book." The notebook with the pages sewn in. That's my log book.
> 
> I start each day on a new page. My first entry is 'leave home.' I reset the trip odometer in my car to "0" and note the time. Receipts get taped to the back of the page.
> 
> I log my trips. I also log waiting periods, time logged off, etc. When I get back home, I note the miles and reset the trip odometer.
> 
> I take the log in with me. On my computer I have a spreadsheet with green columns for income, pink columns for expenses, and a red column for miles. The form also has space for notes.
> 
> With this arrangement I can easily spot trends. Trend #1? My mileage deduction is WAY more than my gas & other expenses.
> 
> Maybe I can use those "excess" miles to offset income from my regular job. If so - I don't know that I can - then I really 'get' why Uber stress as driving as a supplement to your regular job.


 Remember to record your *odometer *reading at beginning and end of year for your log if you haven't already done so. You should record your *odometer* readings at beginning and end of trip instead of the trip meter then subtract to get daily miles. This will help you determine business use % at tax time. If you add the *odometer* readings you absolutely will be able to use your "business loss" to offset other income.


----------



## Craven Morehear

jester121 said:


> That's a terrible idea, unless you want to claim precisely the number of miles you drove with no fudge factor.


I use Stride too. Just hit the start button, log in your expenses and stop button when you're finished. Trying to deduct actual car related expenses versus $0.54 (2016 IRS allowed rate) per mile is a losing game. Guber tracks our loaded miles so how much can one really fudge anyway? IRS will probably never audit a poor slob Fuber driver anyway. And if they do, just messsge Trumpy-he'll take care of it for you!! Hehe


----------



## Mars Troll Number 4

Karen Stein said:


> With this arrangement I can easily spot trends. Trend #1? My mileage deduction is WAY more than my gas & other expenses.
> 
> Maybe I can use those "excess" miles to offset income from my regular job. If so - I don't know that I can - then I really 'get' why Uber stress as driving as a supplement to your regular job.


It's an either or deduction, you either do miles or your actual expenses. (but you can only deduct a portion of your actual expenses)

Until you sell your car (or get an insurance settlement on totaling it)... you will never really know what the car is truly costing you.

In general you will be consistently low of the deductible amount on miles, you should always come up under that number. What will happen is that eventually you will get hit with bad maintenance and you will see $700+ hits come out of nowhere and mess it up somewhere down the road. Brake jobs new tires, AC repair, a new car battery, transmission replacement, i honestly can;t guess until your car starts to make strange sounds.

When your car reaches the end of it's life you will either sell it or trade it in. The accelerated loss in lifespan or loss in value is also taken into account with the per mile deductible.

If you baby a car and take care of it you can keep a nice car for decades. My dad has a mustang that's older than I am with fewer miles than the car i bought 5 years ago.

You can't put in 70,000 miles a year on a car and still expect it to last more than 5 years. In actuality you will be buying 3+ TIMES as many cars doing this professionally full time. This is one of the biggest costs of uber. In your first year or 3 you will be oblivious to this detail.

How many CARS will you have to buy per year. 1/5 of my car is 6,000 a year. 1/1oth of my car is 3,000. That's a $3,000 cost per year that has little to do with anything that ever shows up in an expense report.


----------



## Mars Troll Number 4

Craven Morehead said:


> I use Stride too. Just hit the start button, log in your expenses and stop button when you're finished. Trying to deduct actual car related expenses versus $0.54 (2016 IRS allowed rate) per mile is a losing game. Guber tracks our loaded miles so how much can one really fudge anyway? IRS will probably never audit a poor slob Fuber driver anyway. And if they do, just messsge Trumpy-he'll take care of it for you!! Hehe


Well if you fudge your log how is the IRS going to prove it as long as the miles are driven?
When i got audited I had my day to day mileage logs and my actual trip sheets and the auditor had such a stupid amount of data to look at that they just sort of glanced at it all checked my cars odometer smiled and assumed i did it correctly.


----------



## jester121

Craven Morehead said:


> Guber tracks our loaded miles so how much can one really fudge anyway?


Well for starters.... the dead miles? Duh...


----------



## Karen Stein

When I leave home (the only business location I have), ALL My driving is on behalf of Uber / Lyft / delivering pizzaa, whatever. Until I return home, it's 100% working time.

Is someone saying that only miles driven with the meter running count as deductible?


----------



## Danny3xd

No, Karen. At least I was not. When I sign out at night, (only drive days to avoid the "vomit-lot") I usually stop at the bar for a cold one and don't think it right to include those miles. The way you expressed it, I would think that is totally correct to include.
But I am in no way a tax professional and is just my opinion.

Also in my case, I do almost nothing else personal with my car so do want some non-biz miles to show. Just to avoid any red flags. 

Personally, I think spending the $ for a tax pro to give it a "once-over" is well worth it. Found out that water or cough drops can be 50% written off. Just lil stuff like that and avoiding an audit make it so worth it for me.

BTW Karen, love the cough-drops thing. You were right. It's a great hit and folks seem to genuinely appreciate it. Thanks again.


----------



## Karen Stein

Thank you for your kind reply


----------



## jincuteguy

So let say you driver Uber everyday (all business miles), then you decided to take 1 day off and drive the car to go shopping and stuff. Obviously you don't count that 1 day off miles, but would it still give the IRS a Red Flag?


----------



## Danny3xd

No, Jin. Quite the opposite. If you used 100% of your miles, they would be more apt to dig in a lil deeper.

Please remember I am just relating what I have read and asked my tax preparer. And that relates specifically to my little operation. And she all but laughed at my red flag worries as I am way below the $ line for them to worry about with their budget being cut so badly. Kind of insulting actually. But was funny. (sorta)

I worry about this kind of thing way to much and hope I am not passing on non-issue concerns.


Any doubt or worry, ask a professional! Can't tell the fed "well, I read it on the internet" LOL.


----------



## UberTaxPro

Mears Troll Number 4 said:


> Well if you fudge your log how is the IRS going to prove it as long as the miles are driven?
> When i got audited I had my day to day mileage logs and my actual trip sheets and the auditor had such a stupid amount of data to look at that they just sort of glanced at it all checked my cars odometer smiled and assumed i did it correctly.


Not all auditors will be as casual as the one you encountered. Perhaps your auditor had a heavy caseload and just didn't have the time that particular day. They have the right to look much deeper into your deductions and some will for a variety of reasons. If you "fudge" a log you're risking the following penalties and everyone should be aware of it before "fudging" any deduction.

20 percent of the disallowed amount for filing an erroneous claim for a refund or credit.
$5,000 if the IRS determines a taxpayer has filed a "frivolous tax return." A frivolous tax return is one that does not include enough information to figure the correct tax or that contains information clearly showing that the tax reported is substantially incorrect.
In addition to the full amount of tax owed, a taxpayer could be assessed a penalty of 75 percent of the amount owed if the underpayment on the return resulted from tax fraud.


----------



## UberTaxPro

Karen Stein said:


> When I leave home (the only business location I have), ALL My driving is on behalf of Uber / Lyft / delivering pizzaa, whatever. Until I return home, it's 100% working time.
> 
> Is someone saying that only miles driven with the meter running count as deductible?


All business miles are deductible if you have a mileage log. Even if 100% of your miles are business you still need the mileage log.


----------



## Karen Stein

I can't say for sure how well my plan will work in practice, but here it us in theory:

"Tax Time" will require us to fill out a bunch of forms, each with many lines. I expect to prepare mine in two versions:

"Plain" and "annotated".

IRS gets the plain version.

The other one will have a page for each line of each form. Here will be the raw data, as well as citations (explanations).

Each form has an IRS instruction book. These will be my main source. 

That way, should my return be questioned, I will be prepared to say something like "I deducted this item because page 45 of your book said I could."


----------



## UberTaxPro

Karen Stein said:


> I can't say for sure how well my plan will work in practice, but here it us in theory:
> 
> "Tax Time" will require us to fill out a bunch of forms, each with many lines. I expect to prepare mine in two versions:
> 
> "Plain" and "annotated".
> 
> IRS gets the plain version.
> 
> The other one will have a page for each line of each form. Here will be the raw data, as well as citations (explanations).
> 
> Each form has an IRS instruction book. These will be my main source.
> 
> That way, should my return be questioned, I will be prepared to say something like "I deducted this item because page 45 of your book said I could."


Nice idea but believe it or not IRS instruction books cannot be cited as legal authority when dealing with the IRS. 
With respect to federal tax law, primary sources that carry a high weight of authority include the following: Internal Revenue Code , Other non-codified Federal tax statutes, Final and temporary regulations, Judicial decisions on tax matters, Revenue Rulings, Revenue Procedures, Other published IRS positions (e.g., Notices and Announcements)


----------



## Mars Troll Number 4

UberTaxPro said:


> All business miles are deductible if you have a mileage log. Even if 100% of your miles are business you still need the mileage log.


Your not supposed to deduct miles from your home to the first task or from your last task home,
However everything on and BETWEEN trips is deductible.

But if it's on your log you have the documentation needed.


----------



## UberTaxPro

Mears Troll Number 4 said:


> Your not supposed to deduct miles from your home to the first task or from your last task home,
> However everything on and BETWEEN trips is deductible.
> 
> But if it's on your log you have the documentation needed.


All business miles are deductible. There is nothing in the IRC that states "you're not supposed to deduct miles from your home to the first task or your last task home". Where do you get this from? Don't confuse this with commuter issues. I've heard it before on here from other people but there is nothing I can find to support that position. If you're sitting on your couch at home and get a ping I would argue that the miles heading to the first pickup are business miles. Also, not *everything* between trips is deductible. If you run personal errands between trips that are not business related they're not deductible miles.


----------



## UberTaxPro

Having a home office that you take a deduction for on your tax return can help in justifying that miles to and from your home (office) are business miles.


----------



## Mars Troll Number 4

UberTaxPro said:


> Having a home office that you take a deduction for on your tax return can help in justifying that miles to and from your home (office) are business miles.


I thought that it was the (you can't deduct commuting) rule.

I've always just written it all off anyway thou LOL...

And about running personal errands between trips...

why not write it off anyway?


----------



## UberTaxPro

Mears Troll Number 4 said:


> I thought that it was the (you can't deduct commuting) rule.
> 
> I've always just written it all off anyway thou LOL...
> 
> And about running personal errands between trips...
> 
> why not write it off anyway?


I'm sure you're not the only one that does that! LOL It's a free country and a volunteer tax system so it's always gonna happen but it's still against the law.
For Uber drivers there is plenty of opportunity to legally reduce their Uber income to 0 or even lower so why would one want to risk potential large penalties or worse when the same results can be obtained within the law? I know you talked about a fairly easy time with an IRS auditor once but there is definitely no guarantee that anyone else reading this would get the same treatment as you did. Also, you were audited with a taxi job not with Uber. Uber provides many records that an IRS auditor could subpoena when examining a mileage log that are not available or would be difficult to get from most taxi companies.


----------



## Mars Troll Number 4

UberTaxPro said:


> I'm sure you're not the only one that does that! LOL It's a free country and a volunteer tax system so it's always gonna happen but it's still against the law.
> For Uber drivers there is plenty of opportunity to legally reduce their Uber income to 0 or even lower so why would one want to risk potential large penalties or worse when the same results can be obtained within the law? I know you talked about a fairly easy time with an IRS auditor once but there is definitely no guarantee that anyone else reading this would get the same treatment as you did. Also, you were audited with a taxi job not with Uber. Uber provides many records that an IRS auditor could subpoena when examining a mileage log that are not available or would be difficult to get from most taxi companies.


 It was not a taxi job, it was when i was driving a taxi *completely* independently, all my logs were hand written logs or based on hand written logs. And my paid mileage ratio was about 30%. with 69% re positioning somewhere else i could actually find a fare and 1% pure BULL.

I know it's confusing but.... i used to be 100% independent in an independently owned car, now i'm an IC in a leased Taxi...

But it;s the same concept, a hand written mileage log with a trip log, and they don't exactly line up, at all..

The difference was i actually did pay taxes. With over $70,000 coming in every year it's hard not to. Overall i was writing off 25,000/70,000 give or take.

My numbers lined up because they were for the most part based in truth, and i was still paying taxes. To be honest the mere fact that I was doing it properly probobly did a lot to keep me out of trouble.

Now i'm writing off about 20,000/50,000 of my revenue as expenses and working 3-4 12s a week instead of 8-12 hours 7 days a week.


----------



## UberTaxPro

Mears Troll Number 4 said:


> It was not a taxi job, it was when i was driving a taxi *completely* independently, all my logs were hand written logs or based on hand written logs. And my paid mileage ratio was about 30%. with 69% re positioning somewhere else i could actually find a fare and 1% pure BULL.
> 
> I know it's confusing but.... i used to be 100% independent in an independently owned car, now i'm an IC in a leased Taxi...
> 
> But it;s the same concept, a hand written mileage log with a trip log, and they don't exactly line up, at all..
> 
> The difference was i actually did pay taxes. With over $70,000 coming in every year it's hard not to. Overall i was writing off 25,000/70,000 give or take.
> 
> My numbers lined up because they were for the most part based in truth, and i was still paying taxes. To be honest the mere fact that I was doing it properly probobly did a lot to keep me out of trouble.
> 
> Now i'm writing off about 20,000/50,000 of my revenue as expenses and working 3-4 12s a week instead of 8-12 hours 7 days a week.


"To be honest the mere fact that I was doing it properly probably did a lot to keep me out of trouble." YES, I agree 100%. That's what everybody on here needs to know!


----------



## jincuteguy

So let say you work for Uber 6 months and you make less than $10k, and the other 6 months you don't do anything. Do you still have to Pay Taxes and File for Taxes for that year?


----------



## Older Chauffeur

jincuteguy said:


> So let say you work for Uber 6 months and you make less than $10k, and the other 6 months you don't do anything. Do you still have to Pay Taxes and File for Taxes for that year?


If you make $400 or more you will have to file in order to pay self employment taxes, even if you don't owe income taxes.


----------



## jincuteguy

Older Chauffeur said:


> If you make $400 or more you will have to file in order to pay self employment taxes, even if you don't owe income taxes.


Then why did ppl on here told me as long as I make less than $10k, I don't have to pay taxes?


----------



## UberTaxPro

jincuteguy said:


> Then why did ppl on here told me as long as I make less than $10k, I don't have to pay taxes?


Generally, you don't have to file a tax return if you make less than $10,000 working for someone else. The rules are different for self employed. You have to file to pay social security and medicare (self employment taxes) if your net self employment income is over $400.


----------



## Older Chauffeur

jincuteguy said:


> Then why did ppl on here told me as long as I make less than $10k, I don't have to pay taxes?


Look back at the context of your original question and the answers. You presented a scenario in which you only worked the last two weeks of the year and were told you would not hit the minimum income threshold of $10k. (It's actually slightly over that, $10,300+). I didn't want to complicate things for you by bringing up self employment taxes because it's highly unlikely that you would net $400 after expenses in that short time, and you clearly have no idea how the tax system works.
You're trying to get simple answers to your questions without taking into account all the variables involved. 
Now you pose the question with a different idea in mind, in which you apparently make under $10k in six months. (You don't say how much under.) It doesn't matter to the IRS how long you work, only how much you make.
I can tell that if you were to be audited and told the IRS agent that you got your tax advice here, that excuse wouldn't be accepted, and you would lose. "Ignorance of the law is no excuse."


----------



## jincuteguy

I know I dont know much about taxes and how it works. 
that's why I want to know if I make less than $10k / year, do I still have to file for Selp employment taxes (like driving for Uber) and pay the taxes?

It's a simple question, you're trying to giving me with lots of information which I'm still confused.
I just want to know that if I make less than $10k / year, do I have to file for Self Employment TAxes and Pay the Taxes?


----------



## Mars Troll Number 4

If you get a 1099 you have to file taxes..

If you drove more than 18518 miles you won't owe anything if you made 10,000 or less in "earnings"


----------



## Older Chauffeur

jincuteguy said:


> I know I dont know much about taxes and how it works.
> that's why I want to know if I make less than $10k / year, do I still have to file for Selp employment taxes (like driving for Uber) and pay the taxes?
> 
> It's a simple question, you're trying to giving me with lots of information which I'm still confused.
> I just want to know that if I make less than $10k / year, do I have to file for Self Employment TAxes and Pay the Taxes?


We have answered your question, but you seem unwilling to accept the answer. In your own thread about taxes you indicated that you have income, but not from working. That income may be taxable. We told you the self employment threshold is $400 net, not $10,000.
Perhaps, as I suggested earlier to you, the best thing would be to go meet with a tax professional, or call the IRS, explain your situation and let them answer your questions.


----------



## Older Chauffeur

Mears Troll Number 4 said:


> If you get a 1099 you have to file taxes..
> 
> If you drove more than 18518 miles you won't owe anything if you made 10,000 or less in "earnings"


A 1099 gives the IRS a reason to look for a matching return, but even if you don't receive one, you still have to file if your net self employment is $400 or more.


----------



## jincuteguy

Mears Troll Number 4 said:


> If you get a 1099 you have to file taxes..
> 
> If you drove more than 18518 miles you won't owe anything if you made 10,000 or less in "earnings"


So basically Uber will automatically send you a 1099 when it's the time right?


----------



## Older Chauffeur

LAuberX said:


> Is your income zero for the last 11 months of 2016, you have had ZERO income all year, is that what you are saying?





jincuteguy said:


> Well not Income from work, cause I didn't have a job for the past 11 months.
> Are you saying I have to pay Taxes for "not having a job"?





jincuteguy said:


> '
> 
> No, I didn't receive any income cause I wasn't working. Is that clear to you?


These quotes are from your original thread, jincuteguy. This is what I mean about the information you are providing and the questions you are asking.


----------



## Older Chauffeur

jincuteguy said:


> So basically Uber will automatically send you a 1099 when it's the time right?


They will send it to you if they pay you at least $600 over the course of the tax year. This should not be a matter of concern for you at this point, based on what you have told us.


----------



## jincuteguy

Older Chauffeur said:


> These quotes are from your original thread, jincuteguy. This is what I mean about the information you are providing and the questions you are asking.


Yes that is correct. I didn't have any income for the past 11 months. Is that a bad thing or something?


----------



## Danny3xd

I know it's been said but bears repeating. Can't go wrong going to a local tax professional. We should all consider this a conversation and not actual advice or what anyone should or should not do. Except for keep a log on paper. Or have an app or program that can be downloaded & printed /emailed.

Each one of us has a different exact circumstance. So our tax liability or lack thereof, is gonna be different.

I think I added to some confusion due to my paranoia. That's just a personality quirk of mine but my apologies.

But if someone is not understanding your "advice" or thoughts. There is no need to be insulting.

The whole subject of taxes, especially for someone facing 1099s for the first time can be very intimidating and we all need to be kind and patient. Or just skip their posts.

Lyft and uber offer discounts on software and help filing.


----------



## jincuteguy

Can you pay TurboTax and let them do your taxes? or is going to a real Tax Pro is better?


----------



## Danny3xd

Haven't read this but gonna right now, Jin;

https://turbotax.intuit.com/best-tax-software/common-questions.jsp

Tell ya, I almost ripped my hair out when I first got out of the Merchant marine and couldn't just throw $ at any problems, lol.


----------



## Danny3xd

Did you look at this, Ubertaxpro? Not meaning to put ya on the spot, just wondering what ya thought.


----------



## UberTaxPro

Danny3xd said:


> Did you look at this, Ubertaxpro? Not meaning to put ya on the spot, just wondering what ya thought.


Look at what turbotax?


----------



## Danny3xd

The link I posted, UTP. Just wondering what ya thought if ya had.

https://turbotax.intuit.com/best-tax-software/common-questions.jsp

I normally use the free ones, but if this is easer or in any way advantages, I might give it a try.
--------------------------------------------------------------------------------------

Just really looked at your avatar. Dang, Not a happy puppy


----------



## UberTaxPro

Danny3xd said:


> The link I posted, UTP. Just wondering what ya thought if ya had.
> 
> https://turbotax.intuit.com/best-tax-software/common-questions.jsp
> 
> I normally use the free ones, but if this is easer or in any way advantages, I might give it a try.
> --------------------------------------------------------------------------------------
> 
> Just really looked at your avatar. Dang, Not a happy puppy


Whatever you use you're gonna need a version that has schedule c capabilities for Uber income. Older Chauffeur has the scoop on these intuit products I believe. Hopefully he'll chime in.


----------



## Older Chauffeur

UberTaxPro said:


> Whatever you use you're gonna need a version that has schedule c capabilities for Uber income. Older Chauffeur has the scoop on these intuit products I believe. Hopefully he'll chime in.


I don't know about their online software, but the ones on CD for home use have Schedules C and SE in the Deluxe version. It's usually on sale at Costco with a built in rebate, final price last year was $39.95 and it's all you need for filing as an IC.


----------



## UberSelect07

I use MyRideTrac. Tracks my rider and empty mileage as well as all of my expenses. I send my tax man a spreadsheet that it prepares for me when I send a report. It's 1.99 per month which is cheaper than the other guys and they don't track me for insurance like some of the free guys.


----------



## skytessa

UberTaxPro said:


> "Also, I didn't know the drive home was not deductible." Establishing a home office can often help to turn those miles into deductible miles. You might want to check that out for your 2016 taxes coming due soon.


 Yeah. This saved me a ton last year. Alternatively, I had a CPA tell me to stop at a Starbucks near my house to "plan my day", and/or get a mailbox nearby for business purposes. That way you can swing by those places and start your business miles/day earlier.


----------



## El Gato

Questionon on commuting miles.

I get what is a commuting mile is and cannot be deducted. However, the IRS does say that you can deduct commuting miles to a second job. I'm sure many people are like me and drive for Uber on top of a regular full time job. I usually go online after getting off my primary job. This is a second job, so these miles, while they are commuting miles, are considered deductible by the IRS?

https://www.irs.gov/publications/p463/11081l02.gif-315423875.html


----------



## UberTaxPro

El Gato said:


> Questionon on commuting miles.
> 
> I get what is a commuting mile is and cannot be deducted. However, the IRS does say that you can deduct commuting miles to a second job. I'm sure many people are like me and drive for Uber on top of a regular full time job. I usually go online after getting off my primary job. This is a second job, so these miles, while they are commuting miles, are considered deductible by the IRS?
> 
> https://www.irs.gov/publications/p463/11081l02.gif-315423875.html


Yes, with the appropriate records. You should also have a valid business reason for going where you go....like "all the bars are on that side of town" etc...
If you want to be able to claim some miles from your home and back look into establishing a home office when you file your taxes.


----------



## jincuteguy

If you work both for Uber and Lyft, do you do Taxes for them separately? or can you combine both?
Also, anyone minds posting their Mile deduction for your last year?


----------



## UberTaxPro

You can combine them jincuteguy


----------



## Older Chauffeur

jincuteguy said:


> If you work both for Uber and Lyft, do you do Taxes for them separately? or can you combine both?
> Also, anyone minds posting their Mile deduction for your last year?


You would list income and expenses from both on the same Schedule C, as profit or loss from self employment.


----------



## Fuzzyelvis

skytessa said:


> Okay, I'm new to the Uber thing, but I've done a lot of reading on how to keep my financial ducks in a row. I've tried MileIQ and honestly, it sucks. I've noticed it has completely wrong paths driven for my log. I did a comparison one day with my odometer and it was waaaaay off. Like 10 miles off on a day I drove 105. I'm guessing it's cuz it doesn't use GPS to track?
> 
> I was considering buying an actual device that you plug in the car, but I wanted to check here to see if y'all had suggestions. The Mileage Ace is my top consideration since they dropped their price. Anyone use it? Thoughts?


Pen and paper since 1991.


----------



## jincuteguy

Older Chauffeur said:


> You would list income and expenses from both on the same Schedule C, as profit or loss from self employment.


What about the Miles Deduction? Can i combine the total miles from both?


----------



## DriverX

LOL my odometer minus 10%


----------



## Older Chauffeur

jincuteguy said:


> What about the Miles Deduction? Can i combine the total miles from both?


You'll do that with the vehicle calculation work sheet- business vs personal miles and total miles for the year. Keep a mileage log showing all your rideshare activities.
TurboTax Deluxe has everything you need, and is available in CD format (which I suggest) or online. Any program you use must have Schedules C and SE. TurboTax will walk you through the process by asking you questions, and will check for errors at the end. Costco sells it for about $40 after an instant rebate.


----------



## Mars Troll Number 4

DriverX said:


> LOL my odometer minus 10%


I hope you have a log that reflects that come audit time...


----------



## Older Chauffeur

Update re TurboTax Deluxe at Costco- I haven't been to the local store to buy it yet, but saw it listed as $10 off the retail price of $59.95. I guess Intuit raised the price, because I looked, and I previously paid only $40 after the rebate.


----------



## Drtraffic

skytessa said:


> Okay, I'm new to the Uber thing, but I've done a lot of reading on how to keep my financial ducks in a row. I've tried MileIQ and honestly, it sucks. I've noticed it has completely wrong paths driven for my log. I did a comparison one day with my odometer and it was waaaaay off. Like 10 miles off on a day I drove 105. I'm guessing it's cuz it doesn't use GPS to track?
> 
> I was considering buying an actual device that you plug in the car, but I wanted to check here to see if y'all had suggestions. The Mileage Ace is my top consideration since they dropped their price. Anyone use it? Thoughts?


Try MileTracker, it's totally free. I like it


----------



## SortofRandom

DelaJoe said:


> I log everything into a spreadsheet..including my earnings and gas cost. I keep stats on my earnings per hour and earnings for the year. Make sure everything matches up to the 1099.


I failed to keep a log of my odometer readings this year. (Trips + between trips = 30,000)
Do I need to attach a log to my tax return if I'm claiming the standard mileage (54 cent) deduction for 2016?


----------



## UberTaxPro

SortofRandom said:


> I failed to keep a log of my odometer readings this year. (Trips + between trips = 30,000)
> Do I need to attach a log to my tax return if I'm claiming the standard mileage (54 cent) deduction for 2016?


A log isn't required to be sent with your tax return but it is required to legitimately take the deduction. In certain instances the IRS will accept a re-constructed log if you're challenged. There are strict restrictions as to how that log can be re-constructed but I suggest you start working on that right away. For now you should only deduct what you can prove.


----------



## Mars Troll Number 4

SortofRandom said:


> I failed to keep a log of my odometer readings this year. (Trips + between trips = 30,000)
> Do I need to attach a log to my tax return if I'm claiming the standard mileage (54 cent) deduction for 2016?


The docs that uber sends will be good enough for documentation on a portion of your miles. (however many miles uber says you actually drove) The one i got last year was about 64% short of reality, but i'm in one of the worst markets for unpaid mileage.

Reproducing your log is going to be a royal pain, and if you get audited the IRS may not accept it and you'll loose a lot of miles.


----------



## Dback2004

SortofRandom said:


> I failed to keep a log of my odometer readings this year. (Trips + between trips = 30,000)
> Do I need to attach a log to my tax return if I'm claiming the standard mileage (54 cent) deduction for 2016?


Logs are only used as evidence in an audit, you wont' submit them with your taxes. Check out my post on https://uberpeople.net/threads/question-about-milage.129876/#post-1911762 for how I track.


----------



## Older Chauffeur

Older Chauffeur said:


> Update re TurboTax Deluxe at Costco- I haven't been to the local store to buy it yet, but saw it listed as $10 off the retail price of $59.95. I guess Intuit raised the price, because I looked, and I previously paid only $40 after the rebate.


Another update- T/T Deluxe is on sale through January 29 for $39.95 after a $10 instant in store coupon. I bought it today and ran my self employment numbers with no problems.


----------



## skytessa

Mears Troll Number 4 said:


> The docs that uber sends will be good enough for documentation on a portion of your miles. (however many miles uber says you actually drove) The one i got last year was about 64% short of reality, but i'm in one of the worst markets for unpaid mileage.
> 
> Reproducing your log is going to be a royal pain, and if you get audited the IRS may not accept it and you'll loose a lot of miles.


Hence why it's super smart to use an auto-tracker. I'm almost done with my case study between trackers. I'll post a link to the new thread when I'm done.


----------



## skytessa

Here's the link to my finished Case Study thread!

Mileage tracker case study


----------



## jincuteguy

So when is Uber suppose to send you the 1099 for 2016 ? or do i have to go to one of their Hub to get it? thx.


----------



## Dback2004

If I remember right last year they came out around January 30.


----------



## NinjaBlack

UberTaxPro said:


> You can combine them jincuteguy


I have 3 businesses with Uber/Lyft one of the 3... I did 3 separate schedule C's but I use the same car for all 3. My issue is that in turbotax - it takes care of it fine listed 3 different miles totals except when I look at the personal miles it is wrong since it subtracts the business use and the total use to get the personal use... So there are 3 separate personal miles lists and they don't add to the total miles of the car - I can't decide if I should leave it or if I should go to the actual schedule C and over ride it?


----------



## Older Chauffeur

NinjaBlack said:


> I have 3 businesses with Uber/Lyft one of the 3... I did 3 separate schedule C's but I use the same car for all 3. My issue is that in turbotax - it takes care of it fine listed 3 different miles totals except when I look at the personal miles it is wrong since it subtracts the business use and the total use to get the personal use... So there are 3 separate personal miles lists and they don't add to the total miles of the car - I can't decide if I should leave it or if I should go to the actual schedule C and over ride it?


I'm not a tax professional, but I would suggest overriding their numbers to make it as accurate as possible. In the unlikely event of an audit you would be able to explain your reason for doing so.


----------



## SortofRandom

Older Chauffeur said:


> I'm not a tax professional, but I would suggest overriding their numbers to make it as accurate as possible. In the unlikely event of an audit you would be able to explain your reason for doing so.


I'm not a tax professional. If you have 3 businesses, I would think you would have a tax consultant. Good luck.


----------

