# I owe taxes for 2nd straight year



## Potluck (Jun 8, 2020)

I've been using the same tax preparer for many years. The last 2 years I've been driving full time. I'm finding that I'm owing federal taxes and each year. The amount I owe has gone from aporox. $200 for 2018 to $500 for 2019(2019 gross approx 46K). It seems like I should be getting a refund and I'm having to pay out more and more each year. Does that sound right?


----------



## Illini (Mar 14, 2019)

A lot of variables go into your tax obligation. The information you provided on your situation could not possibly allow anyone to answer.
With that said, very few full timers here pay any taxes due to enough business expenses/mileage to more than offset our earnings.


----------



## GuidoTKP (May 7, 2020)

Potluck said:


> I've been using the same tax preparer for many years. The last 2 years I've been driving full time. I'm finding that I'm owing federal taxes and each year. The amount I owe has gone from aporox. $200 for 2018 to $500 for 2019(2019 gross approx 46K). It seems like I should be getting a refund and I'm having to pay out more and more each year. Does that sound right?


Perhaps it's time for a second opinion?


----------



## TCar (Aug 4, 2019)

Last year, my first year, my expenses were %15 higher than my income.
This year, i am making more than i am writing off. 
But, I am a little bit better at it now than I was then.


----------



## TBone (Jan 19, 2015)

Are you paying quarterly and assume you will get something back at the end of the year? How would you receive a refund if you don't pay fed taxes?
I have always paid taxes because you can only deduct so much and cannot get it to zero. 10% of taxable income is the minimum rate.


----------



## SHalester (Aug 25, 2019)

If all is being done correctly those numbers are small. But if they get bigger you should either think about making payments during the year and/or if the amounts get high enough it will trigger the IRS to 'require' you to make quarterly payments. 

If you also have a W2 job you could also think about reducing your exemptions.....


----------



## kingcorey321 (May 20, 2018)

First off i never paid quarter taxes ,
Every dollar i earn i claim 2 miles . 
Zero taxes owed . Driving uber lyft is a great tax solution when you need to have extra deductions on your end of the year .
no w2 job for 4 years never again im the boss


----------



## KevinJohnson (Mar 23, 2020)

Potluck said:


> The amount I owe has gone from aporox. $200 for 2018 to $500 for 2019(2019 gross approx 46K). It seems like I should be getting a refund


$500 tax liability on $46,000 of revenue is a 1% tax rate. You are complaining about a 1% tax bill?


----------



## Launchpad McQuack (Jan 8, 2019)

You say that you drive full time. Does that mean that it is your only source of income? If so, do you make estimated quarterly tax payments during the year? If not, why would you expect to get a refund? If you didn't pay anything, then there is nothing to refund.


----------



## Amsoil Uber Connect (Jan 14, 2015)

As I see it. If your doing XL, Select or high end , or surge only, if that is even possible these days, then your probably going to owe.

This is the problem. We all complain about base rates. But if we were paid like we want, there would not be enough deductions to off set the tax owed.


----------



## Uberguyken (May 10, 2020)

IF you are using Ubers MILAGE report to calculate your tax deduction. You're welcome! Cuz I just found your problem...

I started using TRIPLOG last year and my actual deductible milage was close to TRIPLE what Uber reported at year end. And without accurate records you can't claim more... TRIPLOG gives you a report on every trip you do and accurately reports all your milage on a day,week,month, and year excel printable report.

Let's just say I have never done quarterly taxes and this year I'll be getting back close to 4k.

Get Triplog, oh and I would have my tax guy at least DOUBLE what Uber said you did... If you haven't filed yet... If you have... It's time to get set up for next year's taxes with better accounting of miles...


----------



## Tony73 (Oct 12, 2016)

If you don’t pay your taxes how am I supposed to collect my PUA!? Pay what you owe before they levy your account.


----------



## Immoralized (Nov 7, 2017)

Potluck said:


> I've been using the same tax preparer for many years. The last 2 years I've been driving full time. I'm finding that I'm owing federal taxes and each year. The amount I owe has gone from aporox. $200 for 2018 to $500 for 2019(2019 gross approx 46K). It seems like I should be getting a refund and I'm having to pay out more and more each year. Does that sound right?


You can pay ur taxes in advance so you can get a refund if you overpaid said taxes. That way you feel good getting something back and that how tax returns work in the 1st place.

For a normal salary paid workers they pay 5-20% of their income to taxes to prepay on what they owe and then they do their taxes and get any overpaid taxes back into their pocket after the taxes are calculated for the year. You can contact your accountant and setup that kind of system so you will get a tax return every year.

You will never get a "tax return" if you never paid any taxes in the 1st place because quite simply you haven't paid any taxes for them to return anything to you. Because Uber isn't ur employer and they are not withholding any taxes for you to claim back. You are ur own employer in ur own businesses.

Ur accountant seem to be doing a pretty good job reducing ur taxable income to what he is on $46 000 US dollars.


----------



## Uberguyken (May 10, 2020)

Immoralized said:


> You can pay ur taxes in advance so you can get a refund if you overpaid said taxes. That way you feel good getting something back and that how tax returns work in the 1st place.
> 
> For a normal salary paid workers they pay 5-20% of their income to taxes to prepay on what they owe and then they do their taxes and get any overpaid taxes back into their pocket after the taxes are calculated for the year. You can contact your accountant and setup that kind of system so you will get a tax return every year.
> 
> You will never get a "tax return" if you never paid any taxes in the 1st place because quite simply you haven't paid any taxes for them to return anything to you. Because Uber isn't ur employer and they are not withholding any taxes for you to claim back. You are ur own employer in ur own businesses.


Three words for ya... EARNED INCOME CREDIT. Didn't pay a dime in taxes and still getting back close to 4k


----------



## Immoralized (Nov 7, 2017)

Uberguyken said:


> Three words for ya... EARNED INCOME CREDIT. Didn't pay a dime in taxes and still getting back close to 4k


Did you gross over $46 000 in 2019 & have the exact same taxing situation as the OP?


----------



## Uberguyken (May 10, 2020)

Immoralized said:


> Did you gross over $46 000 in 2019 & have the exact same taxing situation as the OP?


Why yes I did, thanks for playing.


----------



## Immoralized (Nov 7, 2017)

Uberguyken said:


> Why yes I did, thanks for playing.


So you got the OP tax returns and ur tax situation perfectly matches with his and you claiming you got 4k credit back? 
That amazing.


----------



## oldfart (Dec 22, 2017)

Potluck said:


> I've been using the same tax preparer for many years. The last 2 years I've been driving full time. I'm finding that I'm owing federal taxes and each year. The amount I owe has gone from aporox. $200 for 2018 to $500 for 2019(2019 gross approx 46K). It seems like I should be getting a refund and I'm having to pay out more and more each year. Does that sound right?


1) If you are driving full time (with no w2 income from another job) you havent had anything withheld for taxes so there is nothing to return unless you qualify for the earned income credit

2) It you showed as little as $3000 taxable income on your schedule C after your mileage deduction and other rideshare expenses, and even if that was your only income on your 1040 you would not owe any income tax because the standard deduction is $12000 and your bottom line taxable income is less than $0; However you would still owe $450 self employment tax (for Social Security) $3000 x 15% = $450

How many miles did you drive to gross $46k??
I drove 70000 miles to gross $49000 so after the standard mileage deduction I still had over $9000 subject to self employment tax.until I deducted "other business expenses"

so Yea. It sounds about right


----------



## andrew232 (May 31, 2020)

Potluck said:


> I've been using the same tax preparer for many years. The last 2 years I've been driving full time. I'm finding that I'm owing federal taxes and each year. The amount I owe has gone from aporox. $200 for 2018 to $500 for 2019(2019 gross approx 46K). It seems like I should be getting a refund and I'm having to pay out more and more each year. Does that sound right?


No one likes paying taxes and there are many factors that affect your tax. If you are claiming everything you can and your tax is increasing this is a good thing. It means your profit is increasing despite the extra tax. If your always getting a refund and doing tax properly it means your losing money. this is bad and not sustainable.


----------



## 25rides7daysaweek (Nov 20, 2017)

Potluck said:


> I've been using the same tax preparer for many years. The last 2 years I've been driving full time. I'm finding that I'm owing federal taxes and each year. The amount I owe has gone from aporox. $200 for 2018 to $500 for 2019(2019 gross approx 46K). It seems like I should be getting a refund and I'm having to pay out more and more each year. Does that sound right?


You make money 
you pay taxes and you die.
Some people end up having 
losses while driving for uber.
Idk if they have alot of deadhead
miles or are in crappy markets.
You have state federal and ssi taxes
that all end up on your bottom line
If you took in 46k and only pay $500
for taxes it sounds to me like you are getting off light...


----------



## Seamus (Jun 21, 2018)

Potluck said:


> I've been using the same tax preparer for many years. The last 2 years I've been driving full time. I'm finding that I'm owing federal taxes and each year. The amount I owe has gone from aporox. $200 for 2018 to $500 for 2019(2019 gross approx 46K). It seems like I should be getting a refund and I'm having to pay out more and more each year. Does that sound right?


That could be right but obviously with such limited information there is no way of knowing.

Despite the howling of most, unless you are really bad at this your mileage deduction alone shouldn't give you a loss. You have to understand that many on this forum make up there mileage numbers and expenses to show a loss. Just because you can do that doesn't make it legal or correct.

Nothing wrong with showing a small profit and paying a little tax. If you go along in life not paying any self employment tax (or very little) you will pay for that later in life when you want to collect ss.



Launchpad McQuack said:


> You say that you drive full time. Does that mean that it is your only source of income? If so, do you make estimated quarterly tax payments during the year? If not, why would you expect to get a refund? If you didn't pay anything, then there is nothing to refund.


Believe it or not It's possible to pay no taxes and get money back, but only thru the EIC. (Earned Income Credit).


----------



## Stevie The magic Unicorn (Apr 3, 2018)

Do you have any w2 income?

Are you withholding ANYTHING.

Are you making quarterly tax payments?

If you awnsered no to any of the above i wouldn’t be suprised if you owed money.

If you answer no to ALL of the above you WILL owe.


----------



## Dave Bust (Jun 28, 2017)

i have paid ZERO in taxes for the last 3 year

EVERYTHING is deductible


----------



## Uberdriver2710 (Jul 15, 2015)

Why pay taxes when they can just print the money?


----------



## Yomann (Sep 23, 2014)

KevinJohnson said:


> $500 tax liability on $46,000 of revenue is a 1% tax rate. You are complaining about a 1% tax bill?


That's not even Federal Income tax; you are paying Social Security taxes for the self employed !


----------



## Seamus (Jun 21, 2018)

Dave Bust said:


> i have paid ZERO in taxes for the last 3 year
> 
> EVERYTHING is deductible


EVERYTHING is deductible. EVERYTHING is not LEGALLY deductible. Do you differentiate? You should publish a list of what EVERYTHING deductible includes. Could be quite entertaining.


----------



## Deceptive (Oct 29, 2019)

kingcorey321 said:


> im the boss


Until uber deactivates you.. you sure you're "the boss"


----------



## Amsoil Uber Connect (Jan 14, 2015)

What cracks me up , is using Uncle Sam as a bank account, really !!! Ok ok, for W-2 withholding it works.


----------



## kingcorey321 (May 20, 2018)

Deceptive said:


> Until uber deactivates you.. you sure you're "the boss"


why every driver needs to drive for uber lyft dd gh ic shift pm. 
Fired from 1 ok . And you can always put them in somebody name other then yours .


----------



## Deceptive (Oct 29, 2019)

kingcorey321 said:


> And you can always put them in somebody name other then yours .


 Annnnnd... that's fraud


----------



## JPaiva (Apr 21, 2019)

kingcorey321 said:


> First off i never paid quarter taxes ,
> Every dollar i earn i claim 2 miles .
> Zero taxes owed . Driving uber lyft is a great tax solution when you need to have extra deductions on your end of the year .
> no w2 job for 4 years never again im the boss


So what happens when you make $20 on a 4 mile trip? Do you change your mileage to 40 miles in your log? Doesnt have to happen too often to make your mileage log WAAY off from your actual odometer reading.


----------



## kingcorey321 (May 20, 2018)

JPaiva said:


> So what happens when you make $20 on a 4 mile trip? Do you change your mileage to 40 miles in your log? Doesnt have to happen too often to make your mileage log WAAY off from your actual odometer reading.


He drives uber . Do you make 4 dollars a mile with uber often ? Why are you acting stupid ?



Deceptive said:


> Annnnnd... that's fraud


Explain to me how its fraud ? Its not breaking the laws


----------



## Mole (Mar 9, 2017)

Potluck said:


> I've been using the same tax preparer for many years. The last 2 years I've been driving full time. I'm finding that I'm owing federal taxes and each year. The amount I owe has gone from aporox. $200 for 2018 to $500 for 2019(2019 gross approx 46K). It seems like I should be getting a refund and I'm having to pay out more and more each year. Does that sound right?


If you are a ride share driver only and you do not pay in to the system all year long why would you thing you would be getting a refund?
Income tax refunds are for people who pay in to the system and pay the government too much money.


----------



## Deceptive (Oct 29, 2019)

kingcorey321 said:


> Explain to me how its fraud ? Its not breaking the laws


Ask stupid questions, win stupid prizes.. I don't need to, use your brain


----------



## JPaiva (Apr 21, 2019)

kingcorey321 said:


> He drives uber . Do you make 4 dollars a mile with uber often ? Why are you acting stupid ?
> 
> 
> Explain to me how its fraud ? Its not breaking the laws


over reporting milage for the purposes of reducing taxable income is illegal



kingcorey321 said:


> He drives uber . Do you make 4 dollars a mile with uber often ? Why are you acting stupid ?
> 
> 
> Explain to me how its fraud ? Its not breaking the laws


Mileage needs to be reported as miles actually driven with the app on. Not logging 2 miles for every $1 earned. But hey, some people are idiots. Good luck when you get audited.


----------



## Uberguyken (May 10, 2020)

JPaiva said:


> over reporting milage for the purposes of reducing taxable income is illegal
> 
> 
> Mileage needs to be reported as miles actually driven with the app on. Not logging 2 miles for every $1 earned. But hey, some people are idiots. Good luck when you get audited.


And How exactly do you keep track of your mileage? My guess would be based on Ubers year end report..which is nowhere near accurate...


----------



## mikes424 (May 22, 2016)

Uberguyken said:


> And How exactly do you keep track of your mileage? My guess would be based on Ubers year end report..which is nowhere near accurate...


I record the mileage on the odometer when I start for the day and subtract the reading when I end for the day. Gives me mileage used. Keep a total for the tax year.

I would really like Uber (and other 1099 concerns) be able to with hold taxes.


----------



## Uberguyken (May 10, 2020)

mikes424 said:


> I record the mileage on the odometer when I start for the day and subtract the reading when I end for the day. Gives me mileage used. Keep a total for the tax year.
> 
> I would really like Uber (and other 1099 concerns) be able to with hold taxes.


To be IRS compliant you have to have starting and ending odometer reading and start an stop destination info. If your audited your stuck without it.


----------



## dmoney155 (Jun 12, 2017)

Potluck said:


> I've been using the same tax preparer for many years. The last 2 years I've been driving full time. I'm finding that I'm owing federal taxes and each year. The amount I owe has gone from aporox. $200 for 2018 to $500 for 2019(2019 gross approx 46K). It seems like I should be getting a refund and I'm having to pay out more and more each year. Does that sound right?


Why would you be getting refund?... are you saying the government should be paying you for driving around and listening to radio?


----------



## TonyStewart (Apr 4, 2020)

I like to show a yearly profit of at least $5600.00 and pay a little self-employment tax. This way I get four quarters of credit towards social security when I hit 62 years of age. You need 40 quarters or ten years paid into to social security to collect at 62. pay a little now and collect later.


----------



## Amos69 (May 17, 2019)

We paid $37,000 in 2019.

Nothing wrong with your numbers if RS is all you do.


----------



## Gone_in_60_seconds (Jan 21, 2018)

Potluck said:


> I've been using the same tax preparer for many years. The last 2 years I've been driving full time. I'm finding that I'm owing federal taxes and each year. The amount I owe has gone from aporox. $200 for 2018 to $500 for 2019(2019 gross approx 46K). It seems like I should be getting a refund and I'm having to pay out more and more each year. Does that sound right?


Yup. You do not have enough expenses. And learn to maximize tax planning. Ridesharing has never been lucrative, so you need find ways to increase your net pay.


----------



## kingcorey321 (May 20, 2018)

JPaiva said:


> over reporting milage for the purposes of reducing taxable income is illegal
> 
> 
> Mileage needs to be reported as miles actually driven with the app on. Not logging 2 miles for every $1 earned. But hey, some people are idiots. Good luck when you get audited.
> ...


----------



## islanddriver (Apr 6, 2018)

Uberguyken said:


> And How exactly do you keep track of your mileage? My guess would be based on Ubers year end report..which is nowhere near accurate...


Trip log


----------



## PopcornEater (Apr 26, 2020)

Of course you’ll owe taxes, that’s why you get a 1099 🙃
Silly you! Where you expecting a tax return? 🤔


----------



## z_z_z_ (Aug 17, 2019)

Uberguyken said:


> And How exactly do you keep track of your mileage? My guess would be based on Ubers year end report..which is nowhere near accurate...


You said you get triple what Uber says on your report? &#129315; ok sure

Let me guess you don't even do Lyft or any other app you just do Uber like a real brain-dead ant?

And somehow your "mileage log" is triple what Uber says? &#129315;

And yes I keep my own GPS mileage log and it's NOWHERE near triple &#129315;



Uberguyken said:


> Three words for ya... EARNED INCOME CREDIT. Didn't pay a dime in taxes and still getting back close to 4k


Good luck explaining to the IRS how you have been running your business at a loss year after year.

You realize they wait for years of data and evidence to accumulate before they come after you? This way they hit you for 5-10 years of backed taxes all at once so they don't have to come after your stupid ass every single year.


----------



## kingcorey321 (May 20, 2018)

Uberguyken said:


> IF you are using Ubers MILAGE report to calculate your tax deduction. You're welcome! Cuz I just found your problem...
> 
> I started using TRIPLOG last year and my actual deductible milage was close to TRIPLE what Uber reported at year end. And without accurate records you can't claim more... TRIPLOG gives you a report on every trip you do and accurately reports all your milage on a day,week,month, and year excel printable report.
> 
> ...


Sorry to say it does not work like that. Yes you wont ow.But if you never paid into your quarterly tax or had a w2 job.
If you only did 1099 there is zero way the irs will pay you money. If you said you drove 10000000000 miles and earned just 5000 bucks it still would say zero owed and zero back to you .


----------



## z_z_z_ (Aug 17, 2019)

kingcorey321 said:


> Sorry to say it does not work like that. Yes you wont ow.But if you never paid into your quarterly tax or had a w2 job.
> If you only did 1099 there is zero way the irs will pay you money. If you said you drove 10000000000 miles and earned just 5000 bucks it still would say zero owed and zero back to you .


He is claiming he has 10 children so he gets 4k in tax credit for them all


----------



## tothebeach2024 (Sep 25, 2019)

Potluck said:


> I've been using the same tax preparer for many years. The last 2 years I've been driving full time. I'm finding that I'm owing federal taxes and each year. The amount I owe has gone from aporox. $200 for 2018 to $500 for 2019(2019 gross approx 46K). It seems like I should be getting a refund and I'm having to pay out more and more each year. Does that sound right?


At $.56/ mile and all the expenses you can write off, you should be getting a refund. Keeping good records is the key. Remember you can write off ANY mileage associated with your business except the "commute" mileage. So "commute" to the nearest Starbucks. Keep your own log, don't rely on the rideshare figures.


----------



## z_z_z_ (Aug 17, 2019)

tothebeach2024 said:


> At $.56/ mile and all the expenses you can write off, you should be getting a refund. Keeping good records is the key. Remember you can write off ANY mileage associated with your business except the "commute" mileage. So "commute" to the nearest Starbucks. Keep your own log, don't rely on the rideshare figures.


If you work in the town where you live there is no commute.

And writing off a bunch of trash just to get to 0 net profit/loss every year is a real good way to get audited.


----------



## Uberguyken (May 10, 2020)

kingcorey321 said:


> Sorry to say it does not work like that. Yes you wont ow.But if you never paid into your quarterly tax or had a w2 job.
> If you only did 1099 there is zero way the irs will pay you money. If you said you drove 10000000000 miles and earned just 5000 bucks it still would say zero owed and zero back to you .


Sorry to tell you but I have a wife who does have a w2 job and thus it does work like that....


----------



## Las Vegas Dude (Sep 3, 2018)

Uberguyken said:


> Sorry to tell you but I have a wife who does have a w2 job and thus it does work like that....


So if your filing jointly and they are including your wife's W2 job then yes you can get some back. I think this discussion about a single full time rideshare person with no W2 income on tax filing.


----------



## z_z_z_ (Aug 17, 2019)

Las Vegas Dude said:


> So if your filing jointly and they are including your wife's W2 job then yes you can get some back. I think this discussion about a single full time rideshare person with no W2 income on tax filing.


Nah they file as divorced and he is a single dad with 6 kids making zero income &#129315;

Maybe disabled too &#129315;


----------



## Uberguyken (May 10, 2020)

z_z_z_ said:


> Nah they file as divorced and he is a single dad with 6 kids making zero income &#129315;
> 
> Maybe disabled too &#129315;


Regardless of how I filed I got 4k back.... Did you?


----------



## kingcorey321 (May 20, 2018)

Uberguyken said:


> Sorry to tell you but I have a wife who does have a w2 job and thus it does work like that....


Yes your 1099 will be zero owed and paid . Your wife w2 will have a refund . And claim 3 kids 1000 each . so 3000 for kids 2000 you and wife . About 5000 to 7000 return .


----------



## Uberguyken (May 10, 2020)

kingcorey321 said:


> Yes your 1099 will be zero owed and paid . Your wife w2 will have a refund . And claim 3 kids 1000 each . so 3000 for kids 2000 you and wife . About 5000 to 7000 return .


1 kid and 53,000 miles.... 4k in the end. Due to kid in college...


----------



## Smell My Finger (Jun 11, 2019)

kingcorey321 said:


> First off i never paid quarter taxes ,
> Every dollar i earn i claim 2 miles .
> Zero taxes owed . Driving uber lyft is a great tax solution when you need to have extra deductions on your end of the year .
> no w2 job for 4 years never again im the boss


Bravo!!!

With the milage, maintenance and all around expenses, no way you should be paying taxes. You need a new tax preparer


----------



## UberBastid (Oct 1, 2016)

GuidoTKP said:


> Perhaps it's time for a second opinion?


OK.
This is going back a few years. 
I think I was ... like ... ten or so.
(I am 66)
So, half centruy ago.

Dad sitting at the kitchen table to 'do taxes'.
He had the form, a couple of W2s, a pencil and a blank piece of paper.
He'd do his 'cyperhin' on the blank paper.
He filled out the tax form (in pencil) and arrived at an "amount owed".
Now, dad didn't swear ... rarely.

He looks at the final 'amount owed' and mutters, "Hell with that".
Gets a fresh piece of cypherin paper ... 
Eraces the whole form ... big rubber eraser ... new form. 
Redoes all the numbers ... looks at it and says, "Now THAT'S better".

Signed it and mailed it.

I think you need a fresh piece of cypherin' paper.


----------



## Mpls55345 (Dec 8, 2018)

Potluck said:


> I've been using the same tax preparer for many years. The last 2 years I've been driving full time. I'm finding that I'm owing federal taxes and each year. The amount I owe has gone from aporox. $200 for 2018 to $500 for 2019(2019 gross approx 46K). It seems like I should be getting a refund and I'm having to pay out more and more each year. Does that sound right?


I hit my trip meter and set it to 0 before I leave my house. The mileage when I get back home is the mileage I write off my taxes, $.58 mile. I averages more then 2 miles for every $1 I make so I honestly never owe taxes and never have to keep track of anything other than miles.



Uberguyken said:


> IF you are using Ubers MILAGE report to calculate your tax deduction. You're welcome! Cuz I just found your problem...
> 
> I started using TRIPLOG last year and my actual deductible milage was close to TRIPLE what Uber reported at year end. And without accurate records you can't claim more... TRIPLOG gives you a report on every trip you do and accurately reports all your milage on a day,week,month, and year excel printable report.
> 
> ...


Or you can just use your trip function on your car.


----------



## SHalester (Aug 25, 2019)

Uberguyken said:


> Regardless of how I filed I got 4k back.


yikes! what is your threshold for modifying your wife's withholding? Four grand is a big interest free loan to Uncle Sam, yeah?

Unless you had a one time event, I'd decrease the withholding numbers.

I aim for small refund and hope I didn't mess up. Writing a check for taxes is the worst. Plus a refund helps pay for the property tax, which is also due in April......


----------



## LetsBeSmart (Mar 12, 2020)

Potluck said:


> I've been using the same tax preparer for many years. The last 2 years I've been driving full time. I'm finding that I'm owing federal taxes and each year. The amount I owe has gone from aporox. $200 for 2018 to $500 for 2019(2019 gross approx 46K). It seems like I should be getting a refund and I'm having to pay out more and more each year. Does that sound right?


You have a similar situation to me, driving for 4 years almost all full time, first problem was 500. second year about the same, 3rd year I said BS, for every dollar I made times 2 with miles 2019, no problem. If you think about it why are we getting unemployment, the great mystery.


----------



## UberBastid (Oct 1, 2016)

I dunno what the big mystery is.
Shit ... just LIE TO THEM.

I consider a tax return to be an offer.
I fill it out, I offer to pay a sum.
If they don't like my offer, we negotiate (they call that an audit).
Audit doesn't scare me.
I used to do it for a living.

I made an IRS audit last for over FIVE YEARS once.

They can, and do, get into my pocket.
But, I don't make it easy.
I do not lay down and beg for mercy.
I make em _work_ for it.

We are not in a tax bracket that they are really interested in.
The auditors we get are newbies, just cutting their teeth on scared citizens.
Don't be a scared citizen - they work for us.

TIP: Do NOT lie about income. Tell the truth on income. You can get 'creative' with deductions. 
"I didn't know I couldn't deduct my dog's dental treatments. I'm sorry. How much do I owe you?"
Honest mistakes are not criminal.
Be stupid.


----------



## SHalester (Aug 25, 2019)

UberBastid said:


> How much do I owe you?"


plus interest, plus penalties.....


----------



## UberBastid (Oct 1, 2016)

SHalester said:


> plus interest, plus penalties.....


Belive this ... I have stolen more from them, than they have from me.

(one year, I deducted the interest they charged me off of a current year. It went undetected ...)


----------



## JPaiva (Apr 21, 2019)

If your tax pro screws up because YOU provided incorrect info, guess what. YOU are on the hook. And dead miles are those between pax while the app is on, yep I claim them too. But that is still WAY different than your claiming 2 miles driven for every $ earned or advising that would be an appropriate way to claim mileage. Its just completely wrong information.



UberBastid said:


> Belive this ... I have stolen more from them, than they have from me.
> 
> (one year, I deducted the interest they charged me off of a current year. It went undetected ...)


you realize they can go back 10 years to audit, right?



kingcorey321 said:


> Sorry to say it does not work like that. Yes you wont ow.But if you never paid into your quarterly tax or had a w2 job.
> If you only did 1099 there is zero way the irs will pay you money. If you said you drove 10000000000 miles and earned just 5000 bucks it still would say zero owed and zero back to you .


Wrong again. Did you get a stimulus check? Its an advance on a tax refund/credit for 2021. I havent had a W2 for 5 years. Nor do I pay my taxes quarterly. (yes I get a very small fine for not doing so) but guess what, the IRS gave me $1200. Maybe take a class on tax prep before commenting, or leave the advice to the professionals who actually know what they are talking about .



Gone_in_60_seconds said:


> Yup. You do not have enough expenses. And learn to maximize tax planning. Ridesharing has never been lucrative, so you need find ways to increase your net pay.


I'm surprised its still that low, while you can write off much of your earnings, you still have to pay 7.5% ssi, plus the employers(you) 7.5%. How are you managing to avoid that 15%? I was able to get my income down to under 20k after writeoffs (2019)and still owed almost $3800


----------



## kingcorey321 (May 20, 2018)

JPaiva said:


> If your tax pro screws up because YOU provided incorrect info, guess what. YOU are on the hook. And dead miles are those between pax while the app is on, yep I claim them too. But that is still WAY different than your claiming 2 miles driven for every $ earned or advising that would be an appropriate way to claim mileage. Its just completely wrong information.
> 
> 
> you realize they can go back 10 years to audit, right?
> ...


Did i say stimulus check ? NO i did not . I said tax return after a tax prep. 
And no i do not qualify for this free i dont want to work check . I Earned well over the 150 cut off thanks for asking .
And my tax pro is a pro as stated ( PRO) I use a GPS to track mileage thanks for your concern . 
Im sure my tax (PRO) has a very good idea what thay are doing .


----------



## JPaiva (Apr 21, 2019)

kingcorey321 said:


> Did i say stimulus check ? NO i did not . I said tax return after a tax prep.
> And no i do not qualify for this free i dont want to work check . I Earned well over the 150 cut off thanks for asking .
> And my tax pro is a pro as stated ( PRO) I use a GPS to track mileage thanks for your concern .
> Im sure my tax (PRO) has a very good idea what thay are doing .


You do like being wrong. The stimulus check is an advance of a refund on your 2021 taxes. REFUND being the key word. Ask your tax pro, they will tell you the same thing.. Then you can apologize. BTW the pandemic unemployment assistance thats paid in addition to normal u.e. is the "I dont want to work" check.


----------



## SHalester (Aug 25, 2019)

JPaiva said:


> stimulus check is an advance of a refund on your 2021 taxes.


things that make you go Hum.

Is *the Stimulus Check* Just an *Advance* on *My Tax Refund* or Government Benefits? *Your stimulus check* is not an *advance tax refund*, and will not affect *tax refunds* based on *your* 2019 and 2020 *tax* returns. Additionally, you will not have to repay *the stimulus* money.May 7, 2020


----------



## Selector19 (Mar 15, 2019)

Potluck said:


> I've been using the same tax preparer for many years. The last 2 years I've been driving full time. I'm finding that I'm owing federal taxes and each year. The amount I owe has gone from aporox. $200 for 2018 to $500 for 2019(2019 gross approx 46K). It seems like I should be getting a refund and I'm having to pay out more and more each year. Does that sound right?


Be grateful you don't get audited by the IRS. Otherwise your tax bill would be much higher. Trust me


----------



## JPaiva (Apr 21, 2019)

SHalester said:


> things that make you go Hum.
> 
> Is *the Stimulus Check* Just an *Advance* on *My Tax Refund* or Government Benefits? *Your stimulus check* is not an *advance tax refund*, and will not affect *tax refunds* based on *your* 2019 and 2020 *tax* returns. Additionally, you will not have to repay *the stimulus* money.May 7, 2020


I can copy and paste too-

The 'advance' you've been hearing about is in reference to a special tax credit that'll appear on the tax return you file in 2021 for the 2020 tax year - a tax credit that wouldn't have been there if it wasn't for these stimulus checks.

There is one major difference between other refundable tax credits and this one, though: You're getting this refund a year before - or "in advance of "- filing your 2020 tax return that you'll be claiming it on.


----------



## SHalester (Aug 25, 2019)

r u splitting hairs? Good thing you use a tax pro...


Is my stimulus payment taxable?


The short answer: No. In the somewhat longer words of the IRS: “No, the payment is not income and taxpayers will not owe tax on it. The payment will not reduce a taxpayer's refund or increase the amount they owe when they file their 2020 tax return next year. A payment also will not affect income for purposes of determining eligibility for federal government assistance or benefit programs."

Complain to the IRS as the above is their words.


----------



## Launchpad McQuack (Jan 8, 2019)

SHalester said:


> No, the payment is not income and taxpayers will not owe tax on it.


And why is it not income? Because it is a federal tax refund and federal tax refunds are not income and are not taxable.



SHalester said:


> A payment also will not affect income for purposes of determining eligibility for federal government assistance or benefit programs.


And why won't it affect income for purposes of determining elgibility for federal government assistance? Because it is a federal tax refund and federal tax refunds are not income.



SHalester said:


> Complain to the IRS as the above is their words.


Their words are not inconsistent with what he is saying. He is technically right. The stimulus payment is classified as one of those refundable tax credits that you claim at the end of your tax return. Instead of making you wait until you file your 2020 income tax return in early 2021, though, they are sending it to you now.

While he is technically right, I don't think it has any bearing on the argument that he is making, as this is an extremely special circumstance.


----------



## UberBastid (Oct 1, 2016)

JPaiva said:


> you realize they can go back 10 years to audit, right?


*gasp* really?
LoL
Yea, I know.

But, to go that far back they need to have good reason to suspect fraud or evasion.
Not just stupidity and laziness.
I would never do anything illegal ... so, they never went that far back on me.
Three years was one I did.

Tell ya'll a little trick.
You have to leave something obviously wrong for the auditor to find.
It can't be big money, but it should be enough to make him/her feel good; and get distracted by another poor taxpayer.


----------



## ANT 7 (Oct 14, 2018)

KevinJohnson said:


> $500 tax liability on $46,000 of revenue is a 1% tax rate. You are complaining about a 1% tax bill?


Was just going to say that......heh.


----------



## kingcorey321 (May 20, 2018)

JPaiva said:


> You do like being wrong. The stimulus check is an advance of a refund on your 2021 taxes. REFUND being the key word. Ask your tax pro, they will tell you the same thing.. Then you can apologize. BTW the pandemic unemployment assistance thats paid in addition to normal u.e. is the "I dont want to work" check.


Again . If you did your taxes 2019 you did not get a stimulus check . Like i said . normal tax return for 2019 not counting the stimulus check .
Where did i mention that 1200 check ? Go back read again and once more and have your mom and dad read it for you again.
Then ask permission from somebody over 18 before posting on the internet .


----------



## kingcorey321 (May 20, 2018)

If you really paying taxes driving uber then i suggest just quitting . 
It does not pay enough already . Wear your car out . Pay taxes later totally stupid. 
Get a second opinion if you own tax from ride share . Your doing something wrong .


----------

