# Taxes



## Hpil77 (Feb 7, 2019)

I did my taxes from Uber/I made 43000 last year/expenses 15000/clear I made 27000 now irs want me pay 3000 I think doesn't make sense work for Uber any advice how avoid that much taxes for next year thanks guys


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## FLKeys (Dec 27, 2018)

If you did your taxes properly than you need to be making estimated tax payments every quarter at a minimum. Look up estimated tax payments on the IRS website for more information. Also this question my get better answered if asked in the Taxes section.


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## theMezz (Sep 29, 2018)

When you say they want you to pay $3000 - is that in additional to what you already paid? Do you pay quarterly? Do you report other types of income too?


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## Taksomotor (Mar 19, 2019)

Hpil77 said:


> I did my taxes from Uber/I made 43000 last year/expenses 15000/clear I made 27000 now irs want me pay 3000 I think doesn't make sense work for Uber any advice how avoid that much taxes for next year thanks guys


You dont make any sense. You made $27k after expenses, you should pay your taxes, probably 15% self employed tax, plus could be FICO, plus whatever State taxes your state takes. You are in the USA - taxation for representation. Didn't you go to school?


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## Ssgcraig (Jul 8, 2015)

Hpil77 said:


> I did my taxes from Uber/I made 43000 last year/expenses 15000/clear I made 27000 now irs want me pay 3000 I think doesn't make sense work for Uber any advice how avoid that much taxes for next year thanks guys


Whole section on here for taxes. So you made 27,000 and your going to pay 3,000. What tax rate is that? A little over 10%? Seems a bit high, but not outrageous. You claimed everything you could? Mileage being the biggest one. Claimed all the fee from Uber?


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## KK2929 (Feb 9, 2017)

Hpil77 said:


> I did my taxes from Uber/I made 43000 last year/expenses 15000/clear I made 27000 now irs want me pay 3000 I think doesn't make sense work for Uber any advice how avoid that much taxes for next year thanks guys


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I would suggest that you have a professional tax person look at your work. H & R Block will do it free in L.A. Do not know about Fla. This year is different because of changes to Fed. They can also advise you on how to legally decreased the amount owed.


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## TheDevilisaParttimer (Jan 2, 2019)

Hpil77 said:


> I did my taxes from Uber/I made 43000 last year/expenses 15000/clear I made 27000 now irs want me pay 3000 I think doesn't make sense work for Uber any advice how avoid that much taxes for next year thanks guys





Hpil77 said:


> I did my taxes from Uber/I made 43000 last year/expenses 15000/clear I made 27000 now irs want me pay 3000 I think doesn't make sense work for Uber any advice how avoid that much taxes for next year thanks guys


Post your actual rideshare mileage please. I crunched some numbers with what you have provided and think you did something wrong.
[/QUOTE]


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## Taksomotor (Mar 19, 2019)

Ssgcraig said:


> Whole section on here for taxes. So you made 27,000 and your going to pay 3,000. What tax rate is that? A little over 10%? Seems a bit high, but not outrageous. You claimed everything you could? Mileage being the biggest one. Claimed all the fee from Uber?


How is 10% a bit high? It is way too low, where do you find tax like that?


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## theMezz (Sep 29, 2018)

My effective tax rate with one full time W2 job and 3 - 1099 gig's (plus ride/share) was 8%


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## Ssgcraig (Jul 8, 2015)

Taksomotor said:


> How is 10% a bit high? It is way too low, where do you find tax like that?


Where do I find tax like that? I have never found taxes, I pay them like the other 48% of the country. 27,000 your at 12%, I forgot our taxes have gone up since 2006. So $3,000 what he should pay.


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## Taksomotor (Mar 19, 2019)

8% of what? 8% of total gross or 8% of taxable amount?


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## Ssgcraig (Jul 8, 2015)

Taksomotor said:


> 8% of what? 8% of total gross or 8% of taxable amount?


Who pays taxes on anything but the taxable amount?


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## Taksomotor (Mar 19, 2019)

Ssgcraig said:


> Where do I find tax like that? I have never found taxes, I pay them like the other 48% of the country. 27,000 your at 12%, I forgot our taxes have gone up since 2006. So $3,000 what he should pay.


Ok, buy you just said it was a bit too high. And 12% is only if doesn't have another income.



Ssgcraig said:


> Who pays taxes on anything but the taxable amount?


If it is on taxable amount then it is never 8%. You just said yourself it would be a min of 12%.


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## theMezz (Sep 29, 2018)

Taksomotor said:


> 8% of what? 8% of total gross or 8% of taxable amount?


Good question. It's 8%of Gross income


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## Ssgcraig (Jul 8, 2015)

Taksomotor said:


> Ok, buy you just said it was a bit too high. And 12% is only if doesn't have another income.
> 
> 
> If it is on taxable amount then it is never 8%. You just said yourself it would be a min of 12%.


Yeah, I said a bit too high, but I was thinking rates a long time ago. 12 is the rate in an income bracket. He actually made 43K, but he reduced the taxable income down to 27K. I was thinking 8% was the norm for most. I am not a tax expert.


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## Taksomotor (Mar 19, 2019)

theMezz said:


> Good question. It's 8%of Gross income


Ok, so for the topic starter that would be 3/43 = 7%


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## Hpil77 (Feb 7, 2019)

TheDevilisaParttimer said:


> Post your actual rideshare mileage please. I crunched some numbers with what you have provided and think you did something wrong.


[/QUOTE]
20000


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## Karen Stein (Nov 5, 2016)

Look at the OP's numbers. He's treating his 1099 as if it were a W-2!

A word to the OP: You're NOT an employee, you're a BUSINESS. If your tax return doesn't include ALL of the following forms you're doing it wrong:
1040
Schedule 1
Schedule C
Form SE
Schedule 4

The biggest bit of information you need are the MILES you drove in the pursuit of rides.


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## amazinghl (Oct 31, 2018)

$15000 expenses --- tax deductible expenses? If so, do you have all the receipts?


Sounds like it's for your best interest to visit a tax specialist.


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## Ssgcraig (Jul 8, 2015)

amazinghl said:


> $15000 expenses --- tax deductible expenses? If so, do you have all the receipts?
> 
> Sounds like it's for your best interest to visit a tax specialist.


$.55 a mile, (or what ever it is) brings that 43K down. 20,000 miles is 11,000 deduction. Something isn't adding up though, usually you want to be $1.00 for a mile (roughly) on your 1099, so this guy did 47,000 for only 20,000 miles? All the other miles you need a log. So the 20K that are on the 1099 are not the only miles you claim.


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## Seahawk3 (Oct 5, 2016)

Hpil77 said:


> I did my taxes from Uber/I made 43000 last year/expenses 15000/clear I made 27000 now irs want me pay 3000 I think doesn't make sense work for Uber any advice how avoid that much taxes for next year thanks guys


You should be closer to 0 then that. Did you deduct mileage cellphone internet carwashes. Clothing for work and supplies you bought etc. I also made roughly 45k and didnt owe a penny after deductions. Your phone deduction should be around 1200 at least 53.5 cents a mile should drop another 15 to 20k. Home internet 50 to 80 a month or 800 a year clothing 100 to 200 a year. Car washes 100 to 200 a year. You get my drift. You can also deduct taxes for your plates in most states


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## Taksomotor (Mar 19, 2019)

These deductions are not legal, just saying... But what are the chances to get audit3d, you might be just fine...


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## Ssgcraig (Jul 8, 2015)

Taksomotor said:


> These deductions are not legal, just saying... But what are the chances to get audit3d, you might be just fine...


You will get audited eventually, they are 3-5 years behind. When you start claiming everything under the kitchen sink and you pay $0 in taxes, that's a red flag.


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## Taksomotor (Mar 19, 2019)

Ssgcraig said:


> You will get audited eventually, they are 3-5 years behind. When you start claiming everything under the kitchen sink and you pay $0 in taxes, that's a red flag.


I only claim my miles and 30% off my wireless bill. Clothes to work, for Uber, seriously? Like you'd be driving naked otherwise? That is pushing your luck big time.


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## Aw Jeez (Jul 13, 2015)

Just because Uber says you did X-number of "on-app" miles doesn't mean that those are you ONLY business miles you drove. Deadhead miles count too. In fact, EVERY mile that you drive for business counts, not just the miles during which you had a paying passenger onboard. Cruising around, looking for a "honey-hole?" Would you be out there doing that if not in the pursuit of your BUSINESS? No, of course not. You did keep a record of your business and personal miles driven, right?

If the OP made $43K on only 20,000 miles I would be amazed. It's probably more like 40,000 miles, maybe more. We need to know how many actual miles he put on that car, and what percentage were personal and what were business. Taxis net $1.00/mile after expenses, we don't (generally, at least not here in my town). Right now I'm only netting about $0.85/mile after Uber deducts their fees. 

So something's wrong with the OP's calculations.

By the way, Uber/Lyft do not require us to wear any uniform of any kind. So I doubt you'd get away with claiming a clothing expense. Like someone else posted, you have to be dressed anyway to go out in public. The IRS is pretty strict about such things. Even dress shoes would not be deductible unless they were of a particular type that could not be worn anywhere else at any other time. So good luck!


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## Seahawk3 (Oct 5, 2016)

Taksomotor said:


> I only claim my miles and 30% off my wireless bill. Clothes to work, for Uber, seriously? Like you'd be driving naked otherwise? That is pushing your luck big time.


I'm not talking just pants I'm talking if you have to buy any gear that you otherwise wouldn't have owned like maybe some boots or gloves maybe a nicer winter jacket for deliveries. I have an accountant the does my taxes been an independent contractor for over 10 years never been audited. Your cell phone because it is a requirement to do the job is 100% deductible So are any business expenditure such as car washes gear that you may have bought such as a 2 way camera barf bags etc. It's not just your mileage you can also use your home Internet as a deduction if you ever on forums like this to do research that's all you need to deduct your home internet, I use a Home Office deduction because I have a laptop that I track my expenditures my purchase receipts my mileage log and since I do that from my home its legal.

My point like the rest of you mentioned is he is not doing something right. Even with minumum deductions like cellphone car washes and milage he should be closer to 10k Hes probably closer to the 4k to 7k if he deducted everything right would be my guess.


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## TheDevilisaParttimer (Jan 2, 2019)

Aw Jeez said:


> Just because Uber says you did X-number of "on-app" miles doesn't mean that those are you ONLY business miles you drove. Deadhead miles count too. In fact, EVERY mile that you drive for business counts, not just the miles during which you had a paying passenger onboard. Cruising around, looking for a "honey-hole?" Would you be out there doing that if not in the pursuit of your BUSINESS? No, of course not. You did keep a record of your business and personal miles driven, right?
> 
> If the OP made $43K on only 20,000 miles I would be amazed. It's probably more like 40,000 miles, maybe more. We need to know how many actual miles he put on that car, and what percentage were personal and what were business. Taxis net $1.00/mile after expenses, we don't (generally, at least not here in my town). Right now I'm only netting about $0.85/mile after Uber deducts their fees.
> 
> ...


My thoughts exactly


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## KK2929 (Feb 9, 2017)

Karen Stein said:


> Look at the OP's numbers. He's treating his 1099 as if it were a W-2!
> 
> A word to the OP: You're NOT an employee, you're a BUSINESS. If your tax return doesn't include ALL of the following forms you're doing it wrong:
> 1040
> ...


--------------

You forgot Schedule A



Hpil77 said:


> I did my taxes from Uber/I made 43000 last year/expenses 15000/clear I made 27000 now irs want me pay 3000 I think doesn't make sense work for Uber any advice how avoid that much taxes for next year thanks guys


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Your expenses look too low. On $43,000 , Ubers cut will be at least $12,000 and gasoline will be at least $5,000.
When you add cell phone monthly cost, car washes, all car service work that is $600+


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## Launchpad McQuack (Jan 8, 2019)

KK2929 said:


> You forgot Schedule A


There are plenty of people that don't need to file Schedule A, especially with the new tax laws.


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## KK2929 (Feb 9, 2017)

Launchpad McQuack said:


> There are plenty of people that don't need to file Schedule A, especially with the new tax laws.


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Use the donations to help off set the income, even if nothing else applies to that person.



Seahawk3 said:


> You should be closer to 0 then that. Did you deduct mileage cellphone internet carwashes. Clothing for work and supplies you bought etc. I also made roughly 45k and didnt owe a penny after deductions. Your phone deduction should be around 1200 at least 53.5 cents a mile should drop another 15 to 20k. Home internet 50 to 80 a month or 800 a year clothing 100 to 200 a year. Car washes 100 to 200 a year. You get my drift. You can also deduct taxes for your plates in most states


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Since a uniform is not required, do not think you can deduct the cost of clothes and unless a phone used ONLY for rides share cannot deduct 100% of the cost. I do agree with you that the the expense total looks too low.


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## Seahawk3 (Oct 5, 2016)

KK2929 said:


> ----------------------
> 
> Use the donations to help off set the income, even if nothing else applies to that person.
> 
> ...


You still can your the boss so you decide. Just because Uber or lyft don't specifically require it AKA because they are not you boss. doesn't mean that you as a business can't require it for yourself. So any clothing you buy specifically for the job your doing is deducteable


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## KK2929 (Feb 9, 2017)

Seahawk3 said:


> You still can your the boss so you decide. Just because Uber or lyft don't specifically require it AKA because they are not you boss. doesn't mean that you as a business can't require it for yourself. So any clothing you buy specifically for the job your doing is deducteable


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If you are talking about dress shirt and pants or a suit, it might work.


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## Seahawk3 (Oct 5, 2016)

KK2929 said:


> -------------------
> If you are talking about dress shirt and pants or a suit, it might work.


Work boots and shoes as well. Gloves winter gear etc. All can be used as a deduction. I personally buy winter boots once every 3 years. If I am doing any work outside such as delivering food. Also spikes for ice grip. Winter coats as well every 3 years.


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## Aw Jeez (Jul 13, 2015)

Seahawk3, if you get audited (and I assume you have not been), the IRS guy will ask if any of those items you listed as deductions can be used off the job? If the answer is "yes," then they'll most likely disallow it. Deductible items generally have to be _very_ job-specific - like if Uber required us to buy and wear specially-branded Uber shirts. Then, yeah, the cost of purchase and upkeep (washing/cleaning) would be deductible. But just because you buy a winter coat in an area of the country that gets cold in the winter does not mean that cost is a "business expense" and therefore deductible.


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## Seahawk3 (Oct 5, 2016)

Aw Jeez said:


> Seahawk3, if you get audited (and I assume you have not been), the IRS guy will ask if any of those items you listed as deductions can be used off the job? If the answer is "yes," then they'll most likely disallow it. Deductible items generally have to be _very_ job-specific - like if Uber required us to buy and wear specially-branded Uber shirts. Then, yeah, the cost of purchase and upkeep (washing/cleaning) would be deductible. But just because you buy a winter coat in an area of the country that gets cold in the winter does not mean that cost is a "business expense" and therefore deductible.


I've been audited once and passed as long as you say it's used for the job only. But there are plenty of things that you don't use just for the job that are deductible such as your cellphone xm radio or YouTube etc. Now it is a risk you are right about that. I have an accounting firm that does my taxes so if I get audited and it's wrong it's on them. I dont think they would do it if they weren't sure


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## Older Chauffeur (Oct 16, 2014)

Seahawk3 said:


> I've been audited once and passed as long as you say it's used for the job only. But there are plenty of things that you don't use just for the job that are deductible such as your cellphone xm radio or YouTube etc. Now it is a risk you are right about that. I have an accounting firm that does my taxes so if I get audited and it's wrong it's on them. I dont think they would do it if they weren't sure


Somewhere in the paperwork you sign with your accountant there's likely a statement saying that he/she is relying on info you have provided, and that he/she is only responsible for the accuracy of the return using that information.

Re clothing used for work has to be something specifically intended for a job, such as delivery person's uniform with the company and driver names sewn on, the company usually pays and takes the deduction. Safety items might be deductible, such as boots or coveralls suitable for work. Another example is law enforcement uniforms.

If it's normal clothing, such as a business suit you could wear to a fancy restaurant, it probably won't be deductible. As a corporate executive security driver and as a chauffeur, I was required to wear suits, but that requirement didn't make them deductible.

Disclaimer: I'm not a tax professional.


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## Seahawk3 (Oct 5, 2016)

Older Chauffeur said:


> Somewhere in the paperwork you sign with your accountant there's likely a statement saying that he/she is relying on info you have provided, and that he/she is only responsible for the accuracy of the return using that information.
> 
> Re clothing used for work has to be something specifically intended for a job, such as delivery person's uniform with the company and driver names sewn on, the company usually pays and takes the deduction. Safety items might be deductible, such as boots or coveralls suitable for work. Another example is law enforcement uniforms.
> 
> ...


Yeah that is in the agreement for sure. When I give them receipts and they tell me which ones I can and cant deduct that's on them. At no time did I force then to deduct clothing expenses. I'm also LLC so maybe there's a difference


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## KK2929 (Feb 9, 2017)

Seahawk3 said:


> Work boots and shoes as well. Gloves winter gear etc. All can be used as a deduction. I personally buy winter boots once every 3 years. If I am doing any work outside such as delivering food. Also spikes for ice grip. Winter coats as well every 3 years.


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Ahhh, I get it. I live in L.A. Definitely could not get away with that here.


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## Seahawk3 (Oct 5, 2016)

Older Chauffeur said:


> Re clothing used for work has to be something specifically intended for a job, such as delivery person's uniform with the company and driver names sewn on, the company usually pays and takes the deduction. Safety items might be deductible, such as boots or coveralls suitable for work. Another example is law enforcement uniforms


Doesnt have to be specific as long as the clothing is used for your business


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## Older Chauffeur (Oct 16, 2014)

Seahawk3 said:


> Doesnt have to be specific as long as the clothing is used for your business


I googled "IRS rules for deducting work clothing."

"You can deduct the cost and upkeep of *work clothes* and uniforms if you must *wear*them as a condition of your *employment* and the *clothes* are not suitable for everyday *wear*. The *IRS* says the *clothing* must be specifically required by your employer and is not suitable for taking the place of your regular *clothing*."

https://yourbusiness.azcentral.com/...othing-expenses-sole-proprietorship-1332.html


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## oldfart (Dec 22, 2017)

To gross $43000his mileage is probably over 50000. If I’m right the standard mileage deduction is over $25000

So at most $18000 net income. To transfer to his 1040. If this is his only income the standard deduction brings taxable income down to $6000 so if this is his only income
Tax is 6000 x 10% = $600
Plus self employment tax 6000 x 15% = $900

I didn’t consider other business expenses that reduce the &6000 enem more


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## Seahawk3 (Oct 5, 2016)

Older Chauffeur said:


> I googled "IRS rules for deducting work clothing."
> 
> "You can deduct the cost and upkeep of *work clothes* and uniforms if you must *wear*them as a condition of your *employment* and the *clothes* are not suitable for everyday *wear*. The *IRS* says the *clothing* must be specifically required by your employer and is not suitable for taking the place of your regular *clothing*."
> 
> https://yourbusiness.azcentral.com/...othing-expenses-sole-proprietorship-1332.html


 Well since I am the boss and it's my own company the clothes that I wear are for my job and I don't know about you but I'm not wearing snowboots or cleats in my house or a Winter jacket or driving gloves


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## LinnyVan (Sep 6, 2016)

Hpil77 said:


> I did my taxes from Uber/I made 43000 last year/expenses 15000/clear I made 27000 now irs want me pay 3000 I think doesn't make sense work for Uber any advice how avoid that much taxes for next year thanks guys


Remember you can still deduct the miles that you're driving while you're logged on to Uber or Lyft. In other words, if you're driving around waiting for rides or you're driving from one passenger to the next or one trip to the next, all those miles count not just the miles Uber calculates. Google it and you will see. The problem is you didn't deduct enough miles. I made about 40,000 but once I deducted all my miles which ends up being about a hundred miles a day 7 days a week I only have to pay $403 if your head of household, you should be getting a refund I hope this helps but there's no way you should pay $3,000 in taxes. By the way, I used TurboTax as well and had a live advisor who was wonderful.


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## Launchpad McQuack (Jan 8, 2019)

oldfart said:


> So at most $18000 net income. To transfer to his 1040. If this is his only income the standard deduction brings taxable income down to $6000 so if this is his only income
> Tax is 6000 x 10% = $600
> Plus self employment tax 6000 x 15% = $900


I don't think this is right. Self-employment tax would be on the $18,000 before the standard deduction, not the $6,000 after standard deduction. So....

SE Tax 18000 x 15% = $2,700

...but then you can deduct half of that for taxable income in addition to the standard deduction. So taxable income is $3,300.

Income Tax 3300 x 10% = $330

This is quick and dirty off the top of my head without looking anything up, so it might not be completely right, but I'm pretty sure the amount that you pay self-employment tax on comes right off Schedule C without applying the standard deduction.


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## Aw Jeez (Jul 13, 2015)

Here's something else to think about. 

Scenario #1: I live in the Florida panhandle, very close to the Alabama state line. I can Uber here in Florida, but if I take a trip to Alabama (which happens often), I'm not allowed to take Uber trips there. Uber locks me out and often logs me off the app. So the miles I burn getting back to Florida are still "business miles" but Uber is not logging them. Hence, the discrepancy between Uber's report of "on-app miles" and my own. 

Scenario #2: Sometimes I'm on the Interstate. I'll get an Uber ping which would require me getting off the Interstate, and getting back on going the other way. I'm not doing that. I reject those pings and then turn the app off so I don't get any more stupid trips like that. So app-off for the time being, but still accruing business miles.

Scenario #3: Sometimes I'll get a trip that takes me down the coast to Destin, Florida which is a much bigger tourist city than dinky Pensacola. While there I'll get local pings so I keep on working. When I've had enough I'll turn the app off and make the 1.5-hour drive home. App-off, still business miles because I wouldn't have been down there if not for this business.

So if the IRS ever asks about the discrepancy between Uber's reported miles and my own log, well, I have my ammunition. Whether they accept it or not...who knows.


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## UberTaxPro (Oct 3, 2014)

Aw Jeez said:


> Here's something else to think about.
> 
> Scenario #1: I live in the Florida panhandle, very close to the Alabama state line. I can Uber here in Florida, but if I take a trip to Alabama (which happens often), I'm not allowed to take Uber trips there. Uber locks me out and often logs me off the app. So the miles I burn getting back to Florida are still "business miles" but Uber is not logging them. Hence, the discrepancy between Uber's report of "on-app miles" and my own.
> 
> ...


All the more reasons to keep your own mileage log. A mileage log is the only effective ammunition if you want to maximize your vehicle expenses.


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## KK2929 (Feb 9, 2017)

Aw Jeez said:


> Here's something else to think about.
> 
> Scenario #1: I live in the Florida panhandle, very close to the Alabama state line. I can Uber here in Florida, but if I take a trip to Alabama (which happens often), I'm not allowed to take Uber trips there. Uber locks me out and often logs me off the app. So the miles I burn getting back to Florida are still "business miles" but Uber is not logging them. Hence, the discrepancy between Uber's report of "on-app miles" and my own.
> 
> ...


---------------------------------

I believe the reading on Ubers tax paperwork is ONLINE MILES or ON TRIP MILES --- they have a way of making a simple job difficult. All ONLINE MILES count, whether you have a passenger in the car or not. If you are available for a trip, going to pick up a pax or have the pax in the car -- all miles count for taxes

Scenerio #1 --- I would still keep track of the miles. If you use a mechanic in Ala. and Uber REQUIRES an inspection, you can use the miles it takes to get to the garage. If not, you will not be able to use the miles.

Scenerio #2 --- ???? You are logged on -- those miles count, whether you are making U turns or what -- All miles " logged on " can be used for taxes. I am getting the impression that you think only the miles with a pax in the car are counted. Not correct.

Scenerio #3 --- stay Logged on for the trip home. You are still in Fla. - those miles count


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## SEAL Team 5 (Dec 19, 2015)

Hpil77 said:


> I did my taxes from Uber/I made 43000 last year/expenses 15000/clear I made 27000 now irs want me pay 3000 I think doesn't make sense work for Uber any advice how avoid that much taxes for next year thanks guys


If these are your true numbers then you owe a hell of a lot more than $3k. Just SE Tax alone is $4131 then you still owe Fed Income Tax. Be thankful there's no state income tax in FL.


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