# How many Uber drivers do you think really pay their taxes?



## Richmy

I believe many drivers are lured into and keep driving based on their assuming their gross earning are what they keep. Also, that many drivers just don't retain, file or report the actual income. What do you think?


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## grayspinner

I certainly keep excellent records & definitely report my income. It makes a huge difference in my taxable income. I was able to show a tax loss due to the mileage deduction (but I didn't have an actual loss, just a tax loss) and that lowered our overall household tax burden. 

This is a huge benefit - especially for those who have kids in college and/or purchase health insurance from the exchange.


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## Jufkii

Not surprising but the few drivers I talked to knew nothing about keeping mileage logs for tax purposes. Deer in the headlights look when I brought the subject up.
One agreed it might not be a bad idea and might start doing it. None could give a definate answer if they were actually making a profit or not. Only one could tell me off the top of their head.what the rates were .
They may all pay their taxes but how accurately they do who knows.


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## tohunt4me

Richmy said:


> I believe many drivers are lured into and keep driving based on their assuming their gross earning are what they keep. Also, that many drivers just don't retain, file or report the actual income. What do you think?


I paid mine. 
But I had a REAL JOB that paid well last year.got a refund.
Next year will require planning.
Should we pay quarterly ?


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## renbutler

There are people here who brazenly admit the felony of not reporting cash tips.


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## Tenzo

If you are reporting a profit on your taxes, you are doing them wrong


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## afrojoe824

Have a real job. instead of claiming on my W2, I put zZERO dependents.

takes more taxes than they should. This ensures that I also pay some tax for my rideshare gig. No worries here.

I also use my mileage deduction. which gets rid of or almost all of the tax liabilities


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## renbutler

Tenzo said:


> If you are reporting a profit on your taxes, you are doing them wrong


That's true for many, but not all.

I reported a small negative Uber income in 2015, but in 2016 I drive only surges in my free time, and I don't have any expenses to report other than mileage (my phone is used over 90% for non-Uber purposes).

Because my average income per total mile (active and dead, including tips) is around $1.00, I do indeed show a small taxable profit. Thankfully, it probably won't be enough to owe any payroll taxes on top of the income tax.


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## BostonBarry

If you're doing this right, there is no reason to avoid filing taxes. My disposable income is higher than before and my taxable income is lower. Win win.


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## sweetcali

Richmy said:


> I believe many drivers are lured into and keep driving based on their assuming their gross earning are what they keep. Also, that many drivers just don't retain, file or report the actual income. What do you think?


well I'll have u know , it will come back to bit you in the ass because now 10-99 forms are reported to the irs , years ago they didn't use to . so if u don't pay it when u file taxes accordingly they will adjust it and penalize you!!!. I file my taxes just of my main employee and didn't report my 10-99 and by June I got a letter saying they have other reported wages in me and calculated what I owed for not reporting. I had to to my taxes all over amend them and write of business expensed etc. you can't hide the income any more .


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## UberPissed

1099-K and 1099-Misc are reported to the IRS. 

If you don't report, the IRS will send you an underrpoerter notice (CP2000). If you ignore it, you will receive a statutory notice of deficiency. If you ignore that, they will file a return for you (Substitute for Return, or SFR) and you will have an assessment. It doesn't happen immediately, but it will happen eventually, usually 1-3 years after the return was due.

Plus filing late has implications for discharging tax debts in bankruptcy, penalty calculations, etc. 

So I would resoundingly say that 100% are reporting - eventually.


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## sweetcali

um... 100 % are not reporting but 100% will pay like u said at some point. lol


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## Tenzo

sweetcali said:


> well I'll have u know , it will come back to bit you in the ass because now 10-99 forms are reported to the irs , years ago they didn't use to ..


You must be older than I am. I tried skirting out of paying 1099 taxes in 1983 and found out you cant do that, they catch 100%. 
So its been going on for 33 years

I actually do Uber for the tax loss. I bought a garage for my car and am depreciating it. So with the great rates I show a net loss on my uber driving.
This carries over as a deduction for the wages earned on my real job.

Yep, that's right, I drive Uber to LOSE money.
They haven't let me down yet.


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## Fuzzyelvis

afrojoe824 said:


> Have a real job. instead of claiming on my W2, I put zZERO dependents.
> 
> takes more taxes than they should. This ensures that I also pay some tax for my rideshare gig. No worries here.
> 
> I also use my mileage deduction. which gets rid of or almost all of the tax liabilities


I have always adjusted my withholding when I've had a w2 job to account for other jobs/tips etc. Been doing 1099 work only or on the side since 1991. I try to estimate things around October and readjust if necessary. Goal is to be pretty even, within a couple hundred bucks.


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## Redtop

Last year my taxable income (Uber only) was about 10% of my gross. So it's not a major issue.

If I were making a lot of money, I'd probably open a self-employed 401(k) and put the profits in it.


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## SEAL Team 5

Richmy said:


> I believe many drivers just don't retain, file or report the actual income. What do you think?


They don't have to. Uber sends a copy of their 1099 to the IRS for them. It's only a $500 penalty for not filing and interest incurred on any amount owed.


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## SEAL Team 5

Tenzo said:


> I actually do Uber for the tax loss. I bought a garage for my car and am depreciating it. So with the great rates I show a net loss on my uber driving.


Just be careful doing that. You are definitely a high target for an audit. Don't forget that the % you use your personal vehicle for hire is only the same % you can deduct expenses.


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## SEAL Team 5

UberPissed said:


> 1099-K and 1099-Misc are reported to the IRS.
> 
> If you don't report, the IRS will send you an underrpoerter notice (CP2000). If you ignore it, you will receive a statutory notice of deficiency. If you ignore that, they will file a return for you (Substitute for Return, or SFR) and you will have an assessment. It doesn't happen immediately, but it will happen eventually, usually 1-3 years after the return was due.
> 
> Plus filing late has implications for discharging tax debts in bankruptcy, penalty calculations, etc.
> 
> So I would resoundingly say that 100% are reporting - eventually.


Very good, being in business for 35 years I must say you do know. And with the IRS, you are guilty till you prove yourself innocent. And with every passing day the interest meter keeps ticking.


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## I Aint Jo Mama

renbutler said:


> There are people here who brazenly admit the felony of not reporting cash tips.


When and if i ever get a tip i will worry about the reporting aspect of my taxes


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## limepro

Tenzo said:


> You must be older than I am. I tried skirting out of paying 1099 taxes in 1983 and found out you cant do that, they catch 100%.
> So its been going on for 33 years
> 
> I actually do Uber for the tax loss. I bought a garage for my car and am depreciating it. So with the great rates I show a net loss on my uber driving.
> This carries over as a deduction for the wages earned on my real job.
> 
> Yep, that's right, I drive Uber to LOSE money.
> They haven't let me down yet.


Be careful, any 1099 that goes 3 years showing a loss is no longer a job and becomes a hobby which all earnings you pay tax on. Show a minimal earning and you will be safe, don't show a loss multiple years.


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## renbutler

Tenzo said:


> Yep, that's right, I drive Uber to LOSE money.
> They haven't let me down yet.


That's still backward.

Sure, negative profit can slightly decrease your overall income for tax purposes, but that shouldn't be a _goal_.

With an appropriate business plan, you can turn a small taxable profit, and that's the best-case scenario. It's better to have a small taxable profit than a deductible negative profit.


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## gofry

Richmy said:


> I believe many drivers are lured into and keep driving based on their assuming their gross earning are what they keep. Also, that many drivers just don't retain, file or report the actual income. What do you think?


There's no motivation to not file your taxes, because after expenses you likely won't be reporting any income. Plus, as others have noted, Uber sends the IRS a copy of the 1099 form that you will receive at the end of the year, so you can't really cheat.


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## UberPissed

limepro said:


> Be careful, any 1099 that goes 3 years showing a loss is no longer a job and becomes a hobby which all earnings you pay tax on. Show a minimal earning and you will be safe, don't show a loss multiple years.


You can still have losses after 3 years as long as you can prove that it's not a hobby. If you have documentation, you will be fine, assuming you can respond intelligently to notices.


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## MiddleClassedOut

Crikey, I had a 6000 profit on 30000 net revenue last year...

I've started keeping better track of the miles. I thought I slightly overreported but in all likelihood I underreported. But I also try to stay offline as much as possible and wait for the surge and to do the least amount to make Lyft's guarantees, so I'm actually kinda profitable I suppose. Lyft's sign-on bonus did increase revenue to the tune of 750 as well, plus all those PAX referals...


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## saucy05

S


renbutler said:


> There are people here who brazenly admit the felony of not reporting cash tips.


So there are people out there paying tax on tips?


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## renbutler

saucy05 said:


> So there are people out there paying tax on tips?


Yep. The folks who always have to carry the load for everybody else.

The wealthy and the honest, neither of whom are appreciated for keeping everybody else afloat.


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## Robert McLendon

limepro said:


> Be careful, any 1099 that goes 3 years showing a loss is no longer a job and becomes a hobby which all earnings you pay tax on. Show a minimal earning and you will be safe, don't show a loss multiple years.


So on the third year, reduce your mileage deduction so you show, say, a $100 profit?


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## surlywynch

^Yep^

And after three years it won't matter anyway. Uber will have burned you out.


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## Atom guy

After the mileage deduction, I didn't owe any taxes.


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## PrestonT

renbutler said:


> There are people here who brazenly admit the felony of not reporting cash tips.


What cash tips? I've no idea what you're talking about. Everyone knows that with Uber, tips are neither expected nor required, so we don't get cash tips.


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## Robert McLendon

surlywynch said:


> ^Yep^
> 
> And after three years it won't matter anyway. Uber will have burned you out.


Lol



MiddleClassedOut said:


> Crikey, I had a 6000 profit on 30000 net revenue last year...
> 
> I've started keeping better track of the miles. I thought I slightly overreported but in all likelihood I underreported. But I also try to stay offline as much as possible and wait for the surge and to do the least amount to make Lyft's guarantees, so I'm actually kinda profitable I suppose. Lyft's sign-on bonus did increase revenue to the tune of 750 as well, plus all those PAX referals...


What are PAX referrals?



renbutler said:


> That's still backward.
> 
> Sure, negative profit can slightly decrease your overall income for tax purposes, but that shouldn't be a _goal_.
> 
> With an appropriate business plan, you can turn a small taxable profit, and that's the best-case scenario. It's better to have a small taxable profit than a deductible negative profit.


Why is that?


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## R James

This is my first year, and I'm just doing this as a side gig, but I keep very detailed daily records and so far on $6K gross income I figure I have about $2K in taxable income. But I'm being perhaps overly reasonable in the miles I'm deducting because I don't want to trigger an audit by showing a loss.

And seriously, if MOST Uber drivers show a loss, it seems like the IRS would eventually call foul and change the rules.


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## Robert McLendon

R James said:


> This is my first year, and I'm just doing this as a side gig, but I keep very detailed daily records and so far on $6K gross income I figure I have about $2K in taxable income. But I'm being perhaps overly reasonable in the miles I'm deducting because I don't want to trigger an audit by showing a loss.
> 
> And seriously, if MOST Uber drivers show a loss, it seems like the IRS would eventually call foul and change the rules.


I log my miles impartially and accurately and my mileage deduction meets or exceeds my gross income. Not sure why I should lie in order to pay more taxes than I deserve.


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## Mars Troll Number 4

R James said:


> This is my first year, and I'm just doing this as a side gig, but I keep very detailed daily records and so far on $6K gross income I figure I have about $2K in taxable income. But I'm being perhaps overly reasonable in the miles I'm deducting because I don't want to trigger an audit by showing a loss.
> 
> And seriously, if MOST Uber drivers show a loss, it seems like the IRS would eventually call foul and change the rules.


it depends on the market, in Orlando with the current rate, an X fare driving at any speed generates the following in taxable income, not counting empty miles.

PER PAId MILE!
-.5c per mile
+8c per minute

-53.5c per UNPAId mile!

It's very easy to get into the hole in some markets... by LOT. 1 unpaid mile wipes out 6.6 minutes of driving a customer.

What market you are in has a bigger impact on how much tax you pay than how much you work does.....

Someone who does 12 hours in Seattle will owe more in taxes than someone who did 500 hours in orlando...


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## R James

Robert McLendon said:


> I log my miles impartially and accurately and my mileage deduction meets or exceeds my gross income. Not sure why I should lie in order to pay more taxes than I deserve.


I just Uber on my way to work and then on my way home. So I've tried to muddle through what miles I can reasonably deduct under certain circumstances. For example, if I go online when I leave my house and drive 35 miles to my regular job but don't get a single ping, is it reasonable to deduct those miles that I would have driven anyway? What if 9 days out of 10 I don't get any pings, but still deduct all of my miles anyway?

I haven't seen any authoritative advice on how to handle this. I typically get 1 or 2 rides on the way to work and 2 or 3 on the way home, averaging about $50/day. So what I've resolved to do is on most days I deduct my miles from when I go online to when my last passenger gets out even if I'm technically online the rest of the way to home/work, and on those very rare days where I don't get any pings, I don't write off any miles. I find that my tax deductible miles are about double my "rider" miles (when a rider is in the car). If I were to deduct all of my online miles it would probably be 3.5 deductible miles for every mile that a passenger is in the car.

But if I were to ever just Uber on a weekend or at night when I WASN'T already going to work or back, then certainly I'd deduct all of my online miles.


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## Chris1973

Playing devils advocate here.. The way it SHOULD work is only accounting for miles AFTER the pick-up of food or PAX. Anything else could be commuting from normal job or joy-riding for all the IRS knows. Can you normally deduct commuting to a "real" W-2 job? Regardless, it seems like some folks aren't aware that you still need to pay for SS/Medicare (15.3%) or so regardless of deductions. It gets complicated part-time few hours a week vs. full time but I know some people are screwing themselves not accounting for FICA. Good Luck.


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## R James

Chris1973 said:


> Playing devils advocate here.. The way it SHOULD work is only accounting for miles AFTER the pick-up of food or PAX. Anything else could be commuting from normal job or joy-riding for all the IRS knows. Can you normally deduct commuting to a "real" W-2 job? Regardless, it seems like some folks aren't aware that you still need to pay for SS/Medicare (15.3%) or so regardless of deductions. It gets complicated part-time few hours a week vs. full time but I know some people are screwing themselves not accounting for FICA. Good Luck.


I've only been Ubering for 6 months, so I haven't had to deal with on my taxes yet, but I'm assuming that whatever self-employment form I have to fill out will MAKE me pay SS/Medicare, right? I don't have to somehow go out of my way and pay that in some other manner do I?


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## Chris1973

R James said:


> I've only been Ubering for 6 months, so I haven't had to deal with on my taxes yet, but I'm assuming that whatever self-employment form I have to fill out will MAKE me pay SS/Medicare, right? I don't have to somehow go out of my way and pay that in some other manner do I?


Sorry but, if you are Ubering full time, taxes probably need to be filed quarterly.


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## R James

Chris1973 said:


> Sorry but, if you are Ubering full time, taxes probably need to be filed quarterly.


Not ubering "full time" - just Ubering on the way to my regular job and back. And I live in Washington State so there is no state income tax, so presumably I just file my Federal Taxes once per year, right? (I'm guessing that by year's end I will show less than $3K in profits, after deductions).


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## UberBastid

I have always considered a tax return as an offer.
I fill out my offer, I send it in with some money.
If they like my offer I never hear anything.
If they don't, they make a counter offer (they call that 'audit results')
I leave something obvious for them to find, if they look, and they feel good 'catching' me at something and not seeing the bigger and less obvious issue.
I usually accept their counter because I know what they've missed, and I don't want them to keep looking. 

The thing that will get you in trouble is not reporting income. I do that, well, mostly.
I get very creative on the deductions.
Very.


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## Mars Troll Number 4

Chris1973 said:


> Playing devils advocate here.. The way it SHOULD work is only accounting for miles AFTER the pick-up of food or PAX. Anything else could be commuting from normal job or joy-riding for all the IRS knows. Can you normally deduct commuting to a "real" W-2 job? Regardless, it seems like some folks aren't aware that you still need to pay for SS/Medicare (15.3%) or so regardless of deductions. It gets complicated part-time few hours a week vs. full time but I know some people are screwing themselves not accounting for FICA. Good Luck.


You don't if you have no profit, that's where a lot of the drivers here are at...

No profit of any kind whatsoever..

If that is the case you don't have to pay it.


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## steveK2016

Mears Troll Number 4 said:


> You don't if you have no profit, that's where a lot of the drivers here are at...
> 
> No profit of any kind whatsoever..
> 
> If that is the case you don't have to pay it.


Some states must pay the state self employment tax which cannot be reduced to a 0 with deductions, according to to my cpa.



R James said:


> This is my first year, and I'm just doing this as a side gig, but I keep very detailed daily records and so far on $6K gross income I figure I have about $2K in taxable income. But I'm being perhaps overly reasonable in the miles I'm deducting because I don't want to trigger an audit by showing a loss.
> 
> And seriously, if MOST Uber drivers show a loss, it seems like the IRS would eventually call foul and change the rules.


Most do. Many business do their best to show a loss, especially start ups. Thats pretty typical. I believe the IRS only has the man power to audit 7% of tax payers, for every dollar they spend they expect to earn/recover $6. They aren't gonna want to waste their limited resources on an uber driver that has no money to give. They'd rather go after the guy who fidged his taxes to save a couple of zeros on his closing balance.

They ain't gonna recover $6 for every dollar they spend chasing uber drivers. Lol.



Chris1973 said:


> Playing devils advocate here.. The way it SHOULD work is only accounting for miles AFTER the pick-up of food or PAX. Anything else could be commuting from normal job or joy-riding for all the IRS knows. Can you normally deduct commuting to a "real" W-2 job? Regardless, it seems like some folks aren't aware that you still need to pay for SS/Medicare (15.3%) or so regardless of deductions. It gets complicated part-time few hours a week vs. full time but I know some people are screwing themselves not accounting for FICA. Good Luck.


My CPA was perfectly fine with deducting those miles. Its not commuter miles because its actuvely part of the job. Commuting to work to sit behind a desk is different than being a car for hire. Now it can be argued that the miles before your first pickup and after your last drop off shoulsnt count towards the mileage deduction, but its such small peanuts the its wouldn't even bother.


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## Chris1973

Still pretty sure the FICA must be paid regardless of deductions at the federal level, over a certain level of income anyway. There may be a discount on FICA with some kind of self-employment deduction, but otherwise I'm sticking to me assertion, but would love to hear differently! (from an authoritative source). Any CPA's in the house?


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## SEAL Team 5

Richmy said:


> I believe many drivers are lured into and keep driving based on their assuming their gross earning are what they keep. Also, that many drivers just don't retain, file or report the actual income. What do you think?


Thread title should be "How Many Uber Drivers do You Think Really Owe Taxes?"



Chris1973 said:


> Still pretty sure the FICA must be paid regardless of deductions at the federal level, over a certain level of income anyway. There may be a discount on FICA with some kind of self-employment deduction, but otherwise I'm sticking to me assertion, but would love to hear differently! (from an authoritative source). Any CPA's in the house?


The 15.3% must be paid on net income for the self employed. That is after any and all BUSINESS deductions, not personal deductions.


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## Mars Troll Number 4

steveK2016 said:


> Some states must pay the state self employment tax which cannot be reduced to a 0 with deductions, according to to my cpa.


did not know that, thanks for the information.

I've been self employed anywhere but florida.


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## tohunt4me

Mears Troll Number 4 said:


> You don't if you have no profit, that's where a lot of the drivers here are at...
> 
> No profit of any kind whatsoever..
> 
> If that is the case you don't have to pay it.


After mileage deductions the Govt. Owes me !

I didnt even have to Pay the Penalty for being unable to afford healthcare or insurance last year !


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## jester121

grayspinner said:


> This is a huge benefit - especially for those who have kids in college and/or purchase health insurance from the exchange.


Why is it more of a benefit for them? Tax savings is tax savings, no matter what else you spend your money on.


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## I_Like_Spam

Richmy said:


> I believe many drivers are lured into and keep driving based on their assuming their gross earning are what they keep. Also, that many drivers just don't retain, file or report the actual income. What do you think?


Uber sends the IRS a 1099 on each driver, if the driver files a return, they have to address it.

My guess is "yes" at least with federal income tax.

As far as sales tax, other local levies that may be in place, probably a lot of drivers aren't up to snuff with them.


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## Autofahrer

At least keep all the gas receipt's. I keep track of mileage when I fill up.
Also keep track of car expenses, like oil change, transmission service and light bulbs.

Wonder if I should expense the coffee I drink on the road?? "sarcasm"


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## newdriverintown

Tenzo said:


> You must be older than I am. I tried skirting out of paying 1099 taxes in 1983 and found out you cant do that, they catch 100%.
> So its been going on for 33 years
> 
> I actually do Uber for the tax loss. I bought a garage for my car and am depreciating it. So with the great rates I show a net loss on my uber driving.
> This carries over as a deduction for the wages earned on my real job.
> 
> Yep, that's right, I drive Uber to LOSE money.
> They haven't let me down yet.


I'm glad I'm not the only one.



Chris1973 said:


> Playing devils advocate here.. The way it SHOULD work is only accounting for miles AFTER the pick-up of food or PAX. Anything else could be commuting from normal job or joy-riding for all the IRS knows. Can you normally deduct commuting to a "real" W-2 job? Regardless, it seems like some folks aren't aware that you still need to pay for SS/Medicare (15.3%) or so regardless of deductions. It gets complicated part-time few hours a week vs. full time but I know some people are screwing themselves not accounting for FICA. Good Luck.


I don't think so. Read the IRS rules they publish on what mileage you can deduce and if I'm not mistaking, you can deduce miles after leaving your "office" you have at home and getting home. If they let you do this, take advantage and don't feel bad there is an actual loss.


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## Trafficat

Chris1973 said:


> Playing devils advocate here.. The way it SHOULD work is only accounting for miles AFTER the pick-up of food or PAX. Anything else could be commuting from normal job or joy-riding for all the IRS knows. Can you normally deduct commuting to a "real" W-2 job? Regardless, it seems like some folks aren't aware that you still need to pay for SS/Medicare (15.3%) or so regardless of deductions. It gets complicated part-time few hours a week vs. full time but I know some people are screwing themselves not accounting for FICA. Good Luck.


For a W2 job you can choose to live near where you work to minimize commute. You can't choose to be near the pickup location for a pax, because it varies every moment. Driving to the pickup location is a cost of doing business whereas generally speaking driving to a W2 job is not, because you have alternatives. You can take the bus to work or bicycle for a W2 job or live next door. So deductions for the guy who chooses to live 60 miles away and commute each day is a subsidy for his lifestyle choice of living far away and driving rather than taking the bus.

You can't take the bus or ride a bike to the pax location because you need your car to do the job, which is giving the pax a ride.


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## MarkR

PrestonT said:


> What cash tips? I've no idea what you're talking about. Everyone knows that with Uber, tips are neither expected nor required, so we don't get cash tips.


Put a sign in the back seat. "Tips appreciated"


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## ntcindetroit

limepro said:


> Be careful, any 1099 that goes 3 years showing a loss is no longer a job and becomes a hobby which all earnings you pay tax on. Show a minimal earning and you will be safe, don't show a loss multiple years.


How to show a loss on 1099? Are you a CPA or IRS certified Tax forms filler? Never heard of a loss on 1099.


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## sidemouse

grayspinner said:


> I certainly keep excellent records & definitely report my income. It makes a huge difference in my taxable income. I was able to show a tax loss due to the mileage deduction (but I didn't have an actual loss, just a tax loss) and that lowered our overall household tax burden.
> 
> This is a huge benefit - especially for those who have kids in college and/or purchase health insurance from the exchange.


Yeah I'm single and it makes such a difference I would be stupid not to file Uber taxes.


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## Buddywannarideagain

None because they don't make more than they deduct. Most don't last 2 weeks anyway.



ntcindetroit said:


> How to show a loss on 1099? Are you a CPA or IRS certified Tax forms filler? Never heard of a loss on 1099.


Gotta do a Schedule C. Deduct your mileage, car insurance, car washes, your phone bill, etc. since the irs deduction is like 53 cents and I only make 60 cents a mile I didn't pay tax last year. Maybe a little tax this year. Idk. You gotta pay a little tax after a year or two or the irs disallows your previous deductions.

So simply put: Offset your 1099 with a Schedule C. You're welcome.


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## Thefastest1

Buddywannarideagain said:


> None because they don't make more than they deduct. Most don't last 2 weeks anyway.
> 
> Gotta do a Schedule C. Deduct your mileage, car insurance, car washes, your phone bill, etc. since the irs deduction is like 53 cents and I only make 60 cents a mile I didn't pay tax last year. Maybe a little tax this year. Idk. You gotta pay a little tax after a year or two or the irs disallows your previous deductions.
> 
> So simply put: Offset your 1099 with a Schedule C. You're welcome.


If any Uber driver pays one penny in taxes they are a fool soon parted with their money. Think there is a IRS agent looking at a Uber drivers tax return? LOL



renbutler said:


> There are people here who brazenly admit the felony of not reporting cash tips.


Seriously? You are the naive one


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## UberBastid

renbutler said:


> Yep. The folks who always have to carry the load for everybody else.
> 
> The wealthy and the honest, neither of whom are appreciated for keeping everybody else afloat.


Its not the 'wealthy and honest' that are not appreciated, it's the rich and stupid.
You rich? Makin a $mil or more a year in income? Pay. Pay a lot.
You stupid and pay when your poor? Pay. Pay a lot.

A tax return, to me, is an offer. I report my income accurately. I interpret the uninterpretable code to my advantage. If the service doesn't like my offer, they make a counter-offer (they call it an audit). We negotiate and settle on a payment. Doesn't happen very often now that I'm not making much money.
If they want to spend 100 man hours on getting an extra $1000 from me, I'll play. (They won't)

The dirty little secret is that the IRS used to be a fearsome 'service'. They're not any more, pretty toothless. If you are poor (income under $50k) they leave you alone because they know they can't get blood out of a turnip, if you are very rich (income over $5mil) they leave you alone because you can afford better lawyers than the ones they have. If you're middle class -- be afraid.


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## ntcindetroit

Buddywannarideagain said:


> None because they don't make more than they deduct. Most don't last 2 weeks anyway.
> 
> Gotta do a Schedule C. Deduct your mileage, car insurance, car washes, your phone bill, etc. since the irs deduction is like 53 cents and I only make 60 cents a mile I didn't pay tax last year. Maybe a little tax this year. Idk. You gotta pay a little tax after a year or two or the irs disallows your previous deductions.
> 
> So simply put: Offset your 1099 with a Schedule C. You're welcome.


One can show loss on schedule C when filing 1040, but No, Uber is not that dumb to show loss on 1099, otherwise, it's clear admission that they steal from IC, the driver, the partner. HA!


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## Uber3F

Ladies and Gentlemen,

Are you filing your income taxes together? Or do you separate other income from Uber? If you are doing it separately, are you doing the Uber part as a DBA (registered or under your name)? Which is better in savings? Which is the legally acceptable way?


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## I_Like_Spam

Richmy said:


> I believe many drivers are lured into and keep driving based on their assuming their gross earning are what they keep. Also, that many drivers just don't retain, file or report the actual income. What do you think?


Uber partners get 1099's, they have to rectify the forms on their 104's.

If they don't, the IRS will ask them to- if the IRS knows where they are at.

I suppose that there are a certain number of Uber Partners with phony son's. And a number with no set address and no other income or reason to file.

But that's a pretty small minority of Uber people.


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## MarkR

renbutler said:


> There are people here who brazenly admit the felony of not reporting cash tips.


I avoid this all together. I don't make more than $500 with Uber. No 1099 here.


Mears Troll Number 4 said:


> You don't if you have no profit, that's where a lot of the drivers here are at...
> 
> No profit of any kind whatsoever..
> 
> If that is the case you don't have to pay it.


i avoid 1099s. I don't do more than $500 with Uber. Ever. Not worth wear and tear on the car.


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## Buddywannarideagain

Uber3F said:


> Ladies and Gentlemen,
> 
> Are you filing your income taxes together? Or do you separate other income from Uber? If you are doing it separately, are you doing the Uber part as a DBA (registered or under your name)? Which is better in savings? Which is the legally acceptable way?


Just add Schedule C to your existing return.


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## SEAL Team 5

Uber3F said:


> Ladies and Gentlemen,
> 
> Are you filing your income taxes together? Or do you separate other income from Uber? If you are doing it separately, are you doing the Uber part as a DBA (registered or under your name)? Which is better in savings? Which is the legally acceptable way?


There's only 5 ways to file 1099 income. Sole Proprietorship, Partnership, Limited Liability Company(LLC), S Corporations and Corporations. DBA (Doing Business As) is a Sole Proprietorship.

You need to file your Uber (1099) income with Forms SE (Profit/Loss from a business) and Schedule C (Business itemized deductions). The SE form is your required FICA (Social Security) tax and Schedule C is your income which you will enter on line 12 of Form 1040 (Personal Income Tax).


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## R James

Uber3F said:


> Ladies and Gentlemen,
> 
> Are you filing your income taxes together? Or do you separate other income from Uber? If you are doing it separately, are you doing the Uber part as a DBA (registered or under your name)? Which is better in savings? Which is the legally acceptable way?


2017 was my first year Ubering, so excuse me for sounding ignorant here, but are you saying that I don't HAVE to do my Uber taxes along with my personal taxes, but instead can file my personal taxes as I always have and then file separately for my Uber "business" (I got a Seattle business license which I guess is the DBA thing you mention)?

Also - is Uber supposed to MAIL me the 1099 or is that something I can access and download from online? Because I haven't got one in the mail and it's obviously past the 1/31 deadline.


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## UberBastid

I consider a tax return to be an offer (its the Real Estate Broker in me, I guess). 
I make an offer every three or four years on all of the accumulated returns.
If the IRS likes my offer, they accept it
If they don't, they make a counter offer. (they call it audit).
Sometimes we go back and forth several times. Offer, counter, counter to the counter, etc, etc.
We eventually settle on an amount.
It's an every five year event.

It used to freak my wife out. LoL. 
Now, she's numb to it. 
It always works out the way I say it will.

Hopefully, I will die at the tale end of one of those cycles and die owing MILLIONS.
The bastids.


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## I_Like_Spam

renbutler said:


> There are people here who brazenly admit the felony of not reporting cash tips.


I like the word "brazenly", particularly when used for such a minor peccadillo.

It isn't like the folks hijacked an airplane or tore the tag off of their mattress- they were just not quite as comprehensive in completing their tax return as might be ideal.


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## UberBastid

Felony?
Really IRS auditor?
I didn't know I had to report tips.
Sorry.
How much do I owe you?

They just want their money.
I don't wanna give it up.
Built in adversarial relationship.



I_Like_Spam said:


> I like the word "brazenly", particularly when used for such a minor peccadillo.
> 
> It isn't like the folks hijacked an airplane or tore the tag off of their mattress- they were just not quite as comprehensive in completing their tax return as might be ideal.


Yea, I brazenly jaywalked across the street once.
Right out in front of everybody, broad daylight ... just flaunted the law.
A symptom of the erosion of our society.


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## Mars Troll Number 4

It depends on the situation more than anything.

Part timers (those with ANOTHER JOB ONLY) will pay taxes

Full timers in some markets WILL NEVER OWE taxes (Orlando for instance)

Markets like Seattle will be almost impossible to avoid taxes.


After all what market you are in has a bigger impact on how much you owe in taxes than how much you make or how much you work.


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## I_Like_Spam

Mears Troll Number 4 said:


> Full timers in some markets WILL NEVER OWE taxes (Orlando for instance)
> 
> .


Regardless of where you are however, its pretty difficult to avoid FILING taxes because of the 1099's. That was the great thing about cab driving 20 years ago- no 1099's at all, Yellow Cab knew your driver's license number but not your social security number. All the customers paid cash, no one snitched to the IRS, so you were on your honor to those guys.


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## Mars Troll Number 4

I_Like_Spam said:


> Regardless of where you are however, its pretty difficult to avoid FILING taxes because of the 1099's. That was the great thing about cab driving 20 years ago- no 1099's at all, Yellow Cab knew your driver's license number but not your social security number. All the customers paid cash, no one snitched to the IRS, so you were on your honor to those guys.


I can still shave $50 a night EASY off my gross revenue in terms of what i tell the IRS.

So in a lot of days i'm still on my honor.


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