# Uber taking 7% sales taxes out of fares?



## Joseph Torti (May 18, 2017)

I notice Uber is taking 7% sales tax out of fares. When did this start?
If this is just recently. This might be a whole new way of paying taxes. Say the fare was 3.00 Uber cut is .75 cents. Uber take .21 cents out of $3.00. So now on the 1099 your part is 2.25 but uber already took the 16 cents out of your earning and pocket the money. So if this is new. You should get a 1099 for your net part of the Income plus a line that should have the prepaid taxes you paid on the net.(or the rider paid) because you are prepaying the taxes and Uber either holding it for you or keeping it. I guess we won't know unless we get the 1099, if we get one. or Uber send a 1099 saying our cut of the 7% sales tax sent to the irs on our behalf. Or are we going to pay twice in Taxes on the same Income. Most drivers who don't have a high Income bracket for Income taxes pay no taxes because the mileage rate wipes out the Income. Now the Irs and Uber figure out a way to still get money from taxes implementing the 7 % sales tax bull shit. Than again if the Sale tax shit isn't new or always was taking out, but was recently been order to show the break down of the fare, You may not have to make out that quarterly estimated payment for Income Taxes, Because your paying the sales tax plus don't forget the gas taxes every time you fill up. I might be wrong about all this so be nice. Enough is Enough Comments?


----------



## UberTaxPro (Oct 3, 2014)

Joseph Torti said:


> I notice Uber is taking 7% sales tax out of fares. When did this start?
> If this is just recently. This might be a whole new way of paying taxes. Say the fare was 3.00 Uber cut is .75 cents. Uber take .21 cents out of $3.00. So now on the 1099 your part is 2.25 but uber already took the 16 cents out of your earning and pocket the money. So if this is new. You should get a 1099 for your net part of the Income plus a line that should have the prepaid taxes you paid on the net.(or the rider paid) because you are prepaying the taxes and Uber either holding it for you or keeping it. I guess we won't know unless we get the 1099, if we get one. or Uber send a 1099 saying our cut of the 7% sales tax sent to the irs on our behalf. Or are we going to pay twice in Taxes on the same Income. Most drivers who don't have a high Income bracket for Income taxes pay no taxes because the mileage rate wipes out the Income. Now the Irs and Uber figure out a way to still get money from taxes implementing the 7 % sales tax bull shit. Than again if the Sale tax shit isn't new or always was taking out, but was recently been order to show the break down of the fare, You may not have to make out that quarterly estimated payment for Income Taxes, Because your paying the sales tax plus don't forget the gas taxes every time you fill up. I might be wrong about all this so be nice. Enough is Enough Comments?


Sales taxes are *State taxes *not IRS taxes. RI has a sales tax on taxi fares unless the trip takes you out of state.

Here's some links for you about the RI sales tax:

http://www.golocalprov.com/politics/taxi-drivers-ris-fare-tax-is-killing-their-business

http://www.tax.ri.gov/regulations/salestax/12-151.pdf


----------



## Joseph Torti (May 18, 2017)

How can they charge sale tax. We are not selling a product. We are offering service this doesn't seem legal.


----------



## UberTaxPro (Oct 3, 2014)

States have been strapped for funds. Many states have turned to taxing service businesses.


----------

