# Negative income



## Blkcherrysoul (Aug 20, 2019)

On my taxes i am showing negative $7,000 due to depreciation on new car and $4000 in gas 2019. It recommends carrying over the amount to next year by a tax pro...does anyone else show negative income and what do you do about it? H&R block isnt letting me file -$7,000 right now...:biggrin:


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## UberTaxPro (Oct 3, 2014)

Blkcherrysoul said:


> On my taxes i am showing negative $7,000 due to depreciation on new car and $4000 in gas 2019. It recommends carrying over the amount to next year by a tax pro...does anyone else show negative income and what do you do about it? H&R block isnt letting me file -$7,000 right now...:biggrin:


 Using the actual expense method might not be your best choice long term. Mileage method works best for most.


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## MajorBummer (Aug 10, 2019)

Blkcherrysoul said:


> On my taxes i am showing negative $7,000 due to depreciation on new car and $4000 in gas 2019. It recommends carrying over the amount to next year by a tax pro...does anyone else show negative income and what do you do about it? H&R block isnt letting me file -$7,000 right now...:biggrin:


Maybe you should talk to a real accountant.


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## TheDevilisaParttimer (Jan 2, 2019)

It's common for rideshare drivers to show a negative on their taxes and more than like you should switch to the mileage method. 

Based off your gas expense you're driving more than 50k miles per year unless you got a gas guzzler.


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## _Tron_ (Feb 9, 2020)

Blkcherrysoul said:


> does anyone else show negative income and what do you do about it?


Negative income is experienced by most drivers. It is a function of expenses vs the very low pay in this kind of work, and is arguably the greatest fringe benefit of making this line of work worthwhile financially, as it reduces or eliminates any income taxes one is liable for.


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## Iann (Oct 17, 2017)

Not sure how but my agi was bumped to 70000 without owing or getting a refund. 
How is this possible?


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## Elland Rd (Feb 26, 2020)

_Tron_ said:


> Negative income is experienced by most drivers. It is a function of expenses vs the very low pay in this kind of work, and is arguably the greatest fringe benefit of making this line of work worthwhile financially, as it reduces or eliminates any income taxes one is liable for.


Okay. Correct me if I'm wrong. But say someone makes $100k from their regular job, and loses $5k doing rideshare. All that means is that they shaved $5k off of their taxable income (meaning they won't pay tax on that $5k). It doesn't mean they shaved $5k off their final tax bill. So unless the loss was only on paper (e.g, based on IRS mileage deduction, but not their actual driving expenses) they wouldn't really benefit. I mean, if the loss were based on real life expenses, wouldn't it just be like pouring $5k down the drain to avoid getting taxed a percentage of it?


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## Uber's Guber (Oct 22, 2017)

Blkcherrysoul said:


> On my taxes i am showing negative $7,000 due to depreciation on new car and $4000 in gas 2019. It recommends carrying over the amount to next year by a tax pro...does anyone else show negative income and what do you do about it?


Filing a loss on Uber earnings is useful when you use those losses to reduce tax liabilities against _real _earnings.


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## NoPool4Me (Apr 16, 2018)

Blkcherrysoul said:


> On my taxes i am showing negative $7,000 due to depreciation on new car and $4000 in gas 2019. It recommends carrying over the amount to next year by a tax pro...does anyone else show negative income and what do you do about it? H&R block isnt letting me file -$7,000 right now...:biggrin:


I use mileage for simplicity since I only do Uber when I work.


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## _Tron_ (Feb 9, 2020)

Elland Rd said:


> Okay. Correct me if I'm wrong....


That is going to be a multi-part answer based on the multifaceted aspects of the question, so I am going to send you a private reply as to what I think the answer is, so as to not take the thread off-topic.


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## Older Chauffeur (Oct 16, 2014)

Something to keep in mind when deciding whether to use SRM or actual expenses after buying a new car
(as apparently the OP has) is that you may be stuck with your choice permanently. If you own the car and want to the SRM, you must use it the first year. Then you can switch and claim actual expenses or the SRM in later years. If you lease a car and want to use the SRM, you must choose it the first year and you are then required to use it for the full term of the lease.


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## kingcorey321 (May 20, 2018)

Uber's Guber said:


> Filing a loss on Uber earnings is useful when you use those losses to reduce tax liabilities against _real _earnings.


driving for loser uber is a loser proposition . No wonder why your taxes look like you lost . You did !


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## _Tron_ (Feb 9, 2020)

Older Chauffeur said:


> Something to keep in mind when deciding whether to use SRM or actual expenses after buying a new car
> (as apparently the OP has) is that you may be stuck with your choice permanently. If you own the car and want to the SRM, you must use it the first year. Then you can switch and claim actual expenses or the SRM in later years. If you lease a car and want to use the SRM, you must choose it the first year and you are then required to use it for the full term of the lease.


Right. I think that is the exact point @UberTaxPro was making, although they did not elaborate.


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## Uber's Guber (Oct 22, 2017)

kingcorey321 said:


> driving for loser uber is a loser proposition . No wonder why your taxes look like you lost . You did !


If you're out & about running other errands, you flip on the Uber app as a way to rack up valuable mileage deduction you can use to lower tax liabilities on other _*real*_ earnings. You might even accept a ping while your doing other errands, which offers the opportunity to earn a shuffle fee. :thumbup:
Learn to use these gig apps in a manner that benefits _*you*_.


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## kingcorey321 (May 20, 2018)

Uber's Guber said:


> If you're out & about running other errands, you flip on the Uber app as a way to rack up valuable mileage deduction you can use to lower tax liabilities on other _*real*_ earnings. You might even accept a ping while your doing other errands, which offers the opportunity to earn a shuffle fee. :thumbup:
> Learn to use these gig apps in a manner that benefits _*you*_.


You never mentioned the most important factor here,
It gets me (AWAY) from the big boss for a few hours ! My woman .


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