# Tax Summaries



## uberlyftnewbie (Jan 18, 2019)

Worked part time for Uber & Lyft (U&L) in 2019, Lyft gave me free T-Tax -Self Employed, end result I owe govt over $200.

* My combined GROSS pay was just under *$14K*.
* My combined NET pay from both was just over *$7K*.
* I will not be receiving a 1099-K or 1099-MISC and I did not make quarterly payments.
(The obvious thing above is U&L kept almost half what the pax's paid for Service and Booking fees but we already knew that...).

I took the standard mileage deduction ($4,750), and the Standard Single filer deduction ($12,200), and I listed the U&L fees under expenses. My total NET take home earnings were *$8K* for the year, and my total deductions are *$16,950*.

My deductions are twice what I earned, why do I owe $200?

I also don't understand why the U&L Service and Booking fees are even on my tax return (Gross Earnings), I get I can deduct their fees but that money never even hits my bank account, and I understand U&L will be paying taxes on the fees they charged me, just think it would be a lot simpler to just report and pay taxes on the money I received. Just read the average Uber exec earns $225k a year or $102 per hour and I bet they don't pay taxes.

Thanks for reading, any tips or advice will be greatly appreciated.


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## kingcorey321 (May 20, 2018)

did you get a 1099k ? or just that earning statement that does not get turned into the irs.
i know of a lot of people that never do there taxes if they get that earning statement only. They tell me the irs does not get this statement why should they file taxes ? I agree with them.
Did you claim your dead miles as well ? I do everything my tax pro suggests to me i stay tax legal . for every mile i drive i claim 1 dead mile .
does that help you a bit ? Before you pay 200 why not hit a tax pro get there free advice . They will do you taxes get them up and if you want to back out it wont cost you a dollar at most tax preps .


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## Stevie The magic Unicorn (Apr 3, 2018)

uberlyftnewbie said:


> Worked part time for Uber & Lyft (U&L) in 2019, Lyft gave me free T-Tax -Self Employed, end result I owe govt over $200.
> 
> * My combined GROSS pay was just under *$14K*.
> * My combined NET pay from both was just over *$7K*.
> ...


I'm going to report all my revenue to the IRS and write off all my expenses.

the IRS knows that businesses have expenses, they know that businesses have revenue.

They won't just take your word for it. (unlike my cash revenue that could easily be 100% BS, they take my word for that LOL)


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## mbd (Aug 27, 2018)




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## uberlyftnewbie (Jan 18, 2019)

kingcorey321 said:


> I know of a lot of people that never do their taxes if they get that earning statement only. They tell me the irs does not get this statement why should they file taxes ? I agree with them.


I will only be getting the earnings summary, Uber and Lyft will not be giving the IRS a 1099-K or a 1099-Misc. That said the IRS is cracking down on this, I know because last week the IRS instructed Uber to deduct 24% of my pay automatically and give to the them. Uber bodies (monotone voice, dead eyes, no sign of life, hate their job) at Greenlight hub stated that because the name they provided to the IRS did not include my middle initial it did not match the info the IRS had for my SSN#, so now per the IRS... they have to deduct 24%.

Long story short, even though I just get a summary, Uber contacts the IRS around April/May to verify your information and so they do let the IRS know you drive for them. If you make over $400 a year you are required by law to file taxes regardless if you got a 1099, Uber will turn you in if they haven't already and you don't want to piss off the IRS, it will bite you.


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## MrsCaLi (May 31, 2016)

The IRS is no joke my friend!

On that note deductions are not always deductible dollar for dollar, some of those deduct on a percentage and that’s the reason you owe.

I think 200 is WAY better than what it could have been with those earnings. But if you want to play with the IRS then by all means, enjoy prison!


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## uberlyftnewbie (Jan 18, 2019)

MrsCaLi said:


> I think 200 is WAY better than what it could have been with those earnings. But if you want to play with the IRS then by all means, enjoy prison!


Whoa, whoa, be nice. No need to get honest people alarmed with your prison threats. I did not "play" with any figures and it was the previous poster that recommended not filing, not me. Turbo Tax came up with the $217 dollars based on what I was actually paid $7K. We are allowed to deduct mileage, and we are allowed to deduct Uber and Lyft booking and service fees.

After I deducted the Booking and Service fees the total I owed was about $517 and after deducting 8,200 miles it brought it down to $217. So yes, you are correct, even though we can deduct .58 cents a mile, it's only a small percentage that actually goes towards what you owe as the $4,700 mileage credit only reduced my tax by $300.

Again, the $217 was what Turbo Tax Self Employed software came up with, there was no monkey business with deductions so flame on to the next post...


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## kingcorey321 (May 20, 2018)

uberlyftnewbie said:


> I will only be getting the earnings summary, Uber and Lyft will not be giving the IRS a 1099-K or a 1099-Misc. That said the IRS is cracking down on this, I know because last week the IRS instructed Uber to deduct 24% of my pay automatically and give to the them. Uber bodies (monotone voice, dead eyes, no sign of life, hate their job) at Greenlight hub stated that because the name they provided to the IRS did not include my middle initial it did not match the info the IRS had for my SSN#, so now per the IRS... they have to deduct 24%.
> 
> Long story short, even though I just get a summary, Uber contacts the IRS around April/May to verify your information and so they do let the IRS know you drive for them. If you make over $400 a year you are required by law to file taxes regardless if you got a 1099, Uber will turn you in if they haven't already and you don't want to piss off the IRS, it will bite you.


law says this month by the 31 they will give you all your tax forms . Uber will be in violation of the law there after . Meaning they get into serious trouble .If you dont get this tax form by the 31 your prob not getting 1 .


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## uberlyftnewbie (Jan 18, 2019)

kingcorey321 said:


> law says this month by the 31 they will give you all your tax forms . Uber will be in violation of the law there after . Meaning they get into serious trouble .If you don't get this tax form by the 31 your prob not getting 1 .


As I stated, I will only be provided with a summary, please read the criteria for receiving a 1099 below:

https://ubr.to/35ZimHu
_"As an independent contractor, you may receive a 1099-K and/or 1099-MISC form. __We will provide you with a 1099-K if you earned more than $20,000 in gross unadjusted payments, and you provided at least 200 trips. If you do not meet both of these thresholds, you will not receive a 1099-K.

We will provide you with a 1099-Misc if you received at least $600 in non-rider payments (i.e. referrals, on-trip promotions).

If you meet these requirements and opted to receive your forms electronically, these documents will be on your Partner Dashboard by January 31, 2019. If you did not opt in for electronic delivery, you'll receive your tax forms via mail after February 1, 2019.
_
_If you don't qualify for either type of 1099, you'll still receive an Uber Tax Summary by January 31, 2019. This Tax Summary will give you the annual earnings information you need to easily file your taxes"._


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## AuxCordBoston (Dec 3, 2016)

uberlyftnewbie said:


> Worked part time for Uber & Lyft (U&L) in 2019, Lyft gave me free T-Tax -Self Employed, end result I owe govt over $200.
> 
> * My combined GROSS pay was just under *$14K*.
> * My combined NET pay from both was just over *$7K*.
> ...


Why are they not sending you a 1099?


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## uberlyftnewbie (Jan 18, 2019)

AuxCordBoston said:


> Why are they not sending you a 1099?


I did not earn enough, I stated the 1099 qualifications in the post right before yours:

https://ubr.to/35ZimHu


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## LADryver (Jun 6, 2017)

uberlyftnewbie said:


> Worked part time for Uber & Lyft (U&L) in 2019, Lyft gave me free T-Tax -Self Employed, end result I owe govt over $200.
> 
> * My combined GROSS pay was just under *$14K*.
> * My combined NET pay from both was just over *$7K*.
> ...


The standard deduction is not usually called an expense. It is manna from taxs heaven. It isnt called that either but you can understand. It is just given to you. Answering your question has more to do with another kind of tax manna, being what you pay for your lifelong Social Security benefits when you retire. When self-employed you need to pay this. It is based on your net income from the Schedule C. If you have a refundable credit the SE tax would be offset but it did not absorb it all. If you do not have a refundable credut, run don't walk to the nearest Jackson Hewitt.



Stevie The magic Unicorn said:


> I'm going to report all my revenue to the IRS and write off all my expenses.
> 
> the IRS knows that businesses have expenses, they know that businesses have revenue.
> 
> They won't just take your word for it. (unlike my cash revenue that could easily be 100% BS, they take my word for that LOL)


When audited they often do make you prove income.


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## MrsCaLi (May 31, 2016)

uberlyftnewbie said:


> Whoa, whoa, be nice. No need to get honest people alarmed with your prison threats. I did not "play" with any figures and it was the previous poster that recommended not filing, not me. Turbo Tax came up with the $217 dollars based on what I was actually paid $7K. We are allowed to deduct mileage, and we are allowed to deduct Uber and Lyft booking and service fees.
> 
> After I deducted the Booking and Service fees the total I owed was about $517 and after deducting 8,200 miles it brought it down to $217. So yes, you are correct, even though we can deduct .58 cents a mile, it's only a small percentage that actually goes towards what you owe as the $4,700 mileage credit only reduced my tax by $300.
> 
> Again, the $217 was what Turbo Tax Self Employed software came up with, there was no monkey business with deductions so flame on to the next post...


Lmao you asked why you owed, and I said it's only a percentage not dollar for dollar

just pay the 200 that's all I was saying. Don't keep trying to play with it.


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## LADryver (Jun 6, 2017)

uberlyftnewbie said:


> I will only be getting the earnings summary, Uber and Lyft will not be giving the IRS a 1099-K or a 1099-Misc. That said the IRS is cracking down on this, I know because last week the IRS instructed Uber to deduct 24% of my pay automatically and give to the them. Uber bodies (monotone voice, dead eyes, no sign of life, hate their job) at Greenlight hub stated that because the name they provided to the IRS did not include my middle initial it did not match the info the IRS had for my SSN#, so now per the IRS... they have to deduct 24%.
> 
> Long story short, even though I just get a summary, Uber contacts the IRS around April/May to verify your information and so they do let the IRS know you drive for them. If you make over $400 a year you are required by law to file taxes regardless if you got a 1099, Uber will turn you in if they haven't already and you don't want to piss off the IRS, it will bite you.


Your 24% is "backup witholding" because without the name match it is considered a failure to provide your SSN. You can correct the order by making it match and getting a statement from the Social Security Administration. Just tell the SSA in a personal visit, that you want your Social Security account to omit the middle initial. Afterwards your tax return would be filed without it.


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## uberlyftnewbie (Jan 18, 2019)

LADryver said:


> Answering your question has more to do with another kind of tax manna, being what you pay for your lifelong Social Security benefits when you retire. When self-employed you need to pay this. It is based on your net income from the Schedule C. If you have a refundable credit the SE tax would be offset but it did not absorb it all. If you do not have a refundable credit, run don't walk to the nearest Jackson Hewitt.
> 
> When audited they often do make you prove income.


Why are you guys trying to scare me, do you enjoy this??? I did my taxes on both TurboTax & H&R Block Self-Employed, I deducted my Uber & Lyft Booking/Service fees, H&R Block imported my mileage directly from my StrideTax app. The amount I owe is amazingly exactly the same in both, wait for it..., wait for it...., $217. There's no monkey business going on here, I'm not playing games with deductions, why should I pay a tax service a couple hundred dollars to come up with the same thing? TurboTax and HR Block both offer audit support for between $70-$80.



LADryver said:


> Your 24% is "backup witholding" because without the name match it is considered a failure to provide your SSN. You can correct the order by making it match and getting a statement from the Social Security Administration. Just tell the SSA in a personal visit, that you want your Social Security account to omit the middle initial. Afterwards your tax return would be filed without it.


I'm leaving my full legal name as is, as it's always been with the IRS. It's Uber that is refusing to add the middle initial. I've decided to just work for Lyft going forward and I'm only going to do that until I find a regular job, I average $9 an hour and am ruining my car.

My point about Uber withholding the 24% tax was to address the guy who was advising anyone who receives just a summary (and does not get a 1099) not to file. Everyone needs to file regardless of Uber not providing the IRS with a 1099, Uber obviously is in contact with the IRS about every single driver and the IRS knows you're working for Uber and they can/will request those summaries from Uber.



MrsCaLi said:


> Lmao you asked why you owed, and I said it's only a percentage not dollar for dollar
> 
> just pay the 200 that's all I was saying. Don't keep trying to play with it.


Below is what you said to me, you accused me of trying to play with the IRS and told me to enjoy prison:

_"I think 200 is WAY better than what it could have been with those earnings. But if you want to play with the IRS then by all means, enjoy prison!"_

And now you're doing it again:

_"just pay the 200 that's all I was saying. Don't keep trying to play with it"._

I fully intend to pay what I owe and stop accusing me of playing with the deductions, LYAO all you want internet troll.


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## Seamus (Jun 21, 2018)

uberlyftnewbie said:


> Worked part time for Uber & Lyft (U&L) in 2019, Lyft gave me free T-Tax -Self Employed, end result I owe govt over $200.
> 
> * My combined GROSS pay was just under *$14K*.
> * My combined NET pay from both was just over *$7K*.
> ...


I'm having a hard time following.

Separate for a moment the standard single filer from the discussion as that's got nothing to do with schedule c.

Your saying your gross was 14k
Deducted. 7k in fees
Deducted. 4750 in mileage
That's a net business income of 2250

In addition you should be expensing a % of you cellphone bill, bank fees, quick pay fees, and other non mileage included business expenses to further reduce that.

Your schedule c net is transferred over to your 1040 from which the personal standard deduction is taken.

I'm assuming you had no other income then the only way you could owe taxes would be the "self employment" tax on your net business income.


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## uberlyftnewbie (Jan 18, 2019)

Seamus said:


> I'm having a hard time following.
> 
> Separate for a moment the standard single filer from the discussion as that's got nothing to do with schedule c.
> 
> ...


Yes, that's exactly correct. I've had pax say to me "dude, you get to write off .58 a mile, that's awesome". LOL, not really, I did not know better at the time. I do now though, after entering the mileage (deduction equaling $4,750) into turbotax I watched the amount I owe reduce by just $300, so .58 a mile, no it's really not that awesome, it's just a very small percentage of the $4,750 mileage deduction. But live and learn, this form is a great place to learn about the business and decide if it's worth it.

I found your post to be very positive and helpful, thanks for the info! I will add my quick pay fees and cell phone %.


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## LADryver (Jun 6, 2017)

uberlyftnewbie said:


> Why are you guys trying to scare me, do you enjoy this??? I did my taxes on both TurboTax & H&R Block Self-Employed, I deducted my Uber & Lyft Booking/Service fees, H&R Block imported my mileage directly from my StrideTax app. The amount I owe is amazingly exactly the same in both, wait for it..., wait for it...., $217. There's no monkey business going on here, I'm not playing games with deductions, why should I pay a tax service a couple hundred dollars to come up with the same thing? TurboTax and HR Block both offer audit support for between $70-$80.


They do not tell you, that if you do not know EXACTLY what to put where and why, your input can be in error in all of your apps. I had a supermarket vice president come to me after years of preparing his own tax returns. He was proud of himself even though he always had to pay. He came to me when he had a bonus that changed his tax situation confusingly for him. I interviewed him like any new client, a process that took an hour and a half, and determined he was unaware of his deductions. In addition to applying a tax procedure that now no longer exists but reduced his bill that year, I amended his past three tax returns and got him refunds totalling 6 thousand dollars. This case history was confidentially included in my company's full page tax season ads in the Los Angeles Times. So, with all due respect, do not be hard on yourself. Honor your confusion and bring yourself to an experienced tax preparer who will interview you face to face and is known to be around. Let them try your tax return through what is available as a free tax return review or just ask them to prepare it for you. And they must interview you and see your documents.



uberlyftnewbie said:


> Yes, that's exactly correct. I've had pax say to me "dude, you get to write off .58 a mile, that's awesome". LOL, not really, I did not know better at the time. I do now though, after entering the mileage (deduction equaling $4,750) into turbotax I watched the amount I owe reduce by just $300, so .58 a mile, no it's really not that awesome, it's just a very small percentage of the $4,750 mileage deduction. But live and learn, this form is a great place to learn about the business and decide if it's worth it.
> 
> I found your post to be very positive and helpful, thanks for the info! I will add my quick pay fees and cell phone %.


Bumping up your tax is the Self Employment tax.


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## Alexxx_Uber (Sep 3, 2018)

Last year I used the online miles given from Uber and Lyft to my HR block agent and he filed my taxes. I used standard IRS deduction for miles.


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## LADryver (Jun 6, 2017)

Alexxx_Uber said:


> Last year I used the online miles given from Uber and Lyft to my HR block agent and he filed my taxes. I used standard IRS deduction for miles.


If you ran both apps together you overstated the deduction. Your tax preparer has to be more qualified than the HRBlock partially educated preparers.


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## Alexxx_Uber (Sep 3, 2018)

LADryver said:


> If you ran both apps together you overstated the deduction. Your tax preparer has to be more qualified than the HRBlock partially educated preparers.


I'm not a tax expert that's why I go to them. They are responsible.


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## jFed (Jun 15, 2016)

I'm reporting a loss with my mileage, ride-share fees and auto loan interest (proportional) deducted.


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## Stevie The magic Unicorn (Apr 3, 2018)

LADryver said:


> When audited they often do make you prove income.


And aside from my books how exactly do I prove the $1000s in cash I made?

Heck I could be boosting the numbers for any number of reasons.

Loan eligibility,
Social security credits,
Premium tax credit.

If I say I made $100 in cash more than I actually did this week how exactly do they prove me wrong if that's what my books say?

My books say one thing but at the end of the day it's just an excel spreadsheet and my paper backup of my trip log.

Oh this morning I picked up from the cabana bay hotel and took them the airport. There's another $50 cash. Did it happen?

Yes...
What's the customers contact info..::

They didn't call in, they walked up to my car at the hotel.

It's right there in my trip log... walk up going from cabana bay to the airport at 3:00 am. They paid cash....

They look at my trip log and it's gonna be short of the miles I actually drove.

If I was the agent auditing me... I'd consider the driver reporting ANY cash to be a win.

And he has taxable profit?

And he has an actual bookkeeping system....

There's no way he's cheating.... if there is there's no way I can disprove it...


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## LADryver (Jun 6, 2017)

Stevie The magic Unicorn said:


> And aside from my books how exactly do I prove the $1000s in cash I made?
> 
> Heck I could be boosting the numbers for any number of reasons.
> 
> ...


You think you are smarter than them. Noted.



jFed said:


> I'm reporting a loss with my mileage, ride-share fees and auto loan interest (proportional) deducted.


This is a loss for all your income? First it offsets your other income. Is there still loss?



Alexxx_Uber said:


> I'm not a tax expert that's why I go to them. They are responsible.


Nope. You signed the return, and you are responsible. They are not responsible for omissions and mistatements you made to them.


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## Seamus (Jun 21, 2018)

Alexxx_Uber said:


> I'm not a tax expert that's why I go to them. They are responsible.


Actually a lot of people think this and it isn't true. They have no liability as a tax preparer. You are still fully liable to the irs for whatever they do. I had a tax prep business on the side for 10 years. Sold my client list in the 90's, and many times wished I hadn't. I purchased what was called "error and omissions" insurance on the odd chance someone ever tried to sue me but I had zero liability for anyone's taxes to the irs. You give me all the information and I prepare your taxes based on what you told me. I suggest no one ever go to the franchise tax preparers as you may have someone who actually knows very little preparing your taxes for good money.


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## Alexxx_Uber (Sep 3, 2018)

LADryver said:


> You think you are smarter than them. Noted.
> 
> 
> This is a loss for all your income? First it offsets your other income. Is there still loss?
> ...


Thanks for the heads up. Sounds scary. I was thinking totally different. I asked the tax preparer multiple times last year about it and they told me everything is fine ....



Seamus said:


> Actually a lot of people think this and it isn't true. They have no liability as a tax preparer. You are still fully liable to the irs for whatever they do. I had a tax prep business on the side for 10 years. Sold my client list in the 90's, and many times wished I hadn't. I purchased what was called "error and omissions" insurance on the odd chance someone ever tried to sue me but I had zero liability for anyone's taxes to the irs. You give me all the information and I prepare your taxes based on what you told me. I suggest no one ever go to the franchise tax preparers as you may have someone who actually knows very little preparing your taxes for good money.


Thanks for the info, appreciate it. 
bottom line, do you suggest to file the tax return ourselves rather than going to rax preparers? What website would you suggest the best for it?


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## Seamus (Jun 21, 2018)

Alexxx_Uber said:


> Thanks for the heads up. Sounds scary. I was thinking totally different. I asked the tax preparer multiple times last year about it and they told me everything is fine ....
> 
> 
> Thanks for the info, appreciate it.
> bottom line, do you suggest to file the tax return ourselves rather than going to rax preparers? What website would you suggest the best for it?


If you are reasonably knowledgeable then Turbo Tax Home and Business is very good. If you aren't comfortable doing your own or have never done s schedule c then a tax preparer is the way to go. Word of mouth reference is much better than just walking into a franchise. Or, @UberTaxPro does them and is obviously very knowledgeable about rideshare taxes. PM him. Good luck!


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## LADryver (Jun 6, 2017)

Alexxx_Uber said:


> Thanks for the heads up. Sounds scary. I was thinking totally different. I asked the tax preparer multiple times last year about it and they told me everything is fine ....
> 
> 
> Thanks for the info, appreciate it.
> bottom line, do you suggest to file the tax return ourselves rather than going to rax preparers? What website would you suggest the best for it?


You still need a tax preparer. Just because they wont pay your penalties if you omit or misstate, you have to work with one and be very sure to explain your business to them. This said, you need to select a preparer who meets the criteria of not being a form jockey. A form jockey will take what you give them and put numbers in the tax return. Not good. You find a tax preparer who will interview you. You call tax preparers and you interview them. Ask, How much time will you spend with me to prepare my tax return? If they say fifteen minutes, thank them and call the next. They have to plan an appointment span of at least an hour and a half. You should plan to spend that much time. Remember the golden rule: You have no obligation even if you spent this time. If they are not willing to recognize your cruising miles, go to someone who will. On the phone you can ask if they are familiar with rideshare cruising miles. If not, explain it and if they accept your explanation that is good. There is a learning curve with every new industry. Lastly, they have to have stable contact info for between tax seasons.



Seamus said:


> If you are reasonably knowledgeable then Turbo Tax Home and Business is very good. If you aren't comfortable doing your own or have never done s schedule c then a tax preparer is the way to go. Word of mouth reference is much better than just walking into a franchise. Or, @UberTaxPro does them and is obviously very knowledgeable about rideshare taxes. PM him. Good luck!


You do not know what you do not know. The Turbo Tax people dont care if you need more than they can provide. They assume you have college level, even graduate level, reading comprehension. Most often, you do not. Go to someone who is properly trained.


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## Trafficat (Dec 19, 2016)

uberlyftnewbie said:


> Whoa, whoa, be nice. No need to get honest people alarmed with your prison threats. I did not "play" with any figures and it was the previous poster that recommended not filing, not me. Turbo Tax came up with the $217 dollars based on what I was actually paid $7K. We are allowed to deduct mileage, and we are allowed to deduct Uber and Lyft booking and service fees.
> 
> After I deducted the Booking and Service fees the total I owed was about $517 and after deducting 8,200 miles it brought it down to $217. So yes, you are correct, even though we can deduct .58 cents a mile, it's only a small percentage that actually goes towards what you owe as the $4,700 mileage credit only reduced my tax by $300.


The mileage deduction reduces taxable income, not tax directly. Tax is calculated based on taxable income. Without knowing tax brackets, there is no way to know how much tax is saved per mile, but I usualy guestimate something on the order of ten cents per mile.


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## itendstonight (Feb 10, 2019)

I’m making $1.3ish per BOOKED RIDE (with passenger) but on app miles brings it down to $.8 to $.9 per total deductible miles. Sounds reasonable? Unlikely to get audited?


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## LADryver (Jun 6, 2017)

Seamus said:


> Actually a lot of people think this and it isn't true. They have no liability as a tax preparer. You are still fully liable to the irs for whatever they do. I had a tax prep business on the side for 10 years. Sold my client list in the 90's, and many times wished I hadn't. I purchased what was called "error and omissions" insurance on the odd chance someone ever tried to sue me but I had zero liability for anyone's taxes to the irs. You give me all the information and I prepare your taxes based on what you told me. I suggest no one ever go to the franchise tax preparers as you may have someone who actually knows very little preparing your taxes for good money.


Some highly knowledgeable tax preparers work for franchises. When briefly I sat as a marketing manager for a Liberty franchise, I had a preparer who had been doing it 20 years before joining. A franchise provides clients and commission. However newbies at franchises are what you must avoid. I once met someone who admitted that they worked for a franchise HRB for two years and still was not trained on the Schedule C. They prepared the 1040A forms and nothing else, and were not the preparer of record. Be aware, that some HRB preparers are experts and want to be handed clients, and some are still green. As franchises go, my yardstick is a brick and mortar that does not close in May.



Trafficat said:


> The mileage deduction reduces taxable income, not tax directly. Tax is calculated based on taxable income. Without knowing tax brackets, there is no way to know how much tax is saved per mile, but I usualy guestimate something on the order of ten cents per mile.


You need to stop guestimating. Altogether. The real math is available


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## LADryver (Jun 6, 2017)

uberlyftnewbie said:


> I'm leaving my full legal name as is, as it's always been with the IRS. It's Uber that is refusing to add the middle initial. I've decided to just work for Lyft going forward and I'm only going to do that until I find a regular job, I average $9 an hour and am ruining my car.
> 
> My point about Uber withholding the 24% tax was to address the guy who was advising anyone who receives just a summary (and does not get a 1099) not to file. Everyone needs to file regardless of Uber not providing the IRS with a 1099, Uber obviously is in contact with the IRS about every single driver and the IRS knows you're working for Uber and they can/will request those summaries from Uber.


First, let me show you that you are mistaken and that the matching issue was initiated by Uber:

"On-Line Taxpayer Identification Number (TIN) Matching Program 
The On-Line Taxpayer Identification Number (TIN) Matching Program is a free web-based tool offered by the IRS through e-services and was established for payers of reportable payments subject to the backup withholding provisions of section 3406 of the Internal Revenue Code. This program allows a participant to check the TIN furnished by the payee against the name/TIN combination contained in the IRS database prior to filing an information return.

There are two TIN matching options offered through e-services:

Interactive TIN Matching - verify up to 25 name/TIN combinations and results will be received immediately. The user can input name/TIN combinations in groups of 25; there is a limit of 999 requests during a 24 hour period.
Bulk TIN Matching - verify up to 100,000 name/TIN combinations and results will be received within 24 hours"

This is the only information that was provided to the IRS, regardless of income. I presume they do this for every driver. If they are to get 1099's, they have an obligation to verify the SSN provided. It is apparently not good enough for them to have the W9 form, "Request for Taxpayer Identification Number". IRS does not require the matching. It is a service. See next:

"Taxpayer Identification Number (TIN) Matching
TIN Matching allows a payer or authorized agent who is required to file Forms 1099-B, DIV, INT, K, MISC, OID, and/or PATR to match TIN and name combinations with IRS records before submitting the forms to the IRS. TIN Matching is one of the e-services products that is offered and is accessible through the IRS website. Go to IRS.gov and enter "e-services" in the search box. It is anticipated that payers who validate the TIN and name combinations before filing information returns will receive fewer backup withholding (CP2100) notices and penalty notices."

Uber did it for their convenience. The W9 form we electronically sign is under penalty of perjury which is enough for legal compliance on their part. But they had to do more. The IRS did not beat down their door. The IRS can get documents under specific conditions, as legally they are a law enforcement agency and also a collection agency. But they would need a good reason to bother. They do have good reason, but that did not happen in your case.

If Uber did make the mistake, then there is something else you can try. Get your physical Social Security card and bring it with you to the Hub, and insist that they correct your name with the full one that you use. Get the highest ranking manager in the hub, not just a desk clerk. It will not immediately stop the witholding, because it is a two step process. Once they correct your name then you go to the IRS and show it to them and ask for a rescinding of the witholding order. Uber is not the only reason to do this. Now that they have been ordered to withold "backup witholding", you are now legally "Subject to Backup witholding" for all payors. You have to get the order cancelled .


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## Trafficat (Dec 19, 2016)

LADryver said:


> You need to stop guestimating. Altogether. The real math is available


Maybe if you have a W2 job that pays salary and you know exactly how much you will make in a year, or if you just do Uber and make a fairly consistent and predictable income/expense ratio. My taxes are never that simple.

I've had years where I filed my taxes and paid tax on over $80,000 in income, and other years my taxable income was below poverty level, so low in fact that I did not QUALIFY for obamacare and was penalized for failing to sign up for medicaid.

When I pay taxes, I often have multiple W2 or zero W2, plus file several schedule C for different businesses. When I have done W2, it is often for periods that amount to less than a year.


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## Seamus (Jun 21, 2018)

LADryver said:


> You still need a tax preparer. Just because they wont pay your penalties if you omit or misstate, you have to work with one and be very sure to explain your business to them. This said, you need to select a preparer who meets the criteria of not being a form jockey. A form jockey will take what you give them and put numbers in the tax return. Not good. You find a tax preparer who will interview you. You call tax preparers and you interview them. Ask, How much time will you spend with me to prepare my tax return? If they say fifteen minutes, thank them and call the next. They have to plan an appointment span of at least an hour and a half. You should plan to spend that much time. Remember the golden rule: You have no obligation even if you spent this time. If they are not willing to recognize your cruising miles, go to someone who will. On the phone you can ask if they are familiar with rideshare cruising miles. If not, explain it and if they accept your explanation that is good. There is a learning curve with every new industry. Lastly, they have to have stable contact info for between tax seasons.
> 
> 
> You do not know what you do not know. The Turbo Tax people dont care if you need more than they can provide. They assume you have college level, even graduate level, reading comprehension. Most often, you do not. Go to someone who is properly trained.


Yes, MBA in Finance. I'll be fine.


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## LADryver (Jun 6, 2017)

Seamus said:


> Yes, MBA in Finance. I'll be fine.


Finance helps if you took Taxation. You are well versed in everything except tax, otherwise I learned a lot of Finance from taxation but the same does not go in reverse.


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## Seamus (Jun 21, 2018)

LADryver said:


> Finance helps if you took Taxation. You are well versed in everything except tax, otherwise I learned a lot of Finance from taxation but the same does not go in reverse.


You probably missed that I owned my own tax prep business for 11 tax seasons. Sold my client list to an accountant in the late 90's so I don't do paid tax prep anymore. I'm very well versed to do my own taxes and to use Turbotax Home and Business.


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## LADryver (Jun 6, 2017)

Seamus said:


> Yes, MBA in Finance. I'll be fine.


I was not replying to you.


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## Bubsie (Oct 19, 2017)

Stevie The magic Unicorn said:


> And aside from my books how exactly do I prove the $1000s in cash I made?
> 
> Heck I could be boosting the numbers for any number of reasons.
> 
> ...


The IRS doesn't care if you pay tax on bogus cash income you've made up. Why would they? They care if you pay what's owed, if you decide to pay extra that's not a crime that I know of.


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## LADryver (Jun 6, 2017)

Bubsie said:


> The IRS doesn't care if you pay tax on bogus cash income you've made up. Why would they? They care if you pay what's owed, if you decide to pay extra that's not a crime that I know of.


They have ways, of proving cash you do not pay taxes on, if on a high enough plane, but if you pay tax on cash, they will look at your purchases, and sources, also, on a reasonable level. Remember it is the IRS most concerned about money laundering. One is the "Net Worth Investigation". Seriosly, they know what they are doing. They spend a lot to do it.


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## Friendly Jack (Nov 17, 2015)

uberlyftnewbie said:


> Worked part time for Uber & Lyft (U&L) in 2019, Lyft gave me free T-Tax -Self Employed, end result I owe govt over $200.
> 
> * My combined GROSS pay was just under *$14K*.
> * My combined NET pay from both was just over *$7K*.
> ...


Social Security (12.4%) and Medicare (2.9%) taxes for self-employed people must still be paid on income even if no income taxes are due. This is frequently the case at very low levels of income beneath the income tax threshold. As an example, if you had $1,000 of total self-employment net income you would not owe any income taxes but would still owe $153 of SS and Medicare taxes ($124 + $29). I suspect that this may be the reason you owe $200 when filing your return.


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## LADryver (Jun 6, 2017)

Friendly Jack said:


> Social Security (12.4%) and Medicare (2.9%) taxes for self-employed people must still be paid on income even if no income taxes are due. This is frequently the case at very low levels of income beneath the income tax threshold. As an example, if you had $1,000 of total net income you would not owe any income taxes but would still owe $153 of SS and Medicare taxes ($124 + $29). I suspect that this may be the reason you owe $200 when filing your return.


Although it should have been more, unless he had more paid in or a refundable credit.


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## WhydoIdoit (Aug 16, 2018)

LADryver said:


> You still need a tax preparer. Just because they wont pay your penalties if you omit or misstate, you have to work with one and be very sure to explain your business to them. This said, you need to select a preparer who meets the criteria of not being a form jockey. A form jockey will take what you give them and put numbers in the tax return. Not good. You find a tax preparer who will interview you. You call tax preparers and you interview them. Ask, How much time will you spend with me to prepare my tax return? If they say fifteen minutes, thank them and call the next. They have to plan an appointment span of at least an hour and a half. You should plan to spend that much time. Remember the golden rule: You have no obligation even if you spent this time. If they are not willing to recognize your cruising miles, go to someone who will. On the phone you can ask if they are familiar with rideshare cruising miles. If not, explain it and if they accept your explanation that is good. There is a learning curve with every new industry. Lastly, they have to have stable contact info for between tax seasons.
> 
> 
> You do not know what you do not know. The Turbo Tax people dont care if you need more than they can provide. They assume you have college level, even graduate level, reading comprehension. Most often, you do not. Go to someone who is properly trained.


I don't understand all this interviewing that's needed?

It's ride share not an Amazon company. It's standard across the board. You have a 1099 for income and you write of vehicle expenses or milage deduction. Then, you have receipts for your business expenses.

It's not complicated. What am I missing here?


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## LADryver (Jun 6, 2017)

WhydoIdoit said:


> I don't understand all this interviewing that's needed?
> 
> It's ride share not an Amazon company. It's standard across the board. You have a 1099 for income and you write of vehicle expenses or milage deduction. Then, you have receipts for your business expenses.
> 
> It's not complicated. What am I missing here?


An interview is the way that a competent tax preparer learns your needs in the tax return. Once you have a good one you will never want it any other way.


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## oldfart (Dec 22, 2017)

I didn’t read all the posts , so someone may have said this already. If so I’m sorry to repeat


I’m almost positive that the $200 is what you owe tosocial security

Your business income is what’s on the 1099 less business expenses, less the Uber fees, less mileage. In your case you say that results is $2250
This is the number that you transfer from schedule C to your 1040. Then you deduct your personal deduction and income tax should be zero

however you neglected to tell us about schedule SE self employment income if it’s more than $400 you have to pay self employment tax. (Social security)


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## uberlyftnewbie (Jan 18, 2019)

LADryver said:


> First, let me show you that you are mistaken and that the matching issue was initiated by Uber:
> 
> "On-Line Taxpayer Identification Number (TIN) Matching Program
> The On-Line Taxpayer Identification Number (TIN) Matching Program is a free web-based tool offered by the IRS through e-services and was established for payers of reportable payments subject to the backup withholding provisions of section 3406 of the Internal Revenue Code. This program allows a participant to check the TIN furnished by the payee against the name/TIN combination contained in the IRS database prior to filing an information return.
> ...


I updated my name on the Uber online W9 form to reflect what the IRS has for my ssn, within a couple days Uber stopped deducting the 24% despite their claims the IRS was automatically deducting this and they were not holding the money or sending it to them (bull) and there was nothing they could do and I'd needed to go fix it at the social security office. Simply not true, just a simple edit fixed the problem which Uber New Delhi (phone) and Uber Tampa (greenlight hub) support could not help me with, neither of them suggested updating the online W9, I figured that out on my own, could have saved a lot of aggravation if they were trained a little better.


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## JaxUberLyft (Jan 9, 2019)

What I don't get is why entering business mileage didn't more substantially change the tax due / amount owed. Mileage is the elephant in the room. OP drives in Tampa - probably similar rates to me in Jax. I'm very careful in my mileage record keeping...even declaring all cash tips my sch C income from rideshare is slightly negative. The dead miles more than overwhelm the paying miles at Florida mile / minute rates.

I don't rely on the online mileage given by U/L annual summaries since that will double dip whenever both apps are on.

I could but do not deduct part of my cell phone bill. I might have $50 for water and candy for riders.

I would actually prefer that my sch C show a slight gain, but alas it won't


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## LADryver (Jun 6, 2017)

uberlyftnewbie said:


> I updated my name on the Uber online W9 form to reflect what the IRS has for my ssn, within a couple days Uber stopped deducting the 24% despite their claims the IRS was automatically deducting this and they were not holding the money or sending it to them (bull) and there was nothing they could do and I'd needed to go fix it at the social security office. Simply not true, just a simple edit fixed the problem which Uber New Delhi (phone) and Uber Tampa (greenlight hub) support could not help me with, neither of them suggested updating the online W9, I figured that out on my own, could have saved a lot of aggravation if they were trained a little better.


So now you have fixed it. Was it fixed before you posted about the witholding? Seems like you totally wasted my goodwill and time. Adding to my Ignore list, troll. Dont complain of something without disclosing the problem was fixed. Yes, I told you it was a goddam easy fix, but you decided to let me think you were stuck. There is always more than one solution. You time waster.


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## uberlyftnewbie (Jan 18, 2019)

LADryver said:


> So now you have fixed it. Was it fixed before you posted about the witholding? Seems like you totally wasted my goodwill and time. Adding to my Ignore list, troll. Dont complain of something without disclosing the problem was fixed. Yes, I told you it was a goddam easy fix, but you decided to let me think you were stuck. There is always more than one solution. You time waster.


Truly sorry about the misunderstanding, I was just posting an update, I took about a week off of Uber and just worked for Lyft, the timeline was as follows:

1) Uber started withholding 24% for IRS, I called that night after work, no help. Next day drove to Clearwater Uber hub, closed. Drove to Tampa hub, no help. Same day posted on forum about withholding, asking if anyone had experienced anything similar?
2) About 2 days later I logged into my uber account, found the W9 form and updated it.
3) I drove for a couple few days for Lyft and made much less, so I decided to try Uber again, took a couple rides and did an instant pay expecting the same but yay, no more withholding.

I appreciate your very helpful reply but I didn't read your post until this afternoon after the situation had already been resolved with the W9 update. I just wanted to share my experience and hopefully save someone a trip to the social security office in case they missed your post. I truly didn't mean to waste your time or detract from your helpful post.

A troll usually posts something inflammatory, like name calling, or something generally insulting, politically incorrect, insensitive or controversial to piss people off and then they just sit back and revel in the mayhem they intentionally started. That was not my intent at all, I was initially posting for help, this situation was messing with my income, I was stressed out and very very frustrated with the lack of knowledge from Uber support. Knowledge that more experienced people like yourself and other good people provided, and as always is greatly appreciated. I am very sorry for upsetting you, I sincerely was not intentionally trolling. Cheers and best wishes.


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