# Tax witholding options



## jhearcht (Feb 16, 2018)

I'm in my second month. Just did my taxes for last year. I don't know what percentage of UBER income will go to taxes. What are some ideas for setting aside some of your income for tax time?


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## Cableguynoe (Feb 14, 2017)

Income?

For Real? You're making money?


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## 1974toyota (Jan 5, 2018)

jhearcht said:


> I'm in my second month. Just did my taxes for last year. I don't know what percentage of UBER income will go to taxes. What are some ideas for setting aside some of your income for tax time?


ROFLMAO


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## Mars Troll Number 4 (Oct 30, 2015)

jhearcht said:


> I'm in my second month. Just did my taxes for last year. I don't know what percentage of UBER income will go to taxes. What are some ideas for setting aside some of your income for tax time?


Most drivers in most markets lose money on paper..

P= taxable profit
M= miles Driven
T= tolls
R=Revenue

P= R- (M * .545)- T

So for me on my last shift..

$280- $105= $175 in taxable profit. This is what my taxable profit is using actual expenses method.

But I drive a taxi

Your numbers are probably closer to..

$100 paid
- $110 in deductible miles
-$10

Or owing absolutely nothing because uber pay is so horrible it's impossible to make money on paper.


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## RamzFanz (Jan 31, 2015)

Mears Troll Number 4 said:


> Most drivers in most markets lose money on paper..
> 
> P= taxable profit
> M= miles Driven
> ...


One day people will realize that taxable income has NOTHING to do with actual profit.

If you made $280 to an Uber drivers $100, you probably worked 15 hours to their 5. Stop pretending.


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## Mars Troll Number 4 (Oct 30, 2015)

RamzFanz said:


> One day people will realize that taxable income has NOTHING to do with actual profit.
> 
> If you made $280 to an Uber drivers $100, you probably worked 15 hours to their 5. Stop pretending.


Dude.. .first of all taxable profit _*does matter*_ when the poster is asking a *tax related question*, so.. there... that's all i really need to say but i will go on.

And $280 took me 11.5 hours (you weren't that far off)
18 fares at $15.00 average each fare.

Your assumption is based on your market.. Not mine..
I charge about 4 times what uber drivers get paid per mile. So if i'm half as busy, i'm getting twice as much revenue. And i get ALL of what the customer get's charged to put towards my expenses, of about $100 a night.

And you have to understand that even uber's advertisements in Orlando are only for $9.00 an hour before expenses... This is shockingly depressingly worse than many markets around the US.

Not everyone is blessed to be in a market that pays as much as the St Louis market does.

X pays 53c a mile here to St Louis' 94c a mile?

Or selects rate here of $1.28 to St Louis' $1.84 for select or $2.70 a mile for black.

$100 here will take you a good 11 hours to crank out on uberX. 15 fares at an average of $6.60 per fare.

$250 here in a taxi? that's about 17 fares of an average of $15 each.

Me personally, i KNOW that i'm getting over double as much per fare driving a taxi. And i'm OK with paying less than 1/3 of my revenue a night to rent a taxi. And that's why..


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## Cableguynoe (Feb 14, 2017)

Mears Troll Number 4 said:


> Your assumption is based on your market.. Not mine..


I gotta say though, that the same applies to you.

You always like to give out numbers. But those taxi numbers are based on your market.

If I rented a taxi in Santa Cruz, CA I would get maybe 2 rides in a 12 hour day, if that, with the occasional good trip to SFO for a an older couple going to Orlando to meet the family in WDW.


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## Mars Troll Number 4 (Oct 30, 2015)

Cableguynoe said:


> I gotta say though, that the same applies to you.
> 
> You always like to give out numbers. But those taxi numbers are based on your market.
> 
> If I rented a taxi in Santa Cruz, CA I would get maybe 2 rides in a 12 hour day, if that, with the occasional good trip to SFO for a an older couple going to Orlando to meet the family in WDW.


Have you tried?


I would give them a shot for Lols at this point rather than continuing with uber.

99% of the time taxi drivers are ICs,

If they were only getting 2 fares a day the company would crumble in less than a week. Cab drivers can't afford to lose money day after day.

They simply wouldn't have anyone left to drive if that were the case.

But... the taxi companies are still hanging on aren't they?

Or are you assuming that Santa Cruz Yellow Cab is just a giant scam that never gets any customers at all?
*(831) 423-1234.*

Are they churning new drivers every week who lose money and end up in the hole?

Or are they old timers who are still clinging on while losing money every day they work?

Or are they actually getting customers and making money while laughing at you suckers behind your back driving POS crown vicys cause they are super el Cheapo to operate?

Which of these makes more sense?

Drivers losing money consistently every day?

Or making money in spite of the uber lies that everyone believes?

Personally, I believe that if uber is talking uber is lying...
But i'm biased because I worked for uber and a taxi company.

I'd give YC santa Cruz a shot, cause anything is better than uber... (Yellow cab has an A+ at the BBB btw)


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## Cableguynoe (Feb 14, 2017)

Mears Troll Number 4 said:


> Have you tried?
> 
> I would give them a shot for Lols at this point rather than continuing with uber.
> 
> ...


HAven't tried because it's not something I'm interested in. But the fact that I don't see them on the road is a big clue.
Maybe there are very few drivers and those guys do ok. Not sure.

Big events like the ATT Pebble beach golf tournament there was a line of taxis sitting there and Uber was surging for over an hour. Pax were waiting and even frustrated trying to leave the golf course as it was getting dark and cold, and still would not hop in a taxi.

I think people out of town on vacation, like orlando, it's different. On vacation you need to get around and taxis are acceptable.
But locals just dont take taxis.


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## Mars Troll Number 4 (Oct 30, 2015)

Cableguynoe said:


> HAven't tried because it's not something I'm interested in. But the fact that I don't see them on the road is a big clue.
> Maybe there are very few drivers and those guys do ok. Not sure.
> 
> Big events like the ATT Pebble beach golf tournament there was a line of taxis sitting there and Uber was surging for over an hour. Pax were waiting and even frustrated trying to leave the golf course as it was getting dark and cold, and still would not hop in a taxi.
> ...


well i don't drive tourists for the most part..

MIND BLOWN or what?

There is a lot of tourist money but...
Tourist money is hit or miss...

I spend a lot of time working the hood because tourist money comes and goes, but Jose needs his 5 mile cab ride to the bus yard on Sunday night like clockwork.

There's a lot of times i get people who would take an uber but...

Then you can use your imagination to fill in that vague blank.

My personal favorite is when their cell battery is dead, makes me laugh... Morons..

Drop your cell phone in a toilet at work? And you can't even remember your husband's cell phone number?

Well you failed at life, and now you can go call a taxi cause you can't even get a hold of your husband who would give you a ride for free cause you can't even remember his cell number.

They also could have a great deal of medical account business, the hospitals here for instance pay peoples cab fares to get rid of them.

There's also people who are stuck and never pay for rides.. but they are sitting road side and their car is a twisted hunk of garbage and the cops call them a taxi.

Can the cops call them an uber?

Not hardly..

Can the cop take out his cell and phone in the toll free line to call the poor SOB a taxi?

takes like 20 seconds...

You say the locals never take cabs anymore... but you would be stunned how often i hear "i never take cabs" from the guy sitting in my car. It's kinda like "just around the corner" or "just up the road" absolutely meaningless details.

Plus you have the folks who can't get a smart phone or the proper credit/debit card to use uber. They want to.. but they can't... they usually pay cash.

I can't make this crap up. You just never hear about it cause people only take uber's when everything is actually working properly. The rest of time it goes to us.

Cause we will pick up anyone!


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## Cableguynoe (Feb 14, 2017)

Mears Troll Number 4 said:


> Cause we will pick up anyone!


So will Uber drivers. Don't let this forum fool you.



Mears Troll Number 4 said:


> Can the cops call them an uber?
> 
> Not hardly..


While not common, I actually had firefighters request an Uber for a young lady and ask me to take her to the ER.
But that's a story for another thread.


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## Mars Troll Number 4 (Oct 30, 2015)

Cableguynoe said:


> So will Uber drivers. Don't let this forum fool you.
> 
> While not common, I actually had firefighters request an Uber for a young lady and ask me to take her to the ER.
> But that's a story for another thread.


No.. I'm talking a hobo with a dirty sock full of quarters to pay for the ride...


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## jhearcht (Feb 16, 2018)

Now that the UBER vs Taxi debate is out of the way, let's talk taxes.

I'm in my second month. Just did my taxes for last year. I don't know what percentage of UBER income will go to taxes. 

What are some ideas for setting aside some of your income for tax time?


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## Older Chauffeur (Oct 16, 2014)

jhearcht said:


> Now that the UBER vs Taxi debate is out of the way, let's talk taxes.
> 
> I'm in my second month. Just did my taxes for last year. I don't know what percentage of UBER income will go to taxes.
> 
> What are some ideas for setting aside some of your income for tax time?


Hard to say where you'll wind up at filing time , being this is your first year. But in simple terms, if you put aside 20-25% of your NET PROFIT (gross deposits in your bank account minus your mileage @ $0.545 per mile) each month, you should be in decent shape come tax time. SE tax of 15.3% applies if net profits are at least $400, and income tax will depend on all income, exemptions, deductions and any W2 witholding you might have. If you owe more than $1000 at filing, you may be subject to penalties for not making quarterly estimated tax payments.

Worst case, if you show very little or no profit, you'll have some savings.

Disclosure: I'm not a tax professional. You might want to consult one.


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## Mars Troll Number 4 (Oct 30, 2015)

jhearcht said:


> Now that the UBER vs Taxi debate is out of the way, let's talk taxes.
> 
> I'm in my second month. Just did my taxes for last year. I don't know what percentage of UBER income will go to taxes.
> 
> What are some ideas for setting aside some of your income for tax time?


What market you are in has a bigger impact than it should.

What you need to do is calculate your profit month to month to determine whether or not you are making anything on paper. Then any TAXABLE PROFIT you earn is eligible for 15% federal taxes. Then you need to factor in any states income taxes as well.. which is yet another point where it will vary from market to market.

$1000 in revenue earned in Seattle Washington will result in more Federal taxes owed than $50,000 in revenue earned in Orlando.

I'm not making this up either... and this is just federal taxes I am talking about to, not state.

What state you are in

Then after all this we have to look at any additional special situations.. like what tax bracket you and a jointly filing spouse are in. This ALSO has a huge impact on how much you owe...

So really... your asking how much of your total earnings goes to taxes?










You gotta do the math to find out...

And you gotta be a 5* accountant to figure all that crap out..

And what city you are in, is the biggest variable... bigger even than how much you made.


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## jhearcht (Feb 16, 2018)

Older Chauffeur said:


> Hard to say where you'll wind up at filing time , being this is your first year. But in simple terms, if you put aside 20-25% of your NET PROFIT (gross deposits in your bank account minus your mileage @ $0.545 per mile) each month, you should be in decent shape come tax time. SE tax of 15.3% applies if net profits are at least $400, and income tax will depend on all income, exemptions, deductions and any W2 witholding you might have. If you owe more than $1000 at filing, you may be subject to penalties for not making quarterly estimated tax payments.


OC, thanks for the info. I'm retired and driving about 20 hours per week, mainly to pay for my new car. So my taxes are relatively low, and I'm in a low cost city. But my savings are also low, since I was self-employed, and retired in debt after the Great Recession. I don't want to have a big tax bill at the end of the year that would require borrowing. I'll look into the estimated tax payments to see if my low income will make it necessary.


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## Amsoil Uber Connect (Jan 14, 2015)

The IRS CARES NOT! what city or market your in.

If your only driving uber x and or lyft. your mileage alone should be, key words should be, enough to offset a schedule C liability. In other words, a (negative) # on your 1040 form.


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## Older Chauffeur (Oct 16, 2014)

jhearcht said:


> OC, thanks for the info. I'm retired and driving about 20 hours per week, mainly to pay for my new car. So my taxes are relatively low, and I'm in a low cost city. But my savings are also low, since I was self-employed, and retired in debt after the Great Recession. I don't want to have a big tax bill at the end of the year that would require borrowing. I'll look into the estimated tax payments to see if my low income will make it necessary.


I am also retired and doing private contract driving rather than Uber/Lyft. I keep my Schedule C profits low enough that I just pay the 15.3% self employment contributions, and my Social Security benefits aren't taxed. I'm able to offset IRA distributions with medical insurance premiums and real estate taxes, etc. I don't know how this will all shake out with the new tax rules for 2018.

I really think you should be okay if your monthly net profit on paper is just a few hundred dollars. Good luck.


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## Mars Troll Number 4 (Oct 30, 2015)

Amsoil Uber Connect said:


> The IRS CARES NOT! what city or market your in.
> 
> If your only driving uber x and or lyft. your mileage alone should be, key words should be, enough to offset a schedule C liability. In other words, a (negative) # on your 1040 form.


No they don't care..

But when your getting over $1.10+ a mile driving an XL vehicle in a busy market you might have taxable income with surges.

If your making 60-66c a mile with 50% paid miles you will never owe anything.


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