# Got $1000 refund. Better than owing $6,400



## Schneesturm (Nov 20, 2015)

Just like the title says


----------



## BDAWG (Nov 17, 2015)

How? Do you only driver uber? Or do you have an other job?


----------



## Schneesturm (Nov 20, 2015)

Not really. Just full time with Uber. Setup you own s-Corp or llc. Start paying yourself by hiring someone to do your payroll. Start getting withholding so you don't have to pay that 16% self employment tax. That's about it. Claim all your expenses and you should get money back. I started my s-Corp late and only got about a month of payroll. If I did it from the beginning of the year, I would of got 4,000. Hire someone you trust to do it. And that's about it.


----------



## Schneesturm (Nov 20, 2015)

I also had school credits, those help also.


----------



## LAuberX (Jun 3, 2014)

what was your gross on the 1099K?


----------



## UberTaxPro (Oct 3, 2014)

how much does the payroll person cost you?


----------



## Schneesturm (Nov 20, 2015)

$100 a month and I get all statements, like income, profit and loss etc. I have access to it 24 hours a day, all thru an app. 

Gross was 36,000 with all the BS like SRF, tolls, and uber fee

CPA brought it down to 30,000

I ended up making 7,000 in profit with all my expenses lol. 

What a waste of time lol.

Going to try postmates out to see if its better. Not in a car though, motorcycle.


----------



## UberTaxPro (Oct 3, 2014)

"$100 a month and I get all statements, like income, profit and loss etc. I have access to it 24 hours a day, all thru an app. "
Do you have a link to a website about this? I'd be curious to see how its being done. thanks


----------



## Schneesturm (Nov 20, 2015)

It's an accounting firm in miami called tax care Inc check them out.


----------



## Wheelman (Jan 5, 2016)

The Good News is, the IRS is so fubar'd, they will never catch up with you.


----------



## Altima ATL (Jul 13, 2015)

Basic logic says that to get a 'tax refund' you need to pay taxes in the first place - OK not exactly true (with tax credits and so on) - but I think your posts are missing something.


----------



## UberTaxPro (Oct 3, 2014)

http://taxcareinc.com/
Looks expensive


----------



## JaxUbermom (Jan 26, 2016)

Shielding yourself through an llc is always a very good idea. And because it is a business, you get breaks that a self employed person does not. It take a small bit of effort, and has minimal start up costs if you compare them to what you stand to lose both through liability and taxes as a self employed person, but it is worth it in the long run.


----------



## UberTaxPro (Oct 3, 2014)

JaxUbermom said:


> Shielding yourself through an llc is always a very good idea. And because it is a business, you get breaks that a self employed person does not. It take a small bit of effort, and has minimal start up costs if you compare them to what you stand to lose both through liability and taxes as a self employed person, but it is worth it in the long run.


Are you talking about tax breaks?


----------



## JaxUbermom (Jan 26, 2016)

Yes. Mostly.


----------



## UberTaxPro (Oct 3, 2014)

JaxUbermom said:


> Yes. Mostly.


Unless I'm missing something changing from a sole proprietor to a single owner LLC provides nothing in the way of tax breaks. A single member LLC gets taxed the same as a sole proprietor. It's treated as a "disregarded entity" by the IRS similar to a sole proprietorship and the owner is subject to the tax on net earnings from self-employment.


----------



## StarzykCPA (Aug 6, 2015)

UberTaxPro said:


> Unless I'm missing something changing from a sole proprietor to a single owner LLC provides nothing in the way of tax breaks. A single member LLC gets taxed the same as a sole proprietor. It's treated as a "disregarded entity" by the IRS similar to a sole proprietorship and the owner is subject to the tax on net earnings from self-employment.


You are correct, but I believe the assumption here is he elected S-Corp treatment for his LLC. That way, he can pay himself a salary and only the salary amount is subject to payroll taxes (as opposed to all of your net income if subject to self-employment tax).


----------



## JaxUbermom (Jan 26, 2016)

Hmmmmm. Let me check with my own tax guy regarding this before I respond. If I am wrong, I will admit it.


----------



## JaxUbermom (Jan 26, 2016)

Yes. To the post that came in while I was typing. Thank you. Freaked me out for a minute!

I have an S-Corp. was going to make a joke about incorporation, but then it would lead down the row of privately versus public and it wouldn't have been understood. 
I like you guys that are extremely detail and methodically oriented and my generalization would have annoyed you. So I deleted it.


----------



## UberTaxPro (Oct 3, 2014)

StarzykCPA said:


> You are correct, but I believe the assumption here is he elected S-Corp treatment for his LLC. That way, he can pay himself a salary and only the salary amount is subject to payroll taxes (as opposed to all of your net income if subject to self-employment tax).


Yes, an LLC electing S-Corp status brings the tax advantages you mentioned but it comes with additional costs like increased accounting, legal, payroll costs etc.. and additional IRS regulations that may offset any tax breaks especially for a small business like an individual Uber driver. When someone is selecting a business entity they should be sure to consider how all the aspects--legal, tax and operational--of each organizational form will impact the business. 
Most LLC's are taxed as partnerships so the owners avoid liability with the tax benefits of a partnership.


----------



## UberTaxPro (Oct 3, 2014)

JaxUbermom said:


> Yes. To the post that came in while I was typing. Thank you. Freaked me out for a minute!
> 
> I have an S-Corp. was going to make a joke about incorporation, but then it would lead down the row of privately versus public and it wouldn't have been understood.
> I like you guys that are extremely detail and methodically oriented and my generalization would have annoyed you. So I deleted it.


Is your S corp for a ride-share business?


----------



## JaxUbermom (Jan 26, 2016)

Specifically? Rideshare, which is not a business? No.

I apologize, I am a bit tired. I am taking an Uber break for personal reasons and have spent too much time on this forum, but I am fascinated with what I hope is a growing momentum to fix some problems like Uber over reach and attempting to manipulate legislation in Florida, New York and other areas specifically. To step on City rights, and leave drivers holding the bag at every turn, etc.,

I wish I could answer the complicated tax questions, but I mostly have a very good book keeper and run stuff by him to know my exposure first. If I can or can't do something and what it will end up costing me. I am not filthy rich. I just don't want to lose what I work very hard for to the IRS. They can have a share. Everyone does have a tax responsibility, just not more than my own share if I can help it ethically.


----------

