# Another Tax Question- Deduction to Refund



## PANewbie (Jan 8, 2016)

I'm going to change the numbers a bit but give a fair representation of what I'm looking at here. 

Uber is my 2nd income. 

Gross pay says $10,000

So for deductions- 

-I take 25% of that ($2500) for their safe ride/booking fee?
-I put 28,000 miles on my car driving (the first few months was a hard lesson of not constantly driving to look for pings so miles to ride ratio was... poor). So at 56 cents a mile that's $15,680
-Weekly car wash (8 x 52) $416
-Monthly cell phone bill $200 x 12 divided by 1/2- $1200

Does that mean my expenses were indeed $19,796 to a $10,000 income?

So my question is

If my primary income was 40,000 a year and I paid my normal taxes where I don't owe and basically wash the refund how does the Uber income affect my total with the 10k income vs 20k deduction

Will I owe? Get a refund?


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## Older Chauffeur (Oct 16, 2014)

Hard to say, but a couple of points-
Have you totaled up your bank deposits? The 1099k gross is before the 25% commission and SRF per ride, both of which you deduct, along with any tolls, etc. Deducting all of these should leave you with an amount matching your deposits.

The standard mileage rate is $.54 not $.56, and you need a contemporaneous mileage log to support the deduction. Weekly car washes would probably be considered part of the SMR.

The business/self employment income and expenses are reported on Schedule C (profit/loss)and Schedule SE((FICA). The results flow to your 1040.

Disclosure: I'm not a tax professional, and suggest that you consult one.


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## PANewbie (Jan 8, 2016)

Older Chauffeur said:


> Hard to say, but a couple of points-
> Have you totaled up your bank deposits? The 1099k gross is before the 25% commission and SRF per ride, both of which you deduct, along with any tolls, etc. Deducting all of these should leave you with an amount matching your deposits.
> 
> The standard mileage rate is $.54 not $.56, and you need a contemporaneous mileage log to support the deduction. Weekly car washes would probably be considered part of the SMR.
> ...


Thanks.

I do have a log book for all miles. I need to adjust the commission / SRF. The deposits were pretty close to begin with.

So essentially Uber income/loss shifts over and then basically turns taxable income to 20k instead of 40k (for the day job) based on a 20k loss/deduction overall for uber? And then a refund is based on whether I over or under paid on 20k instead of 40k. Is that the gist?


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## Older Chauffeur (Oct 16, 2014)

PANewbie said:


> Thanks.
> 
> I do have a log book for all miles. I need to adjust the commission / SRF. The deposits were pretty close to begin with.
> 
> So essentially Uber income/loss shifts over and then basically turns taxable income to 20k instead of 40k (for the day job) based on a 20k loss/deduction overall for uber? And then a refund is based on whether I over or under paid on 20k instead of 40k. Is that the gist?


I don't know if it will work out dollar for dollar, and may be affected by your AGI, filing status, etc. From what you describe it sounds like you will have an operating loss. What the impact is on your final tax won't be known until you get all the numbers in place. In the example you gave I don't see a $20k loss, however.


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## wiley21 (Feb 5, 2017)

Older Chauffeur said:


> I don't know if it will work out dollar for dollar, and may be affected by your AGI, filing status, etc. From what you describe it sounds like you will have an operating loss. What the impact is on your final tax won't be known until you get all the numbers in place. In the example you gave I don't see a $20k loss, however.


Unless I read it wrong, you made 40k with Job A, 10k with Uber, 20k in deductions (from Uber) equaling an Adjusted Gross Income of $30k.


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## Mars Troll Number 4 (Oct 30, 2015)

PANewbie said:


> I'm going to change the numbers a bit but give a fair representation of what I'm looking at here.
> 
> Uber is my 2nd income.
> 
> ...


Yes you did in fact lower your income by losing money (on paper) ubering.

Congratulations. Your pay is so horrible that the IRS thinks your losing money.

If you witheld for your OTHER job you will probobly get a big refund.


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