# Does this make sense?



## MyJessicaLS430 (May 29, 2018)

Hi everyone.

This is my first year to deal with tax driving Uber. I have had only approx 500 trips with 5718 miles (total miles based on in-out odometer reading). Using the standard deduction is way easier for me ($0.545/mile if I rmb correctly).

My full time job withholds appox $6800 federal tax every year (indicated in W2). Given that the standard deduction for single (yes...still single) has dramatically increased from $6350 (last year) to $12000, basically I do not owe any tax related to Uber driving?

I have learnt from this forum that it is not uncommon for drivers to not be liable for any driving-related tax. However, it just sounds too good to be true.

My second question is whether the "Self-employment tax" (Uber-related) is a different issue from federal tax which consists of medicare + social security? There is thing called schedule SE specifically for self-employment tax. It appears $400 is the cut-off to determine if I need to pay 15.3% from the net earning indicated in schedule C.

Any advice or thoughts are appreciated!


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## Disgusted Driver (Jan 9, 2015)

You are right about the mileage, easier to take the per mile. Your understanding of income taxes is however limited, you are confusing standard deduction which reduces your income on which tax is based, with tax paid when you don't even know what you owe. Either get a good tax program or ask a pro for help!


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## Older Chauffeur (Oct 16, 2014)

MyJessicaLS430 said:


> Hi everyone.
> 
> This is my first year to deal with tax driving Uber. I have had only approx 500 trips with 5718 miles (total miles based on in-out odometer reading). Using the standard deduction is way easier for me ($0.545/mile if I rmb correctly).
> 
> ...


The SE tax is indeed your contributions to Social Security and Medicare from your business earnings. You are correct- if your net profit exceeds $400, you will owe 15.3% on your entire net profit. On your regular job you and your employer split the 15.3%, which is how you had $6350 withheld.

Separately, if you usually get a refund from the feds, you may have enough paid in through income tax withholding to cover any tax due from your side gig. If not, you can ask your employer to withhold extra to cover it. You may do even better with the near doubling of the standard deduction, lowering the amount of taxable income.

It sounds like you have kept a mileage log, which is important if you have to back up your mileage deduction. You can also deduct the portion of your cell phone bill related to your ride share activities.

I use TurboTax Deluxe CD, usually available for around $40 at Costco and other discount stores. You don't need the "Home and Business" or "Self-employed" labeled versions, which are more expensive. As long as it says on the box that it contains Schedules C and SE you will have everything you need. I can't speak to the online format versions.

Good luck.

Disclaimer: I'm not a tax professional.


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## Older Chauffeur (Oct 16, 2014)

^^^^ oops, I pulled the wrong figure for your FICA withholding- you did clear say $6800.


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