# Tax Time! Ask me anything about Ride-share Taxes



## UberTaxPro

Rideshare tax Ask Me Anything


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## BigRedDriver

UberTaxPro said:


> What no questions? I'm still here to help with questions! This wasn't meant to be only and advertisement!


I have a feeling this thread will be highly visited around April 1


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## BigRedDriver

UberTaxPro said:


> It really is a great price for members!


I do have a question that was posed to me yesterday by a buddy of mine who's daughter drives for "shiped".

He accountant told her that she could deduct zero miles for her work delivering for them. To me that sounds absurd as she is considered an independent contractor.

He told her that, because she does not own the company she can't claim the miles. She was issued a 1099.

Comment?


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## UberTaxPro

BigRedDriver said:


> I do have a question that was posed to me yesterday by a buddy of mine who's daughter drives for "shiped".
> 
> He accountant told her that she could deduct zero miles for her work delivering for them. To me that sounds absurrd as she is considered an independent contractor.
> 
> He told her that, because she does not own the company she can't claim the miles. She was issued a 1099.
> 
> Comment?


Sounds absurd to me also! If she's an IC she obviously owns her own business. Could she perhaps be confused with ownership of the vehicle? She does have to own the vehicle (or lease) she's claiming expenses on. The one exception is a vehicle owned by a spouse who she would be filing jointly with. If it's not the vehicle ownership issue I suggest she get another accountant. When choosing an accountant I always suggest seeking out an EA, CPA, or attorney. Anyone can call themselves a tax preparer but only those with the credentials I mentioned have proven that they have the necessary knowledge. Also, you want to make sure that the person with credentials claiming to prepare the return is the person actually doing the work. Many of these big box tax places claim to have someone with credentials, but then pass the work onto people with no credentials or experience.


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## Launchpad McQuack

UberTaxPro said:


> Many of these big box tax places claim to have someone with credentials, but then pass the work onto people with no credentials or experience.


I went to H&R Block once years ago because I got tangled up in an OID and didn't know how to handle it from a tax perspective. Never again. The woman that I worked with there was clueless. After about 20 minutes, it became painfully clear to me that I understood this stuff better than she did. Lesson learned. The only time you go to H&R Block is if you have a very simple return that you can do yourself, and if that is the case, why go to H&R Block at all?


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## LelioDriver

UberTaxPro said:


> I always like to help DIY ride-share tax preparers and this year I've teamed up with UberPeople.net to provide members with a DIY alternative. For only $160 I'll personally prepare and file your ride-share tax return including your state return if necessary! UberTaxPro.com
> 
> Just imagine not having to give up valuable driving (or sleeping) time to get your taxes done this year. You won't have to deal with software, the new tax law or any of the other issues DIYers talk about on here everyday. Most importantly, you'll know your taxes were done correctly by a licensed tax pro. (Enrolled Agent)
> 
> Let's face it, in the ride-share business time is money. Does it make sense to spend your valuable time getting into a tax project when you have a $160 no hassle alternative right here? Keep driving and leave the tax work to me! Get started here...UberTaxPro.com


I have a question,
Uber is a second job for me.
Do I have to pay 32,5% tax plus GST of every trip that I receive? Or the GST will be deducted from the 32.5^ of tax?
Thank you


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## Rich C

UberTaxPro said:


> I always like to help DIY ride-share tax preparers and this year I've teamed up with UberPeople.net to provide members with a DIY alternative. For only $160 I'll personally prepare and file your ride-share tax return including your state return if necessary! UberTaxPro.com
> 
> Just imagine not having to give up valuable driving (or sleeping) time to get your taxes done this year. You won't have to deal with software, the new tax law or any of the other issues DIYers talk about on here everyday. Most importantly, you'll know your taxes were done correctly by a licensed tax pro. (Enrolled Agent)
> 
> Let's face it, in the ride-share business time is money. Does it make sense to spend your valuable time getting into a tax project when you have a $160 no hassle alternative right here? Keep driving and leave the tax work to me! Get started here...UberTaxPro.com





UberTaxPro said:


> I always like to help DIY ride-share tax preparers and this year I've teamed up with UberPeople.net to provide members with a DIY alternative. For only $160 I'll personally prepare and file your ride-share tax return including your state return if necessary! UberTaxPro.com
> 
> Just imagine not having to give up valuable driving (or sleeping) time to get your taxes done this year. You won't have to deal with software, the new tax law or any of the other issues DIYers talk about on here everyday. Most importantly, you'll know your taxes were done correctly by a licensed tax pro. (Enrolled Agent)
> 
> Let's face it, in the ride-share business time is money. Does it make sense to spend your valuable time getting into a tax project when you have a $160 no hassle alternative right here? Keep driving and leave the tax work to me! Get started here...UberTaxPro.com


Can I deduct miles from home to the first ride? Also between rides the mileage ? If so I will go back and add up all those miles. Also will keep track from here on. Is using UBER weekly sheet best for proof? Thanks in advance for any info. Retired but don't want to end up paying taxes I don't have to.


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## UberTaxPro

Rich C said:


> Can I deduct miles from home to the first ride? Also between rides the mileage ? If so I will go back and add up all those miles. Also will keep track from here on. Is using UBER weekly sheet best for proof? Thanks in advance for any info. Retired but don't want to end up paying taxes I don't have to.


If your're actively working from your house to first ride yes. By actively working I mean app on seeking rides driving to a ride etc...
Between miles same thing. You need to be keeping a mileage log. I prefer the app TripLog in manual mode to create the log.


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## 100hoursuber

UberTaxPro said:


> I always like to help DIY ride-share tax preparers and this year I've teamed up with UberPeople.net to provide members with a DIY alternative. For only $160 I'll personally prepare and file your ride-share tax return including your state return if necessary! UberTaxPro.com
> 
> Just imagine not having to give up valuable driving (or sleeping) time to get your taxes done this year. You won't have to deal with software, the new tax law or any of the other issues DIYers talk about on here everyday. Most importantly, you'll know your taxes were done correctly by a licensed tax pro. (Enrolled Agent)
> 
> Let's face it, in the ride-share business time is money. Does it make sense to spend your valuable time getting into a tax project when you have a $160 no hassle alternative right here? Keep driving and leave the tax work to me! Get started here...UberTaxPro.com


I made like 15000 on uber and 200000 on my regular job. Own 2 house and 4 cars. Property tax about 11000. Paying my baby mom 2000 a month. I take care of my eldest parents in my home. I win some money at the casino and lose more. Can you file my tax for 160? I'm in DC.



100hoursuber said:


> I made like 15000 on uber and 200000 on my regular job. Own 2 house and 4 cars. Property tax about 11000. Paying my baby mom 2000 a month. I take care of my eldest parents in my home. I win some money at the casino and lose more. Can you file my tax for 160? I'm in DC.


And my uber mileage is around 40000 miles.


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## UberTaxPro

100hoursuber said:


> I made like 15000 on uber and 200000 on my regular job. Own 2 house and 4 cars. Property tax about 11000. Paying my baby mom 2000 a month. I take care of my eldest parents in my home. I win some money at the casino and lose more. Can you file my tax for 160? I'm in DC.
> 
> 
> And my uber mileage is around 40000 miles.


click the ubertaxpro.com link and send me your name and email and we'll talk


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## The Texan

I thought you deduct your 'app on' miles and basically pay no tax?


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## FLKeys

The Texan said:


> I thought you deduct your 'app on' miles and basically pay no tax?


Some people actually make a taxable profit doing this Gig. Depends on your market rates and how well you minimize unpaid miles.


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## Rich C

Rich C said:


> Can I deduct miles from home to the first ride? Also between rides the mileage ? If so I will go back and add up all those miles. Also will keep track from here on. Is using UBER weekly sheet best for proof? Thanks in advance for any info. Retired but don't want to end up paying taxes I don't have to.


Which is the best one to use on Triplog? Noticed there are 3 different ones. Can you down load info to computer? Thanks


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## UberTaxPro

Rich C said:


> Which is the best one to use on Triplog? Noticed there are 3 different ones. Can you down load info to computer? Thanks


I use the professional version for $40 because it comes with a web version that allows you to download to computer.


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## Uberman123456

I appreciate the answers you've given in other threads. 

I want to learn the process myself but I might be willing to hand over some cash for you to review my finished ones...sounds like a way better plan than an audit...


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## jgiun1

UberTaxPro said:


> I always like to help DIY ride-share tax preparers and this year I've teamed up with UberPeople.net to provide members with a DIY alternative. For only $160 I'll personally prepare and file your ride-share tax return including your state return if necessary! UberTaxPro.com
> 
> Just imagine not having to give up valuable driving (or sleeping) time to get your taxes done this year. You won't have to deal with software, the new tax law or any of the other issues DIYers talk about on here everyday. Most importantly, you'll know your taxes were done correctly by a licensed tax pro. (Enrolled Agent)
> 
> Let's face it, in the ride-share business time is money. Does it make sense to spend your valuable time getting into a tax project when you have a $160 no hassle alternative right here? Keep driving and leave the tax work to me! Get started here...UberTaxPro.com


Dude...next year in going to use you!!! I kinda fell for the lure of nice chunks upfront on a AE card from Jackson Hewitt, just to get you in. Way too much in spending on them.


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## UberTaxPro

No charge to review, that goes for 3 years back also. Just a warning....most of my ride-share return reviews turn into clients!


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## Launchpad McQuack

UberTaxPro said:


> If you're actively working from your house to first ride yes. By actively working I mean app on seeking rides driving to a ride etc...


Is there a basis for this in Pub 463 or any other IRS document? I've been reading Pub 463 and the best I can figure is to treat each pickup/dropoff location as a temporary work location. If that is the correct thing to do, then it seems like the miles to your first pickup would only be deductible if you maintain a home office. I could be missing something, though. It's convoluted. I wish there was an IRS publication with guidelines specifically for people that drive for money. In other words, you're not driving to a job.......driving _is_ the job.

UPDATE:

It says this in Pub 463.


IRS Publication 463 said:


> _*Example 3.*_ You have no regular office, and you don't have an office in your home. In this case, the location of your first business contact inside the metropolitan area is considered your office. Transportation expenses between your home and this first contact are nondeductible commuting expenses. Transportation expenses between your last business contact and your home are also nondeductible commuting expenses. While you can't deduct the costs of these trips, you can deduct the costs of going from one client or customer to another.


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## OrlUberOffDriver

UberTaxPro said:


> I always like to help DIY ride-share tax preparers and this year I've teamed up with UberPeople.net to provide members with a DIY alternative. For only $160 I'll personally prepare and file your ride-share tax return including your state return if necessary! UberTaxPro.com
> 
> Just imagine not having to give up valuable driving (or sleeping) time to get your taxes done this year. You won't have to deal with software, the new tax law or any of the other issues DIYers talk about on here everyday. Most importantly, you'll know your taxes were done correctly by a licensed tax pro. (Enrolled Agent)
> 
> Let's face it, in the ride-share business time is money. Does it make sense to spend your valuable time getting into a tax project when you have a $160 no hassle alternative right here? Keep driving and leave the tax work to me! Get started here...UberTaxPro.com


That is insane about your CE requirements!
I'm in the medical field and only need 20 biannually. 
In any case payment wise can accept any other type, such as a cash app, zelle or any other? I do not care for PayPal.


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## UberTaxPro

OrlUberOffDriver said:


> That is insane about your CE requirements!
> I'm in the medical field and only need 20 biannually.
> In any case payment wise can accept any other type, such as a cash app, zelle or any other? I do not care for PayPal.


Yes, I agree about the continuing education requirements for EA's!!! It is what separates us from other tax pros however. Whatever payment is convenient for you, we can work it out. Zelle works.



Launchpad McQuack said:


> Is there a basis for this in Pub 463 or any other IRS document? I've been reading Pub 463 and the best I can figure is to treat each pickup/dropoff location as a temporary work location. If that is the correct thing to do, then it seems like the miles to your first pickup would only be deductible if you maintain a home office. I could be missing something, though. It's convoluted. I wish there was an IRS publication with guidelines specifically for people that drive for money. In other words, you're not driving to a job.......driving _is_ the job.
> 
> UPDATE:
> 
> It says this in Pub 463.


First off IRS publications are not authority. Interestingly, there are many tax court cases where taxpayers have relied on IRS publications for their arguments and have lost! The tax code is the ultimate authority and inside the IRS (administration) the authority level of their "guidance" can be seen here: https://www.irs.gov/newsroom/understanding-irs-guidance-a-brief-primer.
The main issue with your question: are the expenses "necessary and ordinary" to your business. (section 162 of the tax code) If your're at your house with your app on and get pinged you will have vehicle expenses when you drive to the pickup leaving from your house. Or if you leave your house and are actively searching out business you're incurring vehicle expenses. These expenses are ordinary and necessary for a ride-share driver. 
Yes, a home office locks up the argument even tighter.


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## Launchpad McQuack

UberTaxPro said:


> First off IRS publications are not authority. Interestingly, there are many tax court cases where taxpayers have relied on IRS publications for their arguments and have lost! The tax code is the ultimate authority and inside the IRS (administration) the authority level of their "guidance" can be seen here: https://www.irs.gov/newsroom/understanding-irs-guidance-a-brief-primer.


Yes, ultimately the tax laws are the authority and the IRS exists to administer that tax code. So if the IRS issues publications that are not consistent with the tax laws, then the tax laws prevail. However, I have to believe that, at the very least, the IRS publications accurately represent the position of the IRS with respect to tax law. So if you are trying to take a deduction that is not allowed per the IRS publications but _is_ allowed per the tax law itself, then you are going to have to take the case to tax court in order for the deduction to be upheld. I would imagine that is the vast majority of cases in tax court (cases where the IRS says that the taxpayer owes more tax than the taxpayer thinks they are legally required to pay). I can't think of a reason why other cases would go to tax court. I don't know that going to tax court is worth the hassle in order to claim the miles to the first pickup.



UberTaxPro said:


> The main issue with your question: are the expenses "necessary and ordinary" to your business. (section 162 of the tax code) If your're at your house with your app on and get pinged you will have vehicle expenses when you drive to the pickup leaving from your house. Or if you leave your house and are actively searching out business you're incurring vehicle expenses. These expenses are ordinary and necessary for a ride-share driver.


I completely agree with you. The problem is that I would make the exact same argument for the nondeductible miles in the example from IRS Pub 463 that I quoted above. If you spend your working day driving around town going from client to client, then I would argue that the miles that you drive from your home to your first client are ordinary and necessary to your business. The IRS doesn't see it that way, for some reason.


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## BigRedDriver

Launchpad McQuack said:


> Yes, ultimately the tax laws are the authority and the IRS exists to administer that tax code. So if the IRS issues publications that are not consistent with the tax laws, then the tax laws prevail. However, I have to believe that, at the very least, the IRS publications accurately represent the position of the IRS with respect to tax law. So if you are trying to take a deduction that is not allowed per the IRS publications but _is_ allowed per the tax law itself, then you are going to have to take the case to tax court in order for the deduction to be upheld. I would imagine that is the vast majority of cases in tax court (cases where the IRS says that the taxpayer owes more tax than the taxpayer thinks they are legally required to pay). I can't think of a reason why other cases would go to tax court. I don't know that going to tax court is worth the hassle in order to claim the miles to the first pickup.
> 
> I completely agree with you. The problem is that I would make the exact same argument for the nondeductible miles in the example from IRS Pub 463 that I quoted above. If you spend your working day driving around town going from client to client, then I would argue that the miles that you drive from your home to your first client are ordinary and necessary to your business. The IRS doesn't see it that way, for some reason.


Question then. If from client to client are deductible, then what is the difference from those and the miles to the first client?

It would seem to me, that in both cases those miles are required in an attempt to create taxable income. I see no difference between the two?

BTW, I am not an accountant


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## UberTaxPro

Launchpad McQuack said:


> Yes, ultimately the tax laws are the authority and the IRS exists to administer that tax code. So if the IRS issues publications that are not consistent with the tax laws, then the tax laws prevail. However, I have to believe that, at the very least, the IRS publications accurately represent the position of the IRS with respect to tax law. So if you are trying to take a deduction that is not allowed per the IRS publications but _is_ allowed per the tax law itself, then you are going to have to take the case to tax court in order for the deduction to be upheld. I would imagine that is the vast majority of cases in tax court (cases where the IRS says that the taxpayer owes more tax than the taxpayer thinks they are legally required to pay). I can't think of a reason why other cases would go to tax court. I don't know that going to tax court is worth the hassle in order to claim the miles to the first pickup.
> 
> Tax Court is more of a last resort. 99% of tax issues get solved at the administration level of the IRS. Administrators really will follow the tax code, sometimes it just needs to be pointed out to them.
> 
> I completely agree with you. The problem is that I would make the exact same argument for the nondeductible miles in the example from IRS Pub 463 that I quoted above. If you spend your working day driving around town going from client to client, then I would argue that the miles that you drive from your home to your first client are ordinary and necessary to your business. The IRS doesn't see it that way, for some reason.


I agree. Suppose your're first client is 100 miles away? The IRS is trying to differentiate between commuting and business miles. If you had an office somewhere and drove to that office before going to the first client you'd have commuting miles. Tax law involves a lot of grey areas just like this one. IRS publications are often outdated and/or meaningless to particular business types. Establishing a home office takes this issue of the table.



BigRedDriver said:


> Question then. If from client to client are deductible, then what is the difference from those and the miles to the first client?
> 
> It would seem to me, that in both cases those miles are required in an attempt to create taxable income. I see no difference between the two?
> 
> BTW, I am not an accountant


I agree. Suppose you're first client is 100 miles away and you go directly from your house to client...100 miles of commuting miles? Now if you stop for breakfast at the local dinner 1 mile from your house then go to the client you've got 1 commuting mile and 99 business miles? Ridiculous!!! Thankfully those IRS publications are not law!


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## Launchpad McQuack

UberTaxPro said:


> Thankfully those IRS publications are not law!


I assume, since you argue that it is allowed, that you advise clients to deduct the miles from their home to their first pickup. In another thread, you said that mail audits of rideshare drivers are on the rise and that you have been involved with some of those with your clients. Has the IRS generally accepted that deduction in an audit (even though their own publications seem to indicate that it is not allowed), or have they tried to claim that it is not allowed in an audit?


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## UberTaxPro

Launchpad McQuack said:


> I assume, since you argue that it is allowed, that you advise clients to deduct the miles from their home to their first pickup. In another thread, you said that mail audits of rideshare drivers are on the rise and that you have been involved with some of those with your clients. Has the IRS generally accepted that deduction in an audit (even though their own publications seem to indicate that it is not allowed), or have they tried to claim that it is not allowed in an audit?


Everyone situation is different, someone that commutes to another city before starting work should not be deducting those miles for example. I recommend deducting "business miles". The same miles may be business one day and be personal miles the next day. No, I've never had an issue with a contemporaneously kept mileage log that accurately records "business miles".


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## FLKeys

In my opinion one could argue that a TNC driver that is online is actively looking for work and and miles driven to first pick-up would be deductible. I have had a couple of days where I was online with no pings, drove a few miles to another area, still no pings, moved to a third area, again no pings, and finally returned home and waited another hour or so online with no pings. I drove a total of 12 miles actively looking for work and never got a ride request. I include these miles in my deduction because I was looking for work. Saying I could not claim these miles because I did not have a first PAX is not realistic.

I would say if you turn the app off and head home at the end of the day, don't claim those miles. If starting your day you drove to a place then turned the app on don't claim those miles. To me those are commuting miles.


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## UberTaxPro

FLKeys said:


> In my opinion one could argue that a TNC driver that is online is actively looking for work and and miles driven to first pick-up would be deductible. I have had a couple of days where I was online with no pings, drove a few miles to another area, still no pings, moved to a third area, again no pings, and finally returned home and waited another hour or so online with no pings. I drove a total of 12 miles actively looking for work and never got a ride request. I include these miles in my deduction because I was looking for work. Saying I could not claim these miles because I did not have a first PAX is not realistic.
> 
> I would say if you turn the app off and head home at the end of the day, don't claim those miles. If starting your day you drove to a place then turned the app on don't claim those miles. To me those are commuting miles.


Sounds like an accurate "business miles" log to me.


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## Older Chauffeur

@UberTaxPro,
Do you have to claim the home office deduction in order to establish a home office? I have always done my billing and clients' booking tasks, etc from a desk in a room we call "the office." But I also pay personal bills and do online activities at the same desk, using the same computer, phone and fax machine. My business records share file space with personal stuff- I think you get the idea.
I've never taken the deduction because the way I read the publications, the IRS requires that the space be dedicated exclusively for business. I just didn't feel it was worth the exposure to a possible audit, plus having the complication involved with taxes when I sell my home someday.
I have always recorded and deducted business miles round trip, door-to-door between my home and the offices/homes of my clients, but I'm not engaged in ride sharing. I'm using my car like a couple of friends of mine, (a building contractor/maintenance guy and a plumber) use their trucks, which are kept at their homes. They take their tools and equipment with them. On a much smaller scale, I do very minor maintenance tasks on my clients' vehicles, such as cleaning, checking fluids, tire pressures, etc. So I carry a tire gauge, a small compressor, a portable air tank and cleaning supplies. I figure that would be my argument if I got audited. My long time CPA, who had some pretty strict rules for me, seemed to be okay with my methods. 
I ran this business from 2000 until the end of 2018. I'm hoping to run out the clock without an audit.
I apologize for the lengthy post.


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## UberTaxPro

Older Chauffeur said:


> @UberTaxPro,
> Do you have to claim the home office deduction in order to establish a home office? I have always done my billing and clients' booking tasks, etc from a desk in a room we call "the office." But I also pay personal bills and do online activities at the same desk, using the same computer, phone and fax machine. My business records share file space with personal stuff- I think you get the idea.
> I've never taken the deduction because the way I read the publications, the IRS requires that the space be dedicated exclusively for business. I just didn't feel it was worth the exposure to a possible audit, plus having the complication involved with taxes when I sell my home someday.
> I have always recorded and deducted business miles round trip, door-to-door between my home and the offices/homes of my clients, but I'm not engaged in ride sharing. I'm using my car like a couple of friends of mine, (a building contractor/maintenance guy and a plumber) use their trucks, which are kept at their homes. They take their tools and equipment with them. On a much smaller scale, I do very minor maintenance tasks on my clients' vehicles, such as cleaning, checking fluids, tire pressures, etc. So I carry a tire gauge, a small compressor, a portable air tank and cleaning supplies. I figure that would be my argument if I got audited. My long time CPA, who had some pretty strict rules for me, seemed to be okay with my methods.
> I ran this business from 2000 until the end of 2018. I'm hoping to run out the clock without an audit.
> I apologize for the lengthy post.


Great question! Yes you can work from home without claiming a home office deduction! Having the home office on your tax return makes it more obvious and is especially helpful if you have another office not at your house.


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## BigRedDriver

FLKeys said:


> In my opinion one could argue that a TNC driver that is online is actively looking for work and and miles driven to first pick-up would be deductible. I have had a couple of days where I was online with no pings, drove a few miles to another area, still no pings, moved to a third area, again no pings, and finally returned home and waited another hour or so online with no pings. I drove a total of 12 miles actively looking for work and never got a ride request. I include these miles in my deduction because I was looking for work. Saying I could not claim these miles because I did not have a first PAX is not realistic.
> 
> I would say if you turn the app off and head home at the end of the day, don't claim those miles. If starting your day you drove to a place then turned the app on don't claim those miles. To me those are commuting miles.


Exactly. I think some people get hung up on the word "office".

My office has four wheels on it. If I parked my four wheel "office" two miles away, and drove a different car to it (to start my day), then those miles would not be deductible, as those two miles are commuting miles. But since my four wheel "office" is in my driveway, the moment I turn on my app and start driving, those miles are.


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## Launchpad McQuack

So to shift the subject a little bit, I started driving Uber Eats in November 2018. At the time that I started, I knew that I needed to track business miles but I didn't know that I needed a detailed mileage log. My method was what many on here have described. Whenever I turned on the app to start receiving delivery requests, I logged the date and mileage in my log book. Whenever I turned the app off, I logged the mileage in my log book. If I was on the app while I was driving, I considered it to be business mileage. So each entry in my log book looks like....

Date: mm/dd/yyyy
Purpose: Uber Deliveries
Odometer Start: xxx,xxx
Odemoter End: yyy,yyy
Net: =(yyy,yyy - xxx,xxx)

No addresses. I didn't record where I started and where I ended. Just basically one line per shift.

Uber sent me a year-end summary for 2018. The mileage on the year-end summary matches fairly closely the total net miles from my log book. (I don't know why because the dollar amounts on the year-end summary don't match my records at all. According to Uber, I made a lot less money in 2018 than I actually did.)

I also have a spreadsheet that has the mileage (copied from Uber's individual trip records) for each delivery (from pickup to dropoff only, no dead miles). This is the mileage that Uber actually paid me for.

So here's my question. Given what I have, is there any mileage that I can safely deduct for 2018 (even if I'm shortchanging myself)? Or do I just need to bite the bullet, not take a mileage deduction at all for 2018, and chalk it up as a learning experience?


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## UberTaxPro

Launchpad McQuack said:


> So to shift the subject a little bit, I started driving Uber Eats in November 2018. At the time that I started, I knew that I needed to track business miles but I didn't know that I needed a detailed mileage log. My method was what many on here have described. Whenever I turned on the app to start receiving delivery requests, I logged the date and mileage in my log book. Whenever I turned the app off, I logged the mileage in my log book. If I was on the app while I was driving, I considered it to be business mileage. So each entry in my log book looks like....
> 
> Date: mm/dd/yyyy
> Purpose: Uber Deliveries
> Odometer Start: xxx,xxx
> Odemoter End: yyy,yyy
> Net: =(yyy,yyy - xxx,xxx)
> 
> No addresses. I didn't record where I started and where I ended. Just basically one line per shift.
> 
> Uber sent me a year-end summary for 2018. The mileage on the year-end summary matches fairly closely the total net miles from my log book. (I don't know why because the dollar amounts on the year-end summary don't match my records at all. According to Uber, I made a lot less money in 2018 than I actually did.)
> 
> I also have a spreadsheet that has the mileage (copied from Uber's individual trip records) for each delivery (from pickup to dropoff only, no dead miles). This is the mileage that Uber actually paid me for.
> 
> So here's my question. Given what I have, is there any mileage that I can safely deduct for 2018 (even if I'm shortchanging myself)? Or do I just need to bite the bullet, not take a mileage deduction at all for 2018, and chalk it up as a learning experience?


Although a mileage log you keep every day is the best way to substantiate your car expenses, it isn't the absolute only way. If you fail to keep a log, you can reconstruct your mileage records in the event of an IRS audit. However, reconstructed records are inherently suspect and must be backed up by other corroborating evidence with, in the words of the Tax Court, "a high degree of probative value." It's very difficult to get a reconstructed log accepted by IRS administration, but not impossible. From what you've described you might have enough probative value to re-create a log. 
You've got two options that keep you within the law:
1. Bite the bullet as you say
2. Spend the time to re-create your log. Be sure your log is backed up with corroborating evidence with a high degree of probative value. Deduct the business miles shown on your log. You might want to consult a tax pro to be as sure as possible that your log will pass muster at an audit.


----------



## FLKeys

Launchpad McQuack said:


> So to shift the subject a little bit, I started driving Uber Eats in November 2018. At the time that I started, I knew that I needed to track business miles but I didn't know that I needed a detailed mileage log. My method was what many on here have described. Whenever I turned on the app to start receiving delivery requests, I logged the date and mileage in my log book. Whenever I turned the app off, I logged the mileage in my log book. If I was on the app while I was driving, I considered it to be business mileage. So each entry in my log book looks like....
> 
> Date: mm/dd/yyyy
> Purpose: Uber Deliveries
> Odometer Start: xxx,xxx
> Odemoter End: yyy,yyy
> Net: =(yyy,yyy - xxx,xxx)
> 
> No addresses. I didn't record where I started and where I ended. Just basically one line per shift.
> 
> Uber sent me a year-end summary for 2018. The mileage on the year-end summary matches fairly closely the total net miles from my log book. (I don't know why because the dollar amounts on the year-end summary don't match my records at all. According to Uber, I made a lot less money in 2018 than I actually did.)
> 
> I also have a spreadsheet that has the mileage (copied from Uber's individual trip records) for each delivery (from pickup to dropoff only, no dead miles). This is the mileage that Uber actually paid me for.
> 
> So here's my question. Given what I have, is there any mileage that I can safely deduct for 2018 (even if I'm shortchanging myself)? Or do I just need to bite the bullet, not take a mileage deduction at all for 2018, and chalk it up as a learning experience?


@UberTaxPro is way more knowledgeable on this than I am. In your case I would error on the side of using the Uber online miles figure, especially if you only worked for one company. Having the log you kept being close to that figure is a good back-up in case of an audit.


----------



## Launchpad McQuack

FLKeys said:


> Having the log you kept being close to that figure is a good back-up in case of an audit.


They're pretty close. Total mileage is on the order of 1,600 miles. The mileage number on Uber's year-end summary is lower than the number from my log book by 20.29 miles (1.25%). So yeah, definitely if I go that route then I should use Uber's number. It's not worth trying to pick up an extra 20 miles. I'm just not sure if my evidence is sufficient to do that, though.

If I use only pickup-to-dropoff miles, then that drops my miles down to about 400 miles. (I was really inefficient early on.) The advantage of doing that is that I have Uber's trip records as evidence. The trip records don't have full addresses, but they do have pseudo-addresses (with the house numbers stripped out), start time, end time, and map images of the route that I took. If I went through and made PDFs of all the individual trip records (in case Uber ever deactivates me and I lose access to my account), then I would have evidence of each individual mileage entry. The evidence is contemporaneous. It just wasn't recorded by me and I went and collected it after the fact.


----------



## FLKeys

Launchpad McQuack said:


> They're pretty close. Total mileage is on the order of 1,600 miles. The mileage number on Uber's year-end summary is lower than the number from my log book by 20.29 miles (1.25%). So yeah, definitely if I go that route then I should use Uber's number. It's not worth trying to pick up an extra 20 miles. I'm just not sure if my evidence is sufficient to do that, though.
> 
> If I use only pickup-to-dropoff miles, then that drops my miles down to about 400 miles. (I was really inefficient early on.) The advantage of doing that is that I have Uber's trip records as evidence. The trip records don't have full addresses, but they do have pseudo-addresses (with the house numbers stripped out), start time, end time, and map images of the route that I took. If I went through and made PDFs of all the individual trip records (in case Uber ever deactivates me and I lose access to my account), then I would have evidence of each individual mileage entry. The evidence is contemporaneous. It just wasn't recorded by me and I went and collected it after the fact.


You have to do what you are comfortable with, I would be comfortable using the Uber online miles. If you did get audited, you could argue that number and back it up with Ubers report. If for some reason the IRS does not agree and goes with the online trip miles I would think you could argue successfully that there was no intent to file a false claim and get them to abate any penalties and you would just owe the taxes on the difference plus interest. For the most part the IRS is not unreasonable unless you are clearly trying to defraud them.


----------



## SamuelB

UberTaxPro said:


> Great question! Yes you can work from home without claiming a home office deduction! Having the home office on your tax return makes it more obvious and is especially helpful if you have another office not at your house.


So are you saying that you can treat your home as your principal place without claiming the home office deduction?
I do Flex for Amazon and I also do Uber. I start my day by reviewing Amazon "blocks" that are available. I have to keep checking and my not know for hours. I take time to prepare my car and make sure it is ready for the day. When I secure a block I head to one of three different warehouses. After Amazon I frequently do Uber. At the end of the day I head home and do my accounting. I clean up my mileage log and make sure it is in order. I enter all my earnings into a spreadsheet as well as import my mileage log.
I consider my home my principal place of business. I don't have a designated office space. These days you don't need a desk with a computer, a phone, a fax. Everything is done on the phone no matter where you are. I use my PC to do my accounting in my chair in front of the TV. I am writing off all my miles from home to warehouses and back since my business day starts at home and doesn't end until I get home and finish my daily work routine.
Whadda ya think?

Also, for estimated taxes...when they talk about not owing more than $1000 in taxes are they talking about income taxes only or are they including SE taxes in combination with income taxes to come up with the $1000 limit.

Thanks for you insightful expertise!!


----------



## Launchpad McQuack

This isn't a complete answer to your question. Just some information to consider.

In Pub. 463 it says....



IRS Publication 463 said:


> *Office in the home.* If you have an office in your home that qualifies as a principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade or business. (See Pub. 587, Business Use of Your Home, for information on determining if your home office qualifies as a principal place of business.


It doesn't say that you have to take the home office deduction, only that your home has to qualify as your principal place of business.

In Pub. 587 it says...



IRS Publication 587 said:


> You can have more than one business location, including your home, for a single trade or business. To qualify to deduct expenses for the business use of your home under the principal place of business test, your home must be your principal place of business for that trade or business. To determine whether your home is your principal place of business, you must consider:
> 
> The relative importance of the activities performed at each place where you conduct business, and
> The amount of time spent at each place where you conduct business.
> Your home office will qualify as your principal place of business if you meet the following requirements.
> 
> You use it exclusively and regularly for administrative or management activities of your trade or business.
> You have no other fixed location where you conduct substantial administrative or management activities of your trade or business.


So if you have an area in your home set aside that you use exclusively for administrative or management functions (bookkeeping, scheduling blocks, etc.), then I would say you're rock solid. No question that is your principal place of business because you don't have any other fixed location where you do that stuff. If you do not, I would say you're on much thinner ice. Then you have to look at relative importance of activities and amount of time. It's subjective, but I would say that for a driving business the most important activity is the driving, and that isn't done at home.

One more thing to note. I am clearly not an expert, so take anything that I say with a grain of salt. I am just an Uber driver trying to read IRS publications.


----------



## Lee239

How much does the average Uber driver pay on their taxes for self employment FICA taxes?


----------



## FLKeys

Lee239 said:


> How much does the average Uber driver pay on their taxes for self employment FICA taxes?


Basically 15.3% of your net earnings. Half of it can be used toward your adjusted gross income reducing your income tax liability. Consult your tax adviser.


----------



## Older Chauffeur

The threshold for SECA is $400 in net profit. (Under that you pay no SECA.) A lot of drivers claim to have minimal profit or operate at a net loss, so it’s hard to guess what the average would be.


----------



## UberTaxPro

SamuelB said:


> So are you saying that you can treat your home as your principal place without claiming the home office deduction?
> I do Flex for Amazon and I also do Uber. I start my day by reviewing Amazon "blocks" that are available. I have to keep checking and my not know for hours. I take time to prepare my car and make sure it is ready for the day. When I secure a block I head to one of three different warehouses. After Amazon I frequently do Uber. At the end of the day I head home and do my accounting. I clean up my mileage log and make sure it is in order. I enter all my earnings into a spreadsheet as well as import my mileage log.
> I consider my home my principal place of business. I don't have a designated office space. These days you don't need a desk with a computer, a phone, a fax. Everything is done on the phone no matter where you are. I use my PC to do my accounting in my chair in front of the TV. I am writing off all my miles from home to warehouses and back since my business day starts at home and doesn't end until I get home and finish my daily work routine.
> Whadda ya think?
> 
> Also, for estimated taxes...when they talk about not owing more than $1000 in taxes are they talking about income taxes only or are they including SE taxes in combination with income taxes to come up with the $1000 limit.
> 
> Thanks for you insightful expertise!!


IMO it's possible to meet the definition of "principal place of business" without claiming a deduction. 
S/E taxes are included in the limit.


----------



## Lee239

FLKeys said:


> Basically 15.3% of your net earnings. Half of it can be used toward your adjusted gross income reducing your income tax liability. Consult your tax adviser.


No I mean specifically how much are they paying because I think FICA is being cheated due to Uber's pay structure.

I should ask are people paying it or are they finding ways to deduct everything so they don't contribute to the fund.

When and where I drove it was so slow and you did no many dead miles you didn't owe anything, but in busy places that have boost and other incentives I hope people are paying when they do make a profit.


----------



## FLKeys

Lee239 said:


> No I mean specifically how much are they paying because I think FICA is being cheated due to Uber's pay structure.
> 
> I should ask are people paying it or are they finding ways to deduct everything so they don't contribute to the fund.
> 
> When and where I drove it was so slow and you did no many dead miles you didn't owe anything, but in busy places that have boost and other incentives I hope people are paying when they do make a profit.


Hard to say first there are many markets where the rates are so low you can't make a taxable profit. Then you have the markets where they can make a profit however they lie on their mileage logs to not show a profit.


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## manual

UberTaxPro said:


> What no questions? I'm still here to help with questions! This wasn't meant to be only an advertisement!


Hi, if you are only doing bike delivery for UberEATS and Postmates. What can you write of as expenses. Can you write of the bike and it's maintenance? Like tires, tubes, tune ups and cleaning? Also accessories like lights, phone holders, racks and basket. 
Thanks


----------



## UberTaxPro

manual said:


> Hi, if you are only doing bike delivery for UberEATS and Postmates. What can you write of as expenses. Can you write of the bike and it's maintenance? Like tires, tubes, tune ups and cleaning? Also accessories like lights, phone holders, racks and basket.
> Thanks


Good question! You can't use the mileage method for bike expenses so you'll have to follow the rules for the "actual expense method" as it pertains to your bike(s). Yes, all the things you mentioned above are deductible. You'll have to calculate the business % use and factor out any personal use of the bike if there is any. If you use the bike 100% for business you can deduct the expenses 100%


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## acro5084

Backtracking a bit on mileage- 

1. I live about 20 miles away from the biggest city in my market. I mostly turn the app on when I leave the house but head in that direction until I get a ride and deduct these miles. What if I drive from home with the app off, but with the intent to better position myself for business? Like it is Saturday night downtown or there is a concert and I want to make sure I’m closer when it lets out. Would you consider these deductible or commuting? 
2. When I’m done for the night I will often turn off the app to go home. It is mostly for safety as I get tired or I’m uncomfortable driving after a certain hour. Sometimes I’m 10 miles from home and other times I’m 30 miles. Would you consider all of these commuting miles no matter how far I away I am? 
3. Does having a home office (and taking the deduction for it) impact the answer to either of the above questions? 
4. What about when I drop off a passenger in a neighboring town and then drive back toward my normal area with the app off? I will often drive at least part of the way back with the app off either because I’m very unfamiliar with the area or I believe my normal area is more profitable. I hate not having Uber destination mode. 
5. I drive a car that is titled in my husbands name only. We file jointly and things like insurance are joint. Any issues with me deducting miles? 

Thank you!!


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## Launchpad McQuack

acro5084 said:


> 3. Does having a home office (and taking the deduction for it) impact the answer to either of the above questions?


This is not a complete answer. Just information from a non-expert, partially informed, Uber driver to consider.

The Schedule C instructions say...



Schedule C Instructions said:


> Travel that meets any of the following conditions is not commuting.
> 
> Your home is your principal place of business under section 280A(c)(1)(A) (for purposes of deducting expenses for business use of your home) and the travel is to another work location in the same trade or business, regardless of whether the location is regular or temporary and regardless of distance.




There are other conditions that I did not copy other than the one bullet point above. It says "any," though, so you only have to fulfill one of them. So if you can fulfill the "principal place of business" condition, then it removes any doubt as to whether or not the miles are commuting. If you cannot, then it still is not necessarily commuting, but you have to fulfill one of the other conditions.


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## Noble Ape

Hello, 
I just finished my taxes with a well- known national chain. My day job had me at a $1200 or so refund, but on when my uber eats income of just over $1000 was added (with $800 in expenses, including mileage) it went down to 950. How is this possible? The tax liability was 140 bucks.


----------



## UberTaxPro

Noble Ape said:


> Hello,
> I just finished my taxes with a well- known national chain. My day job had me at a $1200 or so refund, but on when my uber eats income of just over $1000 was added (with $800 in expenses, including mileage) it went down to 950. How is this possible? The tax liability was 140 bucks.


I would need to see your return to answer that for you without guessing.


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## Merc7186

....or I could just use TurboTax and about 90 minutes of my own time at half the price.

At the hourly rates of most Uber Drivers, this is coming out ahead of the game.I


----------



## acro5084

Launchpad McQuack said:


> This is not a complete answer. Just information from a non-expert, partially informed, Uber driver to consider


Thanks for taking the time to respond. I've been reading up on the publications and had similar thoughts, My guess is as long as I'm consistent and have well intentioned logs I'll be fine.


----------



## PioneerXi

Greetings,
I live in Southern California where everyone drives like they are trying to qualify. Additionally, there are a number of under insured and uninsured motorists in the state.

I took out an Accident, Death and Disability policy, similar to those offered in traditional W2 employment. 

As an IC, is that a tax deduction


----------



## UberTaxPro

PioneerXi said:


> Greetings,
> I live in Southern California where everyone drives like they are trying to qualify. Additionally, there are a number of under insured and uninsured motorists in the state.
> 
> I took out an Accident, Death and Disability policy, similar to those offered in traditional W2 employment.
> 
> As an IC, is that a tax deduction


If the plan is designed as income protection yes. Lump sum benefit type plans are not tax deductible


----------



## Coyotex

If i take the Standard Mileage Deduction, can I still write off some things such as non car related stuff? For example, cell phone, home office, meals, etc?


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## mmn

Experts will chime in, but yes. Any business expenses are deductible.


----------



## Launchpad McQuack

Coyotex said:


> If i take the Standard Mileage Deduction, can I still write off some things such as non car related stuff? For example, cell phone, home office, meals, etc?


Standard mileage deduction has no effect on non car related expenses. They are completely separate. Be careful, though. Meals are only deductible if you are "traveling away from home" for business. That is something that a rideshare driver pretty much never does. It is very rare. (Notable exception: the guy that was just talking about an 800-mile Uber/Lyft trip that he did from JFK airport to North Carolina. Assuming that he got a hotel room at some point so that he could sleep, then he was traveling away from home for business.)


----------



## Older Chauffeur

Coyotex said:


> If i take the Standard Mileage Deduction, can I still write off some things such as non car related stuff? For example, cell phone, home office, meals, etc?


Keep in mind that if the cellphone is used for both business and personal calls/data, you are supposed to deduct only the percentage of the costs for business use. 
Disclaimer: I'm not a tax professional.


----------



## FLKeys

Coyotex said:


> If i take the Standard Mileage Deduction, can I still write off some things such as non car related stuff? For example, cell phone, home office, meals, etc?


The quick answer is yes as long as those expenses are qualifying business expenses and meet the guidelines set forward by the IRS.


----------



## iSeee

I received a 1099-Misc the amount in box 7 is way less than what i actually made, but then the yearly summary showed the rest of my additional earnings. So what gets reported to the IRS just whatever is in box 7 on the 1099-misc? or the entire amount on the yearly summary? thanks!


----------



## Zax

Hi, I was involved in an accident in 2018 while driving with lyft. Can I write off (deduct) the $2500 deductable somehow?
Thanks for your help!


----------



## SEAL Team 5

100hoursuber said:


> I made like 15000 on uber
> 
> And my uber mileage is around 40000 miles.


Friggin YIKES!!! Making $.375/mile is not only working for free but not even being properly compensated for vehicle use. Screw Uber for that extra income and try picking up more hours from your $200k job.


----------



## Stevie The magic Unicorn

Lee239 said:


> How much does the average Uber driver pay on their taxes for self employment FICA taxes?


Zero (on average)

Most uber drivers have zero taxable income from driving


----------



## mmn

Stevie The magic Unicorn said:


> Zero (on average)
> 
> Most uber drivers have zero taxable income from driving


And many others who do, don't pay them...! (Imho)


----------



## Amsoil Uber Connect

Oh Boy, there was a joke going around in the IRS Patriot community about a new "Simplified" 1040 form consisting of 2 lines. It went like this.

1. "How Much did you make ?" _______.__

2. Send it in. _______.__

Sign here > ___________________

I guess we got it this year. Lmao,....:coolio:

Anyway, my question is. What line on the "New" 1040 form do you put the amount from Schedule C ?
In years past it was line 12. Business Income or Loss.

This year line 12a says Child tax credit._____ b. any amount from Schedule 3. WTH ? schedule 3 same as schedule C ? No Schedule 3 = Nonrefundable credits.


----------



## Launchpad McQuack

Amsoil Uber Connect said:


> Anyway, my question is. What line on the "New" 1040 form do you put the amount from Schedule C ?
> In years past it was line 12. Business Income or Loss.


Now it goes on Line 12 of Schedule 1. Then the sum on Line 22 of Schedule 1 goes in the space to the left of Line 6 on the base 1040 form and gets added to everything else. In my opinion, they didn't simplify anything. They just broke it up into more forms. I guess if you only have W2 wages, then it is simpler because there are less lines on the base 1040 form that you have to skip.


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## Amsoil Uber Connect

Ok.Thank you.


----------



## got a p

when lenders look at your previous two years tax returns, when 1099, they look at net income to determine what mortgage amount you qualify for.

from what i've learned lenders will re-adjust your income level back up for "depreciation".

ie:if your business gross is $100k - $10 travel expenses - $ 40k depreciation you would pay tax on $50k.

however your mortgage lender would not consider your income to be $50k they would consider it to be $90k. thus qualifying for a higher loan.


-my question is, and i've called a lender about this who hasn't gotten back to me, does the $.54/per mile deduction count as "depreciation" when it comes to what lenders see as your income.

ie: if you gross $100k on uber - $10k random expenses -$40k mileage (at .54/mile), and pay tax for $50k, do the lenders consider your income $90k or $50k?

also - does the irs consider $40k deduction @ .54/mile "depreciation", even if the car only cost $5k? or in other words is mileage considered depreciation to them. i mean how can a $5k car depreciate by $40k, right?

this is kind of two (maybe even 3) questions at once: the lenders question, and the irs definition of mileage as depreciation or not. do you know the answers? i'd greatly appreciate it.


----------



## Launchpad McQuack

What I have been told is that the standard mileage deduction includes a depreciation component. Standard mileage is basically gas, maintenance, and depreciation all wrapped up in one number. UberTaxPro has been working with me on my tax returns this week, and the report that he gave me includes a breakdown of car expenses. It shows the 54.5¢/mile for the standard deduction allocated as 25¢/mile for depreciation and 29.5¢/mile for operational expenses (gas, maintenance, etc.). I don't know if that breakdown is standard across the board or if it depends on the vehicle.


----------



## got a p

thanks for the quick response.

do you know if lenders would add back $.25/mile for depreciation when calculating your income to determine loan amount?


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## UberTaxPro

got a p said:


> thanks for the quick response.
> 
> do you know if lenders would add back $.25/mile for depreciation when calculating your income to determine loan amount?


I've never heard of lenders doing that. It's $.26/mile for 19 https://www.journalofaccountancy.com/news/2018/dec/2019-irs-mileage-rates-201820297.html


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## BostonTaxiDriver

I have severe tax issues, with many years not only unpaid, but unfilled as well.

Don't have many receipts for deductions, only this year's gas receipts and some from last year scattered about.
so I'm likely in bad spot.

Is an EA (entitled agent), a CPA or a tax storey my best solution?

Or just visit my state tax office then the IRS office and discuss with them in person for an offer in compromise? I understand that an offer in compromise is not really that easy to get offered, despite what those preying tax solution radio ads claim. I don't trust them and hear bad things about using them.

I'll consider using your services but I think my situation is too severe and too complicated at this point.

Thanks.


----------



## Amsoil Uber Connect

BostonTaxiDriver said:


> Or just visit my state tax office then the IRS office and discuss with them in person for an offer in compromise? I understand that an offer in compromise is not really that easy to get offered, despite what those preying tax solution radio ads claim. I don't trust them and hear bad things about using them.
> 
> I'll consider using your services but I think my situation is too severe and too complicated at this point.
> 
> Thanks.


----------



## Older Chauffeur

I hope @UberTaxPro can get you pointed in the right direction. I don't know whether he feels "entitled" (he doesn't sound that way ) but he is an Enrolled Agent. Good luck to you.


----------



## Amsoil Uber Connect

I should probably pm you on this but I'll put my story out here. First of all I was involved with the anti tax / Patroit community in the mid 90's and learned a ton that your EA / CPA's should be telling everyone. Accept they would go out of business, so they play the game along with the IRS. I'll give them a break, perhaps they really don't know ?

I had unfilied returns as well, but being a W-2 person, at the time, this game was not escapable. Still owe them about 10K, but with the help of one of tax companies I have been put into an "Uncollectable" status. This is what you want.

Back then, one of the many things I learned about was "Assessment Proceedure" I think it's IRC section 6201 ? ( Note; see Regulations only ), Did you know that the tax payer "Self assess" themselves ? Yes it is voluntary but your compliance is Mandatory ? Ya repeat that several times. N E way, the service has 10 years to collect from the date at which the assessment was created. That may not be April 15th like it is for most taxpayers. In my case the last two years of assessments expires next august. And when that clock runs out, Poof the last remaining $ into cyber space and I'm free and clear. I've already put this into practice and have had thousands disappear. This is where knowledge is power, so please set aside that jelly emotion. Thank you. Next I will be filing an extension for the rest of it and should get a small return instead of the service keeping any refund that may be due.

The problem for me was the 17 thousand to pay this tax company to take care of this, my justification was, better to pay them than the Service. In which I had to file past returns as well and be a good sheep from then on out. This company did me right and all is well.

One thing to remember. The service only has records that employers others send, W-2 people, or 1099's in the case of IC's, that are required to be sent to them. Mortgage interest. They also have, well, can get, your banking records and credit cards balances to and anything else tide to your SSN.

Also if your not getting letters asking you to explain why you have no filing requirement, you may not have to why worry. Now if you moved and did not update the change of address to the service, then any letters are going to the last known address of record. And then one day you may find your bank account completely drained through there levy procedure. And by the time the banks letter gets to you it is to late.

ps, I'm not a tax pro nor am I suggesting taking on any advice from me. This is just my story and yours maybe different.


----------



## TKDmom

I just started with Uber Eats 2 weeks ago as a Second (well third) job. I use it for fun money. I want to pay quarterly, so it doesn't bite me in the ass later, but how do I do that with a full time job and a part time job that does take taxes out? I am also married. Do I just pay quarterly filing as single and only on Uber Eats income? Or do I need to pay quarterly for all my earnings, and with my husband? We always have more taken out of our taxes, so we receive a refund each year.


----------



## FLKeys

TKDmom said:


> I just started with Uber Eats 2 weeks ago as a Second (well third) job. I use it for fun money. I want to pay quarterly, so it doesn't bite me in the ass later, but how do I do that with a full time job and a part time job that does take taxes out? I am also married. Do I just pay quarterly filing as single and only on Uber Eats income? Or do I need to pay quarterly for all my earnings, and with my husband? We always have more taken out of our taxes, so we receive a refund each year.


Keep detailed records of earnings and proper mileage logs. Record everything in a spreadsheet and you will know exactly where you stand after very delivery. Use this to determine how much to pay quarterly.

Now WHY would you want to loan the IRS your money? Figure your taxes so that you get a minimal return or pay a minimal amount at the end of the year. Refunds are essentially interest free loans being paid back by the IRS. Open another bank account and deposit your extra taxes in there if you want to have a virtual tax return, don't give it to the IRS.


----------



## TKDmom

FLKeys said:


> Keep detailed records of earnings and proper mileage logs. Record everything in a spreadsheet and you will know exactly where you stand after very delivery. Use this to determine how much to pay quarterly.
> 
> Now WHY would you want to loan the IRS your money? Figure your taxes so that you get a minimal return or pay a minimal amount at the end of the year. Refunds are essentially interest free loans being paid back by the IRS. Open another bank account and deposit your extra taxes in there if you want to have a virtual tax return, don't give it to the IRS.


Thanks for the response! I have no idea why my husband likes to do taxes that way....one of the many battles I decide to let slide. I have the Inuit Quick Book app that has been keeping track of my Uber earnings and mileage. Do you suggest I just put the money I should owe taxes away and pay it annually?


----------



## FLKeys

TKDmom said:


> Thanks for the response! I have no idea why my husband likes to do taxes that way....one of the many battles I decide to let slide. I have the Inuit Quick Book app that has been keeping track of my Uber earnings and mileage. Do you suggest I just put the money I should owe taxes away and pay it annually?


If you are having enough come out from your w-2 job you won't owe anything and if you put the money in an online savings account at least you made a little interest. If you do end up owing, you have the money saved to pay it. Interest an penalties only start if you owe over $1000 with some other factors involved. You know your annualy returns, I don't, so base your decision on that.

From what I have been reading from other drivers Uber Eats is very hard to make a taxable profit, meaning your income will be negative after deducting standard mileage rates of 58¢ per mile. Keep track of your income and divide it by the total miles you tracked. If your average is below 58¢ per mile you will not owe any taxes. If it is over 58¢ per mile the amount over is basically your taxable income. Keep in mind you can deduct delivery bag expenses and other legitimate expenses so this would also lower your taxable income.


----------



## UberTaxPro

BostonTaxiDriver said:


> I have severe tax issues, with many years not only unpaid, but unfilled as well.
> 
> Don't have many receipts for deductions, only this year's gas receipts and some from last year scattered about.
> so I'm likely in bad spot.
> 
> Is an EA (entitled agent), a CPA or a tax storey my best solution?
> 
> Or just visit my state tax office then the IRS office and discuss with them in person for an offer in compromise? I understand that an offer in compromise is not really that easy to get offered, despite what those preying tax solution radio ads claim. I don't trust them and hear bad things about using them.
> 
> I'll consider using your services but I think my situation is too severe and too complicated at this point.
> 
> Thanks.


I'm a bit biased but here's my take on your choices:
CPA - depends on which one you choose, many are excellent at tax resolution but many don't want anything to do with it. 
Tax Attorney - Good choice, especially if you need to take the IRS to federal court or if you're facing criminal charges. Expensive. 
EA - Best cost effective choice if you want your matter resolved at the IRS administration level. All EA's specialize in tax and we have full representation rights before the IRS. We're also licensed federally which means we not limited to working only in a particular state or two like the other two choices.


----------



## dens

How do we deal with reimbursed toll fees?. Should we add them to businesses expenses or don't report them at all?
From what i understand there should be no loss or gain..


----------



## UberTaxPro

dens said:


> How do we deal with reimbursed toll fees?. Should we add them to businesses expenses or don't report them at all?
> From what i understand there should be no loss or gain..


If tolls were reimbursed they're not expenses. If they weren't reimbursed they are expenses.


----------



## dens

UberTaxPro said:


> If tolls were reimbursed they're not expenses. If they weren't reimbursed they are expenses.


In my market all tolls automatically reimbursed by lyft and uber. 
How or where should we report reimbursed toll fees in turbo tax? If they are not expenses then what they are? I don't think we should report it as a taxable income either because i used my own cash to get pax @ss over the bridge.


----------



## FLKeys

dens said:


> In my market all tolls automatically reimbursed by lyft and uber.
> How or where should we report reimbursed toll fees in turbo tax? If they are not expenses then what they are? I don't think we should report it as a taxable income either because i used my own cash to get pax @ss over the bridge.


I leave my reimbursed tolls in my earnings and list all the tolls I paid as an expense.
I guess one could take their earnings and deduct the tolls reimbursed and report that number as earnings and not deduct tolls paid as expenses.

Both methods would net the same results, and if properly documented in your records I would not be concerned with using one method over the other. The IRS may have a preferred method for this, I just don't know it.


----------



## Stevie The magic Unicorn

FLKeys said:


> I leave my reimbursed tolls in my earnings and list all the tolls I paid as an expense.
> I guess one could take their earnings and deduct the tolls reimbursed and report that number as earnings and not deduct tolls paid as expenses.
> 
> Both methods would net the same results, and if properly documented in your records I would not be concerned with using one method over the other. The IRS may have a preferred method for this, I just don't know it.


That's what I do to,

It's makes accounting way easier especially when uber/lyft are a battle to get paid on tolls. Having to change things from one catagory to another is a complicated convuluted mess.

Or am i the only person who had 5+ support tickets for tolls AT ANY GIVEN TIME.


----------



## FLKeys

Stevie The magic Unicorn said:


> That's what I do to,
> 
> It's makes accounting way easier especially when uber/lyft are a battle to get paid on tolls. Having to change things from one catagory to another is a complicated convuluted mess.
> 
> Or am i the only person who had 5+ support tickets for tolls AT ANY GIVEN TIME.


Every trip I do includes a support ticket for tolls, I have 7 open right now.


----------



## UberTaxPro

dens said:


> In my market all tolls automatically reimbursed by lyft and uber.
> How or where should we report reimbursed toll fees in turbo tax? If they are not expenses then what they are? I don't think we should report it as a taxable income either because i used my own cash to get pax @ss over the bridge.


They're a wash. Adding them as income then deducting the expense creates a wash. Deducting them without adding in the reimbursement is called "double dipping"


----------



## fetty_crocker

hello! really nice of you to offer this help! i could definitely use some.. i made less than $4000 doing uber last year, as i had a W2 job taking up most of my time. i didnt make enough to get a 1099, so im filing it under schedule C. so am i all good to take the standard deduction even though i made less than $12,000? (note: i did make well over $12,000 including my W2 income). also, i didnt pay quarterly taxes.. will this come back to bite me in the ass even though i only did it as a side gig?


----------



## UberTaxPro

fetty_crocker said:


> hello! really nice of you to offer this help! i could definitely use some.. i made less than $4000 doing uber last year, as i had a W2 job taking up most of my time. i didnt make enough to get a 1099, so im filing it under schedule C. so am i all good to take the standard deduction even though i made less than $12,000? (note: i did make well over $12,000 including my W2 income). also, i didnt pay quarterly taxes.. will this come back to bite me in the ass even though i only did it as a side gig?


All your income W2 and schedule c will be combined to determine the tax you pay. On your schedule C you'll put your uber income and expenses. If your expenses are close to or more than your uber income no bite in the ass. You're good to take the standard deduction of $12K if your filing single.


----------



## Jim Sniffins

If you are taking the Standard Mileage deduction - make sure you have a mileage log. You don't have to submit it with your taxes, but you are required to have a mileage log that matches your tax returns. ExpressMileage makes logs super fast for this purpose. Or you can use MileIQ to track while you drive.


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## FLKeys

Finished my taxes last night, what a relief. I was within $10 of my estimate, not bad for an amateur. Just increased my withholding at my day job so hopefully I don't owe as much next year.


----------



## fetty_crocker

thank you guys! ive been working on my taxes for the past few weeks (including cleaning up the rookie mistake of not keeping a log for '18, which took up most of those few weeks), ive been determined to try to figure out how to do this myself instead of paying someone or having someone file for me. it wasnt much fun, but i learned so much thats going to help me for years to come. this may be my first time posting here, but its DEFINATELY not my first time being here as ive combed thru these threads countless times looking for specific tidbits of information so i just wanted to thank all of you guys again! you guys are great! yall remind me of ryan gosling in "drive"


----------



## mmn

fetty_crocker said:


> thank you guys! ive been working on my taxes for the past few weeks (including cleaning up the rookie mistake of not keeping a log for '18, which took up most of those few weeks), ive been determined to try to figure out how to do this myself instead of paying someone or having someone file for me. it wasnt much fun, but i learned so much thats going to help me for years to come. this may be my first time posting here, but its DEFINATELY not my first time being here as ive combed thru these threads countless times looking for specific tidbits of information so i just wanted to thank all of you guys again! you guys are great! yall remind me of ryan gosling in "drive" :wink:


And thank you for doing some research before posting! A rare occurrence here.


----------



## fetty_crocker

if you take the standard mileage rate, are you still able to deduct the business usage of your cellphone plan? and anything else? ive gotten slightly mixed answers. also, im using freetaxusa as my software and its definately saying i CAN deduct the business usage of the interest on my car loan along with the standard deduction..


----------



## mmn

fetty_crocker said:


> if you take the standard deduction, are you still able to deduct the business usage of your cellphone plan? and anything else? ive gotten slightly mixed answers. also, im using freetaxusa as my software and its definately saying i CAN deduct the business usage of the interest on my car loan along with the standard deduction..


Not sure what you're calling the "standard deduction". There's a standard dection where you don't itemize deductible expenses and there's the Standard Mileage Rate where you don't itemize business car expenses, but instead apply a mileage rate based on business trips.

In the former you would not (I believe), but in the latter I believe you can.


> If you use the standard mileage rate, you are still allowed to deduct the following three actual expenses:
> 
> 
> Interest on a car loan
> Parking fees and tolls for business trips
> Personal property tax that you paid when you bought the vehicle, based on its value.
> You can deduct these items because they do not factor into the standard mileage rate amount.


With the usual disclaimer, i.e. jmho


----------



## FLKeys

fetty_crocker said:


> if you take the standard deduction, are you still able to deduct the business usage of your cellphone plan? and anything else? ive gotten slightly mixed answers. also, im using freetaxusa as my software and its definately saying i CAN deduct the business usage of the interest on my car loan along with the standard deduction..


Yes, the percentage of cell phone and percentage of car loan interest go on Schedule C this is a business expense, nothing to do with your standard deduction. Of course you need proper mileage logs for percentage of car loan interest.

*Title Fees *- ??? Not sure
*Spotify* - I would say yes based on percentage of use. I deduct XM radio costs based on percentage of use of my car from my mileage logs.
*Car Washes *- This one can be tricky. Generally they are included in the standard mileage deduction. If you need a detailed cleaning as a direct result of rideshare I would say yes as long as you properly document it. I read another opinion on car washes that basically said if you have proof that you washed your car once per month before you started rideshare and now you have to wash it weekly, that you could deduct 3 of the 4 car washes each month in addition to standard mileage deduction. How could you prove the number of car washes before starting rideshare? Could be a risky deduction in my opinion.


----------



## fetty_crocker

i bought my car in 2018, can i write off the title fees? getting slightly conflicting info from some websites about what you can and cant deduct as business expenses if youre taking the standard mileage rate. some are saying you CAN write off car washes and spotify, and some are saying thats double dipping..
https://www.taxslayer.com/blog/rideshare-drivers-avoid-these-5-common-tax-mistakes/ says:
If you use the standard method for calculating your deduction, you should not also be deducting itemized expenses. These include things like car washes, gas, maintenance, depreciation, fees, insurance, repairs, oil, tires, registration, or lease payments. The standard method accounts for these and allows you to deduct a flat rate of 54.5 cents/mile. Writing off these individual expenses when you use the standard method is actually double-dipping. You could wind up with a big penalty from the IRS if you are caught.

however, this one:
https://sixfiguredrivers.com/25-rideshare-tax-deductions-for-uber-and-lyft-drivers-in-2018/says:
Deduction #9: Commissions/Fees
Tax Category: Business Expenses
This is where your yearly summaries for Lyft and Uber come into play. Find your Lyft commissions section and your Uber expenses, fees, and taxes section on your yearly summaries. These are what you will deduct as commissions/fees. Any commission or fee Uber or Lyft took from your earnings is deductible. 
Deduction #10: Dashboard Camera
Tax Category: Business Expenses
Not only is it smart to have a dashboard camera, but its also deductible. Deduction amounts relies on personal/business use percentage.
Deduction #11: Butt/Back Pad
Tax Category: Business Expenses
Did you buy any tailbone/support products for ridesharing? First off, they make driving long hours far more bearable. Second, you can deduct them.
Deduction #12: Cell Phone and Data Plan
Tax Category: Business Expenses
If you bought a cell phone just for rideshare purposes you can deduct the whole phone. If you are using a new phone that you use for personal and business purposes you can deduct a percentage of your cell phone that you use for business. Also, you can deduct a portion of your of cellular data plan as well. 
Deduction #13: Roadside Assistance Plans
Tax Category: Business Expenses
Did you buy AAA or other roadside assistance plans for ridesharing? If so you can deduct all costs of these plans from your taxes. If you bought it before find the percentage between personal and business use of the plans.
Deduction #14: Music Subscriptions
Tax Category: Business Expenses
Did you purchase any music subscription programs like Apple Music, Spotify Premium or Soundcloud Go for rideshare? If so deduct the cost. If its personal/business deduct the appropriate business use percentage.
Deduction #15: Phone Mount
Tax Category: Business Expenses
Unless you had one provided for you, you bought a phone mount. Deduct it.
Deduction #16: Phone Chargers
Tax Category: Business Expenses
Did you buy additional cell phone chargers for yourself and your passengers? Deduct them!
Deduction #17: Snacks/Drinks
Tax Category: Business Expenses
Candies, water, or any snacks/drinks are all deductible if bought for your rideshare passengers.
Deduction #18: Parking Fees
Tax Category: Business Expenses
Did you pay for any parking while driving for Uber and Lyft. Guess what deduct those parking fees!
Deduction #19: Tolls
Tax Category: Business Expenses
If you paid for tolls to get anywhere for ridesharing they are deductible. You can also deduct tolls that occurred during your rideshare trips. You can find tolls that you occurred during your rideshare trips under your Uber and Lyft yearly summaries.
Deduction #20: Car Washes
Tax Category: Business Expenses
Did ridesharing up your amount of car washes? Write those extra car washes off. 
Deduction #21: Cleaning Materials
Tax Category: Business Expenses
Did you buy a portable vacuum, lint rollers, or anything that you use to clean your car? Deduct it. 
Deduction #22: Seat Covers
Tax Category: Business Expenses
Seat covers protect your car from unwanted stains. They also give your car a fresher look. Deduct these.
Deduction #23: Car Mats 
Tax Category: Business Expenses
Buying all weather car mats not only protects your car, but it also keeps it looking cleaner. Don't forget to deduct these mats. 
Deduction #24: Air Fresheners
Tax Category: Business Expenses
Did you buy febreeze, essential oils, or a diffuser to make your car smell wonderful for your passengers? Deduct those.
Deduction #25: Massages
Tax Category: Business Expenses
Getting a massage a great way to loosen up your tense driving muscles and as long as your doctor prescribes them as medically necessary they are deductible. Go get yourself a tax deductible massage!


----------



## Par3caddy

UberTaxPro said:


> I always like to help DIY ride-share tax preparers and this year I've teamed up with UberPeople.net to provide members with a DIY alternative. For only $160 I'll personally prepare and file your ride-share tax return including your state return if necessary! UberTaxPro.com
> 
> Just imagine not having to give up valuable driving (or sleeping) time to get your taxes done this year. You won't have to deal with software, the new tax law or any of the other issues DIYers talk about on here everyday. Most importantly, you'll know your taxes were done correctly by a licensed tax pro. (Enrolled Agent)
> 
> Let's face it, in the ride-share business time is money. Does it make sense to spend your valuable time getting into a tax project when you have a $160 no hassle alternative right here? Keep driving and leave the tax work to me! Get started here...UberTaxPro.com


I am paying about $400 a month in self-employment tax. This comes out to almost $5000 a year! This doesn't seem right. Am I missing something? I only make about $400 a week driving uber. I already pay a lot in service fees. Please help!


----------



## FLKeys

Are you deducting mileage? is that $400 per week before mileage expenses or $400 in deposit from Rideshare?


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## Launchpad McQuack

Par3caddy said:


> I am paying about $400 a month in self-employment tax. This comes out to almost $5000 a year! This doesn't seem right. Am I missing something? I only make about $400 a week driving uber. I already pay a lot in service fees. Please help!


Your numbers are screwy. Lets assume that you paid $4,800 for the year in SE tax ($400/month).

Since SE tax is 15.3%, that means that you made at least $31,372 ($4,800 / 0.153) for the year.

Assuming that you drove every single week and made the same amount every week, that means you made $600 per week ($31,372 / 52). If you took any weeks off, then your average for the weeks that you drove should be even higher.

There is absolutely no way that you should be paying $400 per month in SE tax if you are only making $400 per week. In order to pay that much in SE tax, you need to make at least 1.5x that amount.


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## uberbotch

Does the 1099K from uber include tips and bonuses? Do I have to figure out how much of that is tips manually for the schedule c?
Thanks


----------



## Older Chauffeur

Par3caddy said:


> I am paying about $400 a month in self-employment tax. This comes out to almost $5000 a year! This doesn't seem right. Am I missing something? I only make about $400 a week driving uber. I already pay a lot in service fees. Please help!


SECA is 15.3% of *net profit, *with a threshold of $400 annually. So if you're netting approximately $31,400 after deducting all fees and mileage, cell phone bill, etc, the SECA would be about $4800. Then you get credit for half of it on your 1040 when you file. But something doesn't sound right if your deposits total only $20,000. Are you deducting all Uber's fees from what they show as your gross?

I'm not a tax professional, but I'm sure Bill (@UberTaxPro ) will see your question and help you out. I would imagine he's probably pretty busy as tax day approaches.



uberbotch said:


> Does the 1099K from uber include tips and bonuses? Do I have to figure out how much of that is tips manually for the schedule c?
> Thanks


I believe bonuses are reported on a 1099misc, with a minimum threshold of $600. I think tips on the app would be reported along with other customer paid earnings on the 1099k. But I'm an amateur, so watch for @UberTaxPro's answer.


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## Larry$$$

Milage log.what details do I need to log in? I didn't keep a detailed log. I was able to figure out my start and end odometer for 2018. Will Lyft Driving history surfice? It doesn't show picking address or dropoff address. Just time pick up and drop off


----------



## Older Chauffeur

Larry$$$ said:


> Milage log.what details do I need to log in? I didn't keep a detailed log. I was able to figure out my start and end odometer for 2018. Will Lyft Driving history surfice? It doesn't show picking address or dropoff address. Just time pick up and drop off


https://www.irs.gov/pub/irs-pdf/p463.pdf ( Page 25 )


----------



## UberTaxPro

Larry$$$ said:


> Milage log.what details do I need to log in? I didn't keep a detailed log. I was able to figure out my start and end odometer for 2018. Will Lyft Driving history surfice? It doesn't show picking address or dropoff address. Just time pick up and drop off


Lyft history might suffice but it might short change you on business miles. Do your best to re-create an accurate log while things are still fresh in your memory etc...


----------



## Hornplayer

UberTaxPro said:


> If your're actively working from your house to first ride yes. By actively working I mean app on seeking rides driving to a ride etc...
> Between miles same thing. You need to be keeping a mileage log. I prefer the app TripLog in manual mode to create the log.


Hi UberTaxPro,

Thanx for starting and maintaining this thread (and the rest of you who are contributing). It's a gold mine of useful (and timely) information.

I started Ubering and Lyfting in Jan. 2019, so don't have to worry about tax things due tomorrow for Uber (Apr. 15). Must be nice to see someone NOT asking urgent questions about taxes the day before they're due, eh?

I looked at the TripLog app for about one minute, and downloaded it to my iPhone 6-plus, same phone that does my Uber and Lyft apps. It seems to have a lot more features than I really need. In 30 days I get to decide what feature(s) I want to keep when the free demo period runs out.

Had a quick question for you: I apparetly auto-starts some of its trips. Evidently by waiting till you turn it on or activate it etc., and then waiting until it detects speed of 5mph or more for a few seconds. Does it also know when you turned on your Uber app, when you activated the section that hunts for riders for you, when Uber announces there is a rider, when you accept the rider, and when the rider actually gets in the car? Or are these things mostly things you have to press buttons for, despite the Auto-start?

In other words, can TripLog detect what the Uber app is doing? Like when it announces a ping, when you tell it you have picked up the rider etc.?

Thanks. I'll try to learn more so I don't keep coming up with these raw newbie questions.


----------



## UberTaxPro

Hornplayer said:


> Hi UberTaxPro,
> 
> Thanx for starting and maintaining this thread (and the rest of you who are contributing). It's a gold mine of useful (and timely) information.
> 
> I started Ubering and Lyfting in Jan. 2019, so don't have to worry about tax things due tomorrow for Uber (Apr. 15). Must be nice to see someone NOT asking urgent questions about taxes the day before they're due, eh?
> 
> I looked at the TripLog app for about one minute, and downloaded it to my iPhone 6-plus, same phone that does my Uber and Lyft apps. It seems to have a lot more features than I really need. In 30 days I get to decide what feature(s) I want to keep when the free demo period runs out.
> 
> Had a quick question for you: I apparetly auto-starts some of its trips. Evidently by waiting till you turn it on or activate it etc., and then waiting until it detects speed of 5mph or more for a few seconds. Does it also know when you turned on your Uber app, when you activated the section that hunts for riders for you, when Uber announces there is a rider, when you accept the rider, and when the rider actually gets in the car? Or are these things mostly things you have to press buttons for, despite the Auto-start?
> 
> In other words, can TripLog detect what the Uber app is doing? Like when it announces a ping, when you tell it you have picked up the rider etc.?
> 
> Thanks. I'll try to learn more so I don't keep coming up with these raw newbie questions.


I not a trip log expert but I don't think it "talks" with any other apps. I recommend using trip log in manual mode instead of auto start. It enables you to create a perfect log. In manual mode you have complete control of when it logs addresses.


----------



## Hornplayer

Carried some passengers with Triplog running, taking most defaults and starting and stopping each trip manually, I think. Now it appears to have several records of trips, meaning I might have done something right. 

My question is, how can I download those to my desktop computer at home? I’m in the 30-day period where I can use all features. Has anyone done this? 

Thanks all!


----------



## stanigu

Would you consider something like Lyft Express rental as a lease and use standard mileage deduction? A buddy of mine is in that situation...


----------



## Hornplayer

UberTaxPro, in short I start from my home, turn on the Uber app, and put it on line so it's seeking riders. Wait for maybe 15 minutes, and get a ping. I turn on TripLog and manually start a trip (with the accurate odometer reading from my car), and accept the ping. Drive to the rider's place, he gets aboard, we drive to his destination, he gets out, I tell the Uber app that the ride is over, rate the rider, and we live happily ever after. And I manually end the trip in Triplog.

And right then and there, I start a new trip. Then drive about a mile to a nearby shopping center where I often get pings. The Uber app is still on, looking for riders. Sit at the shopping center about 3 minutes, and another ping comes in. I accept the rider, drive to his place, he gets in, we go to the destination, he gets out, all is well. And I terminate the trip in Triplog.

Lather, rinse, repeat. I get a long string of rides like this, sometimes with as much as a twenty-minute wait between the time a rider gets out of the car, and the next ping comes in.

Throughout this entire adventure, the Uber app has been on, and always on line starting from the time at home when I first turned it on, until I drive back home to await another rider, no pings come, and I finally take the Uber app off line (no longer seeking riders), turn off the Uber app and turn off Triplog.

For that entire time, I am seeking riders throughout, or going to the riders pickup spot, or driving him to his dropoff, or driving to a new spot to (hopefully) get more riders. Even when I go home at the end, I'm still seeking new riders until I finally take the Uber app off line at home and quit seeking riders. I never took the Uber app offline until the very end.

My question is, can I consider ALL of that driving (as I presented in the above examples), as business driving, and deduct it on my taxes?


----------



## UberTaxPro

Hornplayer said:


> UberTaxPro, in short I start from my home, turn on the Uber app, and put it on line so it's seeking riders. Wait for maybe 15 minutes, and get a ping. I turn on TripLog and manually start a trip (with the accurate odometer reading from my car), and accept the ping. Drive to the rider's place, he gets aboard, we drive to his destination, he gets out, I tell the Uber app that the ride is over, rate the rider, and we live happily ever after. And I manually end the trip in Triplog.
> 
> And right then and there, I start a new trip. Then drive about a mile to a nearby shopping center where I often get pings. The Uber app is still on, looking for riders. Sit at the shopping center about 3 minutes, and another ping comes in. I accept the rider, drive to his place, he gets in, we go to the destination, he gets out, all is well. And I terminate the trip in Triplog.
> 
> Lather, rinse, repeat. I get a long string of rides like this, sometimes with as much as a twenty-minute wait between the time a rider gets out of the car, and the next ping comes in.
> 
> Throughout this entire adventure, the Uber app has been on, and always on line starting from the time at home when I first turned it on, until I drive back home to await another rider, no pings come, and I finally take the Uber app off line (no longer seeking riders), turn off the Uber app and turn off Triplog.
> 
> For that entire time, I am seeking riders throughout, or going to the riders pickup spot, or driving him to his dropoff, or driving to a new spot to (hopefully) get more riders. Even when I go home at the end, I'm still seeking new riders until I finally take the Uber app off line at home and quit seeking riders. I never took the Uber app offline until the very end.
> 
> My question is, can I consider ALL of that driving (as I presented in the above examples), as business driving, and deduct it on my taxes?


The question is are those miles "necessary and ordinary" for your trade? From what you've stated I'm leaning towards yes. One thing about the trip log, I think you should also stop and start the trip log when you reach the pick up location.


----------



## Hornplayer

Thanks UberTaxPro. You're helping a great deal, for me to figure out Uber taxes etc.

There seems to be another ridesharing trip logger for your phone, called MileIQ. I know nothing about it, except that I saw it in the App Store. Have you ever used it? Advantages/disadvantages over TripLog? (You mentioned earlier that you use TripLog).


----------



## islanddriver

Short answers is yes deduct all.


----------



## UberTaxPro

Hornplayer said:


> Thanks UberTaxPro. You're helping a great deal, for me to figure out Uber taxes etc.
> 
> There seems to be another ridesharing trip logger for your phone, called MileIQ. I know nothing about it, except that I saw it in the App Store. Have you ever used it? Advantages/disadvantages over TripLog? (You mentioned earlier that you use TripLog).


Never tried it, does it have manual mode?


----------



## Launchpad McQuack

FLKeys said:


> From what I have been reading from other drivers Uber Eats is very hard to make a taxable profit, meaning your income will be negative after deducting standard mileage rates of 58¢ per mile.


I disagree. I think it is easier to make a taxable profit with Uber Eats. In general, delivery drivers drive less miles than passenger drivers. Our trips are shorter. For a delivery driver, 15 miles is a _long_ trip. The reduced mileage means that our expenses are less (both real expenses and for tax purposes), so we don't have as much deduction to offset our income.

For 2018, I had negative taxable income. That is because I only drove for a month and I had all of my startup costs (cell phone, delivery bags, etc.) included. This year, I won't have those startup costs again (unless I keep dropping my phone and ultimately break it). My only deductible expenses will be my recurring cell phone plan and mileage. I fully expect to have a taxable profit this year.


----------



## FLKeys

Launchpad McQuack said:


> I disagree. I think it is easier to make a taxable profit with Uber Eats. In general, delivery drivers drive less miles than passenger drivers. Our trips are shorter. For a delivery driver, 15 miles is a _long_ trip. The reduced mileage means that our expenses are less (both real expenses and for tax purposes), so we don't have as much deduction to offset our income.
> 
> For 2018, I had negative taxable income. That is because I only drove for a month and I had all of my startup costs (cell phone, delivery bags, etc.) included. This year, I won't have those startup costs again (unless I keep dropping my phone and ultimately break it). My only deductible expenses will be my recurring cell phone plan and mileage. I fully expect to have a taxable profit this year.


Keep us posted, since we don't have Uber eats here I can only go by what I read. If they start it here I will give it a try and see for my self. Recently had a PAX tell me that he got a message from Uber that Eats was coming to the Keys soon. First I heard it was coning here, we will see.


----------



## Launchpad McQuack

FLKeys said:


> Keep us posted, since we don't have Uber eats here I can only go by what I read. If they start it here I will give it a try and see for my self. Recently had a PAX tell me that he got a message from Uber that Eats was coming to the Keys soon. First I heard it was coning here, we will see.


Do you drive the full length of the Keys? According to Uber's web site, Eats is available in Key West.


----------



## FLKeys

Launchpad McQuack said:


> Do you drive the full length of the Keys? According to Uber's web site, Eats is available in Key West.


No I try to stay in the upper keys and if I get a ride into the middle keys I'll hang there. The few times I get rides to Key West I turn on DF and get a ride out. Key West is way over run by ants from Miami, and drivers down there don't have the best reputations with locals and police. I just assume stay clear of that mess.

I just checked Uberesst site and Key West comes up but when you click on it it says Uber Eats is not available in this location.


----------



## Launchpad McQuack

FLKeys said:


> I just checked Uberesst site and Key West comes up but when you click on it it says Uber Eats is not available in this location.


Uber sucks at information. (My general experience is that they suck at most things that they do.) According to Uber's web site, Eats is not available in the area where I drive. The only reason that I know that it is available here is because when they initially partnered with McDonald's, all of the McDonald's in my area used the letterboards on their signs to advertise delivery with Uber Eats. Otherwise, I still would think that it is not available here......because that is what their web site says.

I have found that the best way to find coverage areas is to go to the Uber Eats web site and type in an address for a location where you think it is NOT available. Then it will show you a map with the nearby coverage areas highlighted. For example, if I put in 13 Kahiki Drive, Tavernier (just making up an address), I get a message that Uber Eats is not available at that address and also a map that shows coverage in Key West. (I would post a link, but I don't think it will work.) If I put in 13 Von Phister Street, Key West, on the other hand, I get a list of restaurants that I can order from, indicating that it is available there.


----------



## FLKeys

I just down loaded the Uber Eats app and it does show options in Key West. Thanks.


----------



## BigRedDriver

Question:

I installed an Onyx SiriusXM player in my car for rideshare entertainment purposes. 

Is the cost of the player and the subscription deductible when taking the standard mileage deduction?

Thanks.


----------



## stanigu

BigRedDriver said:


> Question:
> 
> I installed an Onyx SiriusXM player in my car for rideshare entertainment purposes.
> 
> Is the cost of the player and the subscription deductible when taking the standard mileage deduction?
> 
> Thanks.


Absolutely. Standard mileage only covers direct operational costs (e.g. gas, oil, maintenance) & depreciation (wear & tear). Any other business related expenses should be deducted separately (Sirius, Cell phone, parking/tolls, etc.)


----------



## Jim Sniffins

Great information. We just wrapped up tax season and helped a LOT of Uber/Lyft drivers with their driving logs. Good to see more and more awareness of the importance of claiming your deduction and documenting your driving. 

Thanks, ExpressMileage


----------



## FLKeys

BigRedDriver said:


> Question:
> 
> I installed an Onyx SiriusXM player in my car for rideshare entertainment purposes.
> 
> Is the cost of the player and the subscription deductible when taking the standard mileage deduction?
> 
> Thanks.


I have XM in my car, I only deduct a portion of the service based on percentage of miles car is used for Rideshare & Personal use. Use the car 60% rideshare only deduct 60% of the fee for the service. I use the same method for any car accessories I buy like seat cover, floor mats, etc.


----------



## JK7

Hello Uber Tax Pro,

How do I calculate my Modified Adjusted Gross Income? I just started making steady income with Uber and Lyft about the past 4 weeks (I mean, I am driving full-time for the first time . . .I just dabbled in it until recently). So, I don't have a useful tax return to help me as a reference.

I guess I will have something like $44K gross income if I continue to work at the current pace in a 12 month span. So, how do I calculate MAGI? I am very confused about AGI and MAGI because, with deductions, it appears I will have zero taxable income (as far as income tax). But, is AGI and MAGI a totally different number from my taxable income for income tax?

I need this info to help me purchase health insurance.

Thank you kindly for the advice to any and all who can answer this.

Best regards,
JK7


----------



## Syed363

i have filled my personal taxes but my accountant missed the uber hst/gst. now my refund is on hold and my account has no option to do amendments, i really need serious help how to fix this problem. i contacted other accountant but they are ripping me off. please help
thanks


----------



## UberTaxPro

Syed363 said:


> i have filled my personal taxes but my accountant missed the uber hst/gst. now my refund is on hold and my account has no option to do amendments, i really need serious help how to fix this problem. i contacted other accountant but they are ripping me off. please help
> thanks


Sounds like you need to amend your return. If your accountant made an error he/she should do the amendment free of charge.



JK7 said:


> Hello Uber Tax Pro,
> 
> How do I calculate my Modified Adjusted Gross Income? I just started making steady income with Uber and Lyft about the past 4 weeks (I mean, I am driving full-time for the first time . . .I just dabbled in it until recently). So, I don't have a useful tax return to help me as a reference.
> 
> I guess I will have something like $44K gross income if I continue to work at the current pace in a 12 month span. So, how do I calculate MAGI? I am very confused about AGI and MAGI because, with deductions, it appears I will have zero taxable income (as far as income tax). But, is AGI and MAGI a totally different number from my taxable income for income tax?
> 
> I need this info to help me purchase health insurance.
> 
> Thank you kindly for the advice to any and all who can answer this.
> 
> Best regards,
> JK7


For many people MAGI and AGI will be the same but not for all.
"A taxpayer determines MAGI by taking his adjusted gross income and adding back certain items such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions, and deductions for higher-education costs. "


----------



## UberLAguy

I plan to do full time ride-sharing. 

My income from Ubering will go to a Nevada Corp for daytrading stock. 

How should I structure this ? My California sole proprietorship will pay my Nevada Corp for some service ? Like marketing services ?


----------



## tohunt4me

UberTaxPro said:


> Rideshare tax Ask Me Anything


1.) have you Paid Yours ?


----------



## UberTaxPro

tohunt4me said:


> 1.) have you Paid Yours ?


Yep, only what I legally owed, never any more!


----------



## Doctorsookie

UberTaxPro said:


> Sounds absurd to me also! If she's an IC she obviously owns her own business. Could she perhaps be confused with ownership of the vehicle? She does have to own the vehicle (or lease) she's claiming expenses on. The one exception is a vehicle owned by a spouse who she would be filing jointly with. If it's not the vehicle ownership issue I suggest she get another accountant. When choosing an accountant I always suggest seeking out an EA, CPA, or attorney. Anyone can call themselves a tax preparer but only those with the credentials I mentioned have proven that they have the necessary knowledge. Also, you want to make sure that the person with credentials claiming to prepare the return is the person actually doing the work. Many of these big box tax places claim to have someone with credentials, but then pass the work onto people with no credentials or experience.


Great advice on the specific accountant. Thanks

This is my first year doing Uber. I've read different things and just want to make sure I pay my self employment taxes timely. Am I required to pay quarterly taxes in the first year of operating my "business" or do I start paying quarterly taxes my second year of operations? Also, is self employment tax the only tax I'm paying on my self employment income? I feel like there is more because from what I can tell the SE tax doesn't include federal taxes. Sorry if these questions are dumb.


----------



## UberTaxPro

UberLAguy said:


> I plan to do full time ride-sharing.
> 
> My income from Ubering will go to a Nevada Corp for daytrading stock.
> 
> How should I structure this ? My California sole proprietorship will pay my Nevada Corp for some service ? Like marketing services ?


What are you trying to accomplish tax wise? Why not just uber under the Nevada entity?


----------



## UberLAguy

UberTaxPro said:


> What are you trying to accomplish tax wise? Why not just uber under the Nevada entity?


But i am in L.A.


----------



## Doctorsookie

UberTaxPro said:


> Rideshare tax Ask Me Anything


NOTE: I think this was inadvertently posted on a reply to my own comment on another comment. ? sorry
This is my first year doing Uber. I've read different things and just want to make sure I pay my self employment taxes timely. Am I required to pay quarterly taxes in the first year of operating my "business" or do I start paying quarterly taxes my second year of operations? Also, is self employment tax the only tax I'm paying on my self employment income? I feel like there is more because from what I can tell the SE tax doesn't include federal taxes. Sorry if these questions are dumb.


----------



## BobMarley

Doctorsookie said:


> NOTE: I think this was inadvertently posted on a reply to my own comment on another comment. ? sorry
> This is my first year doing Uber. I've read different things and just want to make sure I pay my self employment taxes timely. Am I required to pay quarterly taxes in the first year of operating my "business" or do I start paying quarterly taxes my second year of operations? Also, is self employment tax the only tax I'm paying on my self employment income? I feel like there is more because from what I can tell the SE tax doesn't include federal taxes. Sorry if these questions are dumb.


I'll explain how I do things as a non tax pro.

Yes, you must make quarterly estimated payments. Don't worry if your estimates are off a bit, you don't pay a penalty if you underpay by less than $1000. Self Employment (SE) tax is the equivalent of FICA for self employed people. So, deduct mileage (at .58 a mile, and remember track all your miles not just when you have a fare) and any other qualified expenses from what Uber pays you (plus tips). You pay $15.3% on that. That is not federal income tax, which you must also pay... if you show income above $12,200 for the year (assuming you are single and don't itemize which you probably don't). To make things a bit more complicated you can deduct what you paid out for SE tax.

So, for example, say in one quarter Uber paid you $10,000 and you made $1000 in tips. You drove 12,000 miles while Ubering. $11,000 minus (12,000*.58) is $4040. You owe $4040 * .153 which is $618 in SE tax. Now for federal taxes, you made $11,000 minus your mileage AND minus the SE tax you paid. That's, $4040 - $618, $3422 of income. $3422 is just for the quarter year. That times 4 is $13688. The standard deduction is $12,200 so you only have $1488 estimated taxable income for the year. That $1488 is in the 10% bracket, so your estimate for the year in federal income is $148. Divide by 4, gets $37. You'd make a quarterly payment of $37 + $618, $655.


----------



## Older Chauffeur

BobMarley said:


> To make things a bit more complicated you can deduct what you paid out for SE tax.


Close, but I believe you only get credit for one half of your SE contributions on your Form 1040.

Disclaimer: I'm not a tax professional either.


----------



## BobMarley

Older Chauffeur said:


> Close, but I believe you only get credit for one half of your SE contributions on your Form 1040.
> 
> Disclaimer: I'm not a tax professional either.


Ahh, yes you are correct. So $14,928 less the $12,200 standard deduction of taxable income for the year. Or a total quarterly estimated payment of $686 instead of $655. It should be noted even if someone did make that mistake, they'd just owe a bit more when filing. Its highly unlikely an Uber driver would make enough for that to total a $1000 underpayment.


----------



## Doctorsookie

Older Chauffeur said:


> Close, but I believe you only get credit for one half of your SE contributions on your Form 1040.
> 
> Disclaimer: I'm not a tax professional either.


The half of SE part I do know

I work full time and Uber on the side so yes I do plan to itemize as I also have a mortgage and will take the interest credit


----------



## BobMarley

Doctorsookie said:


> The half of SE part I do know
> 
> I work full time and Uber on the side so yes I do plan to itemize as I also have a mortgage and will take the interest credit


Since you work, then the SE part would still apply exactly. But what you pay in federal taxes, will depend on what you made at your job.

Your itemized deductions exceed $12,200? I used to itemize too until the new tax law came into effect last year.


----------



## UberTaxPro

Doctorsookie said:


> NOTE: I think this was inadvertently posted on a reply to my own comment on another comment. ? sorry
> This is my first year doing Uber. I've read different things and just want to make sure I pay my self employment taxes timely. Am I required to pay quarterly taxes in the first year of operating my "business" or do I start paying quarterly taxes my second year of operations? Also, is self employment tax the only tax I'm paying on my self employment income? I feel like there is more because from what I can tell the SE tax doesn't include federal taxes. Sorry if these questions are dumb.


This is my first year doing Uber. I've read different things and just want to make sure I pay my self employment taxes timely. Am I required to pay quarterly taxes in the first year of operating my "business" or do I start paying quarterly taxes my second year of operations? _ Estimated taxes are due if you have income in any quarter. The best way for most is to have a mileage log that will help determine if taxes are owed each quarter. _
Also, is self employment tax the only tax I'm paying on my self employment income? _No, you'll pay the same taxes as everyone else plus the employers share of the SE tax. You will be eligible for many tax advantages that only businesses are entitled to like the section 199A deduction. I believe you have tax advantages with self employment income but it does take a tiny bit of planning_.


----------



## ariel5466

Sorry if this was already answered, new driver here. I'm trying to plan ahead for next year and track all my business expenses as I go. So far I'm tracking mileage, car washes, a new fast-charge car charger, a multi-device charging cable for pax, and seat covers, all things I wouldn't have gotten had I not been doing rideshare. My question is does my cell phone bill count? It's essential to the job, but I'd have it whether I was doing rideshare or not so I'm not sure.


----------



## Older Chauffeur

ariel5466 said:


> Sorry if this was already answered, new driver here. I'm trying to plan ahead for next year and track all my business expenses as I go. So far I'm tracking mileage, car washes, a new fast-charge car charger, a multi-device charging cable for pax, and seat covers, all things I wouldn't have gotten had I not been doing rideshare. My question is does my cell phone bill count? It's essential to the job, but I'd have it whether I was doing rideshare or not so I'm not sure.


The portion of the bill that applies to ride share activities. You use the same percentage as you do for mileage. For example, if you put a total of 80,000 miles on your car for the year, and 20,000 is for personal use, then 75% of your cellphone bill would be deductible.

Disclaimer: I'm not a tax professional.


----------



## Hornplayer

UberTaxPro said:


> The question is are those miles "necessary and ordinary" for your trade? From what you've stated I'm leaning towards yes. One thing about the trip log, I think you should also stop and start the trip log when you reach the pick up location.


I'm now using TripLog, after your recommendation. It's very useful and handy, thanx for the tip!

Been using it for a couple months now. And it seems to be getting slower. I press the button to finish the trip I'm on, and have to wait 5-10 seconds for it to realize I've stopped the trip and offer to save it (used to take 1-2 sec). I press the Save button, and another 5-10 seconds go by waiting for it to offer me the chance to start another trip. Press the Start Tip button, same things happen, etc.

Have you had this experience? Am I building up too many files in memory somewhere? Or.....??


----------



## UberTaxPro

Hornplayer said:


> I'm now using TripLog, after your recommendation. It's very useful and handy, thanx for the tip!
> 
> Been using it for a couple months now. And it seems to be getting slower. I press the button to finish the trip I'm on, and have to wait 5-10 seconds for it to realize I've stopped the trip and offer to save it (used to take 1-2 sec). I press the Save button, and another 5-10 seconds go by waiting for it to offer me the chance to start another trip. Press the Start Tip button, same things happen, etc.
> 
> Have you had this experience? Am I building up too many files in memory somewhere? Or.....??


Haven't had that problem. Try turning your phone on and off every once in while, that seems to help when my phone starts getting slow.


----------



## islanddriver

I don't hit save after every trip only start, stop, start . I save at end of day


----------



## BigRedDriver

Hornplayer said:


> I'm now using TripLog, after your recommendation. It's very useful and handy, thanx for the tip!
> 
> Been using it for a couple months now. And it seems to be getting slower. I press the button to finish the trip I'm on, and have to wait 5-10 seconds for it to realize I've stopped the trip and offer to save it (used to take 1-2 sec). I press the Save button, and another 5-10 seconds go by waiting for it to offer me the chance to start another trip. Press the Start Tip button, same things happen, etc.
> 
> Have you had this experience? Am I building up too many files in memory somewhere? Or.....??


Mine does the same. Beginning of the month it works great. Very fast, by the end of the month, starts bogging down. Likely reason is the amount of transactions monthly? Only thing I can figure out. And waiting with a pax onboard just to click the buttons is getting a bit annoying.


----------



## islanddriver

I start trip log when I go online . Then when I drop off pax I stop,then start. I don't start and stop after each pax . I only stop then start after dropping off pax. Cause if I'm driving around waiting for a ride on still working.


----------



## UberTaxPro

UberLAguy said:


> But i am in L.A.


Out of state entities can register in CA


----------



## UberLAguy

UberTaxPro said:


> Out of state entities can register in CA


If you register in CA, you need to pay CA $800 a year.


----------



## BobMarley

islanddriver said:


> I start trip log when I go online . Then when I drop off pax I stop,then start. I don't start and stop after each pax . I only stop then start after dropping off pax. Cause if I'm driving around waiting for a ride on still working.


Assuming I get a ping from my house, my logging app goes on in the driveway. It stays on until I sign off both rideshare apps, usually no more than a mile from my house, or work. I use Stride Tax for mileage logging.


----------



## UberTaxPro

UberLAguy said:


> If you register in CA, you need to pay CA $800 a year.


Yes, also, moving money between entities owned by the same person can create some unique problems and administrative expenses.


----------



## ..Derek..

how do I start my 2019 taxes for the first 1/4....? sorry I am a noob.


----------



## FLKeys

..Derek.. said:


> how do I start my 2019 taxes for the first 1/4....? sorry I am a noob.


You should have started the day you decided to start driving for rideshare. Tracking deductible expenses and keeping receipts. And the biggie, keeping an IRS compliant mileage log.

With those few items you can easily see if you are making a taxable profit and should be considering paying estimated quarterly taxes. You don't actually file taxes until the end of the year, however if certain conditions are met the IRS expects quarterly estimated tax payments.


----------



## ..Derek..

FLKeys said:


> You should have started the day you decided to start driving for rideshare. Tracking deductible expenses and keeping receipts. And the biggie, keeping an IRS compliant mileage log.
> 
> With those few items you can easily see if you are making a taxable profit and should be considering paying estimated quarterly taxes. You don't actually file taxes until the end of the year, however if certain conditions are met the IRS expects quarterly estimated tax payments.


may 7th was my first day....what is a mileage log?(2nd 1/4)


----------



## FLKeys

..Derek.. said:


> may 7th was my first day....what is a mileage log?(2nd 1/4)


Read Publication 583. Of course different drivers have different opinions on what a proper mileage log is.

https://www.irs.gov/pub/irs-pdf/p583.pdf
From the internet:

*Keeping a mileage log*
The IRS tends to be strict in its documentation requirements for business mileage deductions. For this reason, you'll need to keep a thorough, accurate mileage log each year you attempt to claim a deduction.
Your mileage log must include the starting mileage on your vehicle's odometer at the beginning of the year and its ending mileage at the conclusion of the year. Each time you use your vehicle for business purposes, you must record the following information:

The date of your trip
Your starting point
Your destination
The purpose of your trip
Your vehicle's starting mileage
Your vehicle's ending mileage
Tolls or other trip-related costs
You can keep a mileage log in a notebook and update it by hand, or use a spreadsheet to continuously track your mileage. You can also use a mileage-tracking app. The key is to update your records regularly to ensure that they're precise. Additionally, the IRS requires you to keep your mileage log for three years from the date on which you file the income tax return containing your deduction.


----------



## UberLAguy

So basically, if you so 50 trips a day you needs details for all trips logged ?


----------



## UberTaxPro

UberLAguy said:


> So basically, if you so 50 trips a day you needs details for all trips logged ?


You need beginning and ending mileage for the *year* and details for all "business miles". Most of your business miles will be trips but you will have "dead miles" between trips and other business miles like miles to an Uber hub or miles to a repair shop etc. To maximize your vehicle expense deduction all "business miles" should be logged.


----------



## FLKeys

UberLAguy said:


> So basically, if you so 50 trips a day you needs details for all trips logged ?


That is where the debate comes in some say yes some say no. I record every leg of my daily driving. For instance if I had only 1 trip today my mileage log would have 3 entries in it for today. One entry from time I turned on app until I arrived at first pick up. Next entry would be from pick-up to drop-off. Final entry would be from that drop-off point until I turned off the app. Every entry would have notes, like Drive to pick-up, Uber Pick-up, relocate looking for rides, etc. There would also be a description entry like McDonalds, Residence, Wait for ping, etc.

I make notes on a note book and transfer them into an Excel spreadsheet later. Here is a sample of my log with some made up entries in it.


----------



## islanddriver

Just download trip log it has all auto expenses and it's easy to use .they have a free trial. Triplog.com


----------



## FLKeys

islanddriver said:


> Just download trip log it has all auto expenses and it's easy to use .they have a free trial. Triplog.com


With the volume I drive it is not worth the expense. Plus when I rested a few I found them to be off by as much as 5% and to me it is not worth giving up 5% of my miles for a convince I have to pay for.

Maybe if I did a lot more trips I would change my mind. Once I was used to tracking on paper it really is not an issue. I worked out a system that works for me.


----------



## islanddriver

Trip.log isnot a lot of money$45 per year and a lot easier.


----------



## FLKeys

islanddriver said:


> Trip.log isnot a lot of money$45 per year and a lot easier.


I'm frugal and sitting in my car gives me ample time to keep manual records. Free pen from a local business and a $4 Steno pad that will last over a year. The biggest factor to me is the estimated $1,160 in lost mileage because the app was off by around 5%. 5% of 40,000 miles ads up quick.

Like every aspect of rideshare do what works for you, we all have our own preferences. What is right for me is not right for everyone else.


----------



## ..Derek..

I am still trying to figure out my tax rate so I can estimate for this year.

Is this a tax rate
married filing jointly?
we made a lil over 113,000 jointly 

22%$78,951 to $168,400$9,086 plus 22% of the amount over $78,950


----------



## UberTaxPro

..Derek.. said:


> I am still trying to figure out my tax rate so I can estimate for this year.
> 
> Is this a tax rate
> married filing jointly?
> we made a lil over 113,000 jointly
> 
> 22%$78,951 to $168,400$9,086 plus 22% of the amount over $78,950


This explains it well:
https://www.quickenloans.com/blog/federal-income-tax-brackets


----------



## ..Derek..

UberTaxPro said:


> This explains it well:
> https://www.quickenloans.com/blog/federal-income-tax-brackets


thank you... I will study now.

https://www.nerdwallet.com/blog/taxes/federal-income-tax-brackets/which "thresholds" are correct?
I see 4 different factors...I am having trouble finding the correct numerical factors......
example ----
The way you define which "tax bracket" you belong in is where the upper level of your income hits. So, let's say you are a single filer making $85,000. That means that you are in the 24% tax bracket for federal taxes. But as we noted, that doesn't mean the whole $85,000 will be taxed at 24%. Instead it will break down like this.


$9,525 of your income will be taxed at 10% 
$29,175 will be taxed at 12%
$43,800 will be taxed at 22%
$2,500 will be taxed at 24% 
 Are these numbers standard multipliers?


----------



## UberLAguy

If I drive full time, every miles should be a busisness miles. I am going to have two cars, one I can claim as personal, one for business. So I only need to record the mileage on the first of the year and the last day of the year on the "business car".

Is that rational reasoning ?


----------



## islanddriver

The money spent on trip log is also a tax deduction. I haven't found that it's off 5% like you said. Having said that to each his own . Just offering another way.


----------



## UberTaxPro

UberLAguy said:


> If I drive full time, every miles should be a busisness miles. I am going to have two cars, one I can claim as personal, one for business. So I only need to record the mileage on the first of the year and the last day of the year on the "business car".
> 
> Is that rational reasoning ?


Regardless of the amount of vehicles you have you need odometer readings at beginning and end of year for any vehicle used in business. Be careful with the 100% business mileage even with 2 cars. It's rationale even with 2 cars that at some point during the year you'll be using the business car for something personal.



..Derek.. said:


> thank you... I will study now.
> 
> https://www.nerdwallet.com/blog/taxes/federal-income-tax-brackets/which "thresholds" are correct?
> I see 4 different factors...I am having trouble finding the correct numerical factors......
> example ----
> The way you define which "tax bracket" you belong in is where the upper level of your income hits. So, let's say you are a single filer making $85,000. That means that you are in the 24% tax bracket for federal taxes. But as we noted, that doesn't mean the whole $85,000 will be taxed at 24%. Instead it will break down like this.
> 
> 
> $9,525 of your income will be taxed at 10%
> $29,175 will be taxed at 12%
> $43,800 will be taxed at 22%
> $2,500 will be taxed at 24%
> Are these numbers standard multipliers?


Not sure what you mean by "standard multipliers". Those numbers are current tax law.


----------



## mmn

UberTaxPro said:


> Regardless of the amount of vehicles you have you *only* need odometer readings at beginning and end of year for any vehicle used in business...


You're the pro, but this implies you don't need a trip log. Maybe drop the word "only"?


----------



## UberTaxPro

mmn said:


> You're the pro, but this implies you don't need a trip log. Maybe drop the word "only"?


Wow! I never thought the OP or anyone would think I was inferring they didn't need a log! The OP's question was *only* about odometer mileage recording so my my answer was *only* pertaining to the odometer reading requirement. Logs recording your business activity are needed. You don't need to record your odometer reading more than twice a year....beginning of the year and end of year. Thanks for pointing that out and I'll take out the "only"


----------



## ..Derek..

I see 2 different sets of numbers in....different websites...I assume the 2019 numbers are an updated threshold?

Its confusing...how do they find these numbers? Are the numbers always the same? Do the numbers change according to each persons income? 
Also this is an estimate...sooo I am doing a filing separate as an estimate ?


----------



## OLDSCHOOLPARAD

I’m paying $80 for 2 phone lines. One I want to use exclusively for Rideshare, the other personal. They both have the same features. However, on the main line(non business) line it states the price is $60, while the other one says $20.

My question is, should I deduct $40 since together they’re $80? $20 since that’s the extra line cost? Or can I switch my $60 line to business and deduct that?

P.S. I’m on MetroPCS if that helps any.


----------



## FLKeys

OLDSCHOOLPARAD said:


> I'm paying $80 for 2 phone lines. One I want to use exclusively for Rideshare, the other personal. They both have the same features. However, on the main line(non business) line it states the price is $60, while the other one says $20.
> 
> My question is, should I deduct $40 since together they're $80? $20 since that's the extra line cost? Or can I switch my $60 line to business and deduct that?
> 
> P.S. I'm on MetroPCS if that helps any.


In this case I would only claim the $20.00. Not familiar with your plan, but if there are any data overage charges I would also claim them. Switching phone numbers in my opinion so the business line is primary is a gray area that you could probably get away with. Will be interesting to see what @UberTaxPro has to say.


----------



## UberTaxPro

FLKeys said:


> In this case I would only claim the $20.00. Not familiar with your plan, but if there are any data overage charges I would also claim them. Switching phone numbers in my opinion so the business line is primary is a gray area that you could probably get away with. Will be interesting to see what @UberTaxPro has to say.


Are the lines dependent on each other? In other words could you drop the $60 phone and keep the $20 phone?



OLDSCHOOLPARAD said:


> I'm paying $80 for 2 phone lines. One I want to use exclusively for Rideshare, the other personal. They both have the same features. However, on the main line(non business) line it states the price is $60, while the other one says $20.
> 
> My question is, should I deduct $40 since together they're $80? $20 since that's the extra line cost? Or can I switch my $60 line to business and deduct that?
> 
> P.S. I'm on MetroPCS if that helps any.


Are the lines dependent on each other? In other words could you drop the $60 phone and keep the $20 phone?


----------



## nightshaadow

BigRedDriver said:


> I have a feeling this thread will be highly visited around April 1





UberTaxPro said:


> Rideshare tax Ask Me Anything


I haven't worked for several years so I also haven't paid any taxes and just started ubereats in April. Do I still need to pay quarterly estimated taxes? Which software is better turbo tax or h&r block?


----------



## UberTaxPro

nightshaadow said:


> I haven't worked for several years so I also haven't paid any taxes and just started ubereats in April. Do I still need to pay quarterly estimated taxes? Which software is better turbo tax or h&r block?


Whether or not you have to pay estimated taxes depends on multiple factors like how much did you make, how you're filing married or single etc.., if you or your wife have a W2 job, how much tax you've already paid etc.... 
I've never seen H&R software and haven't used turbo tax for years now but I did work for them one tax season. What many miss when starting this is that you're not working a W2 job and are in the eyes of the IRS operating your own business. You'll be filing a business tax return most likely on a Schedule C come tax time. I would suggest you consult with a tax pro or research on your own to be sure you're keeping the records you'll need at tax time. The only way I can tell if you need to pay estimated taxes is to review your bookkeeping. I'll need your total business income and your total business miles from your mileage log along with the items mentioned above to determine if you need to pay estimated taxes. Do you have those records for the quarter?


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## OLDSCHOOLPARAD

UberTaxPro said:


> Are the lines dependent on each other? In other words could you drop the $60 phone and keep the $20 phone?


Yes they are. You can drop the $20 and keep the $60 but not vice versa.


----------



## UberTaxPro

OLDSCHOOLPARAD said:


> Yes they are. You can drop the $20 and keep the $60 but not vice versa.


I would treat it as one $80 phone plan and deduct by % of business use. So if business use is 50% I'd deduct $40


----------



## Frank C

I'm sorry if this has already been asked, but I would prefer to not read this entire thread. Let's say I drove 10,000 miles and earned $6,200.00 driving this year. Is the full dollar amount of the write off (example: 10,000 miles @ $0.545/mile = $5,450.00) deducted from the money earned while driving? It would appear of this were the case than I would show very little earnings from driving, and hence pay taxes on a relatively small portion of my earnings. Is this correct?


----------



## Older Chauffeur

Frank C said:


> I'm sorry if this has already been asked, but I would prefer to not read this entire thread. Let's say I drove 10,000 miles and earned $6,200.00 driving this year. Is the full dollar amount of the write off (example: 10,000 miles @ $0.545/mile = $5,450.00) deducted from the money earned while driving? It would appear of this were the case than I would show very little earnings from driving, and hence pay taxes on a relatively small portion of my earnings. Is this correct?


You have the right idea. Be sure to deduct the U/L fees from the gross amount they show. The result should match the total deposits to your bank account. Also, if your net profit is $400 or more, you will owe self employment taxes for social security and Medicare.

Disclaimer: I'm not a tax professional.


----------



## Frank C

Older Chauffeur said:


> You have the right idea. Be sure to deduct the U/L fees from the gross amount they show. The result should match the total deposits to your bank account. Also, if your net profit is $400 or more, you will owe self employment taxes for social security and Medicare.
> 
> Disclaimer: I'm not a tax professional.


Thanks for the input! I'm guessing the year end statement will only include my deposits, correct? So I write off mileage at the current rate against the deposits, and that's all? I don't pay for my cell phone (my other job provides my phone). What else can I reasonably write off? Thanks!


----------



## Older Chauffeur

Frank C said:


> Thanks for the input! I'm guessing the year end statement will only include my deposits, correct? So I write off mileage at the current rate against the deposits, and that's all? I don't pay for my cell phone (my other job provides my phone). What else can I reasonably write off? Thanks!


I don't drive for U/L, but my understanding is that the gross amount that they show is what the riders paid, including all fees. You show that on your Schedule C and then deduct their fees to get your gross, and then deduct your mileage and other expenses. These include any extras you provide to riders like water. If you get more than the normal amount of car washes (say over once a week) to keep your car clean for clients, a case could be made for that deduction. Maybe @UberTaxPro will comment. I hijacked his thread. ?


----------



## islanddriver

You can also deduct parking and toll fees that Uber does not collect from pax


----------



## SamuelB

Some drivers are under the impression that if you are online with Uber and Lyft at the same time you get to claim double the miles because you have both apps on. So basically they are claiming $1.16/mile because they have both apps on. I disagree since having both apps on does not increase your expenses and there is no way the IRS is going to let you double dip. Schedule C asks for total business miles you drove. It doesn't care if it is Uber or Lyft and you can't drive the same mile twice.
What say you?


----------



## UberTaxPro

SamuelB said:


> Some drivers are under the impression that if you are online with Uber and Lyft at the same time you get to claim double the miles because you have both apps on. So basically they are claiming $1.16/mile because they have both apps on. I disagree since having both apps on does not increase your expenses and there is no way the IRS is going to let you double dip. Schedule C asks for total business miles you drove. It doesn't care if it is Uber or Lyft and you can't drive the same mile twice.
> What say you?


You're 100% correct. Don't double dip unless it's an ice cream cone! The IRS holds you responsible for your record keeping, not Uber or Lyft.


----------



## LD598

Hey there UberTaxPro,

I have two questions for you if you’d be so kind as to indulge me. 

1. How would you recommend I calculate the percentage of my cell phone bill to write off as a deduction? Since cell phone crevice isn’t something that’s inherently tied to the vehicle, using the percentage of rideshare miles/total miles driven doesn’t make sense to me. I also don’t imagine there’s an easy way to calculate the cellular data used while driving rideshare as compared to total data used overall. My inclination is to claim half of my annual bill as an expense, but am curious to hear what your take is on this. 

2. Here in San Diego, the city requires rideshare drivers to pay for a business tax license every year. It’s horsesh*t, but it’s also another write off. However, coming into 2019, they were sending me notices that said I had to pay the fee for 2019 in full by January 1st. So, I incurred the expense in late December of 2018, even though the license was technically an expense for 2019. Can I still write this off as a 2019 expense or does the fact that I paid for it in late 2018 make that problematic?

Thanks much for your insight.


----------



## SamuelB

LD598 said:


> 1. How would you recommend I calculate the percentage of my cell phone bill to write off as a deduction? Since cell phone crevice isn't something that's inherently tied to the vehicle, using the percentage of rideshare miles/total miles driven doesn't make sense to me. I also don't imagine there's an easy way to calculate the cellular data used while driving rideshare as compared to total data used overall. My inclination is to claim half of my annual bill as an expense, but am curious to hear what your take is on this.


I'm not a tax expert nor do I play one on TV. I do claim 75% of my phone. I have no personal life so any review of my calls/text will show the majority are business related. I also save a copy of my iPhone Screen Time report every week wich shows the amount of time spent on each app. My work related apps are always the most.


----------



## UberTaxPro

LD598 said:


> Hey there UberTaxPro,
> 
> I have two questions for you if you'd be so kind as to indulge me.
> 
> 1. How would you recommend I calculate the percentage of my cell phone bill to write off as a deduction? Since cell phone crevice isn't something that's inherently tied to the vehicle, using the percentage of rideshare miles/total miles driven doesn't make sense to me. I also don't imagine there's an easy way to calculate the cellular data used while driving rideshare as compared to total data used overall. My inclination is to claim half of my annual bill as an expense, but am curious to hear what your take is on this.
> 
> 2. Here in San Diego, the city requires rideshare drivers to pay for a business tax license every year. It's horsesh*t, but it's also another write off. However, coming into 2019, they were sending me notices that said I had to pay the fee for 2019 in full by January 1st. So, I incurred the expense in late December of 2018, even though the license was technically an expense for 2019. Can I still write this off as a 2019 expense or does the fact that I paid for it in late 2018 make that problematic?
> 
> Thanks much for your insight.


Yes, you're correct there is no easy way to allocate cell phone bills. Pick a reasonable method stick with it consistently. Your 50% sounds reasonable as does @SamuelB method at 75% to me.

The business tax question depends: Did you deduct the expense in 2018? if yes you can't deduct again in 19.

It also depends on your accounting method which is a selection you make on your tax return. If you've selected *accrual*, then yes, you can deduct in 2019. If you selected *cash,* then no, you can't deduct in 2019.

With the cash method you can amend your 2018 return and take the deduction for 2018.


----------



## LD598

Thanks for the feedback. I used the cash method in 2018 since that seems to be how both Lyft and Uber do their end of year accounting. I did not write this expense (2019 license) off in 2018, but I did write that year’s Business Tax license off, which was charged in January of 2018. Sounds like I’m SOL on this one since I paid the tab for 2019 in 2018 and use the cash method. Lesson learned. I’ll be sure to pay the fee for 2020 on January 1st, 2020.


----------



## Darrell Green Fan

So will the Uber app track miles even if you are outside of your territory where you can accept rides? In theory someone could drive to California and deduct all the miles even though they aren't really ride share driving.


----------



## Older Chauffeur

Darrell Green Fan said:


> So will the Uber app track miles even if you are outside of your territory where you can accept rides? In theory someone could drive to California and deduct all the miles even though they aren't really ride share driving.


I'm in California. Don't do it, it's not worth it.


----------



## NTXDFWDriver2017

Launchpad McQuack said:


> I went to H&R Block once years ago because I got tangled up in an OID and didn't know how to handle it from a tax perspective. Never again. The woman that I worked with there was clueless. After about 20 minutes, it became painfully clear to me that I understood this stuff better than she did. Lesson learned. The only time you go to H&R Block is if you have a very simple return that you can do yourself, and if that is the case, why go to H&R Block at all?


Dont go to hr and block for taxes they have no idea on how to file taxes as a rideshare driver!


----------



## MrLightRail

Rich C said:


> Can I deduct miles from home to the first ride? Also between rides the mileage ? If so I will go back and add up all those miles. Also will keep track from here on. Is using UBER weekly sheet best for proof? Thanks in advance for any info. Retired but don't want to end up paying taxes I don't have to.


If you have your app on, and available for pickups, yes.I do this on the oft chance I'll get a rider on my way to my "hunting grounds".


----------



## simont23

LelioDriver said:


> I have a question,
> Uber is a second job for me.
> Do I have to pay 32,5% tax plus GST of every trip that I receive? Or the GST will be deducted from the 32.5^ of tax?
> Thank you


That's exactly how Uber survives. Relying on people who are unable to work out obvious stuff.


----------



## Darrell Green Fan

MrLightRail said:


> If you have your app on, and available for pickups, yes.I do this on the oft chance I'll get a rider on my way to my "hunting grounds".


It's my understanding that the first ride out and the ride back home is NOT deductible as the IRS considers that a commute.


----------



## islanddriver

That seams to be a Gray area. What I do is start my app 2 miles from my house and end 2 miles from house. This way commute is those 2 miles each way.


----------



## FLKeys

Darrell Green Fan said:


> It's my understanding that the first ride out and the ride back home is NOT deductible as the IRS considers that a commute.


When it comes to some one like a traveling nurse or salesman than yes these are commute miles. If you do rideshare in one particular area away from where you live one could argue that you have commute miles. However if you are sitting at home with the app on and accept a trip and drive to it I think you could argue you were actively looking for or doing work and those miles are not commute miles.

In my case I have a day job. When I am done there I turn on the app and run trips to where ever they take me. As things slow down I make my way toward home with the app still running and still actively looking for rides. To me these are not commute miles as I am still looking for work. When I get home I leave the app on and am still actively looking for work for at least an hour if not more. So I am still not commuting at that point. Also I maintain a desk and work space at home to keep all my records up to date daily when I get home, so in theory I am still working and not commuting.

When I leave my house on my way to work I do turn on the app in destination mode to my place of employment. I do consider these commute miles and do not record them as an expense. If I do get a ride I will record the miles from the time I accepted the ride until I dropped off the PAX as business miles. The remaining miles to work are than considered commute miles.

I may be able to include all the morning miles as business miles since I am technically looking for work but I don't as I feel it is outside the spirit of the commute/business miles standard.

My thinking may be wrong


----------



## Darrell Green Fan

FLKeys said:


> When it comes to some one like a traveling nurse or salesman than yes these are commute miles. If you do rideshare in one particular area away from where you live one could argue that you have commute miles. However if you are sitting at home with the app on and accept a trip and drive to it I think you could argue you were actively looking for or doing work and those miles are not commute miles.
> 
> In my case I have a day job. When I am done there I turn on the app and run trips to where ever they take me. As things slow down I make my way toward home with the app still running and still actively looking for rides. To me these are not commute miles as I am still looking for work. When I get home I leave the app on and am still actively looking for work for at least an hour if not more. So I am still not commuting at that point. Also I maintain a desk and work space at home to keep all my records up to date daily when I get home, so in theory I am still working and not commuting.
> 
> When I leave my house on my way to work I do turn on the app in destination mode to my place of employment. I do consider these commute miles and do not record them as an expense. If I do get a ride I will record the miles from the time I accepted the ride until I dropped off the PAX as business miles. The remaining miles to work are than considered commute miles.
> 
> I may be able to include all the morning miles as business miles since I am technically looking for work but I don't as I feel it is outside the spirit of the commute/business miles standard.
> 
> My thinking may be wrong


No your thinking is logical. Problem is IRS auditors tend to be pretty black and white. And since they are judge and jury and their word is final why take the chance? I think I'll play it safe and not claim those miles in case I get a hard ass auditor. When I file I just want to know I won't have issues down the road, the piece of mind is worth the extra few dollars in tax savings, so I tend to play it safer than most.


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## kcchiefsfan1982

Someone told me that when tracking miles, I cannot simply just track the amount from when I started while on the clock to when I finished...but for each destination, I have to have the start & stop address...in other words, my daily log of miles would be 12 lines if I did 12 trips instead of just (1) line on the excel spreadsheet.

Is this true? If so...ughh!!


----------



## NotanEmployee

acro5084 said:


> Backtracking a bit on mileage-
> 
> 1. I live about 20 miles away from the biggest city in my market. I mostly turn the app on when I leave the house but head in that direction until I get a ride and deduct these miles. What if I drive from home with the app off, but with the intent to better position myself for business? Like it is Saturday night downtown or there is a concert and I want to make sure I'm closer when it lets out. Would you consider these deductible or commuting?
> 2. When I'm done for the night I will often turn off the app to go home. It is mostly for safety as I get tired or I'm uncomfortable driving after a certain hour. Sometimes I'm 10 miles from home and other times I'm 30 miles. Would you consider all of these commuting miles no matter how far I away I am?
> 3. Does having a home office (and taking the deduction for it) impact the answer to either of the above questions?
> 4. What about when I drop off a passenger in a neighboring town and then drive back toward my normal area with the app off? I will often drive at least part of the way back with the app off either because I'm very unfamiliar with the area or I believe my normal area is more profitable. I hate not having Uber destination mode.
> 5. I drive a car that is titled in my husbands name only. We file jointly and things like insurance are joint. Any issues with me deducting miles?
> 
> Thank you!!


i would never claim miles with the app off. if the app is off you are not working. it would be commuting. the IRS doesnt care how well intentioned you are. either dont count those miles or find a way to game the system. i use DF and will do select only to reduce chances....but if i get a ping ill take it. if i really dont want a ping i turn it off and end tracking miles.



kcchiefsfan1982 said:


> Someone told me that when tracking miles, I cannot simply just track the amount from when I started while on the clock to when I finished...but for each destination, I have to have the start & stop address...in other words, my daily log of miles would be 12 lines if I did 12 trips instead of just (1) line on the excel spreadsheet.
> 
> Is this true? If so...ughh!!


this is true for destination travel. from point A to point B. but they allow route miles which is what uber is. a route would be from the moment you turn the app on until you turn it off. for me the start and end address is my house.


----------



## kcchiefsfan1982

this is true for destination travel. from point A to point B. but they allow route miles which is what uber is. a route would be from the moment you turn the app on until you turn it off. for me the start and end address is my house.
[/QUOTE]

Ok, thank goodness! Some guy on this forum was telling me that the IRS will not accept just putting start to finish route...but that I had to do a line item for every single drive! I did not want to have to track it that detailed!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Thanks!


----------



## NotanEmployee

kcchiefsfan1982 said:


> this is true for destination travel. from point A to point B. but they allow route miles which is what uber is. a route would be from the moment you turn the app on until you turn it off. for me the start and end address is my house.


Ok, thank goodness! Some guy on this forum was telling me that the IRS will not accept just putting start to finish route...but that I had to do a line item for every single drive! I did not want to have to track it that detailed!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Thanks!
[/QUOTE]
id go nuts if i had to have addresses, time, odometer for each ride start and end...plus miles in between rides are deductible. sometimes i start or end at a beach or hiking path....so many non address places. even uber lists the address as "US"

i researched this as well. also it was found in a court case that ubers mileage tracking is admissible. any tracking you do on your own will back that up and vice versa. i havent had a tax year yet to compare the uber records to my own though.


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## islanddriver

I don't take any chances I use trip log it gives you allmile for each trip puls address.its free for one month then $40 per year well worth it to be safe.


----------



## UberTaxPro

NotanEmployee said:


> Ok, thank goodness! Some guy on this forum was telling me that the IRS will not accept just putting start to finish route...but that I had to do a line item for every single drive! I did not want to have to track it that detailed!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
> 
> Thanks!


id go nuts if i had to have addresses, time, odometer for each ride start and end...plus miles in between rides are deductible. sometimes i start or end at a beach or hiking path....so many non address places. even uber lists the address as "US"

i researched this as well. also it was found in a court case that ubers mileage tracking is admissible. any tracking you do on your own will back that up and vice versa. i havent had a tax year yet to compare the uber records to my own though.
[/QUOTE]
You should still keep your own log because you might have more business miles than Uber tracks. It is true that that the IRS regulations require you to keep your own log with business destinations marked. You might ultimately be allowed your deductions with the court case on your side but it won't be without effort. First the IRS will request your log and will disallow your deductions without the log. Next you'll have to appeal that ruling with the office of appeals. If that doesn't work you'll have to go to tax court yourself. Overall it's much easier and less expensive to keep a log.


----------



## FLKeys

kcchiefsfan1982 said:


> Someone told me that when tracking miles, I cannot simply just track the amount from when I started while on the clock to when I finished...but for each destination, I have to have the start & stop address...in other words, my daily log of miles would be 12 lines if I did 12 trips instead of just (1) line on the excel spreadsheet.
> 
> Is this true? If so...ughh!!


I track every leg of my driving. Start to first pick-up,Pick-up to drop off, drop off to next pick-up, etc. I record mileage, address, and description of place (residence, name of business, etc). Sound like a lot, but get into the habit and it really is not. I can make a written entry in my notebook in the time the PAX is getting in and or out. I found Steno Pads work great for me. My entries look like this.









Then I enter them into a spread sheet with more detail:










And that becomes my mileage log for the IRS


----------



## NotanEmployee

UberTaxPro said:


> You should still keep your own log because you might have more business miles than Uber tracks. It is true that that the IRS regulations require you to keep your own log with business destinations marked. You might ultimately be allowed your deductions with the court case on your side but it won't be without effort. First the IRS will request your log and will disallow your deductions without the log. Next you'll have to appeal that ruling with the office of appeals. If that doesn't work you'll have to go to tax court yourself. Overall it's much easier and less expensive to keep a log.


yes i keep a log of start and end odometer as well as gps route via stride tax app. im covered 3 ways. ?


----------



## michael7227

Hi UberTaxPro,

I'm late filing and have a friend doing my taxes. He did them but did not file them. I have the PDF. He has seemed to drop the ball at this point and I am running against clocks.

Should I just print them out and send them in with his preparer signature already on it? (compensate him when he decides to call me back)

What would you do here?


----------



## UberTaxPro

michael7227 said:


> Hi UberTaxPro,
> 
> I'm late filing and have a friend doing my taxes. He did them but did not file them. I have the PDF. He has seemed to drop the ball at this point and I am running against clocks.
> 
> Should I just print them out and send them in with his preparer signature already on it? (compensate him when he decides to call me back)
> 
> What would you do here?


How has he "dropped the ball"? Is he communicating with you? Have you asked him if the returns are ready to file? Do you owe money? Did you file an extension?


----------



## Amsoil Uber Connect

Your preparer signed them, so he did his part. So now you get to give up your 5th Amendment right and sign it and send it in asap. Because your late filing interest rate clock is still running. The IRS is still waiting for the Assessment that you are creating to match up with the records they already have on you. If you don't create one , they will do it for you.


----------



## nickclinic

OrlUberOffDriver said:


> That is insane about your CE requirements!
> I'm in the medical field and only need 20 biannually.
> In any case payment wise can accept any other type, such as a cash app, zelle or any other? I do not care for PayPal.


What you do in medical field? PM!


----------



## michael7227

UberTaxPro said:


> How has he "dropped the ball"? Is he communicating with you? Have you asked him if the returns are ready to file? Do you owe money? Did you file an extension?


Communicating once a week with several requests from me to just file so I can pay you or vice versa. Is busy though with his real job and relatives in town. He finished a month ago and I'm just trying to pay and file or vice versa. No ext. I owe relatively small amounts. Returns are ready I looked them over a month ago.

I have texted emailed called and am clearly on the back burner.


----------



## UberTaxPro

michael7227 said:


> Communicating once a week with several requests from me to just file so I can pay you or vice versa. Is busy though with his real job and relatives in town. He finished a month ago and I'm just trying to pay and file or vice versa. No ext. I owe relatively small amounts. Returns are ready I looked them over a month ago.
> 
> I have texted emailed called and am clearly on the back burner.


Why isn't he e-filing the return for you? Why are you able to print the return? Did he prepare them on your software?


----------



## Amsoil Uber Connect

michael7227 said:


> Communicating once a week with several requests from me to just file so I can pay you or vice versa. Is busy though with his real job and relatives in town. He finished a month ago and I'm just trying to pay and file or vice versa. No ext. I owe relatively small amounts. Returns are ready I looked them over a month ago.
> 
> I have texted emailed called and am clearly on the back burner.


Is there any reason why you can't look up the address' and snail mail them in your self ?


----------



## Fuzzyelvis

BigRedDriver said:


> I do have a question that was posed to me yesterday by a buddy of mine who's daughter drives for "shiped".
> 
> He accountant told her that she could deduct zero miles for her work delivering for them. To me that sounds absurd as she is considered an independent contractor.
> 
> He told her that, because she does not own the company she can't claim the miles. She was issued a 1099.
> 
> Comment?


She needs a new accountant. Did she keep a log?


----------



## Fuzzyelvis

TKDmom said:


> I just started with Uber Eats 2 weeks ago as a Second (well third) job. I use it for fun money. I want to pay quarterly, so it doesn't bite me in the ass later, but how do I do that with a full time job and a part time job that does take taxes out? I am also married. Do I just pay quarterly filing as single and only on Uber Eats income? Or do I need to pay quarterly for all my earnings, and with my husband? We always have more taken out of our taxes, so we receive a refund each year.


You probably have very little income after mileage. What you can do if you think you'll have a profit and owe taxes on it is adjust your withholding at your regular job. With two jobs that's often necessary anyway, because each job assumes it's the only one and may not take out enough if you're put into a higher tax bracket.

If you change the number of allowances on your W4 to a lower number more taxes will be withheld. You can even ask for more to be taken out as a % or dollar amount (been a while since I've done this so I don't remember which) even if you've put 0 allowances.

The W4 is the form you filled out when hired. You can always adjust it. Many employers have it online these days.
Link below shows what I mean and may help.

https://www.paycheckcity.com/pages/article.php?page=Understanding-W-4-Allowances-Can-Be-A-Reality


LD598 said:


> Thanks for the feedback. I used the cash method in 2018 since that seems to be how both Lyft and Uber do their end of year accounting. I did not write this expense (2019 license) off in 2018, but I did write that year's Business Tax license off, which was charged in January of 2018. Sounds like I'm SOL on this one since I paid the tab for 2019 in 2018 and use the cash method. Lesson learned. I'll be sure to pay the fee for 2020 on January 1st, 2020.


You can still amend. I don't see why you can't write off both if you paid them both in the same year.


----------



## Charbenji

UberTaxPro said:


> Rideshare tax Ask Me Anything


I have a tax deduction question. I'm on a family members cell phone account in which I pay her $100 for my share. Can I deduct those $100 that I pay to her directly every month? I typically rideshare 2 nights out of the week, maybe 12-16 hours per week. I don't have access to her bill statements, I only have my payment transfers that I send her though Zelle on my bank app.


----------



## islanddriver

First you can only deduct the work part of the cell phone. After saying that your deduction would only be about 10% of the bill or $10.


----------



## UberTaxPro

Charbenji said:


> I have a tax deduction question. I'm on a family members cell phone account in which I pay her $100 for my share. Can I deduct those $100 that I pay to her directly every month? I typically rideshare 2 nights out of the week, maybe 12-16 hours per week. I don't have access to her bill statements, I only have my payment transfers that I send her though Zelle on my bank app.


Like @islanddriver stated above you have to prorate the business % of anything that is used for personal & business. If "her" is your wife ownership of the phone is not an issue. If "her" is not your wife you should have a written agreement with "her" as to what the zello receipts are for.


----------



## Older Chauffeur

Wow, a family plan is $100 for one member? I’m by myself and pay $50 a month with unlimited everything.


----------



## FLKeys

Since Lyft stooped sharing what the rider pays on a per ride basis and only plans on giving us a weekly summary what potential tax implications can this have?

Without this information how can I provide the IRS a detailed breakdown of my income if they were to ask for it? I know it most likely will never be asked for however the question needs to be asked.


----------



## Older Chauffeur

FLKeys said:


> Since Lyft stooped sharing what the rider pays on a per ride basis and only plans on giving us a weekly summary what potential tax implications can this have?
> 
> Without this information how can I provide the IRS a detailed breakdown of my income if they were to ask for it? I know it most likely will never be asked for however the question needs to be asked.


If I understand your question correctly, I think it boils down to this- what Lyft/Uber charges the pax doesn't affect the gross income they pay you, which is all you need to show on Schedule C. If you had a regular job assembling widgets, your W-2 wouldn't show how much the company made selling the widgets you made, instead only what they paid you. The only breakdown on Schedule C is gross income minus expenses equals net profit.

Disclosure: I'm not a tax professional.


----------



## Hamptons driver

Question about tax deductions regarding vehicles:
Drove an older fully paid off car (read little expense) from Jan till August and as I did last year planned to take the standard mileage deduction. 
In August I got a new used car (car payment, higher insurance etc...) and I’m wondering if I must stick to the mileage deduction or I can write off the applicable actual expenses?

On car number 1 I saved zero receipts for gas, maintenance etc..on car two I have every last dime documented.

What are my options?

Thanks.


----------



## Older Chauffeur

Hamptons driver said:


> Question about tax deductions regarding vehicles:
> Drove an older fully paid off car (read little expense) from Jan till August and as I did last year planned to take the standard mileage deduction.
> In August I got a new used car (car payment, higher insurance etc...) and I'm wondering if I must stick to the mileage deduction or I can write off the applicable actual expenses?
> 
> On car number 1 I saved zero receipts for gas, maintenance etc..on car two I have every last dime documented.
> 
> What are my options?
> 
> Thanks.


From IRS Publication 510- "To use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Then, in later years, you can choose to use the standard mileage rate or actual expenses."

It looks to me like you might want to stay with the SMR, to give you flexibility down the road. You might be able to still claim the sales tax and license on the new car. I'm not a tax professional, but @UberTaxPro is, so let's see what he has to say. Is the new car strictly for business, or combined business/personal use?


----------



## UberTaxPro

Hamptons driver said:


> Question about tax deductions regarding vehicles:
> Drove an older fully paid off car (read little expense) from Jan till August and as I did last year planned to take the standard mileage deduction.
> In August I got a new used car (car payment, higher insurance etc...) and I'm wondering if I must stick to the mileage deduction or I can write off the applicable actual expenses?
> 
> On car number 1 I saved zero receipts for gas, maintenance etc..on car two I have every last dime documented.
> 
> What are my options?
> 
> Thanks.


I'd need to run the numbers and take all your circumstances into consideration to answer with 100% certainty but for most the SMR is the best route to take. Like @Older Chauffeur said if you start the new vehicle using actual expenses you'll have to continue that method for the life of the car. The first year deductions you'd get using actual expenses are very tempting but you'll pay dearly for it in future years. Things to consider are how long you'll be doing ride-share with this new vehicle and your income and tax liability from other sources. Odds are that SMR is the best way to go.


----------



## Bevital

UberTaxPro said:


> Rideshare tax Ask Me Anything


Can you tell me who to contact to get a corrected 1099 . . . the support desk is clueless.


----------



## UberTaxPro

Bevital said:


> Can you tell me who to contact to get a corrected 1099 . . . the support desk is clueless.


Maybe go to a greenlight hub and refuse to leave till you get an answer? If you're unable to get the corrected 1099 you can still report the corrected amount on your tax return with an explanation.


----------



## islanddriver

What's wrong with the one you have?


----------



## FLKeys

Older Chauffeur said:


> If I understand your question correctly, I think it boils down to this- what Lyft/Uber charges the pax doesn't affect the gross income they pay you, which is all you need to show on Schedule C. If you had a regular job assembling widgets, your W-2 wouldn't show how much the company made selling the widgets you made, instead only what they paid you. The only breakdown on Schedule C is gross income minus expenses equals net profit.
> 
> Disclosure: I'm not a tax professional.


And what happens if the question my gross income? I can't provide detailed records of my transactions to get that number any more, only weekly summaries. A W-2 job your W-2 shows what you were paid and can be verified with the employer filing that information. But this is not a W-2 job.

A 1099 job you are responsible for keeping detailed records of your income and if your income should come into question the IRS may ask to see it. Oh here you go, here are my summaries from Lyft and my detailed records from Uber. How will that fly with the IRS?


----------



## Older Chauffeur

FLKeys said:


> And what happens if the question my gross income? I can't provide detailed records of my transactions to get that number any more, only weekly summaries. A W-2 job your W-2 shows what you were paid and can be verified with the employer filing that information. But this is not a W-2 job.
> 
> A 1099 job you are responsible for keeping detailed records of your income and if your income should come into question the IRS may ask to see it. Oh here you go, here are my summaries from Lyft and my detailed records from Uber. How will that fly with the IRS?


The only other thing I can suggest is your using records of deposits from U/L into your bank accpunt. The total amount you were paid is your gross before expenses and reimbursement for tolls, etc.


----------



## Fuzzyelvis

FLKeys said:


> And what happens if the question my gross income? I can't provide detailed records of my transactions to get that number any more, only weekly summaries. A W-2 job your W-2 shows what you were paid and can be verified with the employer filing that information. But this is not a W-2 job.
> 
> A 1099 job you are responsible for keeping detailed records of your income and if your income should come into question the IRS may ask to see it. Oh here you go, here are my summaries from Lyft and my detailed records from Uber. How will that fly with the IRS?


Probably go over just fine because I bet you're not the only driver they're dealing with.

If you don't have records how do you know the 1099 is wrong in the first place?


----------



## islanddriver

The 1099 is what they send to the irs . So just go by that.


----------



## FLKeys

I just don't trust them to report the correct numbers, I found errors in my 2018 numbers and could never get them to correct it. They reported more than what I received. My Uber numbers matched to the penny.


----------



## EphLux

I use Triplog2 and logged 50k miles driving Uber Lyft. Lost money, but made it up on the tax break.


----------



## OrignalDriver

UberTaxPro said:


> Rideshare tax Ask Me Anything


I'm been driving for Uber for about 2 years I have always been confuse on what can I claim in my taxes... Do you know what can I claim as an Uber driver on my taxes? Thanks!


----------



## 2kwik4u

@UberTaxPro

I'm curious about deductions related to a leased vehicle. Can I claim only my mileage or can I claim my payment as well?

I know of several businesses that claim the entire payment spent as a deduction, however they are operating under an LLC or similar incorporating title. How does this work as an individual/sole proprietor?


----------



## Dekero

I didn't take the time to actually LOG MILES this year, thinking the U/L year end forms would cover it... I know dumb... Anyway.. what % do you think would be safe to bump my year end mileage total by... So if U/L say I did 30,000 miles can I safely add 10-20-30% to that total and not expect to flag an audit? 

Anyone have a good guess here my plan is 20% worse case they call me on it and I can't produce records and owe it back...

Thoughts?


----------



## Hamptons driver

Dekero....sherpa share app is your friend.


----------



## UberTaxPro

2kwik4u said:


> @UberTaxPro
> 
> I'm curious about deductions related to a leased vehicle. Can I claim only my mileage or can I claim my payment as well?
> 
> I know of several businesses that claim the entire payment spent as a deduction, however they are operating under an LLC or similar incorporating title. How does this work as an individual/sole proprietor?


With a leased vehicle you must select either mileage or actual expenses just like a vehicle you own. Lease payments can be deductible but not when using mileage method.

LLC's can elect to be treated as S corps, C corps or as a pass thru entity (same as individual/sole proprietor). With the new tax law in 2017 individual /sole proprietors now share pretty much the same advantages as corporate entities. Incorporating might help you with legal issues but from a tax perspective in most cases there's not much gained by a rideshare businesses incorporating. If your business should start making $80K+ you might gain an advantage as an S corp or an LLC taxed as an S corp with regards to self employment taxes.


----------



## Older Chauffeur

Also, with a lease whichever method you choose the first year, SRM or actual expenses, you’re stuck with it for the full term of the lease.


----------



## LADryver

Good marketing. The owner of my past tax office used to rely heavily on marketing. Location, ad size, testimonials, anonymous case histories, and features. We were in the heart of Hollywood. California. It has been a very long time since I prepared a tax return. I do not recommend referrals to CPA's or Tax Attorneys, and agree about EA. EA being Enrolled Agent, a certified/tested tax practitioner. I am a former IRS employee. I used to like the way that they trained me in the classroom. I also liked the recognition of knowledge that I got. I helped people in Audit Reconsideration, after I filed their appeals. No longer can someone not an EA do that. But it was very rewarding. I worked in total for seven years in tax, first public for government wage, then private, for profit. 

I believe you want in earnest to help solve the tax problems here. I may introduce (like I have done already) some uncommonly understood concepts. I hope you have good luck.


----------



## UberTaxPro

LADryver said:


> Good marketing. The owner of my past tax office used to rely heavily on marketing. Location, ad size, testimonials, anonymous case histories, and features. We were in the heart of Hollywood. California. It has been a very long time since I prepared a tax return. I do not recommend referrals to CPA's or Tax Attorneys, and agree about EA. EA being Enrolled Agent, a certified/tested tax practitioner. I am a former IRS employee. I used to like the way that they trained me in the classroom. I also liked the recognition of knowledge that I got. I helped people in Audit Reconsideration, after I filed their appeals. No longer can someone not an EA do that. But it was very rewarding. I worked in total for seven years in tax, first public for government wage, then private, for profit.
> 
> I believe you want in earnest to help solve the tax problems here. I may introduce (like I have done already) some uncommonly understood concepts. I hope you have good luck.


Thanks and I'm looking forward to more uncommonly understood concepts!!!


----------



## lyft_rat

Dekero said:


> I didn't take the time to actually LOG MILES this year, thinking the U/L year end forms would cover it... I know dumb... Anyway.. what % do you think would be safe to bump my year end mileage total by... So if U/L say I did 30,000 miles can I safely add 10-20-30% to that total and not expect to flag an audit?
> 
> Anyone have a good guess here my plan is 20% worse case they call me on it and I can't produce records and owe it back...
> 
> Thoughts?


I have not filed Uber yet as this is my first year (but I have lots of general experience in tax deductions) but I would say it is safe to take miles you earned money on (if you did not record those you can take your actual earnings and deduce the miles approximately) then DOUBLE the miles to account for deadheading. I think this is safe. BTW this should make you very close to tax free on Uber earnings. In my case I use a certain car for Uber only (that is my story) and every week I log the total miles driven from the trip meter. I would not be so aggressive if it was the only income I was showing. They like you to pay at least some tax. Standard software like TurboTax is essential for this and will tell you audit probabilities. You better be able to prove that your car at least went that many miles. In MA that is easy from the annual state inspection.


----------



## UberTaxPro

lyft_rat said:


> I have not filed Uber yet as this is my first year (but I have lots of general experience in tax deductions) but I would say it is safe to take miles you earned money on (if you did not record those you can take your actual earnings and deduce the miles approximately) then DOUBLE the miles to account for deadheading. I think this is safe. BTW this should make you very close to tax free on Uber earnings. In my case I use a certain car for Uber only (that is my story) and every week I log the total miles driven from the trip meter. I would not be so aggressive if it was the only income I was showing. They like you to pay at least some tax. Standard software like TurboTax is essential for this and will tell you audit probabilities. You better be able to prove that your car at least went that many miles. In MA that is easy from the annual state inspection.


You guys @Dekero & @lyft_rat remind me of an old Rolling Stones song "Play with fire"


----------



## LADryver

Dekero said:


> I didn't take the time to actually LOG MILES this year, thinking the U/L year end forms would cover it... I know dumb... Anyway.. what % do you think would be safe to bump my year end mileage total by... So if U/L say I did 30,000 miles can I safely add 10-20-30% to that total and not expect to flag an audit?
> 
> Anyone have a good guess here my plan is 20% worse case they call me on it and I can't produce records and owe it back...
> 
> Thoughts?


You now know that you must. IRS requires (big word) "contemporaneous" record keeping. It means you have to record it as you go so that mistakes are avoided. It is in the discretion of the auditor if you are audited, to disallow or allow any or all car deductions if you can not produce such proof. To maximize the allowability, and since it is before the end of the year, you can begin a very simple system for November and December and reconstruct January to October. The reconstruction is to be realistic and is not estimated for the most part. You should add up your repetitive personal driving, such as dropping kids off to school and picking them up. Such as any work commute. Such as a routine shopping outing. Such as a vacation round trip. Add all those up. It should take a half hour to remember and handle this part. This is your absolute personal miles. Estimated miles would be added for incidental errands. Maybe you can justify as low as 10 percent of the total miles from January to October. Use the nearest car repair record for that start if you can. The remainder are your business miles. All of them. Nevermind the app. Nevermind when you drove around waiting for pings. All of it with one exception. If you travel before becoming available, the interceding miles are personal like a commute. From the time you become available for any work, to the time you switch off, all your miles are business miles. You should have the help of a tax professional who is experienced handling audits.


----------



## UberTaxPro

LADryver said:


> You now know that you must. IRS requires (big word) "contemporaneous" record keeping. It means you have to record it as you go so that mistakes are avoided. It is in the discretion of the auditor if you are audited, to disallow or allow any or all car deductions if you can not produce such proof. To maximize the allowability, and since it is before the end of the year, you can begin a very simple system for November and December and reconstruct January to October. The reconstruction is to be realistic and is not estimated for the most part. You should add up your repetitive personal driving, such as dropping kids off to school and picking them up. Such as any work commute. Such as a routine shopping outing. Such as a vacation round trip. Add all those up. It should take a half hour to remember and handle this part. This is your absolute personal miles. Estimated miles would be added for incidental errands. Maybe you can justify as low as 10 percent of the total miles from January to October. Use the nearest car repair record for that start if you can. The remainder are your business miles. All of them. Nevermind the app. Nevermind when you drove around waiting for pings. All of it with one exception. If you travel before becoming available, the interceding miles are personal like a commute. From the time you become available for any work, to the time you switch off, all your miles are business miles. You should have the help of a tax professional who is experienced handling audits.


Many on here believe the IRS has to prove the taxpayer did something improper in an audit. They're often surprised when they find out that the burden of proof falls 100% on them. If you want to pay the least amount of taxes legally allowed you'll need a reliable contemporaneous record keeping system. There really isn't any shortcuts.


----------



## LADryver

UberTaxPro said:


> Many on here believe the IRS has to prove the taxpayer did something improper in an audit. They're often surprised when they find out that the burden of proof falls 100% on them. If you want to pay the least amount of taxes legally allowed you'll need a reliable contemporaneous record keeping system. There really isn't any shortcuts.


Right. There are no shortcuts. But all is not lost if you begin late. As for what an audit is, it is an examination of the correctness of the return, and the auditor is not interested in dressing down a return. They will bend over backwards to permit a deduction. My message, is that you should give them substance to work with you.


----------



## Hamptons driver

So back to my question as I’m still not sure, is it possible to do actual expenses on my new car when I did mileage deduction on my old car both being used this year with no crossover?


----------



## LADryver

Hamptons driver said:


> So back to my question as I'm still not sure, is it possible to do actual expenses on my new car when I did mileage deduction on my old car both being used this year with no crossover?


You have to use a professional who will know how to show the change on the tax return. They can also help you decide how much depreciation, and which method, is appropriate to take in the first year of the use of the new car (new or used).

You can not use two methods (actual vs mileage) for the same car but once you start using a different car, you can change your method and never use another method for the same car in future years.


----------



## UberTaxPro

Hamptons driver said:


> So back to my question as I'm still not sure, is it possible to do actual expenses on my new car when I did mileage deduction on my old car both being used this year with no crossover?


I think this was answered already...yes you can use the actual expense method with the new vehicle but it might not be the best thing to do from a long term tax planning perspective.


----------



## LADryver

UberTaxPro said:


> I think this was answered already...yes you can use the actual expense method with the new vehicle but it might not be the best thing to do from a long term tax planning perspective.


I have seen good results from the actual expense method. But there is more to know about it before deciding. Check with your tax professional and don't be vague. Let them help you see ahead.


----------



## Older Chauffeur

LADryver said:


> You can not use two methods (actual vs mileage) for the same car but once you start using a different car, you can change your method and never use another method for the same car in future years.


This is not correct. From IRS Publication 463- 
"Choosing the standard mileage rate.
If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your busi- ness. Then, in later years, you can choose to use either the standard mileage rate or actual expenses.
If you want to use the standard mileage rate for a car you lease, you must use it for the entire lease period. For leases that began on or be- fore December 31, 1997, the standard mileage rate must be used for the entire portion of the lease period (including renewals) that is after 1997"


----------



## UberTaxPro

Older Chauffeur said:


> This is not correct. From IRS Publication 463-
> "Choosing the standard mileage rate.
> If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your busi- ness. Then, in later years, you can choose to use either the standard mileage rate or actual expenses.
> If you want to use the standard mileage rate for a car you lease, you must use it for the entire lease period. For leases that began on or be- fore December 31, 1997, the standard mileage rate must be used for the entire portion of the lease period (including renewals) that is after 1997"


With the same car you can switch from mileage to actual but not from actual to mileage.


----------



## LADryver

Older Chauffeur said:


> This is not correct. From IRS Publication 463-
> "Choosing the standard mileage rate.
> If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your busi- ness. Then, in later years, you can choose to use either the standard mileage rate or actual expenses.
> If you want to use the standard mileage rate for a car you lease, you must use it for the entire lease period. For leases that began on or be- fore December 31, 1997, the standard mileage rate must be used for the entire portion of the lease period (including renewals) that is after 1997"


ok, I see. But the problem being faced with this is that there is no 1st year depreciation on such a car. You have to jump to year 2 or whichever, on the 4562 or any year that actual expenses apply. It means computing depreciation then going, next, and taking the 2nd or later calculation. And you are likely (I have not looked it up) limited to 5yrs schedule. In the first year you can choose how many years. Three is thought to be the best. Get through 3 years with the car and there is no Recapture.


----------



## Canaddar

What qualifies as contemporaneous records?

I made an excel spreadsheet when I started and have kept pretty meticulous records of my miles and many of my expenses. My miles are accurate as I know that I am about 99% likely to use mileage as my deduction method. But I also keep receipts for everything I can...gas, cleaning supplies, oil changes, car parts.....etc. I don't have every receipt (sometimes forget, or a late night gas pump won't print one). All of my receipts go into an envelope labeled by month just to save myself some trouble organizing it in the future if needed.

Will that qualify as contemporaneous records, or do I need to change how I am doing something? If audited, how do I prove that 9 months ago, I drove 115 miles on some random night? Do receipts help to support mileage logs (specifically gas receipts)?

Thanks for any pointers.


----------



## UberTaxPro

Canaddar said:


> What qualifies as contemporaneous records?
> 
> I made an excel spreadsheet when I started and have kept pretty meticulous records of my miles and many of my expenses. My miles are accurate as I know that I am about 99% likely to use mileage as my deduction method. But I also keep receipts for everything I can...gas, cleaning supplies, oil changes, car parts.....etc. I don't have every receipt (sometimes forget, or a late night gas pump won't print one). All of my receipts go into an envelope labeled by month just to save myself some trouble organizing it in the future if needed.
> 
> Will that qualify as contemporaneous records, or do I need to change how I am doing something? If audited, how do I prove that 9 months ago, I drove 115 miles on some random night? Do receipts help to support mileage logs (specifically gas receipts)?
> 
> Thanks for any pointers.


Qualifying as contemporaneous means the records used to support a claim on your tax return are created and originated at the same time as your claimed deduction.
Saved original receipts qualify as contemporaneous as does a spreadsheet mileage log that you record each day you work. 
Your mileage log will prove your 115 miles on a random night. Supporting documents like gas receipts and auto repair bills that have mileage recorded on a specific day can help support a mileage log if the contemporaneousness of it is being questioned or challenged.
On those rare occasions when a receipt is not available, a contemporaneously made note or journal entry will suffice.

Pics of receipts is a good idea in case the paper is lost or you just don't like saving paper. If the gas pump won't give you a receipt take a pic of the pump with the $ amount and you'll have a electronic receipt that's contemporaneous and dated by the camera.


----------



## FLKeys

I scan all my important receipts, these heat thermal receipts can go blank within a few months. Save them as a PDF and label them. Makes searching them up real easy.


----------



## LADryver

UberTaxPro said:


> Qualifying as contemporaneous means the records used to support a claim on your tax return are created and originated at the same time as your claimed deduction.
> Saved original receipts qualify as contemporaneous as does a spreadsheet mileage log that you record each day you work.
> Your mileage log will prove your 115 miles on a random night. Supporting documents like gas receipts and auto repair bills that have mileage recorded on a specific day can help support a mileage log if the contemporaneousness of it is being questioned or challenged.
> On those rare occasions when a receipt is not available, a contemporaneously made note or journal entry will suffice.
> 
> Pics of receipts is a good idea in case the paper is lost or you just don't like saving paper. If the gas pump won't give you a receipt take a pic of the pump with the $ amount and you'll have a electronic receipt that's contemporaneous and dated by the camera.


Do not take a pic of the pump. There is risk if ignition of fumes. Get a receipt from the cashier when the pump won't print it. Gas stations warn against cell phone use at pumps.


----------



## lyft_rat

LADryver said:


> Do not take a pic of the pump. There is risk if ignition of fumes. Get a receipt from the cashier when the pump won't print it. Gas stations warn against cell phone use at pumps.


Are you ****in' shittin' me believing that crap?


----------



## FLKeys

LADryver said:


> Do not take a pic of the pump. There is risk if ignition of fumes. Get a receipt from the cashier when the pump won't print it. Gas stations warn against cell phone use at pumps.


Those no cell phone signs on the gas pumps in Florida disappeared shortly after the episode of Myth Busters aired busting it.


----------



## Stevie The magic Unicorn

Not sure how taking a pic of the gas pumps is any danger, not like talking on the phone while pumping gas, completely different.


----------



## Johnny Mnemonic

Will ride-share drivers in California be allowed to take the standard mileage deduction starting in 2020 with AB5 kicking in?


----------



## UberTaxPro

Johnny Mnemonic said:


> Will ride-share drivers in California be allowed to take the standard mileage deduction starting in 2020 with AB5 kicking in?


Tony West, Uber chief legal officer, pledged that its drivers will remain independent contractors. Protect App-Based Drivers & Services has launched a 2020 ballot referendum to exempt ride-hailing apps from the rules of AB5.
The IRS doesn't base it's contractor vs employee decisions based on state law. So, until California actually does something to force U/L to comply or shuts them down, I think yes you'll be able to use the standard mileage rate for your vehicle expenses on your federal return. I believe that U/L will leave California if they find they're forced to put drivers on payroll.


----------



## kingcorey321

my question . will uber and lyft be giving 1099 k to everybody this year after they went public on the stock market.
last year there was zero 1099 issued if a person made less then 20k. your the tax pro lets see you get this one correct lol .


----------



## SHalester

Johnny Mnemonic said:


> Will ride-share drivers in California be allowed to take the standard mileage deduction starting in 2020 with AB5 kicking in?


if we get a 1099, certainly.


----------



## UberTaxPro

kingcorey321 said:


> my question . will uber and lyft be giving 1099 k to everybody this year after they went public on the stock market.
> last year there was zero 1099 issued if a person made less then 20k your the tax pro lets see you get this one correct lol .


I have no freakin idea what Uber will or will not do!


----------



## Fast&Furious12

Either way it sounds like we need to be organized and keep track of everything to make filing easier. Great tips.


----------



## ColtDelta

UberTaxPro said:


> Rideshare tax Ask Me Anything


Not exactly rideshare per se, but I do Uber and Lyft to get away from the computer and machine shop at times.

I have a six figure down payment check coming for a robotic systems contract. If I hold off on depositing the check until January will it be taxed as this years income or next? In 42 years this is the first time this has happened with only a couple weeks left in the tax year.

My accountant is unavailable until January 6.

Thanks in advance.


----------



## islanddriver

Payment is considered when cashed. So if you wait till January 1st that should be next year.


----------



## LD598

islanddriver said:


> Payment is considered when cashed. So if you wait till January 1st that should be next year.


That's not my impression. Pretty sure, even when using the cash method of accounting, income is considered "received" when it is made available to an individual without restriction or limitation. Since he already has the check (it was issued and delivered to him) it could be argued that he needs to count it for 2019 even if it's not cashed til 2020. Perhaps UberTaxPro could provide clarity.


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## UberTaxPro

LD598 said:


> That's not my impression. Pretty sure, even when using the cash method of accounting, income is considered "received" when it is made available to an individual without restriction or limitation. Since he already has the check (it was issued and delivered to him) it could be argued that he needs to count it for 2019 even if it's not cashed til 2020. Perhaps UberTaxPro could provide clarity.


You're correct...
"A taxpayer "constructively receives" income when a payer makes it available so that the taxpayer can draw upon it at any time, or so that the taxpayer could have drawn upon it during the taxable year if he or she had given notice of intention to withdraw. [Section 1.451-2(a) of the Regulations]. However, income is not constructively received if the taxpayer's control of its receipt is subject to a substantial restriction or limitation. "


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## ColtDelta

UberTaxPro said:


> You're correct...
> "A taxpayer "constructively receives" income when a payer makes it available so that the taxpayer can draw upon it at any time, or so that the taxpayer could have drawn upon it during the taxable year if he or she had given notice of intention to withdraw. [Section 1.451-2(a) of the Regulations]. However, income is not constructively received if the taxpayer's control of its receipt is subject to a substantial restriction or limitation. "


Thank you for the information Sir. With a little luck the check will be lost in the mail, what with the Holiday mail deliveries delayed.


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## FLKeys

ColtDelta said:


> Thank you for the information Sir. With a little luck the check will be lost in the mail, what with the Holiday mail deliveries delayed.


For a business year end can be challenging. Where I work during the day we want to take the sales this year so we book them right away and post payments as soon s we can. Some years we want to push year end sales to the next year, in those cases we send Quotes and book the sale when we deposit the payment. Which of course always gets lost in the mail and does not arrive until early January. We then convert the quote to an invoice to book the sale in January.


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## Uber's Guber

Many questions appear on UP.net regarding proper record-keeping for mileage logs to satisfy IRS requirements. You might want to post a sample picture of what a detailed mileage log should look like.


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## UberTaxPro

Uber's Guber said:


> Many questions appear on UP.net regarding proper record-keeping for mileage logs to satisfy IRS requirements. You might want to post a sample picture of what a detailed mileage log should look like.


Sample created in Trip log.... first trip at 12:30 is a paid trip, trip at 2:20 is dead miles to next pickup, trip at 3:51 is a paid trip, trip at 4:18 is dead miles to next pickup

VehicleDateDayStart TimeEnd TimeActivityBeginning OdometerEnding OdometerMileage (mi)From Location NameFrom Location AddressTo Location Address2015 Ford9/9/2019​Mon4:18 PM​5:21 PM​Uber102402​102438​36.2​210 Luna Trail Ext, Southbury, CT 06488426 Litchfield Rd, New Milford, CT 067762015
Ford9/9/2019​Mon3:51 PM​4:18 PM​Uber102389​102402​13.1​102 Church Hill Rd, Sandy Hook, CT 06482210 Luna Trail Ext, Southbury, CT 064882015 Ford9/9/2019​Mon2:20 PM​3:50 PM​Uber102372​102389​17​I-84 E, Brewster, NY 10509102 Church Hill Rd, Sandy Hook, CT 064822015 Ford9/9/2019​Mon12:30 PM​2:20 PM​Uber102350​102372​22​351 Main St, Danbury, CT 06810I-84 E, Brewster, NY 10509 commuter lot


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## LordBinky

Hmm, I haven't been keeping that kind of a mileage log, only the start and finish mileage from when I started until I finished each day I drove. So far, I've logged 6124 miles. Is it okay to use that total and calculate that at 58c/mile on my return?

Further advice sought: I drive Uber/Lyft when my regular job (tour bus driver) is in closed season (basically December to mid-April). Income tax and other deductions in that job are made by my employer. So far this year I've driven 6124 miles U/L miles, which at 58c/mile equals $3552.00 in round figures. Expenses to date amount to $2717.00. Income so far is $4650.00

1: So it's more beneficial to me to claim the standard mileage rate?
2: Am I entitled to receive that full $3552.00 as a tax refund, leaving aside other considerations?
3: Whatever amount I will owe in income tax will be taken out of that $3552.00? So I'll still get a substantial refund?
4: How do I pay Social Security, Medicare, etc.?
5: This is my first year driving Uber/Lyft. In previous years I've filed my own returns, but I'm thinking of using AARP's Tax-Aide service so I can see where to record my U/L figures, so in future years I can file my own returns again. What do you think of that service? Thanks


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## Older Chauffeur

My mileage logs are similar to what you describe.
Are the expenses of $2717 related to vehicle operation? If so, the mileage would be the way to go. The percentage of personal use of the vehicle would reduce the expense deduction.
The $3552 is deductible from your earnings, to arrive at your net profit. It affects the amount of tax you owe, but it is not your refund.
Oversimplified, using the figures you posted, ($4650-$3552) $1098 would be taxable. In addition to income tax, you would owe 15.3% ($168) in contributions to Social Security/Medicare. The taxable amounts on Schedule C will be transferred to your Form 1040 and calculated with your regular job earnings and withholdings.
You or your tax preparer will file a Schedule C to show income and expenses from your driving business. There are other expenses you can claim, such as the business use portion of your cellphone bills, to further reduce your net profit.
Im not a tax professional, but I'm sure @UberTaxPro will see your post and offer excellent advice for you.
I use TurboTax Deluxe CD version, usually available at Costco and other discount stores for about $40. It has everything you need, including Schedules C and SE.


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## jb3320

Thanks for the tips. I'm new as a driver. Question is there a way to download a file from Uber that details the mileage of each of my trips?


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## UberTaxPro

jb3320 said:


> Thanks for the tips. I'm new as a driver. Question is there a way to download a file from Uber that details the mileage of each of my trips?


Yes, under statements. When you view the statement you get trip details (pickup location and destination), when you download you get a csv file with a trip ID #.










From the view you can click on each ID and get all the details:


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## jb3320

Those CSV's seem to only display the dollars associated with the distance. I don't see a column that has the actual mileage.


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## UberTaxPro

jb3320 said:


> Those CSV's seem to only display the dollars associated with the distance. I don't see a column that has the actual mileage.


You're right about the CSV's but you can see the mileage from the view if you click on the trip ID #:


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## jb3320

Thanks , yes, I see the actual mileage. But I was hoping not to manually log my trip mileage. Thinking about taxes. I need to track 'paid' mileage versus total miles driven. I'm able to track my total miles driven by resetting my odometer daily and logging that number. And Ideally, I would be able to get total 'paid' miles from Uber.


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## UberTaxPro

jb3320 said:


> Thanks , yes, I see the actual mileage. But I was hoping not to manually log my trip mileage. Thinking about taxes. I need to track 'paid' mileage versus total miles driven. I'm able to track my total miles driven by resetting my odometer daily and logging that number. And Ideally, I would be able to get total 'paid' miles from Uber.


You're not alone, everybody tries to find a way around keeping a contemporaneous mileage log! It's really not that hard once you make it a habit. I use triplog in manual mode, all I have to do is remember to hit a button on the triplog app whenever I start/end a trip on the Uber app.


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## FLKeys

jb3320 said:


> Thanks , yes, I see the actual mileage. But I was hoping not to manually log my trip mileage. Thinking about taxes. I need to track 'paid' mileage versus total miles driven. I'm able to track my total miles driven by resetting my odometer daily and logging that number. And Ideally, I would be able to get total 'paid' miles from Uber.


For tax purposes why do you need to track paid miles? All miles driven for Rideshare, paid or not, are deductible.


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## islanddriver

Try trip log it's free for first months then 45 for the year


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## DataDollie

Hi. What docs will I need to take to preparer since this will be my first time reporting added income from Uber.


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## UberTaxPro

In addition to what you're used to bringing you can start with these:

1. U/L tax records like 1099's and tax summaries from your online account
2. Vehicle information: Make, model, date placed in service. Mileage info...business and personal. Lease or own? 
3. Expenses: like cell phone, purchased items for pax like water bottles, interest on car loan etc...
4. Coffee and doughnuts for the tax preparer


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## Older Chauffeur

UberTaxPro said:


> 4. Coffee and doughnuts for the tax preparer


:laugh: :laugh:


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## Amos69

I have an interesting situation.

First thank you for the time you spend advising drivers on their tax rights.

In Jan of 2019 I bought a lease return 2019 vehicle for RS service only. In Feb it went into service as it was properly licensed. I did finance it. In March I paid off the loan so I no longer had Gap insurance due to the paid off note. It was totaled in a no fault accident in early march. It was in RS duty for a little less than 3 weeks and miles on it were better than 80% RS duty. ( would have been more than that with continued service).

I replaced it with another 2019 lease return rig upon settlement. All in all I lost $5,379 on the purchase settlement , repurchase.

Should I claim costs on the first 2019 or mileage exemption? Since I need to represent the lost monies on the original purchase it has been a point of discussion here.

Thanks again.


----------



## UberTaxPro

Amos69 said:


> I have an interesting situation.
> 
> First thank you for the time you spend advising drivers on their tax rights.
> 
> In Jan of 2019 I bought a lease return 2019 vehicle for RS service only. In Feb it went into service as it was properly licensed. I did finance it. In March I paid off the loan so I no longer had Gap insurance due to the paid off note. It was totaled in a no fault accident in early march. It was in RS duty for a little less than 3 weeks and miles on it were better than 80% RS duty. ( would have been more than that with continued service).
> 
> I replaced it with another 2019 lease return rig upon settlement. All in all I lost $5,379 on the purchase settlement , repurchase.
> 
> Should I claim costs on the first 2019 or mileage exemption? Since I need to represent the lost monies on the original purchase it has been a point of discussion here.
> 
> Thanks again.


The TCJA has eliminated all personal casualty losses except for federal disaster areas. So you'll be limited to claiming the business % of the loss. You'll figure the loss on form 4684 part B and report the loss on form 4797.

Your adjusted basis (usually the cost) of the vehicle is what will determine your deductible loss. Adjusted basis is decreased by depreciation and there is a depreciation component built in to the SMR. Your tax preparer should work the tax numbers using both methods to see which way works best for you. Be very careful of depreciation recapture issues in future years should you decide to expense the vehicle using bonus depreciation and/or section 179 deductions in the current year.


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## LADryver

Amos69 said:


> I have an interesting situation.
> 
> First thank you for the time you spend advising drivers on their tax rights.
> 
> In Jan of 2019 I bought a lease return 2019 vehicle for RS service only. In Feb it went into service as it was properly licensed. I did finance it. In March I paid off the loan so I no longer had Gap insurance due to the paid off note. It was totaled in a no fault accident in early march. It was in RS duty for a little less than 3 weeks and miles on it were better than 80% RS duty. ( would have been more than that with continued service).
> 
> I replaced it with another 2019 lease return rig upon settlement. All in all I lost $5,379 on the purchase settlement , repurchase.
> 
> Should I claim costs on the first 2019 or mileage exemption? Since I need to represent the lost monies on the original purchase it has been a point of discussion here.
> 
> Thanks again.


You bought a car, financed it along with GAP insurance, then paid it off a month later after you placed this exclusive-business use vehicle into service. But alas, after three weeks it was totaled, in a no-fault accident. Even though it's intention was exclusive business use, you placed only 80 percent of use as business. You bought another car to replace this one. You mention a settlement. You do not say if the settlement was directly for the car based on cash value or if there was a settlement for a different reason. You mention that there was a loss and you are seeming to factor the replacement car into it. A loss could only apply to the vehicle that was totalled. The replacement car is its own situation. You do not say how many miles you put on the totalled vehicle. If your settlement was for cash value I do not understand why you would have had a loss at all. Cash values of used cars are valid for thirty days. You did not have thr car long enough to face a deduction from its cash value, much less a five grand plus. What was the loss? As for your costs, it makes sense to consider that in three weeks you can only earn one month of depreciation, the insignificant amount of interest, etc. so you can do the math for the business miles and see how they measure up. When you explain where the loss comes from, being this was a business loss, I could help you understand how to reflect it, that is, 80% of it.


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## percy_ardmore

UberTaxPro said:


> click the ubertaxpro.com link and send me your name and email and we'll talk


Who did your 2018 taxes?


100hoursuber said:


> I made like 15000 on uber and 200000 on my regular job. Own 2 house and 4 cars. Property tax about 11000. Paying my baby mom 2000 a month. I take care of my eldest parents in my home. I win some money at the casino and lose more. Can you file my tax for 160? I'm in DC.
> 
> 
> And my uber mileage is around 40000 miles.


The .58 mileage deduction alone will result in Schedule C loss. Did you receive gambling income forms from places where you won? You can't deduct more gambling losses than winnings, only zero out your winnings. I assume you itemize Schedule A with 2 houses, 2 mortgages (?), 2 RE tax bills.


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## LADryver

UberTaxPro said:


> You're right about the CSV's but you can see the mileage from the view if you click on the trip ID #:


Get rhe monthly summaries. They stand out from the other statements. csv above mentioned is good income tally in its own right. It is a Journal.


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## ctdude6969

Asking for my buddy who also drives U/L that didn't make the $20,000 or the $600 to get either 1099 forms. He asked me if the companies send your earnings break down to the IRS.


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## itendstonight

I make use of the instant payoff quite a bit and the .50$ really does add up. Are these tax deductible?! Would hate to pay a tax on these stupid fees!



UberTaxPro said:


> Although a mileage log you keep every day is the best way to substantiate your car expenses, it isn't the absolute only way. If you fail to keep a log, you can reconstruct your mileage records in the event of an IRS audit. However, reconstructed records are inherently suspect and must be backed up by other corroborating evidence with, in the words of the Tax Court, "a high degree of probative value." It's very difficult to get a reconstructed log accepted by IRS administration, but not impossible. From what you've described you might have enough probative value to re-create a log.
> You've got two options that keep you within the law:
> 1. Bite the bullet as you say
> 2. Spend the time to re-create your log. Be sure your log is backed up with corroborating evidence with a high degree of probative value. Deduct the business miles shown on your log. You might want to consult a tax pro to be as sure as possible that your log will pass muster at an audit.


How would the IRS know if the log was done throughout the year as one did rides or was reconstructed at the end of the year?


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## UberTaxPro

itendstonight said:


> I make use of the instant payoff quite a bit and the .50$ really does add up. Are these tax deductible?! Would hate to pay a tax on these stupid fees!
> 
> 
> How would the IRS know if the log was done throughout the year as one did rides or was reconstructed at the end of the year?


Yes the .50 charged on their end is a business expense and deductible. As a general rule, remember that bank fees from personal bank accounts are not deductible, fees from business accounts are deductible.

It's a judgement call on their part and they'll look for inconsistencies in your log that could show it isn't contemporaneous. In the old days when everyone used paper and pen they would questions logs that used the same pen or pencil for the entire log. Who hangs on to the same pen for a whole year?



ctdude6969 said:


> Asking for my buddy who also drives U/L that didn't make the $20,000 or the $600 to get either 1099 forms. He asked me if the companies send your earnings break down to the IRS.


Tell your buddy that income is taxable whether or not you get a 1099. If your buddy is thinking off not reporting the income because of no 1099 he might want to re-think that idea. The 1099 is the only form U/L would use to report your income to IRS but remember the IRS has the right to examine U/L books. They can subpoena electronic records, including quickbook files from business owners. And I'm talking about the actual computer files, not just print outs of what you want them to see.


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## FLKeys

I've been driving for 18 months now and I have used the same pen the entire time. It is just now started running out of ink so I replaced it with the same exact pen. So my entire written log is all with the same ink. Are you saying I should use different pens?

Bic Pivo pen with Blue ink. It is a great pen, never had one fail, writes on moist, dirty, and or oily paper. Keep it clipped in the spiral binder of my log book so it is always there. Have a back up in my glove box. 

My day job has been using them for at least 15 years now and our guys out in the field write invoices and other documents in so me pretty crappy conditions outside and they never fail.


----------



## UberTaxPro

FLKeys said:


> I've been driving for 18 months now and I have used the same pen the entire time. It is just now started running out of ink so I replaced it with the same exact pen. So my entire written log is all with the same ink. Are you saying I should use different pens?
> 
> Bic Pivo pen with Blue ink. It is a great pen, never had one fail, writes on moist, dirty, and or oily paper. Keep it clipped in the spiral binder of my log book so it is always there. Have a back up in my glove box.
> 
> My day job has been using them for at least 15 years now and our guys out in the field write invoices and other documents in so me pretty crappy conditions outside and they never fail.


 No I'm not saying that! The reason I mentioned it is because when I was a kid I watched some adults making up mileage logs for an audit. They were making the logs from scratch (not contemporaneously) and one of them placed an assorted group of pens and pencils on the table and insisted that the guy switched pens/pencils every so often! I was about 15 years old but have always remembered that!


----------



## DrivingBela

Hello all, I’m new to Uber/Lyft and just started driving in December 2019. I have some questions that I have yet to find the detail in other responses, I’m in Florida if that helps to get my answers.

1-as a driver, do we need to keep track of all our mileage separately or does U/L send u a detailed listing of this? Like is there a yearly summary printable dash board that will show everything so I can use while preparing my taxes? Also what about the times we turn off the app to drive to different locations or back from a long journey?

2- what about gas expenses and maintenance? Should I be saving all my gas receipts and car maintenance receipts so I can deduct for my taxes?

Being this is the beginning of the year, I wanted to make sure I’m tracking everything correctly.

thanks for your help


----------



## FLKeys

DrivingBela said:


> Hello all, I'm new to Uber/Lyft and just started driving in December 2019. I have some questions that I have yet to find the detail in other responses, I'm in Florida if that helps to get my answers.
> 
> 1-as a driver, do we need to keep track of all our mileage separately or does U/L send u a detailed listing of this? Like is there a yearly summary printable dash board that will show everything so I can use while preparing my taxes? Also what about the times we turn off the app to drive to different locations or back from a long journey?
> 
> 2- what about gas expenses and maintenance? Should I be saving all my gas receipts and car maintenance receipts so I can deduct for my taxes?
> 
> Being this is the beginning of the year, I wanted to make sure I'm tracking everything correctly.
> 
> thanks for your help


Read this thread, it has been covered multiple times. You will not get a straight answer, you will get opinions.

1. My opinion is keep a daily mileage log of every trip you do. The report from Uber will only include online miles. Other miles are also deductible. It seems tedious, however if you have a system in place it only takes seconds to do.

2. You only need receipts for everything for the IRS if you plan on taking actual expenses. Most drivers will come out better taking standard mileage deduction so you would not need these receipts. You will need receipts for other deductible expenses that are not covered by standard mileage deduction.

Having receipts for all of your expenses helps you calculate the true cost of operating your vehicle. You need to know the true costs of operating your vehicle so you can really know if you are making any money. Just because money is going into your bank account does not mean you are making money. You need to look at the big picture including wear and tear on your car.

Also get a rideshare endorsement on your insurance policy, it is worth the extra money.


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## itendstonight

UberTaxPro said:


> No I'm not saying that! The reason I mentioned it is because when I was a kid I watched some adults making up mileage logs for an audit. They were making the logs from scratch (not contemporaneously) and one of them placed an assorted group of pens and pencils on the table and insisted that the guy switched pens/pencils every so often! I was about 15 years old but have always remembered that!


So are the first miles of a shift tax deductible? I keep seeing a lot of conflicting answers. For these scenarios:
A) I mostly turn on the app and most of the time I get a ride so the miles I start are to a pick up. Are they commuting?
B) Turn on destination filter and no ride so start driving and get one a few miles in. Are any of those miles deductible?
C) A Lyft scheduled ride in the morning. App off and driving toward to the pick and turning on when it's time. Are the off app but going to the ride miles deductible?

Thanks


----------



## Hornplayer

Some comments on keeping logs of each ride.

I'm a relative newbie, I started ridesharing in Jan. 2019. When I started, I got the app "Triplog" from the App Store (iPhone), and I'm very glad I did (Took the advice of "UberTaxExpert", thank you again UTE!). For $4/month, it keeps track of every "trip" you make. There's a free version, but for me that one doesn't do enough.

Here are some "typical" examples of ridesharing trips:

1.) When a ping comes in, I accept it, push a button in Triplog to tell it I'm starting a trip, and push another (that I previously set up) to tell Triplog the purpose of the trip is to drive to a rider's starting location. Then I drive to the rider's pickup location. This ends the first trip. I push the button in Triplog to end the trip. Also push the Uber buttons telling it I'm picking up the passenger.
2.) As the rider is getting in my car, I push the Triplog button telling it I'm starting a new trip, and push the button telling Triplog I'm driving an Uber passenger to his destination. Drive to his dropoff point, push the Triplog button saying I'm ending that trip, also push the Uber buttons saying I'm dropping off the passenger.
3.) Then I push the Triplog button saying I'm driving to an area where I usually get many pings, maybe a mile or two. Drive there, stop, push the Triplog button saying I'm ending that trip.
4.) Go back to Step 1 above. Lather, rinse, repeat.

So for one passenger, I usually log three trips on Triplog: 1.Get a ping and drive to the pickup point, 2.pick up the passenger and drive him to his destination, 3.Drive to a place where I hope to get another ping.

Trip 3 is obviously optional. Often I just hang around near where I dropped him off and wait there for the next ping, I try to minimize driving without a passenger. But if I'm way out in the boonies, I might drive to a more populated area.

Notice that only one of these three types of trips, is done with a passenger aboard. But all three are trips I'm doing for the purpose of my business of ridesharing. I've gotten advice (on this forum and elsewhere) that because of that, all three trips are tax-deductible miles. VERY important when April 15 rolls around. You can double your tax deduction, or more.

Triplog let me set up several notes when I first started using the Triplog app. I mentioned them above. "Driving to a many-pings area", and "Driving to pick up a passenger", and "Driving the passenger to destination". It would be way too much hassle to type all that stuff in again and again, every time a passenger gets in or out. Triplog can save such statements as "Tags", and when you start a trip on Triplog, it shows you a list of your recent Tags, you just click on one of them. Very quick and handy. I got used to using them quickly after a few riders.

In Triplog, the above procedure is called "Starting a trip manually", I click a button for each start and stop. Alternatively, Triplog can "Start a trip automatically" - when it senses you stopping for more than a few minutes, it automatically stops the trip; and when it finally senses you start up again, it starts a new trip. It can't simply stop a trip every time you stop of course, stoplights etc. would play hell with your log, so it waits for a long stop. But I worried that sometimes a passenger might jump in quickly and off you go, and it wasn't a long enough stop that Triplog might not automatically stop the trip, thus running two trips together. So I don't like to use automatic trip starting and stopping.

Now that the calendar year just ended, I logged in to Triplog on my phone again, and got them to email me a big file containing every trip I logged in the year 2019. VERY nice. Got it in about ten seconds. Each trip contains the tag I clicked on for it, plus times, dates, places, distances etc.

The usual disclaimer: I don't work for Triplog, and have no relation with them, except as a very satisfied customer.


----------



## UberTaxPro

itendstonight said:


> So are the first miles of a shift tax deductible? I keep seeing a lot of conflicting answers. For these scenarios:
> A) I mostly turn on the app and most of the time I get a ride so the miles I start are to a pick up. Are they commuting?
> B) Turn on destination filter and no ride so start driving and get one a few miles in. Are any of those miles deductible?
> C) A Lyft scheduled ride in the morning. App off and driving toward to the pick and turning on when it's time. Are the off app but going to the ride miles deductible?
> 
> Thanks


With a mileage log to support (especially C because miles aren't recorded by the app) all are deductible IMO



Hornplayer said:


> Some comments on keeping logs of each ride.
> 
> I'm a relative newbie, I started ridesharing in Jan. 2019. When I started, I got the app "Triplog" from the App Store (iPhone), and I'm very glad I did (Took the advice of "UberTaxExpert", thank you again UTE!). For $4/month, it keeps track of every "trip" you make. There's a free version, but for me that one doesn't do enough.
> 
> Here are some "typical" examples of ridesharing trips:
> 
> 1.) When a ping comes in, I accept it, push a button in Triplog to tell it I'm starting a trip, and push another (that I previously set up) to tell Triplog the purpose of the trip is to drive to a rider's starting location. Then I drive to the rider's pickup location. This ends the first trip. I push the button in Triplog to end the trip. Also push the Uber buttons telling it I'm picking up the passenger.
> 2.) As the rider is getting in my car, I push the Triplog button telling it I'm starting a new trip, and push the button telling Triplog I'm driving an Uber passenger to his destination. Drive to his dropoff point, push the Triplog button saying I'm ending that trip, also push the Uber buttons saying I'm dropping off the passenger.
> 3.) Then I push the Triplog button saying I'm driving to an area where I usually get many pings, maybe a mile or two. Drive there, stop, push the Triplog button saying I'm ending that trip.
> 4.) Go back to Step 1 above. Lather, rinse, repeat.
> 
> So for one passenger, I usually log three trips on Triplog: 1.Get a ping and drive to the pickup point, 2.pick up the passenger and drive him to his destination, 3.Drive to a place where I hope to get another ping.
> 
> Trip 3 is obviously optional. Often I just hang around near where I dropped him off and wait there for the next ping, I try to minimize driving without a passenger. But if I'm way out in the boonies, I might drive to a more populated area.
> 
> Notice that only one of these three types of trips, is done with a passenger aboard. But all three are trips I'm doing for the purpose of my business of ridesharing. I've gotten advice (on this forum and elsewhere) that because of that, all three trips are tax-deductible miles. VERY important when April 15 rolls around. You can double your tax deduction, or more.
> 
> Triplog let me set up several notes when I first started using the Triplog app. I mentioned them above. "Driving to a many-pings area", and "Driving to pick up a passenger", and "Driving the passenger to destination". It would be way too much hassle to type all that stuff in again and again, every time a passenger gets in or out. Triplog can save such statements as "Tags", and when you start a trip on Triplog, it shows you a list of your recent Tags, you just click on one of them. Very quick and handy. I got used to using them quickly after a few riders.
> 
> In Triplog, the above procedure is called "Starting a trip manually", I click a button for each start and stop. Alternatively, Triplog can "Start a trip automatically" - when it senses you stopping for more than a few minutes, it automatically stops the trip; and when it finally senses you start up again, it starts a new trip. It can't simply stop a trip every time you stop of course, stoplights etc. would play hell with your log, so it waits for a long stop. But I worried that sometimes a passenger might jump in quickly and off you go, and it wasn't a long enough stop that Triplog might not automatically stop the trip, thus running two trips together. So I don't like to use automatic trip starting and stopping.
> 
> Now that the calendar year just ended, I logged in to Triplog on my phone again, and got them to email me a big file containing every trip I logged in the year 2019. VERY nice. Got it in about ten seconds. Each trip contains the tag I clicked on for it, plus times, dates, places, distances etc.
> 
> The usual disclaimer: I don't work for Triplog, and have no relation with them, except as a very satisfied customer.


It's really comes down to hitting a button on triplog everytime you hit a button on a rideshare app once you get the hang of it. Yes manual mode is the way to go! There are other apps that have manual mode but most don't. Who's UTE?


----------



## Seamus

The thing that many miss about TripLog is the extreme flexibility in being able to capture the data you want and use it for analytics. It is so much more than a mileage log. Probably very few do it but you can go on the website and custom create your own reports.


----------



## El Gato

Way earlier post back on like pg 11 but since the current discussion is on deductible miles and this particular post was never addressed (I think...I did just read 15 pages of posts so who knows what I missed).



FLKeys said:


> When it comes to some one like a traveling nurse or salesman than yes these are commute miles. If you do rideshare in one particular area away from where you live one could argue that you have commute miles. However if you are sitting at home with the app on and accept a trip and drive to it I think you could argue you were actively looking for or doing work and those miles are not commute miles.
> 
> In my case I have a day job. When I am done there I turn on the app and run trips to where ever they take me. As things slow down I make my way toward home with the app still running and still actively looking for rides. To me these are not commute miles as I am still looking for work. When I get home I leave the app on and am still actively looking for work for at least an hour if not more. So I am still not commuting at that point. Also I maintain a desk and work space at home to keep all my records up to date daily when I get home, so in theory I am still working and not commuting.
> 
> When I leave my house on my way to work I do turn on the app in destination mode to my place of employment. I do consider these commute miles and do not record them as an expense. If I do get a ride I will record the miles from the time I accepted the ride until I dropped off the PAX as business miles. The remaining miles to work are than considered commute miles.
> 
> I may be able to include all the morning miles as business miles since I am technically looking for work but I don't as I feel it is outside the spirit of the commute/business miles standard.
> 
> My thinking may be wrong


I'm thinking wrong as well. I do the same thing when going to primary job. I take rides on my way and then afterwards go offline and head to my primary job. So I am commuting to my 2nd job, and based on IRS Publication 463:

*


IRS PUB 463 said:



Second job:

Click to expand...

*


IRS PUB 463 said:


> If you regularly work at two or more places in one day, whether or not for the same employer, you can deduct your transportation expenses of getting from one workplace to another. If you don't go directly from your rst job to your second job, you can only deduct the transportation expenses of going directly from your rst job to your second job. You can't deduct your transportation expenses between your home and a second job on a day off from your main job
> 
> *Two places of work.* If you work at two places in one day, whether or not for the same employer, you can deduct the expense of getting from one workplace to the other. However, if for some personal reason you don't go directly from one location to the other, you can't deduct more than the amount it would have cost you to go directly from the first location to the second. Transportation expenses you have in going between home and a part-time job on a day off from your main job are commuting expenses. You can't deduct them.


On that note, really need like a sticky post for these questions that do seem pretty common when it comes to mileage deductions.

And on a separate note I do have some questions of my own:

1. The home office expense (I'm sure I've asked this question before, but can't remember). The exclusive use provision always makes me weary. I have a bedroom that a 12 x 6 corner is used set aside as the "office." However, I use this area for both rideshare (entering in mileage on spreadsheets, keeping up the the books, etc.) and my personal finances. There is no % based in this is there? It's an all or nothing use right?

2. Similarly, I bought a new laptop over the summer. Deduct as a business expense? Yes of course I use the computer for personal use as well, but how does one prove that a laptop is used for both? (Does the IRS take your laptop in an audit to see what personal stuff you use?) And if I can deduct and we are talking a % based use (ie. % personal vs % business use), how does one come up with a number to use?

Thanks!


----------



## Hornplayer

Hornplayer said:


> Some comments on keeping logs of each ride.
> 
> I'm a relative newbie, I started ridesharing in Jan. 2019. When I started, I got the app "Triplog" from the App Store (iPhone), and I'm very glad I did (Took the advice of "UberTaxPro", thank you again UTP!). For $4/month, it keeps track of every "trip" you make. There's a free version, but for me that one doesn't do enough.
> 
> Here are some "typical" examples of ridesharing trips:
> 
> 1.) When a ping comes in, I accept it, push a button in Triplog to tell it I'm starting a trip, and push another (that I previously set up) to tell Triplog the purpose of the trip is to drive to a rider's starting location. Then I drive to the rider's pickup location. This ends the first trip. I push the button in Triplog to end the trip. Also push the Uber buttons telling it I'm picking up the passenger.
> 2.) As the rider is getting in my car, I push the Triplog button telling it I'm starting a new trip, and push the button telling Triplog I'm driving an Uber passenger to his destination. Drive to his dropoff point, push the Triplog button saying I'm ending that trip, also push the Uber buttons saying I'm dropping off the passenger.
> 3.) Then I push the Triplog button saying I'm driving to an area where I usually get many pings, maybe a mile or two. Drive there, stop, push the Triplog button saying I'm ending that trip.
> 4.) Go back to Step 1 above. Lather, rinse, repeat.
> 
> So for one passenger, I usually log three trips on Triplog: 1.Get a ping and drive to the pickup point, 2.pick up the passenger and drive him to his destination, 3.Drive to a place where I hope to get another ping.
> 
> Trip 3 is obviously optional. Often I just hang around near where I dropped him off and wait there for the next ping, I try to minimize driving without a passenger. But if I'm way out in the boonies, I might drive to a more populated area.
> 
> Notice that only one of these three types of trips, is done with a passenger aboard. But all three are trips I'm doing for the purpose of my business of ridesharing. I've gotten advice (on this forum and elsewhere) that because of that, all three trips are tax-deductible miles. VERY important when April 15 rolls around. You can double your tax deduction, or more.
> 
> Triplog let me set up several notes when I first started using the Triplog app. I mentioned them above. "Driving to a many-pings area", and "Driving to pick up a passenger", and "Driving the passenger to destination". It would be way too much hassle to type all that stuff in again and again, every time a passenger gets in or out. Triplog can save such statements as "Tags", and when you start a trip on Triplog, it shows you a list of your recent Tags, you just click on one of them. Very quick and handy. I got used to using them quickly after a few riders.
> 
> In Triplog, the above procedure is called "Starting a trip manually", I click a button for each start and stop. Alternatively, Triplog can "Start a trip automatically" - when it senses you stopping for more than a few minutes, it automatically stops the trip; and when it finally senses you start up again, it starts a new trip. It can't simply stop a trip every time you stop of course, stoplights etc. would play hell with your log, so it waits for a long stop. But I worried that sometimes a passenger might jump in quickly and off you go, and it wasn't a long enough stop that Triplog might not automatically stop the trip, thus running two trips together. So I don't like to use automatic trip starting and stopping.
> 
> Now that the calendar year just ended, I logged in to Triplog on my phone again, and got them to email me a big file containing every trip I logged in the year 2019. VERY nice. Got it in about ten seconds. Each trip contains the tag I clicked on for it, plus times, dates, places, distances etc.
> 
> The usual disclaimer: I don't work for Triplog, and have no relation with them, except as a very satisfied customer.


When I first started ridesharing (Jan. 2019), I heard that Uber and Lyft only keep mileage records of the miles you drive with a ridesharing passenger physically in your car, as if that were the only deductible miles.

Now I'm starting to hear that U/L keep records of all the miles you drive when your app is on. That would include the three sections of a rideshare that I described above.

Anybody know, is either of these true? If the latter is true, how can I get a copy of logs for when my app is on, from both Uber and Lyft?


----------



## islanddriver

Yes Uber gives you all miles when app is on. I've seen it on the year end statement. Don't know if it's on weekly or monthly statement . You can check your pay statement in the app to see.


----------



## Hornplayer

islanddriver said:


> Yes Uber gives you all miles when app is on. I've seen it on the year end statement. Don't know if it's on weekly or monthly statement . You can check your pay statement in the app to see.


Hmm, I haven't found a "pay statement in the app" that might have this info.

Where do I find it?

(Sorry about the n00b question)


----------



## UberTaxPro

Hornplayer said:


> Hmm, I haven't found a "pay statement in the app" that might have this info.
> 
> Where do I find it?
> 
> (Sorry about the n00b question)


It's not on the app. You have to go to uber.com which isn't working at the moment for me anyway.


----------



## TCar

Hey, so thanks UberTaxPro and others for knowledgeable advice. 
My situation is this:
I have done my own taxes for last 30 years using the paper forms from post office and more recently Turbo Tax.
This year will be my first time with Schedule C type form, as I have always had W2 from work.
Thinking maybe using Turbo tax link from uber/lyft and upgrading the extra $80 bucks for assistance.

I am thinking about getting an actual accountant for assistance this year.
To those who know (all others not so much):
What do I look for to get a good tax preparer?
Certainly not H&R or any of those guys, i assume.

Thanks and happy 2019 tax season!


----------



## UberTaxPro

El Gato said:


> Way earlier post back on like pg 11 but since the current discussion is on deductible miles and this particular post was never addressed (I think...I did just read 15 pages of posts so who knows what I missed).
> 
> I'm thinking wrong as well. I do the same thing when going to primary job. I take rides on my way and then afterwards go offline and head to my primary job. So I am commuting to my 2nd job, and based on IRS Publication 463:
> 
> 
> On that note, really need like a sticky post for these questions that do seem pretty common when it comes to mileage deductions.
> 
> And on a separate note I do have some questions of my own:
> 
> 1. The home office expense (I'm sure I've asked this question before, but can't remember). The exclusive use provision always makes me weary. I have a bedroom that a 12 x 6 corner is used set aside as the "office." However, I use this area for both rideshare (entering in mileage on spreadsheets, keeping up the the books, etc.) and my personal finances. There is no % based in this is there? It's an all or nothing use right?
> 
> 2. Similarly, I bought a new laptop over the summer. Deduct as a business expense? Yes of course I use the computer for personal use as well, but how does one prove that a laptop is used for both? (Does the IRS take your laptop in an audit to see what personal stuff you use?) And if I can deduct and we are talking a % based use (ie. % personal vs % business use), how does one come up with a number to use?
> 
> Thanks!


1. This requirement is an "all-or-nothing" standard: either it is used completely for business purposes or it is not.

2. If the cost of the laptop is $2500 or less you can use the de minimis safe harbor election and deduct 100% of the expense. You will need to factor out the personal use. So if your laptop cost $2000 and you use it 50% for business you can deduct $1000 in the year of purchase. 
You need to come up with a reasonable way to determine business/personal use. One way would be to use time by splitting the hours between personal and business.



TCar said:


> Hey, so thanks UberTaxPro and others for knowledgeable advice.
> My situation is this:
> I have done my own taxes for last 30 years using the paper forms from post office and more recently Turbo Tax.
> This year will be my first time with Schedule C type form, as I have always had W2 from work.
> Thinking maybe using Turbo tax link from uber/lyft and upgrading the extra $80 bucks for assistance.
> 
> I am thinking about getting an actual accountant for assistance this year.
> To those who know (all others not so much):
> What do I look for to get a good tax preparer?
> Certainly not H&R or any of those guys, i assume.
> 
> Thanks and happy 2019 tax season!


I suggest using an Enrolled Agent (EA) or a CPA that specializes in tax.


----------



## TCar

UberTaxPro said:


> 1. This requirement is an "all-or-nothing" standard: either it is used completely for business purposes or it is not.
> 
> 2. If the cost of the laptop is $2500 or less you can use the de minimis safe harbor election and deduct 100% of the expense. You will need to factor out the personal use. So if your laptop cost $2000 and you use it 50% for business you can deduct $1000 in the year of purchase.
> You need to come up with a reasonable way to determine business/personal use. One way would be to use time by splitting the hours between personal and business.
> 
> 
> I suggest using an Enrolled Agent (EA) or a CPA that specializes in tax.


Thank you very much!


----------



## Older Chauffeur

TCar said:


> Thinking maybe using Turbo tax link from uber/lyft and upgrading the extra $80 bucks for assistance.


For the last several years TurboTax has offered their Deluxe Version, including Schedules C and SE on CD, available for about $40 at Costco and other discount stores. (I believe the online/download Deluxe Version lacks those schedules and requires an upgrade.) The CD box lists what is included so check what's there before buying. I haven't bought mine yet this year, but those schedules are all you need, despite T/T's hype and advertising.
T/T walks you through the whole process, but if you're uneasy about it, by all means follow @UberTaxPro's advice and get professional help. You might even find someone willing to review your T/T return for a discounted fee.

Disclaimer: I'm not a tax professional. :laugh:


----------



## LordBinky

UberTaxPro, I'm thinking of using AARP's suggested TaxAide service this year, where people volunteer to help others with their tax returns, as it'll be my first year doing a Lyft/Uber-included return. Any thoughts/advice on that service? Thanks.


----------



## UberTaxPro

LordBinky said:


> UberTaxPro, I'm thinking of using AARP's suggested TaxAide service this year, where people volunteer to help others with their tax returns, as it'll be my first year doing a Lyft/Uber-included return. Any thoughts/advice on that service? Thanks.


You get what you pay for.


----------



## El Gato

Older Chauffeur said:


> For the last several years TurboTax has offered their Deluxe Version, including Schedules C and SE on CD, available for about $40 at Costco and other discount stores. (I believe the online/download Deluxe Version lacks those schedules and requires an upgrade.) The CD box lists what is included so check what's there before buying. I haven't bought mine yet this year, but those schedules are all you need, despite T/T's hype and advertising.
> T/T walks you through the whole process, but if you're uneasy about it, by all means follow @UberTaxPro's advice and get professional help. You might even find someone willing to review your T/T return for a discounted fee.
> 
> Disclaimer: I'm not a tax professional. :laugh:


Same. Been doing this every year as Costco usually has specials on this at this time of year and closer to tax time as well. Except I thought Turbo Tax w/ schedule C (online version) was free for Uber Driver Partners last year? I'm pretty sure I didn't pay for it...?


----------



## Seamus

For whatever it's worth I use Turbo Tax Home and Business edition and find it covers all my needs great! If you have never done a schedule C or aren't well versed in taxes it is well worth a tax prep person who has actual rideshare experience such as @UberTaxPro . My personal opinion is to forget about HR Block or the other franchises as you may encounter a person who has no experience in rideshare returns.


----------



## MarkR

Launchpad McQuack said:


> I went to H&R Block once years ago because I got tangled up in an OID and didn't know how to handle it from a tax perspective. Never again. The woman that I worked with there was clueless. After about 20 minutes, it became painfully clear to me that I understood this stuff better than she did. Lesson learned. The only time you go to H&R Block is if you have a very simple return that you can do yourself, and if that is the case, why go to H&R Block at all?


Never use H&R Block or LIBERTY. They are the worst. After having those guys doing them, I do them myself and have no more issues and I got refunds for their crap service.


----------



## islanddriver

Does Uber issue a 1099K when total including their fee is over $20,000. Or just when your amount is over $20,000.


----------



## TheSuperUber

UberTaxPro said:


> Rideshare tax Ask Me Anything


Can I deduct a small amount of space in my house (5%) to handle my Uber business.


----------



## UberTaxPro

TheSuperUber said:


> Can I deduct a small amount of space in my house (5%) to handle my Uber business.


If your business and the space meet the requirements:
https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction


----------



## Older Chauffeur

islanddriver said:


> Does Uber issue a 1099K when total including their fee is over $20,000. Or just when your amount is over $20,000.


I believe it is the former. It has to do with the amount charged in credit card transactions, IIRC.

Disclaimer: I'm not a tax professional.


----------



## islanddriver

Older Chauffeur said:


> I believe it is the former. It has to do with the amount charged in credit card transactions, IIRC.
> 
> Disclaimer: I'm not a tax professional.


That's what I thought. Guess I have to wait for my 1099 from Uber.


----------



## percy_ardmore

LordBinky said:


> UberTaxPro, I'm thinking of using AARP's suggested TaxAide service this year, where people volunteer to help others with their tax returns, as it'll be my first year doing a Lyft/Uber-included return. Any thoughts/advice on that service? Thanks.


The AARP people probably don't have much experience with U/L drivers and the forms they receive. Plus, you may sit in a room with many people for couple hours before they call your number.


----------



## LADryver

itendstonight said:


> So are the first miles of a shift tax deductible? I keep seeing a lot of conflicting answers. For these scenarios:
> A) I mostly turn on the app and most of the time I get a ride so the miles I start are to a pick up. Are they commuting?
> B) Turn on destination filter and no ride so start driving and get one a few miles in. Are any of those miles deductible?
> C) A Lyft scheduled ride in the morning. App off and driving toward to the pick and turning on when it's time. Are the off app but going to the ride miles deductible?
> 
> Thanks


The elementary school answer is that the trip to your first pickup is considered a commute and is not deductible. The graduate answer takes into account the fact that no other industry includes a non-standard starting point as a commute. Therefore it is arguable that either the info publicly considered is incorrect and rideshare qualifies just like those other industries without question, or, some weird glitch got codified in the law that singles rideshare out to the detriment of each driver. In such a case, a Tax Court case is possible to defend if challenged in an audit that would overturn the singling out. So you can decide what grade you are in.


----------



## LADryver

UberTaxPro said:


> If your business and the space meet the requirements:
> https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction


as a driver I could only use garage space proportionally. It is space that may meet requirements. But once you do this you face non-residential capital gains when you sell.


----------



## UberTaxPro

LADryver said:


> as a driver I could only use garage space proportionally. It is space that may meet requirements. But once you do this you face non-residential capital gains when you sell.


As long as you qualify under the tax rules and use a portion of your home regularly and exclusively for your driving business (for example, recordkeeping), you can deduct home office expenses for that portion of your home. If you use the "safe harbor method" of deducting office expense you avoid depreciation recapture and the capital gains you would have using the regular method.


----------



## percy_ardmore

You have a small study you use strictly for your business (whatever it is). That room measures 8 x 8 = 64 sq ft. Times 5 = 320. That is your home office expense deduction.


----------



## Stevie The magic Unicorn

The home office exemption is hard to justify for this business. with pay being as low as it is i wouldn't bother. Most uber drivers should be able to get their revenue down to zero or less with just mileage deductions.


----------



## MissouriTiger

If a person works the first half of the year strictly as a w2 employee, and the 2nd half of the year strictly as a rideshare driver on 1099, is there a provision in tax law to allow him to use a combination of standard deduction and itemized deductions? The reason I ask is that if he only uses the standard deduction, he will pay taxes on every penny of 1099 income, but if he only itemizes, he will pay taxes on every penny of w2 income. Either way he is screwed.

NOTE: To keep this simple, assume he is not a homeonwner, has no medical expenses, and no other significant deductions, other than the business expenses related to rideshare driving.


----------



## islanddriver

Don't know how you figured that standard deduction should cover all your regular income hopefully and your Uber expenses your mileage your cell phone etc. Should cover all your 1099 income


----------



## Older Chauffeur

MissouriTiger said:


> If a person works the first half of the year strictly as a w2 employee, and the 2nd half of the year strictly as a rideshare driver on 1099, is there a provision in tax law to allow him to use a combination of standard deduction and itemized deductions? The reason I ask is that if he only uses the standard deduction, he will pay taxes on every penny of 1099 income, but if he only itemizes, he will pay taxes on every penny of w2 income. Either way he is screwed.
> 
> NOTE: To keep this simple, assume he is not a homeonwner, has no medical expenses, and no other significant deductions, other than the business expenses related to rideshare driving.


I think you may be confusing the "standard deduction " ($12,200 for single person) with the SMR (standard mileage rate for business use of a vehicle.) The standard deduction is in place of claiming mortgage interest, property taxes, healthcare, etc.

You will be filing a Schedule C- profit/loss from business, where you deduct mileage and other expenses from your ride share earnings, along with a Schedule SE to determine if you owe self employment taxes for social security and Medicare. SECA contributions total 15.3% of your net profit if you hit the threshold of $400.

On your regular job you and your employer split the 15.3% contributions equally. The results from those schedules transfer over to your Form 1040 and are combined with your W-2 earnings to establish your taxable income.

If you plan to prepare your own tax returns, TurboTax is a good place to start. Costco and other discount stores sell a CD of TurboTax Deluxe for about $40. If you use their online format, you have to upgrade to a more expensive version to get Schedules C and SE.

You might want to consider going to a tax professional, which I am not. :wink: Good luck, and I hope I have helped.


----------



## MissouriTiger

Am I correct in understanding that a person can file schedule C and still use the standard deduction? In other words, schedule C isn't the same thing as "itemizing deductions?"


----------



## Older Chauffeur

MissouriTiger said:


> Am I correct in understanding that a person can file schedule C and still use the standard deduction? In other words, schedule C isn't the same thing as "itemizing deductions?"


Yes, you understand correctly.
Schedule A is where you itemize deductions. Schedule C is for business profit/loss, determined by listing earnings and expenses.


----------



## MissouriTiger

Thank you for clarifying that. I appreciate the help. Happy New year!


----------



## Laura Smith

UberTaxPro said:


> Rideshare tax Ask Me Anything


Thanks for this! Question: How do I account for TOLLS REIMBURSED? My net earnings from Uber is $9930. They reimbursed $100 in tolls so $10030 is the final number under Net Payout. Do I want to show $10030 and then claim the toll expense elsewhere or something else i.e. show $9930 as true net earning and forget about tolls.


----------



## UberTaxPro

Laura Smith said:


> Thanks for this! Question: How do I account for TOLLS REIMBURSED? My net earnings from Uber is $9930. They reimbursed $100 in tolls so $10030 is the final number under Net Payout. Do I want to show $10030 and then claim the toll expense elsewhere or something else i.e. show $9930 as true net earning and forget about tolls.


As long as you don't deduct the reimbursed tolls either way is acceptable. I would report the gross amount then deduct all the Uber expenses. Wait to see if you get a 1099k for this income.


----------



## Laura Smith

UberTaxPro said:


> As long as you don't deduct the reimbursed tolls either way is acceptable. I would report the gross amount then deduct all the Uber expenses. Wait to see if you get a 1099k for this income.


Thanks for this. That makes sense. You mean report $1030 gross and deduct tolls elsewhere. I am not getting a 1099K, just a misc according to them. Also, one last question: cell phone use. I don't usually deduct anything coz I don't know how but I did spend $663.48 for my service exclusive of any charge for a phone itself. What to do about that? I am so grateful, you're terrific.


----------



## UberTaxPro

Laura Smith said:


> Thanks for this. That makes sense. You mean report $1030 gross and deduct tolls elsewhere. I am not getting a 1099K, just a misc according to them. Also, one last question: cell phone use. I don't usually deduct anything coz I don't know how but I did spend $663.48 for my service exclusive of any charge for a phone itself. What to do about that? I am so grateful, you're terrific.


For the phone you need to determine the business % used by using a reasonable consistent method like how much time is allocated to business use. The business % use is deductible, so if you used your phone 25% for business, 25% of your phone expenses are deductible.

You should report the gross amount on your Uber tax summary, in the following example the amount would be the 3197.57. Then deduct the expenses and fees (including your reimbursed tolls included in the 3197.57).


----------



## percy_ardmore

MissouriTiger said:


> If a person works the first half of the year strictly as a w2 employee, and the 2nd half of the year strictly as a rideshare driver on 1099, is there a provision in tax law to allow him to use a combination of standard deduction and itemized deductions? The reason I ask is that if he only uses the standard deduction, he will pay taxes on every penny of 1099 income, but if he only itemizes, he will pay taxes on every penny of w2 income. Either way he is screwed.
> 
> NOTE: To keep this simple, assume he is not a homeonwner, has no medical expenses, and no other significant deductions, other than the business expenses related to rideshare driving.


Unless he donates over 13k to charity, and I applaud him if he does, no way would be itemizing with Sched A.


----------



## LADryver

Older Chauffeur said:


> I think you may be confusing the "standard deduction " ($12,200 for single person) with the SMR (standard mileage rate for business use of a vehicle.) The standard deduction is in place of claiming mortgage interest, property taxes, healthcare, etc.
> 
> You will be filing a Schedule C- profit/loss from business, where you deduct mileage and other expenses from your ride share earnings, along with a Schedule SE to determine if you owe self employment taxes for social security and Medicare. SECA contributions total 15.3% of your net profit if you hit the threshold of $400.
> 
> On your regular job you and your employer split the 15.3% contributions equally. The results from those schedules transfer over to your Form 1040 and are combined with your W-2 earnings to establish your taxable income.
> 
> If you plan to prepare your own tax returns, TurboTax is a good place to start. Costco and other discount stores sell a CD of TurboTax Deluxe for about $40. If you use their online format, you have to upgrade to a more expensive version to get Schedules C and SE.
> 
> You might want to consider going to a tax professional, which I am not. :wink: Good luck, and I hope I have helped.


Why are you answering questions if you are not a tax professional? This is disturbing to those like me (retired from a decade of service) and others who have been trained and who past or present placed a lot of effort in professional work in the field who are participating. Take your own advice, however well intentioned, and leave it to those who are formally trained and experienced. Why make any of us have to correct you? Why go through all of the above and then disclaimer? Plenty of people learn the laws well, but they do not say listen to me dont listen to me in the same phrase. If you are trained and experienced please contribute but if you just want something to do, this is not a hobby.


----------



## Petey

I just began driving for UberEats on January 1st, and I've been tracking mileage while the app is on with a spreadsheet that I update daily. I've been estimating my taxes due by taking my gross income from driving, subtracting $0.575 per mile and subtracting non-vehicle-related expenses (insulated bags, etc.) to get my taxable income. I take 35.3% of my calculated taxable income (15.3% Social Security/Medicare plus 20% income tax) to get an estimate of taxes due from driving. UberEats is my only income from work, but I also collect Social Security and I receive a military retirement income.

I have several questions:

1) Will this estimation method get me in the ballpark?
2) I'm aware that independent contractors are expected to make estimated tax payments quarterly. Do I need to make those this year (my first year of driving) or can I wait until next year, after a baseline has been established, before I start making estimated tax payments?
3) Are there other expenses I can deduct that I'm not currently tracking? I drive an average of 7 hours a day, 5 days a week: What percentage of my cell phone bill can I deduct? Can I deduct the insurance expense of rideshare coverage?


----------



## Petey

Petey said:


> I just began driving for UberEats on January 1st, and I've been tracking mileage while the app is on with a spreadsheet that I update daily. I've been estimating my taxes due by taking my gross income from driving, subtracting $0.575 per mile and subtracting non-vehicle-related expenses (insulated bags, etc.) to get my taxable income. I take 35.3% of my calculated taxable income (15.3% Social Security/Medicare plus 20% income tax) to get an estimate of taxes due from driving. UberEats is my only income from work, but I also collect Social Security and I receive a military retirement income.
> 
> I have several questions:
> 
> 1) Will this estimation method get me in the ballpark?
> 2) I'm aware that independent contractors are expected to make estimated tax payments quarterly. Do I need to make those this year (my first year of driving) or can I wait until next year, after a baseline has been established, before I start making estimated tax payments?
> 3) Are there other expenses I can deduct that I'm not currently tracking? I drive an average of 7 hours a day, 5 days a week: What percentage of my cell phone bill can I deduct? Can I deduct the insurance expense of rideshare coverage?


One more question: I've seen your recommendation to use Trip Log to log mileage. I drive only Uber Eats -- is it enough for me to manually start tracking when I turn the app on and turn tracking off when I go offline while recording waypoints? Or do I have to start and stop tracking for each delivery? It strikes me that if I do that, I'm dramatically under-recording business miles between pings.


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## LADryver

Answering the simplest question first, is that for the first year you can forego the estimated payments if you have the underpayment penalty in mind, or you can pay any portion of them so that you do not build the burden of tax debt when you file. The system is designed as "pay as you go" and if you forget to leave aside money for taxes then the penalties and interest for not paying tax when due can only be excused for justifiable cause. This said, you need to compute your anticipated tax in two ways. One is for the federal and state (if applicable) income taxes. Two is for the federal self employment tax which you can not get out of in your situation. When you compute your net income after expenses this would be 15.3 percent. Income tax would be in addition. 

Your bank deposits and pay statements from the delivery company, whichever it is, will establish your income and you can tally your expenses daily and summarize weekly. Each quarter for estimated tax is thirteen weeks. In your first quarter you can not predict your future income. Therefore sending a payment on its due date would make more sense if you just feel like it. Plenty of people pay estimates for their peace of mind, whether required or not. Overpayments get refunded or you can roll it to a future year. If you are disciplined to maintain interest earning savings, that makes more financial sense than giving it to the government, but if your ATM fingers compel you to withdraw, then estimated taxes could be helpful. 

Your mileage for food delivery should include the driving in search of pings as well as the distances to restaurants and customers. You should label those unapportioned miles "searching for deliveries" which protects their status as business miles. Never use the phrase "dead-head" for this purpose. In aviation and freight it makes sense but not in food delivery. The spreadsheet could be adapted accordingly. 

As for whether your Social Security is taxed you have to monitor your income and keep that in mind, as well as your military pension. The tax brackets go up as your income increases. You can use a tax schedule for reference.


----------



## Petey

LADryver said:


> Answering the simplest question first, is that for the first year you can forego the estimated payments if you have the underpayment penalty in mind, or you can pay any portion of them so that you do not build the burden of tax debt when you file. The system is designed as "pay as you go" and if you forget to leave aside money for taxes then the penalties and interest for not paying tax when due can only be excused for justifiable cause. This said, you need to compute your anticipated tax in two ways. One is for the federal and state (if applicable) income taxes. Two is for the federal self employment tax which you can not get out of in your situation. When you compute your net income after expenses this would be 15.3 percent. Income tax would be in addition.
> 
> Your bank deposits and pay statements from the delivery company, whichever it is, will establish your income and you can tally your expenses daily and summarize weekly. Each quarter for estimated tax is thirteen weeks. In your first quarter you can not predict your future income. Therefore sending a payment on its due date would make more sense if you just feel like it. Plenty of people pay estimates for their peace of mind, whether required or not. Overpayments get refunded or you can roll it to a future year. If you are disciplined to maintain interest earning savings, that makes more financial sense than giving it to the government, but if your ATM fingers compel you to withdraw, then estimated taxes could be helpful.
> 
> Your mileage for food delivery should include the driving in search of pings as well as the distances to restaurants and customers. You should label those unapportioned miles "searching for deliveries" which protects their status as business miles. Never use the phrase "dead-head" for this purpose. In aviation and freight it makes sense but not in food delivery. The spreadsheet could be adapted accordingly.
> 
> As for whether your Social Security is taxed you have to monitor your income and keep that in mind, as well as your military pension. The tax brackets go up as your income increases. You can use a tax schedule for reference.


Thank you for this response. It's helpful.

About mileage: Is it enough for me to start my mileage tracking app when I first go online with UE and end it when I go offline, or do I need more granularity? My app says it records waypoints at small time intervals during its tracking, so I'm confident it'll catch my pickup and delivery locations, but I'm not exactly certain what level of detail is needed to satisfy the IRS should I ever be audited. Will it be possible for me to fill in the gaps from information provided by UE?

Regarding taxes, I don't feel compelled to file estimated taxes this year since I'm estimating on a cumulative basis, recorded daily by calculating taxable income - mileage ($0.575 per mile) and stashing 35.3% of the remaining taxable amount (plus a cushion to guard against reserving too little) in a dedicated savings account. I don't think I'll approach the earned income threshold that would make me have to give back some of my social security and I don't think driving for UE will push any part of my income into another bracket (at least by the 2019 bracket thresholds), so I think I'm good on that score.

Is there some sort of standard formula to give guidance as to how to apportion my cell phone bill? I don't have a dedicated UE phone, so I'm guessing I'll want to deduct some percentage of my cell phone bill based on usage, but I'm clueless about how to approach this. My guess is that I'd be justified in deducting about 50%, but I'm sure seat-of-the-pants guesses like this are frowned upon by the IRS.

Finally, my auto insurance company requires me to carry rideshare coverage if I drive for Uber Eats. Adding this coverage costs me about $12 a month. Is it deductible?


----------



## LADryver

Petey said:


> Thank you for this response. It's helpful.
> 
> About mileage: Is it enough for me to start my mileage tracking app when I first go online with UE and end it when I go offline, or do I need more granularity? My app says it records waypoints at small time intervals during its tracking, so I'm confident it'll catch my pickup and delivery locations, but I'm not exactly certain what level of detail is needed to satisfy the IRS should I ever be audited. Will it be possible for me to fill in the gaps from information provided by UE?
> 
> Regarding taxes, I don't feel compelled to file estimated taxes this year since I'm estimating on a cumulative basis, recorded daily by calculating taxable income - mileage ($0.575 per mile) and stashing 35.3% of the remaining taxable amount (plus a cushion to guard against reserving too little) in a dedicated savings account. I don't think I'll approach the earned income threshold that would make me have to give back some of my social security and I don't think driving for UE will push any part of my income into another bracket (at least by the 2019 bracket thresholds), so I think I'm good on that score.
> 
> Is there some sort of standard formula to give guidance as to how to apportion my cell phone bill? I don't have a dedicated UE phone, so I'm guessing I'll want to deduct some percentage of my cell phone bill based on usage, but I'm clueless about how to approach this. My guess is that I'd be justified in deducting about 50%, but I'm sure seat-of-the-pants guesses like this are frowned upon by the IRS.
> 
> Finally, my auto insurance company requires me to carry rideshare coverage if I drive for Uber Eats. Adding this coverage costs me about $12 a month. Is it deductible?


Ever since phone plans have gotten free of minutes and per call billings, the main obstacles are the options You can not deduct the costs of games or media subscriptions, payments to third psrties, or other portions of a shared plan. You have to be the payer on your phone account. If there are any other clearly personal billings, such as a foriegn SIM card or usage on vacation, you have to leave them out. Otherwise you can not really be expected to portion out personal vs business use. You can however prorate by days out using the phone and multiply days on the apps by a daily proration of the business eligible charges. Maybe a dollar per work day if it figures to that on $30 for the line. The IRS auditor would accept that.

Your insurance is still insurance. Your questions are appropriate for a tax professional. Stop the madness the profit-taking software companies bring you Do not book your own travel and do not prepare your own tax returns.



Petey said:


> One more question: I've seen your recommendation to use Trip Log to log mileage. I drive only Uber Eats -- is it enough for me to manually start tracking when I turn the app on and turn tracking off when I go offline while recording waypoints? Or do I have to start and stop tracking for each delivery? It strikes me that if I do that, I'm dramatically under-recording business miles between pings.


Your tracking must include miles used to search for orders, then the order miles, but can be summarized together. So long as you do not incur personal errands the total miles between these two are your business miles. We are a new industry. Much advise is based on other industries. The IRS is guided by what is necessary for the industry. Use a tax preparer. Do not insist you know. Just tell him what you do and why you do it and they are trained to pick it up from there.


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## Petey

LADryver said:


> Your insurance is still insurance. Your questions are appropriate for a tax professional. Stop the madness the profit-taking software companies bring you Do not book your own travel and do not prepare your own tax returns.


I fully intend to use a professional to file my taxes for tax year 2020. Right now I'm interested in understanding how to keep the right records so that when I hand over my documents to my tax preparer, there won't be any conversations that start with, "Well, you really needed to have done *this*." Certainly, the phone and insurance questions can be deferred until I talk to a tax professional next year; the mileage record question cannot.

Also, hell yes, I book my own travel! I went to Bucharest last year for $289 round trip.


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## LADryver

Petey said:


> I fully intend to use a professional to file my taxes for tax year 2020. Right now I'm interested in understanding how to keep the right records so that when I hand over my documents to my tax preparer, there won't be any conversations that start with, "Well, you really needed to have done *this*." Certainly, the phone and insurance questions can be deferred until I talk to a tax professional next year; the mileage record question cannot.
> 
> Also, hell yes, I book my own travel! I went to Bucharest last year for $289 round trip.


This is tax season. Talk to a professional to let THEM tell you what THEY need from you. And do not wait till next year.

Good fare, you did not need to get it solo. Where did you stay? How did you choose? I presume you had no troubles or dissatisfactions, but when you book through some service online you are helpless to them in case of a problem. Of course they make you think you are booking yourself but you are not. I daresay you did not book the hotel directly and so on. And if you did, where did you learn how?


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## Petey

LADryver said:


> This is tax season. Talk to a professional to let THEM tell you what THEY need from you. And do not wait till next year.
> 
> Good fare, you did not need to get it solo. Where did you stay? How did you choose? I presume you had no troubles or dissatisfactions, but when you book through some service online you are helpless to them in case of a problem. Of course they make you think you are booking yourself but you are not. I daresay you did not book the hotel directly and so on. And if you did, where did you learn how?


I usually use Scott's Cheap Flights to learn about good fares and then book directly with the airline. If I stay in a hotel, I usually use Hotels.com or Booking.com to find a convenient location. I have friends in Bucharest, so I just ask for recommendations. I stay in a hotel just a few steps from the main train/metro station, Gara de Nord, because it's not a city you want to drive in (or heaven forfend, park in). When I travel with my daughter, she generally finds us an AirBnB near public transportation. We've never had any serious problems (except for some really, weirdly hard beds in Rome - seriously, it was like sleeping on concrete). Half of the fun of traveling for me is the planning. Why would I delegate that enjoyment?


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## LADryver

Petey said:


> I usually use Scott's Cheap Flights to learn about good fares and then book directly with the airline. If I stay in a hotel, I usually use Hotels.com or Booking.com to find a convenient location. I have friends in Bucharest, so I just ask for recommendations. I stay in a hotel just a few steps from the main train/metro station, Gara de Nord, because it's not a city you want to drive in (or heaven forfend, park in). When I travel with my daughter, she generally finds us an AirBnB near public transportation. We've never had any serious problems (except for some really, weirdly hard beds in Rome - seriously, it was like sleeping on concrete). Half of the fun of traveling for me is the planning. Why would I delegate that enjoyment?


You are familiar with the destination and have people there which is visit travel as opposed to vacation or business travel. You got good fares and knew something of the hotels in this case. I meant the kind of travel where you could be stranded where you are or face obstacles on the trip. One way you were vulnerable was to book with the airline directly. Every ticket is coded in the booking system for how it came about. Direct booked seats are the first chosen for involuntary bumps in event of an overbooking. Flights booked through a travel agent are last to be bumped.

Travel and Tax are both industries where experienced professionals know more than the most earnest non-pro, because within industries a large communication takes place. You should consider these self-service only when it does not matter to you what the outcome may be.

L


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## Petey

LADryver said:


> You are familiar with the destination and have people there which is visit travel as opposed to vacation or business travel.


It's all vacation travel. I'm retired now, so I haven't traveled for business since the mid-00's. I'm familiar with the destination because I've been there a few times and I have friends there because I was lucky enough to meet some nice people with whom I've stayed in touch. There was, of course, a first time. I remember getting lost that first time walking around Parcul Herastrau and having to accost friendly strangers in phrase book Romanian for help getting back to my metro stop (lost cause -- I finally wound up hailing a cab).

Anyway, the point is that I expect to face obstacles on every trip. Every obstacle is a lesson to be learned first-hand and a story to be told when I get home. That's part of the adventure (and charm) of traveling to strange places alone.



LADryver said:


> One way you were vulnerable was to book with the airline directly.


I haven't been bumped off a flight since the 90's. If it happens again, I'll take whatever compensation the airline offers me and enjoy another day wherever I am.



LADryver said:


> experienced professionals know more than the most earnest non-pro


Of course they do! But I don't want to be spoon-fed when I travel. I enjoy eating with my hands.


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## LordBinky

So, I only found out a couple of days ago that self-employed/independent contractors are supposed to make quarterly payments to the IRS in anticipation of tax owed. A quick calculation of my rideshare earnings less mileage deduction suggests I will owe around $170, before I look at anything else. Any ramifications from the IRS likely? 2019 was my first year as an IC so all this tax malarkey is new to me.


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## FLKeys

LordBinky said:


> So, I only found out a couple of days ago that self-employed/independent contractors are supposed to make quarterly payments to the IRS in anticipation of tax owed. A quick calculation of my rideshare earnings less mileage deduction suggests I will owe around $170, before I look at anything else. Any ramifications from the IRS likely? 2019 was my first year as an IC so all this tax malarkey is new to me.


Estimated tax payments are generally required, if you expect to owe $1,000 or more when the return is filed.

Looks like you will be fine.


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## Petey

UberTaxPro said:


> Although a mileage log you keep every day is the best way to substantiate your car expenses, it isn't the absolute only way. If you fail to keep a log, you can reconstruct your mileage records in the event of an IRS audit. However, reconstructed records are inherently suspect and must be backed up by other corroborating evidence with, in the words of the Tax Court, "a high degree of probative value." It's very difficult to get a reconstructed log accepted by IRS administration, but not impossible. From what you've described you might have enough probative value to re-create a log.
> You've got two options that keep you within the law:
> 1. Bite the bullet as you say
> 2. Spend the time to re-create your log. Be sure your log is backed up with corroborating evidence with a high degree of probative value. Deduct the business miles shown on your log. You might want to consult a tax pro to be as sure as possible that your log will pass muster at an audit.


I'm following this advice. I've only been driving UE since the 1st of the year and for the first 19 days, I have only start/stop mileage logs based on when I went online with the app and when I went offline.

Henceforward, I will use Trip Log in manual mode. My plan is this: when I go online, I'll start a business trip labeled "Seeking". When I get a ping and arrive at a pickup, I'll stop that trip and start a new business trip labeled "Delivery". When I reach the dropoff point, I'll stop that trip and either start a new "Seeking" trip or another "Delivery" trip (if I have stacked deliveries). Rinse and repeat until I go offline, either in my driveway or wherever I happen to be when I choose to go offline and stop accepting pings. This will create a log that details all my delivery trips with a starting and ending address, which I gather is what will satisfy the IRS. Some addresses will be a bit off occasionally if I'm unable to park at the exact pickup or delivery address, but I'm guessing that won't be too big a problem.

I'm hoping the first 19 days of the year can be recreated from Uber data, should it come to that.


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## LADryver

Petey said:


> It's all vacation travel. I'm retired now, so I haven't traveled for business since the mid-00's. I'm familiar with the destination because I've been there a few times and I have friends there because I was lucky enough to meet some nice people with whom I've stayed in touch. There was, of course, a first time. I remember getting lost that first time walking around Parcul Herastrau and having to accost friendly strangers in phrase book Romanian for help getting back to my metro stop (lost cause -- I finally wound up hailing a cab).
> 
> Anyway, the point is that I expect to face obstacles on every trip. Every obstacle is a lesson to be learned first-hand and a story to be told when I get home. That's part of the adventure (and charm) of traveling to strange places alone.
> 
> I haven't been bumped off a flight since the 90's. If it happens again, I'll take whatever compensation the airline offers me and enjoy another day wherever I am.
> 
> Of course they do! But I don't want to be spoon-fed when I travel. I enjoy eating with my hands.


That is another assumption. It is as if you feel controlled in some way. As for the philosophy of when you get bumped that is personal to you. To tax, I will expand your you-dont-care attitude to mean you will take the consequences of a poorly presented tax return. Because unlike you, some people really do care about the results, of both travel and taxation. I do not see a need to spend more time on your questions. You are asking the wrong questions.


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## Petey

LADryver said:


> That is another assumption. It is as if you feel controlled in some way. As for the philosophy of when you get bumped that is personal to you. To tax, I will expand your you-dont-care attitude to mean you will take the consequences of a poorly presented tax return. Because unlike you, some people really do care about the results, of both travel and taxation. I do not see a need to spend more time on your questions.


What did I say that gave you that impression? Look at my previous posts -- I very clearly stated that I would use a tax professional for my 2020 taxes (my first year of driving for UE).

I don't know how this conversation turned into an argument, but I'm done now, too. Thank you for your obviously reluctant help.


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## LADryver

Petey said:


> What did I say that gave you that impression? Look at my previous posts -- I very clearly stated that I would use a tax professional for my 2020 taxes (my first year of driving for UE).
> 
> I don't know how this conversation turned into an argument, but I'm done now, too. Thank you for your obviously reluctant help.


I told you, with a decade of experience to draw from, that the importance of planning with your personal contact tax professional in his or her office, is extremely important. Any mistakes you make without their own guidance sans a meaningful tax interview, will be a consequence you will accept. I am not beating my head against a wall for you.


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## Petey

LADryver said:


> I told you, with a decade of experience to draw from, that the importance of planning with your personal contact tax professional in his or her office, is extremely important. Any mistakes you make without their own guidance sans a meaningful tax interview, will be a consequence you will accept. I am not beating my head against a wall for you.


I decided to post here in this "Ask Me Anything" thread so I would know what the right questions are and I have already contacted @UberTaxPro via email, but I don't think I was out of line trying to learn more by asking questions here.

I'm not asking you to beat your head or any other body part against anything. I posted here because the name of the thread invited me to. You chose to respond (thanks, by the way, you were helpful). Now you seem to have some kind of anger toward me because I chose not to follow your travel advice or for some other reason, and I'm sorry about that. Let's just agree to end our conversation here, shall we?


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## LADryver

Petey said:


> I decided to post here in this "Ask Me Anything" thread so I would know what the right questions are and I have already contacted @UberTaxPro via email, but I don't think I was out of line trying to learn more by asking questions here.
> 
> I'm not asking you to beat your head or any other body part against anything. I posted here because the name of the thread invited me to. You chose to respond (thanks, by the way, you were helpful). Now you seem to have some kind of anger toward me because I chose not to follow your travel advice or for some other reason, and I'm sorry about that. Let's just agree to end our conversation here, shall we?


Uber Tax Pro is a great influential name but not the reality. He is not an expert of tax practice but knows how to recite laws, and he does not make the interpretations that our new industry requires. Anyone you make your own explanations to face to face will already be wildly ahead of this online advise. UTP is from taxi fleet ownership experience and recently said he couldnt log on the website to answer someone's questions after I piointed out the value to do so. He is learning and may become the expert we as rideshare drivers need, but he is not there at this time. He is like the explorer confusing north with south. I look forward to when he really jumps into his desired shoes but it is yours and all of ours detriment to rely on his advise. There is a lot more than meets the eye and he may claim I am crazy, just because he hasnt learned yet the nuances.


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## UberTaxPro

LADryver said:


> Uber Tax Pro is a great influential name but not the reality. He is not an expert of tax practice but knows how to recite laws, and he does not make the interpretations that our new industry requires. Anyone you make your own explanations to face to face will already be wildly ahead of this online advise. UTP is from taxi fleet ownership experience and recently said he couldnt log on the website to answer someone's questions after I piointed out the value to do so. He is learning and may become the expert we as rideshare drivers need, but he is not there at this time. He is like the explorer confusing north with south. I look forward to when he really jumps into his desired shoes but it is yours and all of ours detriment to rely on his advise. There is a lot more than meets the eye and he may claim I am crazy, just because he hasnt learned yet the nuances.


Thank you for your comment about UBER TAX PRO being "a great influential name" and for helping me with my zen practice with the rest of your silly comments.


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## LADryver

UberTaxPro said:


> Thank you for your comment about UBER TAX PRO being "a great influential name" and for helping me with my zen practice with the rest of your silly comments.


Zen is important.


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## UberTaxPro

LADryver said:


> Zen is important.


Yes, difficult at times but important


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## LADryver

BigRedDriver said:


> I do have a question that was posed to me yesterday by a buddy of mine who's daughter drives for "shiped".
> 
> He accountant told her that she could deduct zero miles for her work delivering for them. To me that sounds absurd as she is considered an independent contractor.
> 
> He told her that, because she does not own the company she can't claim the miles. She was issued a 1099.
> 
> Comment?


Her accountant should not be her accountant anymore.



UberTaxPro said:


> No charge to review, that goes for 3 years back also. Just a warning....most of my ride-share return reviews turn into clients!


FYI soliciting for business is frowned upon by the powers that be on this forum.



UberTaxPro said:


> Sounds absurd to me also! If she's an IC she obviously owns her own business. Could she perhaps be confused with ownership of the vehicle? She does have to own the vehicle (or lease) she's claiming expenses on. The one exception is a vehicle owned by a spouse who she would be filing jointly with. If it's not the vehicle ownership issue I suggest she get another accountant. When choosing an accountant I always suggest seeking out an EA, CPA, or attorney. Anyone can call themselves a tax preparer but only those with the credentials I mentioned have proven that they have the necessary knowledge. Also, you want to make sure that the person with credentials claiming to prepare the return is the person actually doing the work. Many of these big box tax places claim to have someone with credentials, but then pass the work onto people with no credentials or experience.


That did not answer the question. It is something else. I have seen people make this error of judgement before, and it is likely exactly as phrased. The personal service aspect connected with the 1099 probably threw him off. He may be planning to omit the Schedule C and put the 1099 on the front of the 1040. He may also have told her it is unusual for a person instead of a company to get a 1099, that it should have been a W2 but he cant change that, dyada dyada. She needs to go to a tax preparer who will respect her. This requires a face-to-face meeting. But nice try, UTP.


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## UberTaxPro

LADryver said:


> FYI soliciting for business is frowned upon by the powers that be on this forum.


Soliciting for FREE REVIEWS is not frowned upon by the powers that be on this forum. But I'll be the first to admit that I learned the hard way just like @Danger Zone is learning now.



LADryver said:


> That did not answer the question. It is something else. I have seen people make this error of judgement before, and it is likely exactly as phrased. The personal service aspect connected with the 1099 probably threw him off. He may be planning to omit the Schedule C and put the 1099 on the front of the 1040. He may also have told her it is unusual for a person instead of a company to get a 1099, that it should have been a W2 but he cant change that, dyada dyada. She needs to go to a tax preparer who will respect her. This requires a face-to-face meeting. But nice try, UTP.


Thanks but without more information you're just guessing also


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## LADryver

UberTaxPro said:


> Soliciting for FREE REVIEWS is not frowned upon by the powers that be on this forum. But I'll be the first to admit that I learned the hard way just like @Danger Zone is learning now.


Nope. Did you "warn" they could become a client? Free service from a volunteer, ok, but are you going to take on all of your indirectly solicited ("I will be your tax preparer! I am available! You too can become a client!) for free, all free, all the time? See, I got no worries. I am retired from practice. Just tell them all your services are free in perpetuity and you can say what you want. Nothing gives you the right to be promoting.



UberTaxPro said:


> Soliciting for FREE REVIEWS is not frowned upon by the powers that be on this forum. But I'll be the first to admit that I learned the hard way just like @Danger Zone is learning now.
> 
> 
> Thanks but without more information you're just guessing also


Yes, but mine is an educated guess from experience. I accepted the inquiry as given regardless. Car ownership? I daresay that even non-owned cars have expenses. Likely this conversation was exactly as told. I have seen a lot. At any rate, you went into some pretty weird tax mill bs that was way out of topic. Yeah, business is fleeting. Let me give you a suggestion. Go on Craigslist. Make some cards and put them at car washes. Just leave internet innocents be on their own deserved independant brick and mortar paths.


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## UberTaxPro

LADryver said:


> Yes, but mine is an educated guess from experience.


A guess is a guess! Experience is subjective. That post was from last year I believe???


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## LADryver

UberTaxPro said:


> A guess is a guess! Experience is subjective. That post was from last year I believe???


Then I daresay she took my advice lol. ,&#129315;


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## UberTaxPro

LADryver said:


> Nope. Did you "warn" they could become a client? Free service from a volunteer, ok, but are you going to take on all of your indirectly solicited ("I will be your tax preparer! I am available! You too can become a client!) for free, all free, all the time? See, I got no worries. I am retired from practice. Just tell them all your services are free in perpetuity and you can say what you want. Nothing gives you the right to be promoting.


Yes! I agree!!! No one should be promoting on here unless they're sponsor. Lesson learned a while back for me. I do appreciate all the promoting you've been doing for me. Thank you!


----------



## LADryver

UberTaxPro said:


> Yes! I agree!!! No one should be promoting on here unless they're sponsor. Lesson learned a while back for me. I do appreciate all the promoting you've been doing for me. Thank you!


See in eighteen to twenty four months. Wheels on the bus go round and round. The interesting thing is that the IRS does hold you accountable for foolish mistakes. If people go to you while seeing these posts, they only know a user name. You are not the first shingle hanger. You wont be the last. However I am teaching you in the forum, which is the least a person like me could do in service to others you are influencing. They have not seen that aside from this thread you have scarcely a contribution to make because you do not drive rideshare. People think you go out on the app like they do but you do not. And you have said that. Not that they notice. I do believe you can do better finding supermarkets to advertise around. You can work in your community on your own, withiut representing yourself inaccurately as the Uber Tax Pro. You are new to tax and you do not drive Uber. How many other forums do you do this on?


----------



## UberTaxPro

Turbotax updated their Uber driver page for 2019:

Tax Tips for Uber Driver-Partners: Understanding Your Taxes


----------



## LADryver

UberTaxPro said:


> Turbotax updated their Uber driver page for 2019:
> 
> Tax Tips for Uber Driver-Partners: Understanding Your Taxes


Two paragraphs are poorly written because the second of them is both unnecessary and confusing. The reason why you have to keep your eyes peeled on every phrase is because incidents like this happen. On my very first day of work in the IRS there was a spate of calls from taxpayers responding to a financial radio personality who said incorrect things. By the thousands we had to correct the information, taxpayer by taxpayer. It did not take long to learn to scrutinize every public outlet for their tax information accuracy. So here is Turbo Tax, as believed as that radio personality. And they are not as wrong as she was, but they are nevertheless right first and wrong second. The first paragraph is right. I have written here of this information for weeks. It includes all status (is it stati?) of rides and between rides and all the kinds of data they itemize in the second paragraph. Except, they say that these categories are other miles than the online miles but they are not. And they say that careful record keeping must be made for those other miles. And the reason is because they are ignorant and confused. This new industry is simple but it is still a departure of what has been in the past. IRS pub 436 pages 25 and 26 show that one continious entry in a log is fine if you are record keeping. And if you are not record keeping, Uber is giving it to you in a contemporaneius and accurate way. Uber is the app that will be believed for Uber work. But it will be different when you have the problems: The problems arise when you operate on two or more apps. Then, you have other mileage and overlapping mileage. And when you have that external mileage and extra mileage logging you have to do the work to separate it all out.


----------



## UberTaxPro

LADryver said:


> Two paragraphs are poorly written because the second of them is both unnecessary and confusing. The reason why you have to keep your eyes peeled on every phrase is because incidents like this happen. On my very first day of work in the IRS there was a spate of calls from taxpayers responding to a financial radio personality who said incorrect things. By the thousands we had to correct the information, taxpayer by taxpayer. It did not take long to learn to scrutinize every public outlet for their tax information accuracy. So here is Turbo Tax, as believed as that radio personality. And they are not as wrong as she was, but they are nevertheless right first and wrong second. The first paragraph is right. I have written here of this information for weeks. It includes all status (is it stati?) of rides and between rides and all the kinds of data they itemize in the second paragraph. Except, they say that these categories are other miles than the online miles but they are not. And they say that careful record keeping must be made for those other miles. And the reason is because they are ignorant and confused. This new industry is simple but it is still a departure of what has been in the past. IRS pub 436 pages 25 and 26 show that one continious entry in a log is fine if you are record keeping. And if you are not record keeping, Uber is giving it to you in a contemporaneius and accurate way. Uber is the app that will be believed for Uber work. But it will be different when you have the problems: The problems arise when you operate on two or more apps. Then, you have other mileage and overlapping mileage. And when you have that external mileage and extra mileage logging you have to do the work to separate it all out.


They came up with an interesting list of additional deductions:

Bottled water, snacks and amenities for customers
Business taxes and licenses
City and airport fees
Freeway, highway, and bridge tolls
Electronic toll transponder
Floor mats
Car tool kit
First aid kit
Tire inflator and pressure gauge
Portable battery jump pack
Flashlights and flares
Roadside assistance plans
Office supplies


----------



## UberTaxPro

LADryver said:


> See in eighteen to twenty four months. Wheels on the bus go round and round. The interesting thing is that the IRS does hold you accountable for foolish mistakes. If people go to you while seeing these posts, they only know a user name. You are not the first shingle hanger. You wont be the last. However I am teaching you in the forum, which is the least a person like me could do in service to others you are influencing. They have not seen that aside from this thread you have scarcely a contribution to make because you do not drive rideshare. People think you go out on the app like they do but you do not. And you have said that. Not that they notice. I do believe you can do better finding supermarkets to advertise around. You can work in your community on your own, withiut representing yourself inaccurately as the Uber Tax Pro. You are new to tax and you do not drive Uber. How many other forums do you do this on?


You're wrong. I've had an active Uber account for five years now. I've posted my Uber.com documents on here as examples in the past. When you make assumptions you turn into the first three letters of the noun.


----------



## LADryver

UberTaxPro said:


> You're wrong. I've had an active Uber account for five years now. I've posted my Uber.com documents on here as examples in the past. When you make assumptions you turn into the first three letters of the noun.


Show me something else. Documents don't drive.


----------



## UberTaxPro

LADryver said:


> Show me something else. Documents don't drive.


Possible deductions from turbo tax:

Bottled water, snacks and amenities for customers
Business taxes and licenses
City and airport fees
Freeway, highway, and bridge tolls
Electronic toll transponder
Floor mats
Car tool kit
First aid kit
Tire inflator and pressure gauge
Portable battery jump pack
Flashlights and flares
Roadside assistance plans
Office supplies


----------



## k4ever

Hello, I tried to do my taxes through turbotax online. I have around 8,000 miles logged while ONLINE with Uber and Lyft (as they appear on my yearly summaries). I made about $10k gross, and what L/U took as expenses were around $2,800 together ($7200 net). 
I thought that I could just deduct the online miles of 8,000 and get around $4500 in mileage credit. Then I wanted to add the L/U charges and fees of $2800, and I would get a total of around $7300 deductions and expenses. Finally I substracted $7300 to $10,000 and I got $2700. Now I thought I was going to pay taxes on this last $2700 amount, and that would have been around $400, but then I see my final return and I'm actually $1,100 less than if I didn't file self employment income. 
Are my numbers correct? 
By the way, Im married and we usually get an earned income credit and/or child credit in our returns. 
Thanks in advance.


----------



## percy_ardmore

I got lost on very last sentence. What mean you 1100 less than if didn't file SE? As opposed to filing how?


----------



## Ubercraft

Is it appropriate and acceptable to deduct all of the online miles that Uber provides in the tax statement? Seems logical to me, as the only time I have the app on is when I'm either waiting for rides, on my way to pickup a pax, or enroute with a pax. If I kept my own mileage log, shouldn't it in theory exactly match my total online miles?


----------



## jgraham11

How much per check do you recommend withholding?


----------



## Older Chauffeur

k4ever said:


> Hello, I tried to do my taxes through turbotax online. I have around 8,000 miles logged while ONLINE with Uber and Lyft (as they appear on my yearly summaries). I made about $10k gross, and what L/U took as expenses were around $2,800 together ($7200 net).
> I thought that I could just deduct the online miles of 8,000 and get around $4500 in mileage credit. Then I wanted to add the L/U charges and fees of $2800, and I would get a total of around $7300 deductions and expenses. Finally I substracted $7300 to $10,000 and I got $2700. Now I thought I was going to pay taxes on this last $2700 amount, and that would have been around $400, but then I see my final return and I'm actually $1,100 less than if I didn't file self employment income.
> Are my numbers correct?
> By the way, Im married and we usually get an earned income credit and/or child credit in our returns.
> Thanks in advance.


One thing to be careful with is whether you ran both apps at once, so that both Uber and Lyft are reporting the same mileage. Better to use your own contemporaneous mileage log, with the summaries as back up.
Re the $1100 difference- is that in a lower tax amount due on your return, or a lower refund?


----------



## Homie G

Hey I have a question.

Who cut your hair man?


----------



## Older Chauffeur

jgraham11 said:


> How much per check do you recommend withholding?


Just FYI, in case you're not already paying in quarterly estimated taxes, there are rules that require those payments if you expect to owe more than $1000 at filing time. You won't be penalized if you have paid in at least 90% of current taxes due, or an amount equal to 100% of the prior years taxes.
If you have paid through regular employment withholding, that will help, but bear in mind you will have self employment contributions of 15.3% (SECA) in addition to income taxes due, if any. The threshold for SECA is $400 in profits.


----------



## k4ever

Older Chauffeur said:


> One thing to be careful with is whether you ran both apps at once, so that both Uber and Lyft are reporting the same mileage. Better to use your own contemporaneous mileage log, with the summaries as back up.
> Re the $1100 difference- is that in a lower tax amount due on your return, or a lower refund?


Thx for the tip. $1100 as in a lower refund. 
By the way, I double checked my additional income through U/L, and it looks like turbotax imported the information wrongly and was actually adding $1000 extra on that box. I fixed it, and I got an extra $300. Still I'm going to check if there's anything else out of the ordinary.

So my numbers were correct? I just want to understand that I know what is going on here. Thx.


----------



## k4ever

To clarify my previous post, I figured out what changed this year. I made more money, so the standard deduction didnt take as much as last year. I received less credits and my blended tax rate was up by more than 2%. 

Boom $500 less. 

Bah.


----------



## fermatamew

Hi I saw a reference to tolls earlier in this thread, but it didn't relate exactly to my question. Are tolls included on the yearly statement under Table 1? It says expenses, fees, etc., but no mention of tolls. Thank you!


----------



## FLKeys

fermatamew said:


> Hi I saw a reference to tolls earlier in this thread, but it didn't relate exactly to my question. Are tolls included on the yearly statement under Table 1? It says expenses, fees, etc., but no mention of tolls. Thank you!


The $544.52 includes reimbursed tolls. Did you keep track of your toll expenses? Your actual tolls will most likely be more than what you were reimbursed for since you only get reimbursed for tolls. You can claim your actual toll expenses less the tolls you were reimbursed for. A basic mileage log has a spot for tolls and parking fees. I track mine daily.


----------



## welikecamping

My business is a 2-member LLC. Of course, I cannot get Lyft/Uber Net income numbers to come close to my total income for the year, they are over by almost $500. What I am really confused about though is the Expenses, Fees and Taxes deduction from Uber/Lyft - I'm gonna assume I need to enter these values into my quickbooks somewhere - Would I create a new expense category, or simply add the values to the "Taxes and Licenses" expense?

Not really a quickbooks question  - what I am looking for is do I need to record the expenses numbers from Lyft/Uber in my books, or just on the tax form (adding to my operating expenses)?


----------



## FLKeys

I include them in my books and transfer them into my tax forms.


----------



## vtcomics

percy_ardmore said:


> You have a small study you use strictly for your business (whatever it is). That room measures 8 x 8 = 64 sq ft. Times 5 = 320. That is your home office expense deduction.


That's the safe harbor method yes?


----------



## spoilsport

UberTaxPro said:


> Rideshare tax Ask Me Anything


Does form 1099K box 1 need to be reported as is? If so, I'm sure you know it doesn't match net receipts.


----------



## Mash Ghasem




----------



## percy_ardmore

vtcomics said:


> That's the safe harbor method yes?


No. The simple method for home office deduction. It became available about 4 years ago.


----------



## Stevie The magic Unicorn

fermatamew said:


> Hi I saw a reference to tolls earlier in this thread, but it didn't relate exactly to my question. Are tolls included on the yearly statement under Table 1? It says expenses, fees, etc., but no mention of tolls. Thank you!


It includes tolls that uber paid you for, the non-reimbursed tolls are a write-off.


----------



## LordBinky

So, I'm going back and forth through my TurboTax return, tweaking and adding/removing things here and there and just when I think I've finished and am ready to wrap it up, it's telling me that 1 thing needs to be reviewed. When I click on that it takes me to a page related to something called a QBI, which seems to relate to rental stuff. I've no idea what part of my return that refers to as I don't have a rental car, for instance. A "Yes" box is ticked that can't be unticked and I'm being asked to fill in blanks. Where did that appear from all of a sudden and what other part of my return do I need to look at again? And how does that affect the final sum? Thanks

PS: First time around I'd gotten to the end but had to go back because I'd missed the 1095-A part. I also sold some shares at a loss but I'd included that bit first time. Don't want to submit a return as is then find the IRS chasing me for something.


----------



## Older Chauffeur

T/T does a check for errors at the end and has you go back to any problem areas, so once they have given you the “ready to file“ you should be good. I have no idea what the rental issue is all about. Maybe revisit the vehicle used for business worksheet and see if you made an error somewhere there? Good luck.


----------



## UberTaxPro

spoilsport said:


> Does form 1099K box 1 need to be reported as is? If so, I'm sure you know it doesn't match net receipts.


To avoid an IRS letter yes, After you deduct the Uber fees and expenses you'll get to your net


----------



## vtcomics

Mash Ghasem said:


> View attachment 410761


You need Dennis Celery from AT&T commercial.


----------



## [email protected]

I finalized my taxes in Turbo Tax but dunno if they are a bit high still I made 75K last year and my taxes came out 
FEDERAL TAX DUE
7,658
NY TAX DUE
$2,288
Should I set up for that or go to a place to charge me to do my taxes.


----------



## vtcomics

[email protected] said:


> I finalized my taxes in Turbo Tax but dunno if they are a bit high still I made 75K last year and my taxes came out
> FEDERAL TAX DUE
> 7,658
> NY TAX DUE
> $2,288
> Should I set up for that or go to a place to charge me to do my taxes.


How much of that was self employment tax? Was the 75k after taking your mileage deduction or before?? What were your other business expenses? I'm not a tax guy but am just wondering how you came to your amounts due.


----------



## Latekick

As a married couple I get a standard deduction of $24,400.00 Does this mean unless I can come up with MORE write offs than that,,,, I can't write off my Uber mileage and rideshare expenses?


----------



## Older Chauffeur

Latekick said:


> As a married couple I get a standard deduction of $24,400.00 Does this mean unless I can come up with MORE write offs than that,,,, I can't write off my Uber mileage and rideshare expenses?


No, your business profit is determined on Schedule C, separate from the standard deduction on your Form 1040.
That's where you deduct mileage and other expenses like cell phone, etc.
You will also fill out Schedule SE to determine whether you owe contributions to Social Security and Medicare (SECA) in addition to income tax.


----------



## Latekick

Thank you so much!!!


----------



## vtcomics

Latekick said:


> As a married couple I get a standard deduction of $24,400.00 Does this mean unless I can come up with MORE write offs than that,,,, I can't write off my Uber mileage and rideshare expenses?


Yes, you take additional write offs for your rideshare above and beyond the $24,400. Your rideshare business is on Schedule C, where you report the Uber/Lyft gross minus their fees and then deduct your mileage and any other expenses (phone, water, mints, etc). You will pay self employment tax as well as bringing over your profit back to the 1040. I'm not a professional so please verify this before acting on it!


----------



## [email protected]

vtcomics said:


> How much of that was self employment tax? Was the 75k after taking your mileage deduction or before?? What were your other business expenses? I'm not a tax guy but am just wondering how you came to your amounts due.


75K was my net income my expenses were around 33k


----------



## Older Chauffeur

[email protected] said:


> 75K was my net income my expenses were around 33k


Then your effective federal tax rate is around 10%, which sounds reasonable. Have you run the final accuracy check on T/T? The program should point out any errors or possible deductions you may qualify for but missed.


----------



## kharris

Im so confused about the answers I received in another thread. Can you help me? Should I file this with my 1040 form or not? I do have a FT job and did Uber for a little while last year. Im filing Single and 1 dependent.
View attachment 414595




UberTaxPro said:


> Rideshare tax Ask Me Anything


----------



## Older Chauffeur

kharris said:


> Im so confused about the answers I received in another thread. Can you help me? Should I file this with my 1040 form or not? I do have a FT job and did Uber for a little while last year. Im filing Single and 1 dependent.
> View attachment 414595


Just use the information provided, keep the form for your records. Report the earnings and indicate that you didn't receive a 1099.


----------



## MasterAbsher

A bit confused on the 1099s because of what I've read in this forum, Google and on Uber. I netted a little over $8K last year. Not too bad considering I started in late August. I thought I'd get a 1099-misc as I know it's not enough for a 1099-k. When I go to my account for Uber, there is no 1099-mics for me. Never got one in the mail. Then I read where Uber only did 1099-k for 2019. Then Google says they do 1099-misc. Any help would be greatly appreciated. Thank you


----------



## FLKeys

MasterAbsher said:


> A bit confused on the 1099s because of what I've read in this forum, Google and on Uber. I netted a little over $8K last year. Not too bad considering I started in late August. I thought I'd get a 1099-misc as I know it's not enough for a 1099-k. When I go to my account for Uber, there is no 1099-mics for me. Never got one in the mail. Then I read where Uber only did 1099-k for 2019. Then Google says they do 1099-misc. Any help would be greatly appreciated. Thank you


1099-MISC if for money that comes directly from Uber for incentives and bonuses. You will only get a 1099-MISC if you received over $600.00 directly from Uber.

1099-K is for payment processors. You need to have over $20,000 in fares from all your riders to generate a 1099-K

Your Uber Tax Summary is all you need to properly do your taxes.


----------



## ChicagoJoe

I got into an accident with only myself in the vehicle. The accident occurred on personal travel. However, this was the vehicle I used to drive with Uber. Unfortunately, the car was totaled. Insurance cut me a check for the current value of the car and I used that check towards the purchase of my current vehicle.

When filling, how would I go about reporting this? Do I report this as a sale, and use the insurance check amount as my sale price? How do I account for depreciation?

Thanks in advance!


----------



## Stevie The magic Unicorn

ChicagoJoe said:


> I got into an accident with only myself in the vehicle. The accident occurred on personal travel. However, this was the vehicle I used to drive with Uber. Unfortunately, the car was totaled. Insurance cut me a check for the current value of the car and I used that check towards the purchase of my current vehicle.
> 
> When filling, how would I go about reporting this? Do I report this as a sale, and use the insurance check amount as my sale price? How do I account for depreciation?
> 
> Thanks in advance!


use standard mileage and none of that matters.

You shouldn't use actual expenses unless your driving a $50,000+ vehicle.


----------



## UberTaxPro

MasterAbsher said:


> A bit confused on the 1099s because of what I've read in this forum, Google and on Uber. I netted a little over $8K last year. Not too bad considering I started in late August. I thought I'd get a 1099-misc as I know it's not enough for a 1099-k. When I go to my account for Uber, there is no 1099-mics for me. Never got one in the mail. Then I read where Uber only did 1099-k for 2019. Then Google says they do 1099-misc. Any help would be greatly appreciated. Thank you


You get 1099k for driving income 20k+
You get 1099m for income other than driving like for referring a new driver to Uber 600+


----------



## UberTaxPro

kharris said:


> Im so confused about the answers I received in another thread. Can you help me? Should I file this with my 1040 form or not? I do have a FT job and did Uber for a little while last year. Im filing Single and 1 dependent.
> View attachment 414595


Can't view the attachment....what is it?


----------



## RickeyBobbyuber

UberTaxPro said:


> If your're actively working from your house to first ride yes. By actively working I mean app on seeking rides driving to a ride etc...
> Between miles same thing. You need to be keeping a mileage log. I prefer the app TripLog in manual mode to create the log.


 It's probably best that you turn on your Uber on the ride to where you're going even though you may not get a fair and it's going to hurt your driving hours but it will give you a better tax break for driving to and from the point. That way you can prove that it just wasn't busy in your town so you move to a better area. But if you wait do you get to where you're going the turn Uber on that means you weren't available For service so leave ride share on to and from the house.



UberTaxPro said:


> Can't view the attachment....what is it?


 And if you don't turn your Uber software on seeking rides you can also just claim $5 for to give somebody a lift that way and you'll lose on that trip.



[email protected] said:


> 75K was my net income my expenses were around 33k


 Can I just do a short form and just take the mileage?


----------



## Older Chauffeur

RickeyBobbyuber said:


> Can I just do a short form and just take the mileage?


If you're referring to a short Form1040, no. As an independent contractor you need to file Schedule C and, (if your net profit is $400 or more) Schedule SE. You figure your profit or loss by subtracting your expenses, including mileage, from your gross earnings on Schedule C. Schedule SE is where you figure the amount of contributions you owe for Social Security and Medicare.
If you're using a program like TurboTax it sGould walk you through the computations by asking you questions. But if you're unsure, see a professional tax preparer.


----------



## Redross

Please help me to give this answer, do I pay GST on the total amount of the tax summary or I deducted the commission of Uber from the tax summary and then pay the GST? Thanks


----------



## Older Chauffeur

Two suggestions:
Google is your friend :laugh: (I found three references)
Post your question in the Australia forum, probably some of your countrymen know the answer. Good luck.:thumbup:


----------



## 20yearsdriving

Older Chauffeur said:


> Two suggestions:
> Google is your friend :laugh: (I found three references)
> Post your question in the Australia forum, probably some of your countrymen know the answer. Good luck.:thumbup:


Quick question .. I forgot all about it .. last year I qualified for the pass through.

So my question is after to what amount of net income do I start paying taxes ?

I'm going pay a few thousand for sure but based on your answer I may uload some none performing inventory to buffer mat tax liability.


----------



## TheSuperUber

UberTaxPro said:


> Rideshare tax Ask Me Anything


Can you deduct the depreciation of your vehicle on your 1099?


----------



## UberTaxPro

TheSuperUber said:


> Can you deduct the depreciation of your vehicle on your 1099?


Vehicle are depreciated on form 4562 when using the actual expense method. When using the standard mileage rate the depreciation expense is included in the mileage rate and not deducted on form 4562.


----------



## pateacher1326

How do I get mileage deduction? Do they need a log of each and every day of driving?


----------



## NTXDFWDriver2017

pateacher1326 said:


> How do I get mileage deduction? Do they need a log of each and every day of driving?


You would need to use either a third party tracking app or use pen and paper and write down the miles between trips. I hope your not doing uber until the coronavirus spread is eliminated i wouldnt dare to drive

You


----------



## Hornplayer

For my taxes this last April 15 (Actually July this covid year, but they owed me money so I sent them in in March), I logged in to the Uber website under my name, dug around for a while, and found an Uber form listing how many total miles I had driven with the Uber app on and waiting for riders, and also a figure for how many miles I had driven with an Uber rider actually in my car. 

Looked in the Lyft website and found something essentially similar.

My accountant said that was all I needed. Got the refunds a few weeks later, and lived happily ever after (except for Covid-19).


----------



## pateacher1326

No worries, I’m doing Instacart. I’ve been using pen and paper, so as long as that’s good I’m happy.


----------



## LoriO

UberTaxPro said:


> Rideshare tax Ask Me Anything


Since starting rideshare 5 years ago, I added doing deliveries and shopping (Instacart and DoorDash). When I file next year can I just put those on one Schedule C or do I have to separate Deliveries and Rideshare?


----------



## Seamus

LoriO said:


> Since starting rideshare 5 years ago, I added doing deliveries and shopping (Instacart and DoorDash). When I file next year can I just put those on one Schedule C or do I have to separate Deliveries and Rideshare?


All on one schedule C.


----------



## LoriO

Seamus said:


> All on one schedule C.


Thanks!!


----------



## Seamus

LoriO said:


> Thanks!!


No problem I do the same, multiple apps. Just add all your 1099's together and deduct all your expenses together on one form. Best to always have several apps going and not relying on any one.


----------



## LoriO

Seamus said:


> No problem I do the same, multiple apps. Just add all your 1099's together and deduct all your expenses together on one form. Best to always have several apps going and not relying on any one.


I use TurboTax and love it!


----------



## LoriO

Seamus said:


> No problem I do the same, multiple apps. Just add all your 1099's together and deduct all your expenses together on one form. Best to always have several apps going and not relying on any one.


What line of work do you say you do then? Gigs?


----------



## Seamus

LoriO said:


> What line of work do you say you do then? Gigs?





LoriO said:


> What line of work do you say you do then? Gigs?


I always just say Rideshare/Food Delivery. They really don't care about what you put as they know from the 1099


----------



## FLKeys

Seamus said:


> All on one schedule C.


What business code do you use? I don't do eats so I never looked into it. I would think since there are separate codes you would need separate Schedule C's. I really don't know???

The six-digit business code for food deliveries businesses is *492000 (Couriers & Messengers)*.
The six-digit business code for Uber and Lyft is *485300 (Taxi/Limo)*.


----------



## Seamus

FLKeys said:


> What business code do you use? I don't do eats so I never looked into it. I would think since there are separate codes you would need separate Schedule C's. I really don't know???
> 
> The six-digit business code for food deliveries businesses is *492000 (Couriers & Messengers)*.
> The six-digit business code for Uber and Lyft is *485300 (Taxi/Limo)*.


Well technically you are correct. I used to do all rideshare so one code. Then I had a year where I started doing some food delivery but primarily rideshare so I still used rideshare . Then a year where primarily delivery and some rideshare so I switched to delivery. Now I do only delivery so it's no issue.

Separating and assigning expenses to separate schedule c business codes would be cumbersome and make things more complicated than they need to be.

So technically you are correct but I can't even begin to imagine them making a big issue out of that. According to a lifelong friend of mine who is a CPA there is established precedent that the key is that if it is a *closely* related gig then you can get away with one schedule C but if it is an *unrelated* source then you would need a separate schedule C's for each. Of course related or unrelated is subject to interpretation .

Bottom line although you are technically correct it is most likely a moot point as a good argument can be made these gigs are closely related. If I ever get my schedule C audited I would be thrilled if the discussion is only about business codes! :roflmao:


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## FLKeys

Seamus said:


> Well technically you are correct. I used to do all rideshare so one code. Then I had a year where I started doing some food delivery but primarily rideshare so I still used rideshare . Then a year where primarily delivery and some rideshare so I switched to delivery. Now I do only delivery.
> 
> So technically you are correct but I can't even begin to imagine them making a big issue out of that. According to a lifelong friend of mine who is a CPA there is established precedent that the key is that if it is a *closely* related gig then you can get away with one schedule C but if it is an *unrelated* source then you would need a separate schedule C's for each. Of course related or unrelated is subject to interpretation .
> 
> Bottom line although you are technically correct it is most likely a moot point as a good argument can be made these gigs are closely related.


I was thinking the same lines as you, closely related, I would use the code for the one that I did the most I guess. Still don't plan on doing eats but you never know. If and when it is available in my area I may give it a try.


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## El Gato

So, bought a new macbook last year. I do track my mileage on an excel spreadhseet and also income/expense reports for my small business (uber driver), as well as all the tax prep for my uber business. Can I deduct this as an office supply expense or other expense?


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## FLKeys

El Gato said:


> So, bought a new macbook last year. I do track my mileage on an excel spreadhseet and also income/expense reports for my small business (uber driver), as well as all the tax prep for my uber business. Can I deduct this as an office supply expense or other expense?


I believe if the cost was under $2500 you can expense it the year you bought it. If over you need to expense it over the life of the asset. I believe computers are 5 years.


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## islanddriver

FLKeys said:


> I believe if the cost was under $2500 you can expense it the year you bought it. If over you need to expense it over the life of the asset. I believe computers are 5 years.


you can only deduct the portion that is for business use.


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## FLKeys

islanddriver said:


> you can only deduct the portion that is for business use.


Correct, I read it as he bought it specifically for ride share. I know I have a laptop that I use solely for business and a second tablet that I use for personal use.


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## mbd

FLKeys said:


> Correct, I read it as he bought it specifically for ride share. I know I have a laptop that I use solely for business and a second tablet that I use for personal use.


IRS is backed up, they don't have time to go after all the drivers. If you use your laptop for personal use and claim it as a business expense, they don't care&#128512;
They are not going to ask Google for all your porn website history.
If you make 250k or higher, they will keep an eye on you. 
If you ever have a issue with IRS, just go to the local federal building and talk to them ( not now, due to the Covid issue) or just call them. 99.9% of the time they will work with you.


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## El Gato

Yeh I knew about the personal/business use part, but was curious as to if a purchase this high would raise eyebrows? I made only $3k in gross earnings and I have $5k in deductions, with $1,200 coming from the laptop. So this year I am showing a loss of 2k as opposed to the loss of $48 last year. 
Furthermore, which expense line would ya'll classify the laptop? Office, supply, or other expense?


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## Seamus

El Gato said:


> Yeh I knew about the personal/business use part, but was curious as to if a purchase this high would raise eyebrows? I made only $3k in gross earnings and I have $5k in deductions, with $1,200 coming from the laptop. So this year I am showing a loss of 2k as opposed to the loss of $48 last year.
> Furthermore, which expense line would ya'll classify the laptop? Office, supply, or other expense?


The proper place to classify a computer purchase would be "Other expenses".


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## joannsabki

If you have more than $400 in income from your ridesharing work, you need to pay self-employment taxes.


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## kcchiefsfan1982

joannsabki said:


> If you have more than $400 in income from your ridesharing work, you need to pay self-employment taxes.


hellz no!!!

my mileage write-off keeps me from making net income!!! 

No taxes!!!!!!!!!!


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## Lee239

joannsabki said:


> If you have more than $400 in income from your ridesharing work, you need to pay self-employment taxes.


net income.


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## blssed2bme

I was bad and had not been keeping my own track of mileage. I am now as of March 2022 and I'm using the Stride app.
I'm trying to "guessitmate" the miles driven in Jan and Feb. I'm trying to use the Monthly Tax Summary to figure out my earnings and I'm confused which figures I use should.

Should I use the Gross Payment amount or the Net Payment amount?

Or should I just going into the Earnings portion of the app and use the weekly amount there as my earnings?


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## Seamus

blssed2bme said:


> I was bad and had not been keeping my own track of mileage. I am now as of March 2022 and I'm using the Stride app.
> I'm trying to "guessitmate" the miles driven in Jan and Feb. I'm trying to use the Monthly Tax Summary to figure out my earnings and I'm confused which figures I use should.
> 
> Should I use the Gross Payment amount or the Net Payment amount?
> 
> Or should I just going into the Earnings portion of the app and use the weekly amount there as my earnings?


Net payment.


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## Darrell Green Fan

blssed2bme said:


> I was bad and had not been keeping my own track of mileage. I am now as of March 2022 and I'm using the Stride app.
> I'm trying to "guessitmate" the miles driven in Jan and Feb. I'm trying to use the Monthly Tax Summary to figure out my earnings and I'm confused which figures I use should.
> 
> Should I use the Gross Payment amount or the Net Payment amount?
> 
> Or should I just going into the Earnings portion of the app and use the weekly amount there as my earnings?


Yes it's the net but you need that backup documentation for the business miles if you are audited. I would use the monthly statements Uber and Lyft provide, which details the miles driven on the app, for the months you didn't have Stride. Here's another tip: My tax person said she had 2 ride share drivers whose business mile deduction was thrown out because they didn't have a breakdown of each ride. This is a huge tax hit. So I just stop and start the Stride app at each pickup and drop, this will give you a big spreadsheet at the end that will cover you in case of an audit.


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## montecristo

Are Postmates earnings included in the Uber 1099's? Or do those earnings need to be filed separately? I didn't receive anything from Postmates but that may be because I had less than $600 in earnings with them and it says they don't send you a 1099 for less than $600.


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## Merc49

I'm taking social security in Aug and I understand I can still work and make a certain amount of money like doing uber. A friend said I should become a sole proprietor and that way uber could pay for my car and meals and such and I can then draw a paycheck up to the monthly allowance. Is that the best way to go about it. I'll still do cash work like pizza delivery and I do some welding and auto repair out of my garage for cash. I'm figuring the money from uber goes into an account, I draw a paycheck of say 375 a week, then the company pays for my car, repairs, and if I'm lucky my 2 meals a day. I know you get double taxed but I should be in Florida by then and there's no state income tax. I had a business before and that's how I did it in Illinois. Sound like it's feasible?


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## Seamus

Merc49 said:


> I'm taking social security in Aug and I understand I can still work and make a certain amount of money like doing uber. A friend said I should become a sole proprietor and that way uber could pay for my car and meals and such and I can then draw a paycheck up to the monthly allowance. Is that the best way to go about it. I'll still do cash work like pizza delivery and I do some welding and auto repair out of my garage for cash. I'm figuring the money from uber goes into an account, I draw a paycheck of say 375 a week, then the company pays for my car, repairs, and if I'm lucky my 2 meals a day. I know you get double taxed but I should be in Florida by then and there's no state income tax. I had a business before and that's how I did it in Illinois. Sound like it's feasible?


Sounds like you’re getting bad advice. A sole proprietorship (even a sole LLC) does not separate an entity from an owner for tax purposes. Only Corporations do that. Your choice would be an S Corp or C Corp. Sounds like you need professional advice from someone that actually knows what they’re talking about, I.e. lawyer/cpa.


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## Merc49

Seamus said:


> Sounds like you’re getting bad advice. A sole proprietorship (even a sole LLC) does not separate an entity from an owner for tax purposes. Only Corporations do that. Your choice would be an S Corp or C Corp. Sounds like you need professional advice from someone that actually knows what they’re talking about, I.e. lawyer/cpa.


I asked him about what you said and I misunderstood him he said s-corp which is what I had before, my mistake. Would I have to start it by August though if I'm taking my soc sec by then?


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## Seamus

Merc49 said:


> I asked him about what you said and I misunderstood him he said s-corp which is what I had before, my mistake. Would I have to start it by August though if I'm taking my soc sec by then?


There are several factors that go into this and since I don’t receive Social Security benefits I have no personal knowledge of this. You can ask them directly which is best. Here is a guide they put out called _How work affects your benefits._



https://www.ssa.gov/pubs/EN-05-10069.pdf


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## Merc49

Seamus said:


> There are several factors that go into this and since I don’t receive Social Security benefits I have no personal knowledge of this. You can ask them directly which is best. Here is a guide they put out called _How work affects your benefits._
> 
> 
> 
> https://www.ssa.gov/pubs/EN-05-10069.pdf


Ok thanks


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## ubermikeo

I don't have enough miles to offset owing taxes unless I claim the car is used only for rideshare and I don't have mileage record to back this up. Am I screwed?
Using Turbo tax and I have claimed everything I can I think. Also 2021 was my first year driving so maybe this will help?


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## Uber's Guber

ubermikeo said:


> I don't have mileage record to back this up. Am I screwed?


Yes.


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## ubermikeo

I mean I track the miles but not enough miles were tracked apparently.


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## Seamus

ubermikeo said:


> I mean I track the miles but not enough miles were tracked apparently.


Despite what many say, unless you’re really bad at figuring out how to make money, most people can’t offset all their earnings by mileage expense. Just make sure you track your own mileage driveway to driveway and don’t rely on anyone else to track it for you.

Also, don’t forget to deduct all the business expenses like your cell phone, tax software, bank fees etc etc..


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## ubermikeo

"The IRS only requires you to make estimated payments if you owe $1,000 or more when you file your return."

I am reading conflicting info regarding who has to pay quarterly like this statement above? What exactly is the statement referring to?
As long as I end up owing less than $1000 end of year then I don't have to pay quarterly for that year?

I just filed an extension and will go see a professional. I don't want any issues with IRS.


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## ubermikeo

I think I have realized that my situation is different because in 2020 I had no tax liability (was recovering from accident and didn't work the whole year) so that I believe exempted me from paying estimated taxes in 2021 so whatever tax I owe at the end of year is all. However, my quarterly taxes are due for this year by April 18.


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## Seamus

ubermikeo said:


> As long as I end up owing less than $1000 end of year then I don't have to pay quarterly for that year


Correct. Most drivers don’t pay/file estimated quarterly taxes. However there are a few that do, it all depends on how diligent you want to be. 

To be honest, if you don’t pay quarterly and you owe more than $1000 the fine isn’t that big. For example, this year I owed $19,000 in taxes (I have a lot of different things going on this year) and my fine is only about $262 which is a pittance to pay to have held and invested that money.


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## Solmex

UberTaxPro said:


> Rideshare tax Ask Me Anything


I work full time for uber and did my taxes, my accountant told me I owe almost 7000 dollars this is right?
Uber pay to my bank account like 69000


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## Seamus

Solmex said:


> I work full time for uber and did my taxes, my accountant told me I owe almost 7000 dollars this is right?
> Uber pay to my bank account like 69000


No one could tell you if that’s right or not without all the information.


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## FLKeys

Seamus said:


> Despite what many say, unless you’re really bad at figuring out how to make money, most people can’t offset all their earnings by mileage expense. Just make sure you track your own mileage driveway to driveway and don’t rely on anyone else to track it for you.
> 
> Also, don’t forget to deduct all the business expenses like your cell phone, tax software, bank fees etc etc..



Under business expenses you forgot to list candy, water, snacks, etc. 🤣 🤣 🤣 

Last year I had an excellent year with tips. I would have to write off more miles than I drove in the entire year, including all personal miles, to off set all my earnings with miles.


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## Seamus

FLKeys said:


> Under business expenses you forgot to list candy, water, snacks, etc. 🤣 🤣 🤣
> 
> Last year I had an excellent year with tips. I would have to write off more miles than I drove in the entire year, including all personal miles, to off set all my earnings with miles.


That’s a sure sign you really know what you’re doing!


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