# How much do you leave aside for taxes?



## DRider85 (Nov 19, 2016)

How much money do you have saved up and how much for tax?


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## Elmo Burrito (Feb 3, 2017)

It depends on how much you earn and how many verifiable total rideshare miles you keep a record of.


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## Go4 (Jan 8, 2017)

Short answer is save 30% for taxes, repairs and car replacement.

Long answer, A) figure tax rate [probably 15% or less) add your FICA of 15.7%. B) Estimate your write off (.535 of total business miles). Subtract B) from your income. Then multiple that by A).

BTW keep an accurate daily mileage log.


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## BoboBig (Mar 1, 2017)

0 even my farts are a write off with this gig!


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## wk1102 (Dec 25, 2015)

$0.00


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## Coachman (Sep 22, 2015)

If you're paying taxes you're not doing this right.


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## Lyfty (Jul 26, 2014)

I have been tracking my milage for a few months and so far the mileage deductions are slightly higher than my actual earnings. I would also point out that absolutely NON of my rides had been surge. I'm a full time student so I'm very limited to when I can drive, which leaves me no option to pick surge times. Also my market is over saturated and surge barely lasts


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## freddieman (Oct 24, 2016)

Go4 said:


> Short answer is save 30% for taxes, repairs and car replacement.
> 
> Long answer, A) figure tax rate [probably 15% or less) add your FICA of 15.7%. B) Estimate your write off (.535 of total business miles). Subtract B) from your income. Then multiple that by A).
> 
> BTW keep an accurate daily mileage log.


When u say accurate, how accurate does it have to be? I've been keeping a notebook of daily miles when I turn the app on.


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## tohunt4me (Nov 23, 2015)

DRider85 said:


> How much money do you have saved up and how much for tax?


1/2 of my Uber earnings.
As shown in this picture below.
What time does Food Stamp Office open ?


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## SailingWithThe Breeze (Feb 22, 2017)

I don’t specifically set any money aside. I just pay my taxes when money is due. 

For those that specifically want to set aside money in a separate account, which is a very good idea, especially if you are living paycheck-to-paycheck, you should first make sure that you are documenting and taking all of the tax deductions you are legally allowed to take. For most folks, you should have enough write-offs to cover approximately 60% of your earnings. This will vary from person-to-person, but 60% is a good estimate for most folks.

Then take the remaining 40% of your ride-sharing income and it’s a pretty safe bet that you will pay a 30-35% tax on that remaining amount. Again, the actual percentage of tax you owe will vary from person to person, but the majority of folks here will fall into the 30-35% category.

As an example, here are some hypothetical numbers:

You make $10,000 in rideshare income from Uber and Lyft.
Your rideshare tax deductions add up to $6,000.
You will then be taxed on $4,000 of your income.
Your tax bracket happens to be 15%, plus your FICA tax for self-employed is 15.4%, giving you an overall tax rate of 30.4%.
30.4% of $4,000 is $1,216 and that is the estimated amount of taxes you would owe. Plan accordingly.

Each and every one of us is running a small business. Make sure you learn about every tax write-off you can legally take. Learn how to document it correctly. And learn what estimated tax bracket you will be in and then plan accordingly...just like you’re trying to do. Last thing anyone wants to encounter is a big surprise in April of each year.

Edit: I do not have to pay any state tax on my income. Most folks do. Don’t forget to account for your state taxes too!


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## DRider85 (Nov 19, 2016)

Coachman said:


> If you're paying taxes you're not doing this right.


You have that much write off?


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## shiftydrake (Dec 12, 2015)

DRider85 said:


> You have that much write off?


I do my own taxes and since I actually own 2 vehicles 1 personal 1 taxi every single mile I drive in my taxi is deductible 200 miles a night 6 days a week 50 weeks a year roughly 50k miles a year or close plus I write off my weekly lease fee....$349 a week 50 weeks.....plus commercial auto insurance....part of my home....uniforms (certain color clothing) and so on and so on......last year I wrote off every bit of what was reported I made and what my wife made all of it and even put us at an AGI of -529......yeah according to all my deductions I was negative 529 for AGI....

Could be why I received $500 from feds and 1280 from state


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## DRider85 (Nov 19, 2016)

shiftydrake said:


> I do my own taxes and since I actually own 2 vehicles 1 personal 1 taxi every single mile I drive in my taxi is deductible 200 miles a night 6 days a week 50 weeks a year roughly 50k miles a year or close plus I write off my weekly lease fee....$349 a week 50 weeks.....plus commercial auto insurance....part of my home....uniforms (certain color clothing) and so on and so on......last year I wrote off every bit of what was reported I made and what my wife made all of it and even put us at an AGI of -529......yeah according to all my deductions I was negative 529 for AGI....
> 
> Could be why I received $500 from feds and 1280 from state


So then you're not making money if they owe you.


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## shiftydrake (Dec 12, 2015)

No what all refunded was from what wife paid in at her job plus a few other credits we qualified for....(no kids but my mom lives with us so she is a dependent so EIC or earned income credit)......

I net 42k last year.. That's $42,000.00 after all my expenses my insurance that I carry plus my gas my maintenance and my lease fee. My tax deductions are completely different


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## Jimmy Bernat (Apr 12, 2016)

You could probably put away 10% of your net earnings and still not owe that much .


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## Oscar Levant (Aug 15, 2014)

DRider85 said:


> How much money do you have saved up and how much for tax?


IF you take the 57 cents per mile deduction, you won't owe a tax, you'll get a negative tax refund. that is precisely what happened to me. But, note that I work the airport exclusively, meaning I deadhead back to the source point, which means paid miles is less than, say, if you work the city. NYC drivers will experience probablly the highest paid mile percentage than other cities, I suspect. Because i work the airport, it means that my deduction exceeds my gross, and thus, on paper, and probably reality, I'm operating at a loss. so, it's back to SUV land, for me. At least there I was making a profit.


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## Jimmy Bernat (Apr 12, 2016)

Oscar Levant said:


> IF you take the 57 cents per mile deduction, you won't owe a tax, you'll get a negative tax refund. that is precisely what happened to me. But, note that I work the airport exclusively, meaning I deadhead back to the source point, which means paid miles is less than, say, if you work the city. NYC drivers will experience probablly the highest paid mile percentage than other cities, I suspect. Because i work the airport, it means that my deduction exceeds my gross, and thus, on paper, and probably reality, I'm operating at a loss. so, it's back to SUV land, for me. At least there I was making a profit.


To your point about dead head miles , I always recommend using DF for when you're going places for personal things. Like I set it for my work and I set it to home when I'm leaving work. I rarely get rides to work but I sometimes get a couple of rides going home other times nothing but all those miles are deductible now since you were driving and available for Uber and or Lyft rides .


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## LAuberX (Jun 3, 2014)

Zero. 

No "Profit" means no taxes doing Uber in L.A. The last fare reduction removed any trace of "profit" unless you drive a hoopty.

SF has higher rates than Los Angeles you have a $2.00 base, .22 per minute and $1.15/mile so track your miles and estimate earnings vs. expenses each month to see if you need to put any money away for taxes.


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