# Taxes with Uber



## Nyrick

I know I only have a few days left but I haven't filed taxes from my Uber 1099 yet. I wonder what everyone did in terms of deductions. I would think it would be best to take the federal mileage deduction at 56 cents a mile. Any thoughts?


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## Jeeves

Taxes with Uber is definitely more complicated then your usual w2.

http://taxes.about.com/od/Federal-Income-Taxes/qt/Tax-Rates-For-The-2013-Tax-Year.htm
Find your tax bracket, here is a table for singles in 2013

*10%* on taxable income from $0 to $8,925, plus
*15%* on taxable income over $8,925 to $36,250, plus
*25%* on taxable income over $36,250 to $87,850, plus
*28%* on taxable income over $87,850 to $183,250, plus
*33%* on taxable income over $183,250 to $398,350
Self employment tax is an additional 15.2%. Half of the self employment tax can be deducted from. Most everyone will take the mileage based deduction of 56 cents per mile.

I think it's Best to use tax act, or turbotax or some software to calculate your final tax rate. Or seek advice from a professional.


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## Nyrick

I hope h&r block software can figure out my Uber 1099. Anyone else have any experience filing Uber taxes for 2013?


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## hybridman

I'm not a tax pro but I think you can write off part of your personal cell-phone bill since you are using it for Uber. Also possibly dry-cleaning/laundry.


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## blair

carwashes are another possible tax deduction


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## troubleinrivercity

Can somebody give more details on their filings for this year? What was your total effective tax rate on Uber earnings?
Are there any double-taxing issues? I'm really wondering if this would be economical at all if we were to purchase insurance appropriate to our driving activities.


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## UberPissed

I am a tax attorney - If people have specific questions - I'll answer what I can for you.

Annnnnd like any good tax attorney - I must give the ole' Circular 230 disclaimer: ******Any tax advice included in this written or electronic communication was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed on the taxpayer by any governmental taxing authority or agency***** *

And keep in mind, you get what you pay for when it comes to advice.

In response to some of the things I see here:

You have to pay self employment tax on a quarterly basis. Look up 1040 ES and make estimated payments to avoid penalty when you file.

Cell phone that is mixed use must be itemized. On audit, I would think that you may have a hard time getting this deduction, given the non-business use that you may have. At best, you may be able to get a large chunk of your data and a small chunk of minutes; however, in my experience, I usually never call people, only text - and I end up only calling Uber clients.

Just to run some numbers for you... based on 2013 numbers, for a single person, with zero dependents, claiming the standard deduction. Amounts below are net profit, not net income, and do not factor outside sources of income, and include $0 for estimated payments:

10k - 1044 due [0 income tax - 387 EITC + 1413 Self Employment Tax + 18 penalty] 
20k - 3750 due [858 income tax + 2826 Self Employment Tax - 66 penalty] 
30k - 6590 due [2235 income tax + 4239 Self Employment Tax - 116 penalty]
40k - 9449 due [3630 income tax + 5652 Self Employment Tax - 167 penalty]
50k - 12330 due [5048 income tax 7065 Self Employment Tax - 217 penalty]
60k - 16136 due [7373 income tax + 8478 Self Employment Tax - 285 penalty]
70k - you're not making 70k driving Uber.

Use these numbers as a guide. There are many other factors that can change this, such as dependents and other deductions / adjustments; however, the SEP number will remain constant as it is a function of your net income.

DONT GET AN UNWELCOME SURPRISE ON TAX DAY! Get your proverbial shit together, and don't assume your accountant knows how to do it! Also, educate yourself on how to do it yourself, and use free resources, such as MyFreeTaxes which lets you file for free if your income is under 58k.

Other notes - you would also have to pay STATE income tax if you are in a state that has one (IL is 5%, so on 60k of income, you would be on the hook for 2683.


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