# Tax Season is upon us! Ask me Whatever!



## UberTaxPro

I am a long-time member here and after last years extensive rideshare tax AMA I think it's time to start anew. I'll do my best to help with your questions this year. Please be patient as I'll be working with one of the larger remote tax services this year and they are keeping me very busy. Thanks also to everyone else that pitches in with great answers!

If you need help preparing your taxes for 2019 please contact me here: UberTaxPro.com


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## Older Chauffeur

@UberTaxPro, thank you for your efforts to help everyone on these boards- much appreciated!:thumbup::thumbup:


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## TCar

Thanks UberTaxPro for all of your posts and answers. Look forward to working with you this year!


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## dieselin-varisi

I don’t log my miles. I prefer to use Uber and Lyft’s own record.
(1) is that OK?
(2) I have heard that I can deduct the money I spent on food if I am out of town when I am doing Uber. For example, I live in Orange County, CA. I usually end up at Los Angeles area. I kept all the food receipts when I ate there. Can I deduct those?
(3) Uber and Lyft is primary job. What is the good percentage I can deduct from my phone bills? I am in the family plan. We kept google sheet to apportion everyone’s share in that bill. On the other hand, I paid off my phone lease. I purchased it. Can deduct it too? Thanks.


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## Badiss

Hello. Can someone clarify this? On 1099-k the gross income is for example 57K, and that includes what the driver has actually earned 41K plus uber cut /service fee tax etc 16K, which also considered as business expense (deductible)),.
Why uber cut is in my gross income? wouldn't that increase the income-tax bracket ?
It's like uber deducting their profits as drivers business expenses ?
Which one is better pay tax on 41K income with 38K mileage, or pay tax on 57k income with 38K millage and 16K uber cut as business expenses
Thank you


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## Deojuvante

UberTaxPro said:


> If you need help preparing your taxes you can contact me here: UberTaxPro.com
> 
> I'll do my best to help with your questions this year. Please be patient as I'll be working with one of the larger remote tax services this year and they are keeping me very busy. Thanks also to everyone else that pitches in with great answers!


Hi mate


UberTaxPro said:


> If you need help preparing your taxes you can contact me here: UberTaxPro.com
> 
> I'll do my best to help with your questions this year. Please be patient as I'll be working with one of the larger remote tax services this year and they are keeping me very busy. Thanks also to everyone else that pitches in with great answers!


Hi mate I am a New driver driver full Time (about 50h/week) in Brisbane.

I am renting my car to a re tal company who works with uber called SPLEND.

I am paying 269 dollars a week for my car (registration insurance services inclused) and about 200 of fuel.
Im making about 1500$ per week.

I put this car on 100% uber use.

Could you help me regarding the payable/déductible taxes for my case ? Thank you


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## Lyft&getthin

What's to keep a rental car driver from using mileage deductions like a car owner driver? How can/will the IRS find out?


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## UberTaxPro

dieselin-varisi said:


> I don't log my miles. I prefer to use Uber and Lyft's own record.
> (1) is that OK?
> (2) I have heard that I can deduct the money I spent on food if I am out of town when I am doing Uber. For example, I live in Orange County, CA. I usually end up at Los Angeles area. I kept all the food receipts when I ate there. Can I deduct those?
> (3) Uber and Lyft is primary job. What is the good percentage I can deduct from my phone bills? I am in the family plan. We kept google sheet to apportion everyone's share in that bill. On the other hand, I paid off my phone lease. I purchased it. Can deduct it too? Thanks.


1. How are you going to account for the overlapping miles?
2. No
3. You need to come up with a consistent way of figuring % of business use like hours used, % of bill allocated to business etc... The business % of your phone purchase is deductible.


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## dieselin-varisi

UberTaxPro said:


> 1. How are you going to account for the overlapping miles?
> 2. No
> 3. You need to come up with a consistent way of figuring % of business use like hours used, % of bill allocated to business etc... The business % of your phone purchase is deductible.


 Thanks!


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## UberTaxPro

Badiss said:


> Hello. Can someone clarify this? On 1099-k the gross income is for example 57K, and that includes what the driver has actually earned 41K plus uber cut /service fee tax etc 16K, which also considered as business expense (deductible)),.
> Why uber cut is in my gross income? wouldn't that increase the income-tax bracket ?
> It's like uber deducting their profits as drivers business expenses ?
> Which one is better pay tax on 41K income with 38K mileage, or pay tax on 57k income with 38K millage and 16K uber cut as business expenses
> Thank you


To avoid a letter from the IRS report the gross amount (57K) then subtract your deductions.



Lyft&getthin said:


> What's to keep a rental car driver from using mileage deductions like a car owner driver? How can/will the IRS find out?


Aren't your rental fees and expenses more than any mileage deductions would be?


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## Lyft&getthin

UberTaxPro said:


> Aren't your rental fees and expenses more than any mileage deductions would be?


I haven't done the math yet myself, but the general consensus and wisdom on the forum seems to indicate that it is not


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## Older Chauffeur

Lyft&getthin said:


> What's to keep a rental car driver from using mileage deductions like a car owner driver? How can/will the IRS find out?


IIRC there are some questions pertaining to whether you own or lease the vehicle, or if you're using a car you don't own. When you sign your return you're stating it's accurate and factual. Ever heard of Al Capone? He went to prison for tax evasion. :wink: :biggrin:


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## Deojuvante

UberTaxPro said:


> 1. How are you going to account for the overlapping miles?
> 2. No
> 3. You need to come up with a consistent way of figuring % of business use like hours used, % of bill allocated to business etc... The business % of your phone purchase is deductible.


if all of the above are used at 100% what percentage of those should I expect or will have returned ?


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## goobered

Thank you for answering questions. Here's one that has me stumped and I totally understand if you don't know either. I worked the first half of last year as an employee and was still paying into 401k. On my W2 the amount shows up in box 12D. In previous years I always got the retirement savers credit. This year, Turbo Tax is not allowing me to take it. This is the first time I am filing as self-employed. I took the questionairre on the IRS website just to be sure that I still qualify. I am not a full-time student, did not take any distributions, filing single and my total income is well below the limit. Is Turbo Tax not allowing me to take the credit because I am now filing as self-employed? Could it be a glitch or does it have to do with which 1040 form it uses?


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## Taxi2Uber

nm


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## Badiss

UberTaxPro said:


> To avoid a letter from the IRS report the gross amount (57K) then subtract your deductions.
> 
> 
> But I did not earn that money? It is not driver income, it is uber profit ...
> I just don't understand the logic ...
> Does uber pay tax on their profit ? Or they deduct driver pay as their business expenses..
> Thank you


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## Taxi2Uber

First time filing for state taxes. (AZ non resident)
I live in NV, and drove Lyft rides in AZ.
I'm using TurboTax Self Employ and I expected a step-by-step for earnings, deductions, etc. for the AZ state portion.
It just simply asked to allocate a portion of the federal amount, but it's not that simple. It's not linear.
While I show a net profit in federal, the state net profit is zero, after figuring in SMD on relatively more miles driven for lesser earnings and higher expenses.
Is that right? 
Since there were no Schedule C type line entries to show the math, I can't show that I earned, let's say, $1000 - $400 Lyft fee, and I drove 1500 miles to earn that resulting in 0 net profit.
Seems kind of red flag worthy filing for state taxes and showing all zeros in the state column.


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## UberTaxPro

Taxi2Uber said:


> First time filing for state taxes. (AZ non resident)
> I live in NV, and drove Lyft rides in AZ.
> I'm using TurboTax Self Employ and I expected a step-by-step for earnings, deductions, etc. for the AZ state portion.
> It just simply asked to allocate a portion of the federal amount, but it's not that simple. It's not linear.
> While I show a net profit in federal, the state net profit is zero, after figuring in SMD on relatively more miles driven for lesser earnings and higher expenses.
> Is that right?
> Since there were no Schedule C type line entries to show the math, I can't show that I earned, let's say, $1000 - $400 Lyft fee, and I drove 1500 miles to earn that resulting in 0 net profit.
> Seems kind of red flag worthy filing for state taxes and showing all zeros in the state column.


Allocating income on multiple state returns can be tricky. I can't help you with turbo tax other than to tell you that 
when preparing returns in multiple states, it's best to do your nonresident and/or part-year resident state returns first, and your resident state last.


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## reg barclay

Quick question. Can I switch from filing my vehicle expenses itemized to using the standard mileage deduction, even if I'm still using the same vehicle.

Thanks.


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## Older Chauffeur

reg barclay said:


> Quick question. Can I switch from filing my vehicle expenses itemized to using the standard mileage deduction, even if I'm still using the same vehicle.
> 
> Thanks.


Quick answer, in case @UberTaxPro is busy :wink:. 
From IRS Pub463:
"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."


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## Milo13

Totally newbie question. I just started driving for uber part time in nov/dec. I have a full time job and just use this to pay down some bills. But I just recieved this notification. Does this mean I don't have to file anything. My gross earnings was $751 and fee's and tax were $214 so my take home was $537


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## Jon Stoppable

Can I volutarily pay the government extra taxes, and then take a writeoff for that amount?


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## Older Chauffeur

@Milo13,
You still need to file Schedule C, profit and loss from busines. The figures from tthat form will flow into your Form 1040 and be added to the income from your regular job. I'm guessing it won't amount to much after you deduct your mileage and other expenses. There is a $400 threshold for the SECA contributions to Social Security and Medicare, so you may not need to file Schedule SE if your net profit is than that. SECA is similar to the FICA withheld from your paycheck at your regular job, except you pay the whole 15.3% whereas you and your employer share it.


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## UberTaxPro

goobered said:


> Thank you for answering questions. Here's one that has me stumped and I totally understand if you don't know either. I worked the first half of last year as an employee and was still paying into 401k. On my W2 the amount shows up in box 12D. In previous years I always got the retirement savers credit. This year, Turbo Tax is not allowing me to take it. This is the first time I am filing as self-employed. I took the questionairre on the IRS website just to be sure that I still qualify. I am not a full-time student, did not take any distributions, filing single and my total income is well below the limit. Is Turbo Tax not allowing me to take the credit because I am now filing as self-employed? Could it be a glitch or does it have to do with which 1040 form it uses?


Has your income gone up? There are income limits to this credit:

*
Credit Rate**Married and Files a Joint Return**Files as Head of Household**Other Filers*50%Up to $38,500Up to $28,875Up to $19,25020%$38,501 - $41,500$28,876 - $31,125$19,251- $20,75010%$41,501 - $64,000$31,126- $48,000$20,751 - $32,0000%More than $64,000More than $48,000More than $32,000



reg barclay said:


> Quick question. Can I switch from filing my vehicle expenses itemized to using the standard mileage deduction, even if I'm still using the same vehicle.
> 
> Thanks.


quick answer. no



Jon Stoppable said:


> Can I volutarily pay the government extra taxes, and then take a writeoff for that amount?


Not taxes but you can make donations to Federal, state, and local governments, if your contribution is solely for public purpose like a national park for example.



Deojuvante said:


> Hi mate
> 
> Hi mate I am a New driver driver full Time (about 50h/week) in Brisbane.
> 
> I am renting my car to a re tal company who works with uber called SPLEND.
> 
> I am paying 269 dollars a week for my car (registration insurance services inclused) and about 200 of fuel.
> Im making about 1500$ per week.
> 
> I put this car on 100% uber use.
> 
> Could you help me regarding the payable/déductible taxes for my case ? Thank you


Sorry but I can only help with US issues.

@Badiss
"But I did not earn that money? It is not driver income, it is uber profit ...
I just don't understand the logic ...
Does uber pay tax on their profit ? Or they deduct driver pay as their business expenses..
Thank you "

Yes I know something doesn't seem right about it. You're paid from a third party not Uber. Driver pay is reported on a 1099-K which is used mostly for credit card transactions. Read up on 1099-K's and things might seem clearer.


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## FLKeys

If I use the standard mileage deduction only for my car and later down the road sell the car do I need to recapture any depreciation?

This was brought up in another thread here and now I'm wondering about it.


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## percy_ardmore

If your tax liability is zero above the line where the Savers credit would go, it won't calculate it because no tax to reduce.


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## Davesway10

I didn't qualify for form 1099-k but I still need to report this income. Since i did not receive form 1099-k can I still deduct my miles?
Also, am i still required to report the portion of my pay that is paid directly to UBER and then deduct it later?


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## Older Chauffeur

Davesway10 said:


> I didn't qualify for form 1099-k but I still need to report this income. Since i did not receive form 1099-k can I still deduct my miles?
> Also, am i still required to report the portion of my pay that is paid directly to UBER and then deduct it later?


Yes to both questions. You show the gross pay U/L gives you on Schedule C, and deduct their fees and your mileage and other expenses. Ideally, subtracting their fees alone should give you the total of your bank deposits. The tax program you're using should walk you through reporting your income and expenses.


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## UberTaxPro

FLKeys said:


> If I use the standard mileage deduction only for my car and later down the road sell the car do I need to recapture any depreciation?
> 
> This was brought up in another thread here and now I'm wondering about it.


Generally only if you make a profit on the sale. Kinda like selling your house after taking a home office deduction for years.


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## Jon Stoppable

UberTaxPro said:


> Generally only if you make a profit on the sale. Kinda like selling your house after taking a home office deduction for years.


Kinda, except if you're a full-time driver it's just about a guarantee. Unless you trade in!


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## JaxUberLyft

UberTaxPro said:


> Generally only if you make a profit on the sale. Kinda like selling your house after taking a home office deduction for years.


Just to be clear...that would only apply in the astronomically rare event of selling a car for more than its purchase price plus cost of improvements...there is no recapture of standard mileage allowance since that is not depreciation...yes?


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## Jon Stoppable

JaxUberLyft said:


> Just to be clear...that would only apply in the astronomically rare event of selling a car for more than its purchase price plus cost of improvements...there is no recapture of standard mileage allowance since that is not depreciation...yes?


No, the standard mileage rate has $0.26 per mile of depreciation, which reduces your basis in your car (but not below zero). So if you buy a car for $26,000, drive 100,000+ miles in a year, and then sell it for cash, whatever your sales price is would be 100% gain.


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## islanddriver

So best bet is to buy a car worth $5000.to$8000 drive it till the wheels fall off. No resale value. I'm driving a car with $3500.retail value . As long as you keep it clean and and well-maintained .it's good enough for Uber


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## kharris

UberTaxPro said:


> I am a long-time member here and after last years extensive rideshare tax AMA I think it's time to start anew. I'll do my best to help with your questions this year. Please be patient as I'll be working with one of the larger remote tax services this year and they are keeping me very busy. Thanks also to everyone else that pitches in with great answers!
> 
> If you need help preparing your taxes for 2019 please contact me here: UberTaxPro.com


Hello, I made 1,569 in gross earnings with ubereats in 2019. My net pay out is 1379.31. Will I receive a 1099 to file? Do I even need to file this with my tax returns. I also had a full time job last year


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## Jon Stoppable

islanddriver said:


> So best bet is to buy a car worth $5000.to$8000 drive it till the wheels fall off. No resale value. I'm driving a car with $3500.retail value . As long as you keep it clean and and well-maintained .it's good enough for Uber


That's just good economic sense, which is always the best starting point for RS. Also you can trade-in your vehicle in a "like-kind exchange" and defer any gain. In that case, the gain reduces the basis of your new car, but who cares? You're gonna keep on taking the standard mileage rate and never paying tax!

Hey, if it was good enough for Leona Helmsley, it's good enough for a bear!


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## MissAnne

I just sent you a private message....


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## Hornplayer

Hi UTP. On your advice last year I started using TripLog to automatically record each phase of a rideshare ride (going to pick up passenger, driving the passenger to his destination, going to my favorite ping-source area etc.). Its records are wonderful I'm vary glad I did, thank you for the advice!

But I didn't start using it until April 2019, though I started ridesharing in Jan 2019. 

I just finished my first year of ridesharing. Started Uber/Lyfting in Jan. 2019, have never done the tax-record part until now.

Do Uber and Lyft provide records of each ride you gave, how long it was etc.? Do you have to log in to each service and download a file, or whatever?

I've heard of the 1099, haven't gotten one yet. From what I've heard, it gives very little information about miles, just dollars. I just logged into Uber, and found a message that they are still working on the records, and I should wait for three days and log in on Feb. 14.

Hmm. Anyone know if we can reach detailed records of our own ridesharing with Uber (or Lyft)? Something that lists each ride, its start and end points, how many miles etc.?

I got a short summary from Lyft, it also says very little.


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## 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!


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## OCUberGuy

Did anybody notice, when you add up the expenses in Table 1 on page two of the Tax Summary, minus the Reimbursements, the amounts don’t total up correctly or match Expenses, Fees and Tax on page1 of the Tax Summary. Maybe why everything is on hold!!


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## Nina2

Can you still deduct millage in CA after AB5


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## Mr.Do

Hi and thanks for answering these tax questions for us.

In November, while I had 3 pax in the car, I was rear ended by a drunk driver. The drunk was assessed 100% liability for the accident. The car ended up down for repairs for an extended time. I was not able to drive the rest of the year. Is there a way to claim lost wages as a deduction?

I purchased a new vehicle in January. For this purchase I put $5,000 down and also had $4,000 from my trade ( I owed $12k and was given $16k in trade) Is that entire down payment (multiplied by my business vs personal use percentage) tax deductible? Can I take that all this year or is it spread out over several years? Does the car payment work the same way?

I also purchased a new cell phone, how do I calculate business vs personal use percentage for it?

Thanks


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## Jon Stoppable

Mr.Do said:


> Is there a way to claim lost wages as a deduction?


Nope, but on the positive side, the wages you didn't earn aren't taxable!

Also, if you get a settlement for the lost wages ... taxable! But personal injury settlements are generally not taxable. Generally.


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## Hornplayer

Nina2 said:


> Can you still deduct millage in CA after AB5


I'd think so, at least for Tax Year 2019. AB5 didn't go into effect until 2020.

As for Tax Year 2020, all bets are off. AB5 opened a whole new can of worms. It's one of those laws where you had to pass it just to find out what's in it.


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## Older Chauffeur

IIRC, AB5 included U/L having to pay mileage equivalent to the IRS SMR, unless U/L could prove actual cost per mile was less for the employee.
Companies in CA are required to reimburse employees‘ expenses, which is not a federal requirement.


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## Jon Stoppable

Older Chauffeur said:


> IIRC, AB5 included U/L having to pay mileage equivalent to the IRS SMR, unless U/L could prove actual cost per mile was less for the employee.
> Companies in CA are required to reimburse employees' expenses, which is not a federal requirement.


They will require the drivers to substantiate actual expenses if they are non-idiots. And then they'll fire employees who have per-mile expenses too high for the vehicle class they are driving.


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## Nina2

Jon Stoppable said:


> They will require the drivers to substantiate actual expenses if they are non-idiots. And then they'll fire employees who have per-mile expenses too high for the vehicle class they are driving.


According to Uber if your expenses are above 1 cent per mile they will deactivate you


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## Hornplayer

Nina2 said:


> According to Uber if your expenses are above 1 cent per mile they will deactivate you


Here in SoCal gasoline costs $3.00/gal or more. Many Uber cars get 20mpg. That's $.15 per mile expenses, before you wash the car, pay for insurance etc.

Are you sure your 1 cent per mile figure for deactivation is correct? Where did you get it?


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## JaxUberLyft

Umm...N2 is having you on...


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## Hornplayer

JaxUberLyft said:


> Umm...N2 is having you on...


Aw, that's not fair. It takes actual intelligence to spot things like that. If I were that smart I probably wouldn't be driving for rideshare. I thought she might have dropped a decimal point or two. :-\


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## JaxUberLyft

AB5 employee status is all hypothetical at this point...I wonder if CA law requires employers to reimburse employees at IRS or some other mileage rate other than the actual expense method which is quite onerous as to record keeping.


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## Chacal

I need help with taxes as bike courier for Uber Eats


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## Zaarc

I got my tax summary from Uber and it looks pretty straighforward, but I have questions about the Schedule C.The summary shows around 22k gross earnings, around 7k expenses fees and tax, and a net payout of around 15k. My question is, where on the schedule C do i input the expenses. They are broken up into three main categories:

"Uber service fee/other adjustments"
"Booking Fee"
"Airport and/or city fee paid by Uber or subsidiaries"

Where do each of these items go on the Schedule C? Do they all just go as one thing onto line 10 "Commissions and fees"under expenses?

Also I have about 18,000 miles to deduct. I assume this goes on Line 9 of expenses 
'car and truck expenses"

The only other things i want to deduct are seat covers and dashcam, amounting to about 500 total. Where would these items go. Are they considered "Other expenses" that get itemized on line 48?

Thanks in advance for any help on this.


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## Happy

Zaarc said:


> I got my tax summary from Uber and it looks pretty straighforward, but I have questions about the Schedule C.The summary shows around 22k gross earnings, around 7k expenses fees and tax, and a net payout of around 15k. My question is, where on the schedule C do i input the expenses. They are broken up into three main categories:
> 
> "Uber service fee/other adjustments"
> "Booking Fee"
> "Airport and/or city fee paid by Uber or subsidiaries"
> 
> Where do each of these items go on the Schedule C? Do they all just go as one thing onto line 10 "Commissions and fees"under expenses?
> 
> Also I have about 18,000 miles to deduct. I assume this goes on Line 9 of expenses
> 'car and truck expenses"
> 
> The only other things i want to deduct are seat covers and dashcam, amounting to about 500 total. Where would these items go. Are they considered "Other expenses" that get itemized on line 48?
> 
> Thanks in advance for any help on this.


Following Zaarc's question


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## JaxUberLyft

[Not a tax pro] Dash cam might reasonably be considered a small tool, and thus expensable

Seat covers might reasonably be consider a "supply" item, since they are consumed as soon as they are stained beyond being able to be washed.


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## Jon Stoppable

Everything gets expensed these days. Makes me regret my days as a younger bear memorizing all of the depreciation tables :frown:


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## JaxUberLyft

Yeah - a brief browse revealed a "safe harbor rule" allowing individual items up to $2500 to be expensed. Not sure if true, would want to verify before relying on it. That said, I think worrying about little stuff isn't worthwhile...just pay particular attention to mileage records...that's the gorilla in the gig driving tax world.


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## Jon Stoppable

It's true. There is a safe harbor election statement to attach:

https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations
Time was there was only sec. 179 expensing, but you can't create or increase a loss with a sec. 179 deduction, so that probably doesn't work as well for RS!

Then Congress added bonus depreciation, which unlike sec. 179 can create a loss.

Then the IRS threw up their hands and said we don't care anymore, write it all off!

All of these are elective though, so if you think you'll have a higher tax bracket in one year or another, you can pick and choose whether to write off or depreciate assets each year, according to amount, asset class, and the weather. Fun fun fun.


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## _Tron_

Can anyone who has done their 2019 taxes summarize any changes at the Fed level from last year. Is everything the same as last year (line numbers on key forms, std mileage deduction etc.)? Thanx


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## Older Chauffeur

JaxUberLyft said:


> AB5 employee status is all hypothetical at this point...I wonder if CA law requires employers to reimburse employees at IRS or some other mileage rate other than the actual expense method which is quite onerous as to record keeping.


Same as the IRS rate-
57.5 cents per mile

The cost per mile is designated by state law.
Here's a breakdown of the current IRS *mileage reimbursement rates* for *California* as of January 2020. Employees will receive 57.5 cents per mile driven for business use (the previous *rate* in *2019* was 58 cents per mile.)Jan 4, 2020

*IRS guidelines for California mileage reimbursement - Fyle*


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## _Tron_

Question on multiple businesses:

1) Uber Schedule C income for year is a LOSS of $1,000 (due to .58 cent std mileage deduction offsetting a profit)

2) Second business Schedule C income profit of $5,000.

Therefore is *$4,000* your total for self-employed income (which is then applied to Sch 1 and/or form 1040)


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## Jon Stoppable

Older Chauffeur said:


> *IRS guidelines for California mileage reimbursement - Fyle*


Info at link does not require employers to use it.

Quote:

*Other methods to calculate mileage reimbursement*

_*Actual expense method*_
_Another method employers use for mileage reimbursement is the actual expense method. This method involves* tracking the exact expenses incurred by the employee for the use of their personal vehicle. *Costs include* fuel, repairs, insurance, maintenance, event registration, and depreciation costs.*

Here, employees can calculate their exact expenses, and *employers are responsible for allocating those costs between miles driven for work and personal use. *While this is the most accurate way to calculate mileage reimbursement, it's very time-consuming and expensive._

Time consuming for the employees, but not U/L. They already know your booked miles, and the odometer reading will be sufficient to allocate business v. personal miles against the actual costs the employee would be required to submit.


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## Older Chauffeur

Thanks for pointing that out. I read again the post I was answering, and see that I focused just on the standard mileage rate, and didn’t answer the actual expenses part of the post. :redface:


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## UbaBrah

I have been into both Liberty Tax and Jackson Hewitt today. Both of them told me that I am able to deduct both the standard mileage as well as car/business expenses. How is this possible? Literally everywhere I look online says it's one or the other. In both cases they said something about me being unmarried and earning under 12k from Uber allows me to do this. 

UberTaxPro can you please provide any insight as to what's going on or why they might say this? I feel like if I proceed, I will have done my taxes wrong.


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## Older Chauffeur

Maybe they were telling you that you can take the standard deduction of $12200 and also take either the Standard Mileage Rate of $0.58 or actual vehicle expenses on Schedule C (profit or loss from business.) For most ride share drivers the mileage deduction works out better, and it's easier to track and record. Actual expenses have to be prorated if you use the same vehicle for both business and personal purposes.
I'll be watching for @UberTaxPro to weigh in when he has time.


----------



## UberTaxPro

UbaBrah said:


> I have been into both Liberty Tax and Jackson Hewitt today. Both of them told me that I am able to deduct both the standard mileage as well as car/business expenses. How is this possible? Literally everywhere I look online says it's one or the other. In both cases they said something about me being unmarried and earning under 12k from Uber allows me to do this.
> 
> UberTaxPro can you please provide any insight as to what's going on or why they might say this? I feel like if I proceed, I will have done my taxes wrong.


@Older Chauffeur is probably onto the problem here. Sounds like a misunderstanding about terminology. Whichever direction you choose have them explain until you're satisfied and understand. Show them what you've read and ask them how it relates to what they are telling you.


----------



## percy_ardmore

Older Chauffeur said:


> Maybe they were telling you that you can take the standard deduction of $12200 and also take either the Standard Mileage Rate of $0.58 or actual vehicle expenses on Schedule C (profit or loss from business.) For most ride share drivers the mileage deduction works out better, and it's easier to track and record. Actual expenses have to be prorated if you use the same vehicle for both business and personal purposes.
> I'll be watching for @UberTaxPro to weigh in when he has time.


Standard deduction has nothing to do with self-employment.


----------



## Older Chauffeur

percy_ardmore said:


> Standard deduction has nothing to do with self-employment.


Exactly like I was pointing out.


----------



## BadYota

On Turbo tax it asks if I actively participated in the operation of the business or if I’m subject to the DOT hours of service limits, which means we can write off 80% of our meals. Do I check these boxes?


----------



## Older Chauffeur

BadYota said:


> On Turbo tax it asks if I actively participated in the operation of the business or if I'm subject to the DOT hours of service limits, which means we can write off 80% of our meals. Do I check these boxes?


If it was me, I would check the box for actively participating, but not the DOT box. R/S drivers aren't allowed to deduct the cost of meals unless they drive far enough from home that an overnight hotel stay is required.


----------



## _Tron_

@UberTaxPro ?



_Tron_ said:


> Question on multiple businesses:
> 
> 1) Uber Schedule C income for year is a LOSS of $1,000 (due to .58 cent std mileage deduction offsetting a profit)
> 
> 2) Second business Schedule C income profit of $5,000.
> 
> Therefore is *$4,000* your total for self-employed income (which is then applied to Sch 1 and/or form 1040)


----------



## Mr.Do

How do you calculate phone use business vs personal percentage? I hardly ever make phone calls and only send/recieve a limited amount of txt messages per months. But I do have it with me all the time. Is having the phone with me but not being used still count towards the percentage? Is there some way to gauge this?

Thanks


----------



## islanddriver

Yes how many hours do you drive for Uber. These are the phone hours you can deduct or get a phone just for Uber..


----------



## Mr.Do

Ok so the correct way to figure this out is if I work 40 hours a week, which is full time, and there are a total of 168 hours in a week (7x24). I would only be able to claim 23.8% deduction off the phone? And if I worked 80 hours a week, I still couldn't claim 50% of the phone? Only 47.6%


----------



## islanddriver

Yes you have it right


----------



## Westerner

I am trying to get my tax info from Uber. It doesn't give it to me when I log into the site (I quit driving for them back in June). I've called and they said 7 business days I'd get it emailed to me. That passed with no results. I called again and now they say 7 more business days. They won't let me contact the tax dept directly. This is frustrating, I don't know what to do


----------



## FLKeys

Westerner said:


> I am trying to get my tax info from Uber. It doesn't give it to me when I log into the site (I quit driving for them back in June). I've called and they said 7 business days I'd get it emailed to me. That passed with no results. I called again and now they say 7 more business days. They won't let me contact the tax dept directly. This is frustrating, I don't know what to do


That sucks. This is why I keep daily trip records. I do not want to have to rely on Uber for my business records.


----------



## Ttown Driver

Just a quick question - I'm sure the answer is a "bit" more complicated.And I WILL do my own research.
But about 2000 rides last year. Tax Pros/Cons of going LLC?


----------



## Jon Stoppable

Ttown Driver said:


> Just a quick question - I'm sure the answer is a "bit" more complicated.And I WILL do my own research.
> But about 2000 rides last year. Tax Pros/Cons of going LLC?


None. A single-member LLC is taxed exactly the same as a sole proprietor, minus the LLC annual fee you'll pay to the state.


----------



## DozerRay

I already filed my state and federal taxes, when I started the turbotax on Uber it wanted my W2 info and everything else I had already filled out on my personal taxes. So my question(s) are
#1 can I file without going back and amending my personal taxes
#2 can I file U/L using the turbotax I already started


----------



## Older Chauffeur

DozerRay said:


> I already filed my state and federal taxes, when I started the turbotax on Uber it wanted my W2 info and everything else I had already filled out on my personal taxes. So my question(s) are
> #1 can I file without going back and amending my personal taxes
> #2 can I file U/L using the turbotax I already started


Whoa! You filed your tax returns w/o including your earnings from ride share? So no Schedule C or SE? I think @UberTaxPro is going to say you need to amend your first filings. I'll be watching for his reply.


----------



## DozerRay

Older Chauffeur said:


> Whoa! You filed your tax returns w/o including your earnings from ride share? So no Schedule C or SE? I think @UberTaxPro is going to say you need to amend your first filings. I'll be watching for his reply.


Yes, I had all my personal stuff so filed right away. Uber took a while, I've only been ride share driving since Sepember 25th and didn't make that much about $3,000.. when i started to file my return thru Uber and it asked for my W2 info that was my Oh No moment


----------



## UberTaxPro

Older Chauffeur said:


> Whoa! You filed your tax returns w/o including your earnings from ride share? So no Schedule C or SE? I think @UberTaxPro is going to say you need to amend your first filings. I'll be watching for his reply.


Could be a candidate for a 'superseding' return...

This quote is from Forbes:
"Correct vs. Amend? You usually can't _correct_ a tax return without amending it. However, there is an exception, if you act quickly. If you file a 'superseding' return before the due date of the original return (including extensions), it can take the place of the originally filed return. In effect, the "errors" of the first original return didn't happen. It can be used to make an election that cannot be made on an amended return, or to make certain other changes. But be wary about this. The IRS can become confused if you try this unusual procedure. You may end up having a dispute (or at least correspondence or discussions) about which of the "original" returns is valid, and whether an amended return actually functions as a superseding one. Timing and proof of when you filed each one is important."

https://www.forbes.com/sites/robert...-your-taxes-be-careful-with-irs/#667aec6d3b93


----------



## OldBay

Couldnt find elsewhere....

I drove in the DMV, did trips in Va, DC, Md. Do I need to file separate state returns. What a hassle this will be, if so.


----------



## Jon Stoppable

OldBay said:


> Couldnt find elsewhere....
> 
> I drove in the DMV, did trips in Va, DC, Md. Do I need to file separate state returns. What a hassle this will be, if so.


A bit complicated. If you live in DC, you'll have to file three returns. If you live in MD or VA, then I don't think DC can assess income tax because you are a nonresident whom DC is not allowed to tax under their federal enabling legislation. But they do have a business franchise tax, although reading this I think you may be exempt if your DC gross receipts were less than $12K:

https://otr.cfo.dc.gov/page/dc-business-franchise-tax-rates
But it's been 20 years since I had to worry about DC tax law, so ...


----------



## OldBay

Jon Stoppable said:


> A bit complicated. If you live in DC, you'll have to file three returns. If you live in MD or VA, then I don't think DC can assess income tax because you are a nonresident whom DC is not allowed to tax under their federal enabling legislation. But they do have a business franchise tax, although reading this I think you may be exempt if your DC gross receipts were less than $12K:
> 
> https://otr.cfo.dc.gov/page/dc-business-franchise-tax-rates
> But it's been 20 years since I had to worry about DC tax law, so ...


On my Uber 1099-K it is listed as MD.

Lyft I didn't earn enough to get a 1099K.

I think I will be ok to file in MD only. Please correct if wrong, if someone knows.


----------



## uberNewbSD

Help UberTaxPro......I've been having a discussion with some other drivers and can use your help.

If you are driving Uber part time and mostly in conjunction with your commute, are you able to deduct all the mileage that the app is on?

For example, I commute 20 miles from work to home with DF on but don't get any pings or rides. Are those 20 miles tax deductible?

I've found conflicting information and even read through IRS Publication 463 with little clarity. Thanks for the help.


----------



## FLKeys

uberNewbSD said:


> Help UberTaxPro......I've been having a discussion with some other drivers and can use your help.
> 
> If you are driving Uber part time and mostly in conjunction with your commute, are you able to deduct all the mileage that the app is on?
> 
> For example, I commute 20 miles from work to home with DF on but don't get any pings or rides. Are those 20 miles tax deductible?
> 
> I've found conflicting information and even read through IRS Publication 463 with little clarity. Thanks for the help.


I'm not a tax expert.

When I am ready to leave my day job I turn on the Uber/Lyft apps. Most of the time I do not use DF, I just head towards home, 14 miles away. Often I will not get any pings along the way. Sometimes I will stop and sit in key spots to see if I can get a ride, if not eventually I just head home.

I keep a detailed mileage log, I will put in the starting address of my work and the ending address of my house along with the odometer readings. I will also put a note in my log on that segment "Relocating looking for rides" No reason these miles should not be considered business miles. My log book has several entries in it where I logged miles for the day and did not have any actual trips. My app was on, I was looking for work. I would argue that they are business miles. - Having proper detailed documentation is what will save you. My mileage records has an entry for every segment of my driving, not just start and end day.


----------



## DozerRay

UberTaxPro said:


> Could be a candidate for a 'superseding' return...
> 
> This quote is from Forbes:
> "Correct vs. Amend? You usually can't _correct_ a tax return without amending it. However, there is an exception, if you act quickly. If you file a 'superseding' return before the due date of the original return (including extensions), it can take the place of the originally filed return. In effect, the "errors" of the first original return didn't happen. It can be used to make an election that cannot be made on an amended return, or to make certain other changes. But be wary about this. The IRS can become confused if you try this unusual procedure. You may end up having a dispute (or at least correspondence or discussions) about which of the "original" returns is valid, and whether an amended return actually functions as a superseding one. Timing and proof of when you filed each one is important."
> 
> https://www.forbes.com/sites/robert...-your-taxes-be-careful-with-irs/#667aec6d3b93


My personal tax refund just showed up in my bank account so I will be talking to Turbo Tax to amend my return for the U/L taxes


----------



## Ttown Driver

Best price on TurboTax?
Uber discount, online, or Sams?


----------



## Older Chauffeur

Ttown Driver said:


> Best price on TurboTax?
> Uber discount, online, or Sams?


I use T/T Deluxe Version on CD from Costco, $39.95. Probably similarly priced at Sam's Club. It has everything you need for reporting self employment income and expenses. You can share, as it is good for filing five returns. I split with a friend, so it only costs me $20. :thumbup: No charge for e-filing federal returns, but $19.95 for state returns. You don't need the Home and Business or Premium Version T/T tries to upgrade you to.


----------



## PioneerXi

Thank you for your work @UberTaxPro .

I have a 1099-k from Uber as I earned +$20k in 2019. In Table 1 of expenses, fees, taxes and reimbursement, the total listed under tolls, airport fees and surcharges is $24.26.

I made 449 trips to the airport where the service fee is $3.50. Addittionally, on July 1 California added a $0.10 service fee to all airport trips. By my daily spreadsheet, airport fees should be $1703.75, and not $24.26.

Your suggestion on a course of action both for reporting and possible correction.


----------



## nj9000

I only worked Uber 2 months in 2019 and grossed $3728. So I didn't get a 1099-K or a 1099-MISC from Uber. How should I file my taxes?

My other job earlier in the year, I got a 1099-MISC.

It appears as though the stimulus checks for COVID-19 will only go out to those who paid taxes for last year.


----------



## Older Chauffeur

nj9000 said:


> I only worked Uber 2 months in 2019 and grossed $3728. So I didn't get a 1099-K or a 1099-MISC from Uber. How should I file my taxes?
> 
> My other job earlier in the year, I got a 1099-MISC.
> 
> It appears as though the stimulus checks for COVID-19 will only go out to those who paid taxes for last year.


You need to file Schedules C (business profit or loss) and SE (self employment) to see what taxes you owe. If you use a tax preparation program like TurboTax it will ask you a question about income not reported on a 1099.
I haven't heard anyone in the administration mention anything about the stimulus checks being tied to paid taxes for last year. In fact, they are extending the normal due date for taxes by three months.


----------



## UberTaxPro

Tax season filing deadline still might get extended like the payment extension. 
https://www.cnbc.com/2020/03/19/senators-push-to-extend-tax-filing-season-to-july-15.html


----------



## Habal2x

Hello UberTaxPro!
I'm new here (in the forum). I'm a teacher - but, driving Uber, too! I don't drive as often during school season. Much of it during summer and school year week-ends. Meaning, my uber income is not much. So, less expenses, there's not much there (just guessing because I haven't yet done the tax Math!). But, assuming my net uber income is less, when I put it in with my teacher salary, how's that affecting 'everything'? Like, as a teacher, I'd be filing using standard deductions; when I file WITH my uber stuff, do I have to change to 'itemized'? Then, with a lesser net uber income, will it 'tend' to make my over-all taxable income lesser? Filing married, jointly...(is what I plan to do...); spouse, also a teacher. 
I'm trying to anticipate stuff because I'm new to this...part of my assessment if the 'hardwork' is worth it..Thanks ahead!


----------



## UberTaxPro

Habal2x said:


> Hello UberTaxPro!
> I'm new here (in the forum). I'm a teacher - but, driving Uber, too! I don't drive as often during school season. Much of it during summer and school year week-ends. Meaning, my uber income is not much. So, less expenses, there's not much there (just guessing because I haven't yet done the tax Math!). But, assuming my net uber income is less, when I put it in with my teacher salary, how's that affecting 'everything'? Like, as a teacher, I'd be filing using standard deductions; when I file WITH my uber stuff, do I have to change to 'itemized'? Then, with a lesser net uber income, will it 'tend' to make my over-all taxable income lesser? Filing married, jointly...(is what I plan to do...); spouse, also a teacher.
> I'm trying to anticipate stuff because I'm new to this...part of my assessment if the 'hardwork' is worth it..Thanks ahead!


"do I have to change to 'itemized'?" No business deductions will be on schedule C
"with a lesser net uber income, will it 'tend' to make my over-all taxable income lesser?" yes your net income or loss combines with your W2 income

Also, don't forget the $250 teacher credit!



UberTaxPro said:


> Tax season filing deadline still might get extended like the payment extension.
> https://www.cnbc.com/2020/03/19/senators-push-to-extend-tax-filing-season-to-july-15.html


Filing season has been extended to *7/15 for filing & payments *now


----------



## Habal2x

Yes!..the $250 teacher credit! (though, out here in MD, I still end up spending more than that!). Thanks much! (More questions soon, if I bump into any other "what the...!" issues. So far, your thread is a BIIIIG help!)


----------



## TheArtman

@UberTaxPro Hope you can help, very confused... I'll try to keep as short as possible.

My Uber/Lyft earnings gross were = $21,077.99 Fees/Expenses = $8,371.38 Net Earnings = $12,705.93 Total Miles = 25,850

So my question is, am I figuring this out correctly? $21,077.99 - $8,371.38 = Net of $12,705.93 minus (mile deduction of 14,993 @.58 per mile) will equal tax debt of $2,287.07 loss? I apologize if it doesn't make sense, I have a mental disability which adds a lot of frustration to my life. ANY help would be greatly appreciated. I can't afford to go to tax professional at this time due to loss of income. Thank you for your time.

Edit: I'll be in touch in a few weeks via your link, I think I'm just going to take you up on your tax filing special.


----------



## islanddriver

TheArtman said:


> @UberTaxPro Hope you can help, very confused... I'll try to keep as short as possible.
> 
> My Uber/Lyft earnings gross were = $21,077.99 Fees/Expenses = $8,371.38 Net Earnings = $12,705.93 Total Miles = 25,850
> 
> So my question is, am I figuring this out correctly? $21,077.99 - $8,371.38 = Net of $12,705.93 minus (mile deduction of 14,993 @.58 per mile) will equal tax debt of $2,287.07 loss? I apologize if it doesn't make sense, I have a mental disability which adds a lot of frustration to my life. ANY help would be greatly appreciated. I can't afford to go to tax professional at this time due to loss of income. Thank you for your time.


Why don't you use the free TurboTax on Uber. To me your figures look right, I'm not a tax professional .


----------



## TheArtman

islanddriver said:


> Why don't you use the free TurboTax on Uber. To me your figures look right, I'm not a tax professional .


Thank you for the response. My wife tried that last year and we're both pretty sure she did it wrong. She had a TON of questions that I just didn't know, so I thought this year I'd look into it a bit more before we went that route again. I think I'm just going to go through UberTaxPro and let him figure it out for us, his price seems reasonable. Thanks again!


----------



## UberTaxPro

islanddriver said:


> Why don't you use the free TurboTax on Uber. To me your figures look right, I'm not a tax professional .


Sounds like you're on the right track. Make sure you take out any reimbursable expenses like tolls out of the equation. Don'f forget your other expenses like cell phone etc..


----------



## AsleepAtTheWheel

UberTaxPro said:


> I am a long-time member here and after last years extensive rideshare tax AMA I think it's time to start anew. I'll do my best to help with your questions this year. Please be patient as I'll be working with one of the larger remote tax services this year and they are keeping me very busy. Thanks also to everyone else that pitches in with great answers!
> 
> If you need help preparing your taxes for 2019 please contact me here: UberTaxPro.com


Is there any possible way to get money back? It was saying since I made so little I could file a w2. Did not thing that was possible for Uber and Lyft. I am kind of retired so drove a little, take time off. Made around 10k last year. I played around with the 1099 form for a bit but whatever I do it says I owe 200. I live in Cali and get taxed way to high on many things so not going to pay. Should I keep playing around? This according to what the government knows is my only form of income.


----------



## command3r

If I used my girlfriends car for a couple months for Uber, am I not allowed to use that mileage for the standard deduction?


----------



## UberTaxPro

command3r said:


> If I used my girlfriends car for a couple months for Uber, am I not allowed to use that mileage for the standard deduction?


no, car has to be in your name or you could have married her in 2019 but to late for that.



AsleepAtTheWheel said:


> Is there any possible way to get money back? It was saying since I made so little I could file a w2. Did not thing that was possible for Uber and Lyft. I am kind of retired so drove a little, take time off. Made around 10k last year. I played around with the 1099 form for a bit but whatever I do it says I owe 200. I live in Cali and get taxed way to high on many things so not going to pay. Should I keep playing around? This according to what the government knows is my only form of income.


The idea is to file a accurate tax return! It's like a math problem in school...there should only be one correct answer!


----------



## UberTaxPro

uberNewbSD said:


> Help UberTaxPro......I've been having a discussion with some other drivers and can use your help.
> 
> If you are driving Uber part time and mostly in conjunction with your commute, are you able to deduct all the mileage that the app is on?
> 
> For example, I commute 20 miles from work to home with DF on but don't get any pings or rides. Are those 20 miles tax deductible?
> 
> I've found conflicting information and even read through IRS Publication 463 with little clarity. Thanks for the help.


If it's clear your intend is to rack up mileage expense & you have no real expectation of making money it's not deductible.


----------



## TouchMe

Hello,
in 2018 i got a 1099-MISC from Uber and earned over $600 but under $20,000

but for 2019 I only received a Tax Summary and I earned over $600 but under $20,000

I got an email from Uber saying I will not be getting any 1099 for 2019. Is this right? do I need a 1099-MISC?, how come i got one last year and not this year how do I file the Tax summary info on Turbo Tax?
thanks for any help


----------



## BostonTaxiDriver

I have not paid my taxes in two years.

Even worse, I haven't even filed anything, not even estimated earnings.

I can borrow money from my brother to address it.

But is it too late to qualify for unemployment insurance and/or the stimulus money available until July 31?

(I can't be the only rideshare driver who hasn't paid or even filed taxes in a year or more!?)

If someone owes, will they still qualify for stimulus money or unemployment benefits? And will any and all benefits simply be directed to the taxes owed until paid in full?

Should I pay a CPA, Enrolled Agent or even a tax attorney or @UberTaxPro at this point to address my issues?


----------



## UberTaxPro

Yes you should always contact UberTaxPro! Not filing can affect your benefits. You need to file your 2018 (maybe 17 also) today! You're not the only one with this issue.


----------



## bounty17

UberTaxPro said:


> I am a long-time member here and after last years extensive rideshare tax AMA I think it's time to start anew. I'll do my best to help with your questions this year. Please be patient as I'll be working with one of the larger remote tax services this year and they are keeping me very busy. Thanks also to everyone else that pitches in with great answers!
> 
> If you need help preparing your taxes for 2019 please contact me here: UberTaxPro.com


I need to know about these relief checks. I drive for uber and other apps and I unfortunately, I owe money to the IRS. Am I gonna get any kind of relief check at all?

Bounty


----------



## UberTaxPro

bounty17 said:


> I need to know about these relief checks. I drive for uber and other apps and I unfortunately, I owe money to the IRS. Am I gonna get any kind of relief check at all?
> 
> Bounty


NYT article with good Q&A
https://www.nytimes.com/article/coronavirus-stimulus-package-questions-answers.html


----------



## Older Chauffeur

TouchMe said:


> Hello,
> in 2018 i got a 1099-MISC from Uber and earned over $600 but under $20,000
> 
> but for 2019 I only received a Tax Summary and I earned over $600 but under $20,000
> 
> I got an email from Uber saying I will not be getting any 1099 for 2019. Is this right? do I need a 1099-MISC?, how come i got one last year and not this year how do I file the Tax summary info on Turbo Tax?
> thanks for any help


You receive a 1099misc only if your earnings paid by Uber directly (incentives, commissions, bonuses, etc) are $600 or more. The $20,000 threshold is for customer credit card transactions. Use the tax summary info to fill out Schedules C and SE just as though you got a 1099misc. If you're using TurboTax there's a place to report income for which you did not receive a 1099. Hope this helps.


----------



## Ritainky

UberTaxPro said:


> I am a long-time member here and after last years extensive rideshare tax AMA I think it's time to start anew. I'll do my best to help with your questions this year. Please be patient as I'll be working with one of the larger remote tax services this year and they are keeping me very busy. Thanks also to everyone else that pitches in with great answers!
> 
> If you need help preparing your taxes for 2019 please contact me here: UberTaxPro.com


Another Uber driver told me that Uber does not issue a 1099 unless a driver makes at least $20,000. Is that true??? It sounds so wrong lol.


----------



## UberTaxPro

Ritainky said:


> Another Uber driver told me that Uber does not issue a 1099 unless a driver makes at least $20,000. Is that true??? It sounds so wrong lol


There's about 15 different kind of 1099's. 1099-M is issued for $600+, 1099-K is issued for 20K+
Uber issues both, driving income comes on the 1099-K


----------



## Surprise caddy

I’m totally lost but would like to get this done before I miss out on the 1200 stim money. Can someone please do a quick and dirty to let me know what I owe in taxes ? I tried reading the posts but just got more confused . Thank you


----------



## Older Chauffeur

First, when you file this year shouldn't affect your stimulus (they aren't calling it that :laugh: ) as they will go by your electronic deposit/payment information from 2018. If you didn't file that way last year (wrote or received a paper check) you will get a paper check later on.
Re your tax returns, use the Uber gross on your Schedule C, then show their fees as a deduction. That will leave your gross, just as the form indicates. That amount should match your bank deposits. From your gross you then subtract mileage, cell phone, and any other related expenses to arrive at your net profit or loss. If your net is at least $400 you will need to file a Schedule SE and pay 15.3% of your net in contributions to Social Security and Medicare.
I hope you have kept a mile log, in case you have more than Uber is showing.
Are you using a tax preparation program such as TurboTax? It will walk you through the process.
You have until July 15 to file, so take your time and do it right. Good luck. If it's still too confusing, you should consider having a tax professional prepare your returns. You can PM @UberTaxPro, the OP of this thread and he can help you.


----------



## command3r

If you owe taxes, do you have to pay them right away when you file it to the IRS?

or can I file now so my updated bank information is with the IRS then pay later at the deadline.


----------



## FLKeys

command3r said:


> If you owe taxes, do you have to pay them right away when you file it to the IRS?
> 
> or can I file now so my updated bank information is with the IRS then pay later at the deadline.


Start here:

https://www.irs.gov/newsroom/what-if-i-cant-pay-my-taxes


----------



## UberTaxPro

command3r said:


> If you owe taxes, do you have to pay them right away when you file it to the IRS?
> 
> or can I file now so my updated bank information is with the IRS then pay later at the deadline.


It's always better to file even if you can't pay with the return and this year you're not late until 7/15. So yes file away!


----------



## command3r

Does this seem correct? 2019 is the first year I'm getting money back


----------



## Surprise caddy

Older Chauffeur said:


> First, when you file this year shouldn't affect your stimulus (they aren't calling it that :laugh: ) as they will go by your electronic deposit/payment information from 2018. If you didn't file that way last year (wrote or received a paper check) you will get a paper check later on.
> Re your tax returns, use the Uber gross on your Schedule C, then show their fees as a deduction. That will leave your gross, just as the form indicates. That amount should match your bank deposits. From your gross you then subtract mileage, cell phone, and any other related expenses to arrive at your net profit or loss. If your net is at least $400 you will need to file a Schedule SE and pay 15.3% of your net in contributions to Social Security and Medicare.
> I hope you have kept a mile log, in case you have more than Uber is showing.
> Are you using a tax preparation program such as TurboTax? It will walk you through the process.
> You have until July 15 to file, so take your time and do it right. Good luck. If it's still too confusing, you should consider having a tax professional prepare your returns. You can PM @UberTaxPro, the OP of this thread and he can help you.


Thank you sir for your response. Wish me luck lol.


----------



## uberNewbSD

UberTaxPro said:


> If it's clear your intend is to rack up mileage expense & you have no real expectation of making money it's not deductible.


Thats not true at all. I have picked up pings many times on the way to and from work. The issue is that some days I get a ton of pings and others where there is nothing just depending on the route and time of day.


----------



## Delsan19

I didn’t file 2018 because I didn’t make enough. If I file 2019 this week, will I qualify for the stimulus check?


----------



## Older Chauffeur

According to what the administration spokesmen are saying, if you provided direct deposit/payment information for your bank account in your tax return for 2018 or 2019, they will use it to give you your money. If they don’t have it, you will get a paper check later on. Just a guess, but with the speed my e-filed return was accepted by the IRS computer (literally minutes) a few weeks ago, you should be okay filing this week. Good luck.


----------



## Delsan19

Older Chauffeur said:


> According to what the administration spokesmen are saying, if you provided direct deposit/payment information for your bank account in your tax return for 2018 or 2019, they will use it to give you your money. If they don't have it, you will get a paper check later on. Just a guess, but with the speed my e-filed return was accepted by the IRS computer (literally minutes) a few weeks ago, you should be okay filing this week. Good luck.


Thank you so much! Info online about this is a little confusing.

I rented a car for 3 months of 2019. Can I write off mileage on the other months and the rental charges for the 3 month rental? If not, would only writing off miles be best?


----------



## Older Chauffeur

Delsan19 said:


> Thank you so much! Info online about this is a little confusing.
> 
> I rented a car for 3 months of 2019. Can I write off mileage on the other months and the rental charges for the 3 month rental? If not, would only writing off miles be best?


I can't answer this. Maybe @UberTaxPro will see it- he's the expert.


----------



## Uberscum

I went to TurboTax to file my taxes for free but I am self-employed as an Uber driver here in Florida, they want $120. Is there any other way to do it for free? Or at least cheaper? Thanks


----------



## kingcorey321

UberTaxPro said:


> I am a long-time member here and after last years extensive rideshare tax AMA I think it's time to start anew. I'll do my best to help with your questions this year. Please be patient as I'll be working with one of the larger remote tax services this year and they are keeping me very busy. Thanks also to everyone else that pitches in with great answers!
> 
> If you need help preparing your taxes for 2019 please contact me here: UberTaxPro.com


OK i have head we will not be penalized if we do not file our 2019 until 2020 for reasons we ow or so on.
Is this true ?


----------



## Older Chauffeur

kingcorey321 said:


> OK i have head we will not be penalized if we do not file our 2019 until 2020 for reasons we ow or so on.
> Is this true ?


The filing (and payment due, if any) deadline for the 2019 tax year has been extended from April 15, 2020 to July 15, 2020. Hope that answers your question.


----------



## UberTaxPro

Older Chauffeur said:


> I can't answer this. Maybe @UberTaxPro will see it- he's the expert.


not sure what you're asking....what do you mean by "other months"


----------



## RacerX

Hi Y'all, I have a question regarding the *sum total* under the expenses & fees section of my Uber 2019 tax summary thats keeping me from hitting the send button (turbotax) this fine morning. I've read the threads here and other places and no mention of this specific situation.

Here's the situation. the *Sum total* of the 4 listed items (table 1 page 2) in expenses, fees , tax & reimbursement on the summary don't add up. so if i look at table 1 the Uber service fee + booking fee+ split fare fee = the total amount shown on 2019 summary. the fourth line item which is listed on table 1 which is the airport and city/fee paid by uber is not included in the total sum. so my question is can i still add that as an expense.?weird thing is i checked 2018 Uber tax summary and this airport fee was included on summary total. also why would Uber break that out this year and not include on sum total like last year ?

does this make sense? anyone have any insights on this? 
@UberTaxPro

thanks,,


----------



## UberTaxPro

you can't deduct reimbursed expenses. factor those out 
"does this make sense? " keep your own records, it's your business - don't rely on Uber to do it for you.


----------



## RacerX

UberTaxPro said:


> you can't deduct reimbursed expenses. factor those out
> "does this make sense? " keep your own records, it's your business - don't rely on Uber to do it for you.


Thanks for the response @UberTaxPro and for the help you're providing here.


----------



## FLKeys

Uberscum said:


> I went to TurboTax to file my taxes for free but I am self-employed as an Uber driver here in Florida, they want $120. Is there any other way to do it for free? Or at least cheaper? Thanks


If you have a decent understanding of the process you can file for free under Credit Karma.



UberTaxPro said:


> not sure what you're asking....what do you mean by "other months"


I think he is asking how does he report vehicle expenses. Most of the year he used his own vehicle and can deduct mileage. 3 months he rented a car. How does he report expenses for those 3 months?


----------



## UberTaxPro

Delsan19 said:


> Thank you so much! Info online about this is a little confusing.
> 
> I rented a car for 3 months of 2019. Can I write off mileage on the other months and the rental charges for the 3 month rental? If not, would only writing off miles be best?


If you were using your own vehicle in the "other months" one option you have is to use actual expense method for the rental vehicle & standard mileage for your vehicle. The method you use is tied to the vehicle so when you change vehicle you can change method used for deductions.



uberNewbSD said:


> Thats not true at all. I have picked up pings many times on the way to and from work. The issue is that some days I get a ton of pings and others where there is nothing just depending on the route and time of day.


I wasn't inferring that it was true. Just trying to help you determine what may or may not be deductible. From what you're saying above your miles sound deductible to me.


----------



## Unomorecomingsoon

dieselin-varisi said:


> I don't log my miles. I prefer to use Uber and Lyft's own record.
> (1) is that OK?
> (2) I have heard that I can deduct the money I spent on food if I am out of town when I am doing Uber. For example, I live in Orange County, CA. I usually end up at Los Angeles area. I kept all the food receipts when I ate there. Can I deduct those?
> (3) Uber and Lyft is primary job. What is the good percentage I can deduct from my phone bills? I am in the family plan. We kept google sheet to apportion everyone's share in that bill. On the other hand, I paid off my phone lease. I purchased it. Can deduct it too? Thanks.


I hope ur being sarcastic. In my case Uber logs half of the miles that I drive thus use Stride app to log all miles while on the job.

OMG I try to run from taxes like I ran from a young guy yesterday sneezing loudly, forcibly and openly at Walmart. I ran outta there!
Filing jointly with spouse; don't find turbotax intuitive, but here we go!!!


----------



## PaxPwner

Hi

I amended my return where I owed 3600 to now I owe 2700

It says after IRS processes my amended return, they will send me $900 check. 

Does it mean I am still on the hook for $3600 by July 15th? 

Or can I just pay total of $2700 and be done?


----------



## New Uber

Hello, if we get a 1000.00 grant from the SBA, is that taxable income?


----------



## doggerel

UberTaxPro said:


> I am a long-time member here and after last years extensive rideshare tax AMA I think it's time to start anew. I'll do my best to help with your questions this year. Please be patient as I'll be working with one of the larger remote tax services this year and they are keeping me very busy. Thanks also to everyone else that pitches in with great answers!
> 
> If you need help preparing your taxes for 2019 please contact me here: UberTaxPro.com


I filed my taxes 14 days ago. I am to receive back a tiny refund under 20 dollars. It has been "accepted" but nothing further has moved on it.

Is the IRS going to use my direct deposit info on this year's tax return to send me an economic impact payment? Or do I have to wait until my tax refund is processing. Nobody seems to have an answer for this. I have no idea if I am getting Direct Deposit payment this week, or if my refund needs to enter a "processing" stage.


----------



## UberTaxPro

doggerel said:


> I filed my taxes 14 days ago. I am to receive back a tiny refund under 20 dollars. It has been "accepted" but nothing further has moved on it.
> 
> Is the IRS going to use my direct deposit info on this year's tax return to send me an economic impact payment? Or do I have to wait until my tax refund is processing. Nobody seems to have an answer for this. I have no idea if I am getting Direct Deposit payment this week, or if my refund needs to enter a "processing" stage.


Did you file in 2018?


----------



## BostonTaxiDriver

Just wondering if I should file my January to March 2020 quarterly instead of my yearly from 2019. After all, it's the most recent and my highest gross earnings over any quarter in 2019. And those highest gross earnings could only help me?

But would the state and federal even accept a current quarterly for the stimulus and unemployment benefits, or they'll mandate only the most recent full-year filing?

(I've never filed quarterly, and am still confused if all rideshare drivers must fiie quarterly, or maybe only full-time drivers or those for which Uber is their only income? 

Maybe it depends how high their adusted gross income is?)

I don't think most drivers bother to file quarterly?

Plus I've lost some of my gas receipts, so just guesstimate and hope I'm not audited?

Thanks.


----------



## UberTaxPro

file your 18 &/Or 19 return for stimulus check, not 1/4ly’s
Not many ride-share drivers I know file quarterly. Most have very low net income from ride-share
If you use the mileage method you generally don’t need gas receipts


----------



## Las Vegas Dude

Where do babies come from? You said ask you whatever.


----------



## UberTaxPro

Las Vegas Dude said:


> Where do babies come from? You said ask you whatever.


1st one comes from "child tax credit"
after that they come from the "additional child tax credit"


----------



## Skyscrapers

I will be purchasing a used vehicle for U/L in the near future. May I use the sales tax that will have to pay for the vehicle to lower the amount of tax that I have to remit back to the government? I am in Canada by the way. Not sure if it will be the same as in the USA.


----------



## MajorBummer

Deojuvante said:


> Hi mate
> 
> Hi mate I am a New driver driver full Time (about 50h/week) in Brisbane.
> 
> I am renting my car to a re tal company who works with uber called SPLEND.
> 
> I am paying 269 dollars a week for my car (registration insurance services inclused) and about 200 of fuel.
> Im making about 1500$ per week.
> 
> I put this car on 100% uber use.
> 
> Could you help me regarding the payable/déductible taxes for my case ? Thank you


for a $1060 a month it better be a cadillac


----------



## Diamondraider

Older Chauffeur said:


> I use T/T Deluxe Version on CD from Costco, $39.95. Probably similarly priced at Sam's Club. It has everything you need for reporting self employment income and expenses. You can share, as it is good for filing five returns. I split with a friend, so it only costs me $20. :thumbup: No charge for e-filing federal returns, but $19.95 for state returns. You don't need the Home and Business or Premium Version T/T tries to upgrade you to.


I use freetaxusa.com.


----------



## Older Chauffeur

Diamondraider said:


> I use freetaxusa.com.


My post was in response to a member asking specifically about pricing for TurboTax. :confusion:


----------



## John McYeet

I earned about 20,000 between lyft and Uber in 2019. To pay my social security tax do I need to contact the IRS directly? And is it possibly to put the amount I owe for that on a payment plan? Thank you.


----------



## Launchpad McQuack

John McYeet said:


> I earned about 20,000 between lyft and Uber in 2019. To pay my social security tax do I need to contact the IRS directly? And is it possibly to put the amount I owe for that on a payment plan? Thank you.


Your "social security tax" is part of your self employment tax when you file your income tax return (Form 1040) for 2019. You have to file Schedule C and Schedule SE with your 1040 for your Uber/Lyft income (and expenses). If you will owe over a certain amount, you are expected to make tax payments every quarter throughout the year instead of waiting until you file your income tax return to pay the tax. For example, 1st quarter taxes for 2020 were due on April 15 (the same date that income tax returns for 2019 were due). 2nd quarter taxes are due on June 15.

As for payment plans, I don't know anything about that and defer to the master.


----------



## Older Chauffeur

Launchpad McQuack said:


> For example, 1st quarter taxes for 2020 were due on April 15 (the same date that income tax returns for 2019 were due). 2nd quarter taxes are due on June 15.


Due to Covid 19, the normal taxes due date was extend from April 15 to July 15. The same is true for the estimated quarterly payment for the first quarter ending March 31. The second quarter ends June 30, so the payment is normally July 15. I haven't heard or read of a further extension of that date.

As @Launchpad McQuack indicated, your SECA is figured on Schedule SE. It will be approximately 15.3% of your net profit, after deducting mileage, cell phone and other expenses, provided that net profit is at least $400. Your SECA then becomes part of your taxes owed to the IRS. I've never applied for a payment plan, but I have read that it can be done. You must file no later than July 15, even if you can't pay with your return.

The basic requirements for estimated quarterly payments are generally if you have not paid in at least 90% of your total tax due, or an amount equal to at least 100% of the previous year's tax due, the IRS will want them for the next year. If you had a regular job and paid FICA via withholding, that amount counts towards the requirements.

Good luck.


----------



## John McYeet

Older Chauffeur said:


> Due to Covid 19, the normal taxes due date was extend from April 15 to July 15. The same is true for the estimated quarterly payment for the first quarter ending March 31. The second quarter ends June 30, so the payment is normally July 15. I haven't heard or read of a further extension of that date.
> 
> As @Launchpad McQuack indicated, your SECA is figured on Schedule SE. It will be approximately 15.3% of your net profit, after deducting mileage, cell phone and other expenses, provided that net profit is at least $400. Your SECA then becomes part of your taxes owed to the IRS. I've never applied for a payment plan, but I have read that it can be done. You must file no later than July 15, even if you can't pay with your return.
> 
> The basic requirements for estimated quarterly payments are generally if you have not paid in at least 90% of your total tax due, or an amount equal to at least 100% of the previous year's tax due, the IRS will want them for the next year. If you had a regular job and paid FICA via withholding, that amount counts towards the requirements.
> 
> Good luck.


So you can deduct expenses before you pay your social Security tax? Because I made $20,000 last year in 2019 but that's before expenses are factored in. I'll only have to pay 15.3% of however much I made AFTER expenses are deducted?


----------



## Asificarewhatyoudontthink

UberTaxPro said:


> I am a long-time member here and after last years extensive rideshare tax AMA I think it's time to start anew. I'll do my best to help with your questions this year. Please be patient as I'll be working with one of the larger remote tax services this year and they are keeping me very busy. Thanks also to everyone else that pitches in with great answers!
> 
> If you need help preparing your taxes for 2019 please contact me here: UberTaxPro.com


Is it normal to see -7654.00 as adjusted gross income
Asking for a friend.


----------



## Older Chauffeur

John McYeet said:


> So you can deduct expenses before you pay your social Security tax? Because I made $20,000 last year in 2019 but that's before expenses are factored in. I'll only have to pay 15.3% of however much I made AFTER expenses are deducted?


Absolutely. You're going to deduct Uber/Lyft commissions and fees from the gross they show you earned. (That result should match your bank deposits.) Then deduct your mileage and other operating expenses to get your net profit. If you're using a tax prep program such as TurboTax it should walk you through it, step by step.


----------



## Launchpad McQuack

Older Chauffeur said:


> The second quarter ends June 30, so the payment is normally July 15.


The IRS does their quarters weird.

Q1 = January, February, March (payment due April 15)
Q2 = April, May (payment due June 15)
Q3 = June, July, August (payment due September 15)
Q4 = September, October, November, December (payment due either January 15 or with your tax return if filed by February 1)

I wasn't aware that any of the dates had been pushed back. I wish I knew that before I made my April 15 payment. My budget would be much less strained.


----------



## UberTaxPro

Asificarewhatyoudontthink said:


> Is it normal to see -7654.00 as adjusted gross income
> Asking for a friend.


Doesn't really matter if it's "normal". Is it correct?


----------



## Asificarewhatyoudontthink

UberTaxPro said:


> Doesn't really matter if it's "normal". Is it correct?


Yup. 
No falsified information.


----------



## UberTaxPro

Asificarewhatyoudontthink said:


> Yup.
> No falsified information.


You've got an NOL "net operating loss" and will be able to carry it forward to offset income in future years.


----------



## Older Chauffeur

Launchpad McQuack said:


> The IRS does their quarters weird.
> 
> Q1 = January, February, March (payment due April 15)
> Q2 = April, May (payment due June 15)
> Q3 = June, July, August (payment due September 15)
> Q4 = September, October, November, December (payment due either January 15 or with your tax return if filed by February 1)
> 
> I wasn't aware that any of the dates had been pushed back. I wish I knew that before I made my April 15 payment. My budget would be much less strained.


Sorry, I misread the hit I got when I Googled it. They apparently extended the 2nd quarterly due date. Does seem weird to pay before you have completed the quarterly earnings.I should have gone to the IRS site:
https://www.irs.gov/faqs/estimated-tax/individuals/individuals-2


----------



## Launchpad McQuack

If I paid UberTaxPro to file my 2018 taxes and now I am filing my 2019 taxes myself (after filing the 6-month extension), how do I determine the portion of what I paid UberTaxPro that can be classified as a business expense?

My guess is that I take what UberTaxPro charged me and I subtract what he would have charged me had their been no Schedules C or SE and that difference is the portion that can be classified as a business expense.


----------



## Uberscum

Launchpad McQuack said:


> If I paid UberTaxPro to file my 2018 taxes and now I am filing my 2019 taxes myself (after filing the 6-month extension), how do I determine the portion of what I paid UberTaxPro that can be classified as a business expense?
> 
> My guess is that I take what UberTaxPro charged me and I subtract what he would have charged me had their been no Schedules C or SE and that difference is the portion that can be classified as a business expense.


Too late now but you could have gotten free tax filings through the IRS with TurboTax. But I found out the hard way that TurboTax doesn't know how to do the taxes properly.

TurboTax asked me if they can access my Uber account to retrieve my 2019 earnings, which I replied yes. At the time I did not know that those numbers were not correct because those numbers were numbers that Uber showed were the gross not what I took home after they took their cut. So I had to go to H&R Block and amend my taxes. I had to go to my account and download and print each month net earnings after Uber cut.

TurboTax told me that I owed over $4,700 based on a $34,000 2019 earnings, they don't know what the hell they are doing. So hopefully H&R Block has fixed this.

The actual amount I made in 2019 was probably around 24,000 instead of 34 thousand. So if I were you I would check with the tax filing and make sure they didn't use the gross income. Why would a uber even do that in the first place? Thankfully a person on this site told me that I was doing it wrong and I fixed it.


----------



## Older Chauffeur

Launchpad McQuack said:


> If I paid UberTaxPro to file my 2018 taxes and now I am filing my 2019 taxes myself (after filing the 6-month extension), how do I determine the portion of what I paid UberTaxPro that can be classified as a business expense?
> 
> My guess is that I take what UberTaxPro charged me and I subtract what he would have charged me had their been no Schedules C or SE and that difference is the portion that can be classified as a business expense.


I think the way my CPA handled was to split tax prep expenses 50/50. Why don't you PM @UberTaxPro and ask him?


----------



## Launchpad McQuack

Uberscum said:


> Why would a uber even do that in the first place?


Uber does it to bolster their claim that they do not sell rides to passengers which, in turn, is critical to their argument that drivers are not employees. According to Uber, they have no business relationship with passengers and receive no money from passengers. 100% of the money that the passenger pays for a ride is paid to the driver. Uber then charges the driver a service fee for finding the passenger and processing the payment. Rather than send the entire passenger payment to the driver and then bill the driver for the service fee, Uber deducts the service fee before sending the remainder of the passenger payment to the driver.

It sounds absurd, right? That's because it is absurd. Clearly, Uber is selling rides to passengers and then dispatching a driver to provide the ride. Anybody with a modicum of common sense can see that is what is going on. So why don't they just say that is what they are doing? Why this accounting game? Because if they admit that, then they are admitting that they are paying drivers to perform a function that generates revenue for Uber. In many states, this makes the driver an employee. If you pay a person to perform a function that generates revenue for you, then the person that you are paying is your employee. So Uber clings to this ridiculous payment structure that does not represent reality in any way. Since Uber claims that 100% of the money that the passenger paid is paid to the driver, the tax documents that Uber generates for the driver have to reflect this.

Technically, in the world according to Uber, the drivers are Uber's customers as it is the drivers that pay Uber for services.


----------



## UberTaxPro

Launchpad McQuack said:


> If I paid UberTaxPro to file my 2018 taxes and now I am filing my 2019 taxes myself (after filing the 6-month extension), how do I determine the portion of what I paid UberTaxPro that can be classified as a business expense?
> 
> My guess is that I take what UberTaxPro charged me and I subtract what he would have charged me had their been no Schedules C or SE and that difference is the portion that can be classified as a business expense.


I would use % of net income on schedule c. So if schedule c net income is 75% of total income, I would deduct 75% of the fee. There is no written in stone rule for this, should be reasonable and consistent year to year.


----------



## Launchpad McQuack

UberTaxPro said:


> I would use % of net income on schedule c. So if schedule c net income is 75% of total income, I would deduct 75% of the fee. There is no written in stone rule for this, should be reasonable and consistent year to year.


That makes sense. I didn't think to do it that way, but it seems really obvious once I hear it. The reality is that the only reason I had you file for me was because of the Schedule C income. If it weren't for that, I would have filed myself like I always do and wouldn't have paid anybody anything. So in reality, 100% of the cost is because of business activities, but I figured that argument wouldn't fly.

This is pretty unrelated to rideshare, but I thought I would throw this out there to see if anybody knows anything. I have been reading about the de minimis safe harbor for expensing purchases that would normally have to be capitalized. The thing that I have been trying to figure out is how to report the income if you sell property that you previously deducted using the de minimis safe harbor.

I found this web site:
https://www.engageadvisors.com/a-helpful-qa-de-minimis-or-179-expensing-or-bonus-depreciation/

It says:


Linked Web Site said:


> When you sell property expensed under the de minimis safe harbor, the proceeds are ordinary income and, if you file your business return on Schedule C of your Form 1040, are subject to the self-employment tax. When you sell property for which you claimed 100% bonus depreciation, the proceeds are ordinary income to the extent of depreciation recapture, and any excess proceeds over the original basis are Section 1231 gain (generally capital gain). The sale of an asset that you expensed using bonus depreciation does not trigger the self-employment tax.


They are using this as an argument as to why 100% bonus depreciation is preferable to de minimis safe harbor.....because de minimis safe harbor triggers self-employment tax when you sell the property but 100% bonus depreciation does not. When I walk through the IRS forms and publications, though, I'm not finding this. According to Pub. 544 and the instructions for Form 4797, if you sell property that was previously deducted using de minimis safe harbor, then the sale proceeds are reported on Line 10 of Form 4797. Line 10 is one of several lines that gets added together with the sum ending up on Line 18b. Line 18b of Form 4797 gets transferred to Line 4 of Schedule 1. From there it becomes part of AGI and taxable income and you pay regular income tax on it. I don't see where the amount from Form 4797 ever goes to Schedule C or Schedule SE, though, so I don't see how it ever triggers self-employment tax.

Am I missing something?


----------



## UberTaxPro

Launchpad McQuack said:


> That makes sense. I didn't think to do it that way, but it seems really obvious once I hear it. The reality is that the only reason I had you file for me was because of the Schedule C income. If it weren't for that, I would have filed myself like I always do and wouldn't have paid anybody anything. So in reality, 100% of the cost is because of business activities, but I figured that argument wouldn't fly.
> 
> This is pretty unrelated to rideshare, but I thought I would throw this out there to see if anybody knows anything. I have been reading about the de minimis safe harbor for expensing purchases that would normally have to be capitalized. The thing that I have been trying to figure out is how to report the income if you sell property that you previously deducted using the de minimis safe harbor.
> 
> I found this web site:
> https://www.engageadvisors.com/a-helpful-qa-de-minimis-or-179-expensing-or-bonus-depreciation/
> 
> It says:
> 
> They are using this as an argument as to why 100% bonus depreciation is preferable to de minimis safe harbor.....because de minimis safe harbor triggers self-employment tax when you sell the property but 100% bonus depreciation does not. When I walk through the IRS forms and publications, though, I'm not finding this. According to Pub. 544 and the instructions for Form 4797, if you sell property that was previously deducted using de minimis safe harbor, then the sale proceeds are reported on Line 10 of Form 4797. Line 10 is one of several lines that gets added together with the sum ending up on Line 18b. Line 18b of Form 4797 gets transferred to Line 4 of Schedule 1. From there it becomes part of AGI and taxable income and you pay regular income tax on it. I don't see where the amount from Form 4797 ever goes to Schedule C or Schedule SE, though, so I don't see how it ever triggers self-employment tax.
> 
> Am I missing something?


The article is wrong...De Minimis doesn't trigger self-employment tax on schedule c...see Internal Revenue Code Section 1402(a)(3)(C)
So you're not missing anything! (one exception is inventory)


----------



## Launchpad McQuack

UberTaxPro said:


> The article is wrong...De Minimis doesn't trigger self-employment tax on schedule c...


Thanks. That is how I was reading it in the IRS publications.

In the unlikely event that anybody else is reading this that cares, I later found this article that seems to be more in line with what I found in the IRS publications.

https://www.ruraltax.org/files-ou/De_Minimis_Safe_Harbor.pdf

It says.....


Linked Article said:


> If farmers or ranchers make the de minimis election in a prior year and subsequently dispose of the property, they must report the income as ordinary income, but it is not subject to self-employment tax. The reporting of this income is accomplished, for income tax purposes, on IRS Form 4797, specifically on Part 2, which treats this income as ordinary income subject to the progressive income tax rates.


One thing to be careful about, though, is that there are lots of special rules that apply only to farmers. So anytime that you are reading something that was written specifically for farmers, you have to keep in mind that the rules might not be the same for you. I don't think that is the case in this scenario, though. What they say in that article is pretty much in line with what I saw in the IRS publications.


----------



## steveNYC

How much do you guys generally write off in a typical year if you make around 40-50k in uber?


----------



## Uberscum

steveNYC said:


> How much do you guys generally write off in a typical year if you make around 40-50k in uber?


$0.58 a mile to cover gas and wear and tear, including Tire changes oil changes excetera. Then the cost for the whole year for cell phone and other Provisions for the passenger, meaning got some snacks water if you do those things, I personally don't. I only have Chargers in the back.

But be careful, don't make the mistake I made. Someone on this forum was nice enough to tell me that the 1099 that Uber sends me is not the net income for 2019. It's what I made plus Uber's cut added on which is ridiculous.... I don't think I want to pay Ubers taxes LOL. You have to go to Uber website and print out each month's summary which itemizes everything. You then take that to your tax place.

I made the mistake by going through TurboTax, they went into my Uber account... with my permission of course, and automatically took that information which was erroneous. So I had to go to H&R Block with all that printed information and have them amended, originally I owed $4,700 which I knew was wrong, after it was amended my taxes they said I should only have to pay about 500.

H&R Block charged me $160. Well worth it, better than $4,700 LOL


----------



## Launchpad McQuack

UberTaxPro said:


> I would use % of net income on schedule c. So if schedule c net income is 75% of total income, I would deduct 75% of the fee. There is no written in stone rule for this, should be reasonable and consistent year to year.


Lets say that I filed two Schedules C for two different businesses, and on one Schedule C I had a net gain and on the other Schedule C I had a net loss. I'll make up some numbers that make the math easy. Lets say that I had....

W2 wages = $30,000
Net #1 Schedule C = $11,000
Net #2 Schedule C = -$1,000 (net loss)
Total Income = $30k + $11k - $1k = $40,000

And lets say I paid $100 tax prep fee.

Should I combine the net amounts of the two Schedules C to determine percentage of total income, or can I just use the amount from the first Schedule C to determine percentage?

So in this example, would I use...

$100*(11k/40k) = $27.50

or

$100*[(11k-1k)/40k] = $25

The strange thing is that the second Schedule C adds to the overall work that has to go into the tax return (because it requires a second Schedule C to be filed), but it reduces the percentage of total income derived from the combined net Schedules C (because it is a net loss).


----------



## FLKeys

Here is another point of view:

Lets say I have always worked just a W-2 job and have 20+ years of history showing I file my taxes myself. Now I start doing independent work and have Schedule C income. Now I can't do my taxes myself. Shouldn't 100% of my tax preparer fees be deductible?


----------



## islanddriver

FLKeys said:


> Here is another point of view:
> 
> Lets say I have always worked just a W-2 job and have 20+ years of history showing I file my taxes myself. Now I start doing independent work and have Schedule C income. Now I can't do my taxes myself. Shouldn't 100% of my tax preparer fees be deductible?


you've always been able to deduct your tax preparer fees. on your itemized deductions.


----------



## Seamus

Uberscum said:


> $0.58 a mile to cover gas and wear and tear, including Tire changes oil changes excetera. Then the cost for the whole year for cell phone and other Provisions for the passenger, meaning got some snacks water if you do those things, I personally don't. I only have Chargers in the back.
> 
> But be careful, don't make the mistake I made. Someone on this forum was nice enough to tell me that the 1099 that Uber sends me is not the net income for 2019. It's what I made plus Uber's cut added on which is ridiculous.... I don't think I want to pay Ubers taxes LOL. You have to go to Uber website and print out each month's summary which itemizes everything. You then take that to your tax place.
> 
> I made the mistake by going through TurboTax, they went into my Uber account... with my permission of course, and automatically took that information which was erroneous. So I had to go to H&R Block with all that printed information and have them amended, originally I owed $4,700 which I knew was wrong, after it was amended my taxes they said I should only have to pay about 500.
> 
> H&R Block charged me $160. Well worth it, better than $4,700 LOL


This is the way Uber has done it as long as they have been filing 1099k. Turbo tax was not wrong, the gross income you file must match the 1099k or you will at some point get flagged for an audit. Your schedule C gross must match Uber's 1099k gross.

All you had to do was take Uber's cut (fees, etc.etc.) and deduct it on schedule C line 10 Commissions and fees. That is the proper way to account for it, use their 1099k gross and deduct the fees.


----------



## Uberscum

Seamus said:


> This is the way Uber has done it as long as they have been filing 1099k. Turbo tax was not wrong, the gross income you file must match the 1099k or you will at some point get flagged for an audit. Your schedule C gross must match Uber's 1099k gross.
> 
> All you had to do was take Uber's cut (fees, etc.etc.) and deduct it on schedule C line 10 Commissions and fees. That is the proper way to account for it, use their 1099k gross and deduct the fees.


H&R Block told me it will take about 14 weeks before I get a reply from the IRS. We'll just have to wait to see what the content of that letter will be.

Obviously TurboTax was not correct because they should have done the schedule C for me. The whole purpose of using it online or in-store tax preparation is because individuals like me are not privy to the tax rules concerning independent contractor rules. Next week soomeone else will reply to this and say no you have to do this way and that instead. It never ends.

H&R Block obviously isn't wise enough either because they should have seen the schedule C part which I've heard before but didn't understand. So at the end of the day we have two tax preparers who are supposed to know what they are doing, yet they failed miserably. Why bother hiring them?

Additionally, H&R Block provided me a copy of what I mailed to the IRS so they may have done the schedule C for me I don't know, I will have to look at the papers today and see if it's in there, if it's not, I'll sort it out later. Also, many many years ago I had a friend who's Aunt worked for the IRS and he saw the book that she'd let him look at which was called for your eyes only. And basically what it says is that an audit cost the IRS a lot of money to do, so they only pick audits that have substantial money coming to them. I would definitely not fall under that priority.


----------



## Launchpad McQuack

FLKeys said:


> Here is another point of view:
> 
> Lets say I have always worked just a W-2 job and have 20+ years of history showing I file my taxes myself. Now I start doing independent work and have Schedule C income. Now I can't do my taxes myself. Shouldn't 100% of my tax preparer fees be deductible?


Yep, I said pretty much the same thing.


Launchpad McQuack said:


> The reality is that the only reason I had you file for me was because of the Schedule C income. If it weren't for that, I would have filed myself like I always do and wouldn't have paid anybody anything. So in reality, 100% of the cost is because of business activities, but I figured that argument wouldn't fly.





islanddriver said:


> you've always been able to deduct your tax preparer fees. on your itemized deductions.


True, however......

1. Many people no longer itemize because, with the increased standard deduction and the cap on deducting state and local property taxes, itemizing deductions no longer provides any benefit over the standard deduction.

2. Even if you do still itemize, deducting as a business expense on Schedule C is preferable (if you are allowed to do so) because it reduces both self-employment tax and income tax. Itemized deductions on Schedule A only reduce income tax.


----------



## Seamus

Uberscum said:


> And basically what it says is that an audit cost the IRS a lot of money to do, so they only pick audits that have substantial money coming to them. I would definitely not fall under that priority.


Quick couple of points and then I'm out of this thread!

It is very difficult to get tax advice on this forum. You can always trust @UberTaxPro advice as he is the Pro. The problem with tax advice on the forum is there is so much bad advice. People constantly post what they "think" it should be instead of the actual facts. There is also some excellent tax advice from people that know what they are doing and have experience doing it for years. The problem being that there is often no way for someone unfamiliar to know which advice is good and which is bad.
TurboTax and all Tax software don't "do" your taxes for you. YOU provide the input. Input = Output so YOU as the user must still be familiar enough for it to be done correctly.
If you aren't familiar then by all means it is best to find a tax preparer who is EXPERIENCED in preparing rideshare taxes. Going to H&R Block is far from a guarantee that the person doing the preparing has ever done a rideshare tax return before or is even knowledgeable in them.
It is a complete fallacy that an audit costs the IRS a lot of money to do. Nowadays, most flags are generated through software and an inquiry mailed to you without much human involvement. Very inexpensive. The IRS uses matching software to match automatically your reported gross income to any W2 or 1099, etc.etc. filled on your behalf. Simple and cheap. There are drivers on this forum who have received mail audits and they aren't costly for the IRS to do. Specifically, their are drivers on this forum who's audit was triggered by their reported gross income on schedule C not matching the 1099k filed by Uber or Lyft. Simple and cheap for the IRS.
Good Luck.


----------



## Launchpad McQuack

Uberscum said:


> H&R Block obviously isn't wise enough either because they should have seen the schedule C part which I've heard before but didn't understand. So at the end of the day we have two tax preparers who are supposed to know what they are doing, yet they failed miserably.


H&R Block is worthless. I went to them once. Never again.


----------



## Uberscum

Launchpad McQuack said:


> H&R Block is worthless. I went to them once. Never again.


So where do you go to prepare your taxes?


----------



## islanddriver

Seamus said:


> Quick couple of points and then I'm out of this thread!
> 
> It is very difficult to get tax advice on this forum. You can always trust @UberTaxPro advice as he is the Pro. The problem with tax advice on the forum is there is so much bad advice. People constantly post what they "think" it should be instead of the actual facts. There is also some excellent tax advice from people that know what they are doing and have experience doing it for years. The problem being that there is often no way for someone unfamiliar to know which advice is good and which is bad.
> TurboTax and all Tax software don't "do" your taxes for you. YOU provide the input. Input = Output so YOU as the user must still be familiar enough for it to be done correctly.
> If you aren't familiar then by all means it is best to find a tax preparer who is EXPERIENCED in preparing rideshare taxes. Going to H&R Block is far from a guarantee that the person doing the preparing has ever done a rideshare tax return before or is even knowledgeable in them.
> It is a complete fallacy that an audit costs the IRS a lot of money to do. Nowadays, most flags are generated through software and an inquiry mailed to you without human involvement. Very inexpensive. The IRS uses matching software to match automatically your reported gross income to any W2 or 1099, etc.etc. filled on your behalf. Simple and cheap. There are drivers on this forum who have received mail audits and they aren't costly for the IRS to do. Specifically, their are drivers on this forum who's audit was triggered by their reported gross income on schedule C not matching the 1099k filed by Uber or Lyft. Simple and cheap for the IRS.
> Good Luck.


IRS has people on staff doing these types of audits getting paid $20. per hour. and each one can handle 20 or more at a time.



Launchpad McQuack said:


> Yep, I said pretty much the same thing.
> 
> True, however......
> 
> 1. Many people no longer itemize because, with the increased standard deduction and the cap on deducting state and local property taxes, itemizing deductions no longer provides any benefit over the standard deduction.
> 
> 2. Even if you do still itemize, deducting as a business expense on Schedule C is preferable (if you are allowed to do so) because it reduces both self-employment tax and income tax. Itemized deductions on Schedule A only reduce income tax.


What about line 17 schedule C
17 Legal and professional services
*Line 17*
Include on this line fees charged by accountants and attorneys that are ordinary and necessary expenses directly related to operating your business.

Include fees for tax advice related to your business and for preparation of the tax forms related to your business. Also, include expenses incurred in resolving asserted tax deficiencies related to your business.

For more information, see Pub. 334 or 535.


----------



## Launchpad McQuack

islanddriver said:


> What about line 17 schedule C
> 17 Legal and professional services
> *Line 17*
> Include on this line fees charged by accountants and attorneys that are ordinary and necessary expenses directly related to operating your business.
> 
> Include fees for tax advice *related to your business* and for preparation of the tax forms *related to your business*. Also, include expenses incurred in resolving asserted tax deficiencies related to your business.
> 
> For more information, see Pub. 334 or 535.


That was the root of my question. If I pay somebody to prepare my tax forms, how do I determine the percentage of that fee that is considered to be related to my business? That is the question that I am trying to figure out.

UberTaxPro suggested to use percentage of total income that derives from Schedule C and apply that percentage to the tax preparation fee. That seemed reasonable at first glance, but what if Schedule C shows a net loss?



Uberscum said:


> So where do you go to prepare your taxes?


Last year I paid UberTaxPro to prepare them. This year I am preparing them myself.


----------



## islanddriver

Launchpad McQuack said:


> That was the root of my question. If I pay somebody to prepare my tax forms, how do I determine the percentage of that fee that is considered to be related to my business? That is the question that I am trying to figure out.
> 
> UberTaxPro suggested to use percentage of total income that derives from Schedule C and apply that percentage to the tax preparation fee. That seemed reasonable at first glance, but what if Schedule C shows a net loss?
> 
> 
> Last year I paid UberTaxPro to prepare them. This year I am preparing them myself.


Use the percentage of gross w2 and gross 1099. not net. you are doing your taxes by gross, not net. Personally, I would just use whatever I paid. that's what I have been using for the last 40 years. and I have had several mail audits in the last 40 years . they never asked about my tax prep fees.


----------



## UberTaxPro

Launchpad McQuack said:


> That was the root of my question. If I pay somebody to prepare my tax forms, how do I determine the percentage of that fee that is considered to be related to my business? That is the question that I am trying to figure out.
> 
> UberTaxPro suggested to use percentage of total income that derives from Schedule C and apply that percentage to the tax preparation fee. That seemed reasonable at first glance, but what if Schedule C shows a net loss?
> 
> 
> Last year I paid UberTaxPro to prepare them. This year I am preparing them myself.


 To use the % of income with a loss I would just calculate as if the negative loss was a positive #. It's just as much work to calculate the loss vs income. Alternatively, you can always ask the tax preparer to itemize your invoice by personal & business.


----------



## Launchpad McQuack

UberTaxPro said:


> To use the % of income with a loss I would just calculate as if the negative loss was a positive #. It's just as much work to calculate the loss vs income. Alternatively, you can always ask the tax preparer to itemize your invoice by personal & business.


Thanks for the advice.

I'm looking at the 1095-A that I got from the Health Insurance Marketplace. It seems straightforward enough, but the monthly premium that is listed in the table is slightly different from the monthly payment that I made to the insurance company. It is a small difference.......only about $1.50 per month, but it seems odd to me that the numbers would not be the same.

Is there a legitimate reason why the monthly premium reported on Form 1095-A would be a little less than the monthly payment made to the insurance company? Is there a portion of that payment that is not considered to be an insurance payment?



Launchpad McQuack said:


> Is there a portion of that payment that is not considered to be an insurance payment?


I looked at one my insurance bills to see if the bill is itemized and part of the payment is going toward something other than the insurance premium. There is only one item listed on the bill, though. It is called "Premium Amount" or "Member Premium Responsibility" (it is listed in two different places), and it is the same amount as the total bill.


----------



## Launchpad McQuack

I found this.

https://info.nystateofhealth.ny.gov/sites/default/files/English - 2019 FAQs on Form 1095A.pdf
It doesn't necessarily apply to me because I don't live in New York, but this section seems like it could be universally applicable.



Linked Web Site said:


> *6. Why does the monthly premium amount on Form 1095-A not match the premium amount I see in my account or the bill I received from my health plan?*
> 
> Federal regulations permit (A)PTC to be used only for benefits that are considered Essential Health Benefits (EHB) and may not be usef or benefits that are not EHB. Because the Form 1095-A provides information needed to claim the PTC or reconcile the APTC, the form only includes the share of premiums that cover EHB, which may or may not reflect the monthly premium amount that you paid. Please also note that if you were enrolled in a stand-alone dental plan, the portion of your dental coverage premium that covers pediatric dental, which is considered EHB, not just the premium for your medical health plan will be included in your monthly premium amount.
> 
> Some health plans only include EHB and some plans have additional benefits (such as acupuncture).


So I am guessing that my health insurance includes some very minor benefit that is not considered EHB (maybe acupuncture, like the example in the quoted text), and that is why my 1095-A does not match the monthly premiums that I pay.

Question: It says that the reason this amount is reported on 1095-A is because this is the amount that is used to compute the amount of the Premium Tax Credit (PTC) if you are eligible for it. For the Self-Employed Health Insurance Deduction, though, do you also have to use the amount on the 1095-A, or can you use the actual premiums that you paid?

For my specific case, the difference is so minor ($18 for the year) that I am just going to use the amount on the 1095-A to avoid raising questions. The benefit of claiming the extra amount isn't worth the possible scrutiny that it brings, but I would like to know what is allowed going forward.


----------



## islanddriver

UberTaxPro said:


> To use the % of income with a loss I would just calculate as if the negative loss was a positive #. It's just as much work to calculate the loss vs income. Alternatively, you can always ask the tax preparer to itemize your invoice by personal & business.


use the % of the gross income you put on your schedule C versus you other gross income example interest, w2 wages etc.


----------



## x100

Here's a tricky one and may be out of scope of your offer here. Driver's new wife and child are overseas, he has initiated paperwork to naturalize them recently so he doesn't have SSN for them yet. With IRS's deadline approaching for Pandemic benefits, can he still collect for them in time or buy time to do so? He's filed as head of household, mentioning the two dependents and mentioning N/A where it requests for SSN for them. 

He's chosen to play it safe due to Corona and bring them over when it's all settled more or less.


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## Launchpad McQuack

UberTaxPro said:


> Alternatively, you can always ask the tax preparer to itemize your invoice by personal & business.


I often find that I don't know when to ask for invoices to be itemized or how to ask for them to be itemized.

Another example, again concerning what I paid you for tax return preparation and filing. I am working on the portion of my state return where I have to figure up sales tax that I owe for Internet and out-of-state purchases where no sales tax was collected by the seller. I've been doing this long enough that I know to keep a list throughout the year any time I pay for something online. So I get to the line item on my list where I paid you for preparing my tax returns last year. Are tax preparation fees subject to sales tax? I don't know off the top of my head, but I suspect not. So I start going through the sales tax publications, and I find that tax preparation fees are exempt from sales tax.........but there is a catch. While the fee paid for preparation of a tax return is exempt from sales tax, any fees paid for electronic filing of the return are subject to sales tax. So I pull up your invoice, and it has one line item for "Preparation *and filing* of 2018 tax returns."

Any idea how to allocate the $160 that I paid you for "preparation and filing" between preparation and filing? I would prefer not to pay sales tax on the entire $160 if I can avoid it, but without a breakdown I'll probably have to bite the bullet and pay sales tax on the entire amount. I never would have thought to ask for that to be itemized on the invoice at the time.


----------



## UberTaxPro

Launchpad McQuack said:


> I often find that I don't know when to ask for invoices to be itemized or how to ask for them to be itemized.
> 
> Another example, again concerning what I paid you for tax return preparation and filing. I am working on the portion of my state return where I have to figure up sales tax that I owe for Internet and out-of-state purchases where no sales tax was collected by the seller. I've been doing this long enough that I know to keep a list throughout the year any time I pay for something online. So I get to the line item on my list where I paid you for preparing my tax returns last year. Are tax preparation fees subject to sales tax? I don't know off the top of my head, but I suspect not. So I start going through the sales tax publications, and I find that tax preparation fees are exempt from sales tax.........but there is a catch. While the fee paid for preparation of a tax return is exempt from sales tax, any fees paid for electronic filing of the return are subject to sales tax. So I pull up your invoice, and it has one line item for "Preparation *and filing* of 2018 tax returns."
> 
> Any idea how to allocate the $160 that I paid you for "preparation and filing" between preparation and filing? I would prefer not to pay sales tax on the entire $160 if I can avoid it, but without a breakdown I'll probably have to bite the bullet and pay sales tax on the entire amount. I never would have thought to ask for that to be itemized on the invoice at the time.


I paid the electronic filing fee not you. I charged you for the service of preparing & filing the return. If you disagree and want to pay sales tax on the filing fee it was $72.


----------



## Launchpad McQuack

UberTaxPro said:


> I paid the electronic filing fee not you. I charged you for the service of preparing & filing the return. If you disagree and want to pay sales tax on the filing fee it was $72.


Thanks for the info.


----------



## JD1

Donald Trump deducted $70,000 worth of haircuts. He has proven to be quite a maverick when it comes to the tax code. I think we should all take note.

Though I don't spend nearly this amount, I kinda want the same deal. Nicely coiffed hair and skin are essential to my business success, so I should be able to deduct these as legitimate business expenses, no?

I also want this deal for clothing. My clothes are essential to my business success as a driver. Wearing professional attire is important for a quality product in my case.

Then also media. I watch a lot of tv. Movies too. Some of them feature amazing drivers. I actually learn a lot watching these movies and tv shows. How to drive, how to resolve conflicts. The Fast & Furious movies for example. Vin Diesel. He is actually quite the educator. Shouldn't I be able to deduct these media expenses as either reference material or educational media on my schedule C?

What is your opinion?


----------



## UberTaxPro

JD1 said:


> Donald Trump deducted $70,000 worth of haircuts. He has proven to be quite a maverick when it comes to the tax code. I think we should all take note.
> 
> Though I don't spend nearly this amount, I kinda want the same deal. Nicely coiffed hair and skin are essential to my business success, so I should be able to deduct these as legitimate business expenses, no?
> 
> I also want this deal for clothing. My clothes are essential to my business success as a driver. Wearing professional attire is important for a quality product in my case.
> 
> Then also media. I watch a lot of tv. Movies too. Some of them feature amazing drivers. I actually learn a lot watching these movies and tv shows. How to drive, how to resolve conflicts. The Fast & Furious movies for example. Vin Diesel. He is actually quite the educator. Shouldn't I be able to deduct these media expenses as either reference material or educational media on my schedule C?
> 
> What is your opinion?


Trump hasn't got the deal yet, he's under audit and a criminal investigation in NY involving his taxes. His "deal" might end up being with a sentencing judge. Besides all the haircuts, paying his kids as consultants and personal use of business property (same kind of issues the average real estate mogul might have) he's going to have to answer some questions about CONSERVATION EASEMENTS that might turn out to be his most valuable fraud.
https://www.ny1.com/nyc/all-borough...ump-s--21m-tax-break-for-westchester-property


----------



## JD1

UberTaxPro said:


> Trump hasn't got the deal yet, he's under audit and a criminal investigation in NY involving his taxes. His "deal" might end up being with a sentencing judge. Besides all the haircuts, paying his kids as consultants and personal use of business property (same kind of issues the average real estate mogul might have) he's going to have to answer some questions about CONSERVATION EASEMENTS that might turn out to be his most valuable fraud.
> https://www.ny1.com/nyc/all-borough...ump-s--21m-tax-break-for-westchester-property


That conservation easement game is played all over NY, NJ and CT. Had clients in Colt's Neck, NJ who took a 400 acre property and turned the majority of it into a "Horse Farm", then parked their $130 million dollar mansion on the back, basically used thoroughbred business to shelter the majority of their assets. Having any kind of agriculture on your property was very helpful to avoid paying your fair share of the taxes, so all the big whigs in the area usually had some little side-hustle like that going on so they wouldn't have to pay the full monty.


----------



## UberTaxPro

JD1 said:


> That conservation easement game is played all over NY, NJ and CT. Had clients in Colt's Neck, NJ who took a 400 acre property and turned the majority of it into a "Horse Farm", then parked their $130 million dollar mansion on the back, basically used thoroughbred business to shelter the majority of their assets. Having any kind of agriculture on your property was very helpful to avoid paying your fair share of the taxes, so all the big whigs in the area usually had some little side-hustle like that going on so they wouldn't have to pay the full monty.


Also going on in other parts of the country I believe. The issue for the IRS is the "valuation" of the easements. Taxpayers arrive at the valuation on their own and it's up to the IRS to check in audits. That is part of what is going on with trump in NYS & I believe it involves more than just the one mentioned in the article here: 
https://www.ny1.com/nyc/all-borough...ump-s--21m-tax-break-for-westchester-property


----------



## MUber26

UberTaxPro said:


> I am a long-time member here and after last years extensive rideshare tax AMA I think it's time to start anew. I'll do my best to help with your questions this year. Please be patient as I'll be working with one of the larger remote tax services this year and they are keeping me very busy. Thanks also to everyone else that pitches in with great answers!
> 
> If you need help preparing your taxes for 2019 please contact me here: UberTaxPro.com



#8
IRS sent me an audit notice for 2018, drive for Uber in Texas and made 34k, drove 43k miles according to online miles and minus $11k Uber fees that Uber did not include on the 1099.
IRS rejected my mileage and Uber fees deductions and they proposes $8900 in tax plus penalties.
My CPA is responding to the audit by including detailed print out for 1800 rides which is 1800 print out because she said they do not accept the monthly or yearly summary on my Uber acoount.
In 2018 I did not use the miles app but in 2019 I started using Stride to log my miles.
I think there is a loophole for the required documents to show as proof of miles and the IRS is using it to audit the poor working people.
I made $23k after Uber fees, IRS wants $10k.
how is this fair? And I have to pay a $1000 to my CPA and her staff to help me.... My CPA thinks that they may accept the print outs or they may not.

If anyone went through the same thing please respond kindly, thanks &#128591;


----------



## UberTaxPro

MUber26 said:


> #8
> IRS sent me an audit notice for 2018, drive for Uber in Texas and made 34k, drove 43k miles according to online miles and minus $11k Uber fees that Uber did not include on the 1099.
> IRS rejected my mileage and Uber fees deductions and they proposes $8900 in tax plus penalties.
> My CPA is responding to the audit by including detailed print out for 1800 rides which is 1800 print out because she said they do not accept the monthly or yearly summary on my Uber acoount.
> In 2018 I did not use the miles app but in 2019 I started using Stride to log my miles.
> I think there is a loophole for the required documents to show as proof of miles and the IRS is using it to audit the poor working people.
> I made $23k after Uber fees, IRS wants $10k.
> how is this fair? And I have to pay a $1000 to my CPA and her staff to help me.... My CPA thinks that they may accept the print outs or they may not.
> 
> If anyone went through the same thing please respond kindly, thanks &#128591;


you need a tax pro to represent or advice you with this, what is the 1K she's charging you for?


----------



## BIGSHOW

Question for you: I filed taxes earlier this year and came up with a $286 debt I owe, despite Uber not having my forms available. Turns out (way after the fact) that Uber said I didn't make enough to warrant paying taxes. Is it too late to re-file? Or "un-file"? Or do I need to pony up?


----------



## islanddriver

BIGSHOW said:


> Question for you: I filed taxes earlier this year and came up with a $286 debt I owe, despite Uber not having my forms available. Turns out (way after the fact) that Uber said I didn't make enough to warrant paying taxes. Is it too late to re-file? Or "un-file"? Or do I need to pony up?


don't believe Uber said you didn't make enough to file taxes. maybe you didn't make enough for a 1099K which is at least $20,000. But you still have to file for what you made.


----------



## BIGSHOW




----------



## Seamus

BIGSHOW said:


> View attachment 527003


Re-read the notice carefully. It's exactly as @islanddriver told you, you just didn't make enough to get a 1099K. _It does not say you don't owe taxes on your income because you didn't make enough! _When you don't get a 1099K you still file taxes on your income but you just use the information from your tax summary Uber sent you.


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## islanddriver

BIGSHOW said:


> View attachment 527003


Read the second paragraph it say for filing tax use your Uber tax summary. .....


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## UberTaxPro

BIGSHOW said:


> View attachment 527003


Amending your return is still an option


----------



## PTB

OCUberGuy said:


> Did anybody notice, when you add up the expenses in Table 1 on page two of the Tax Summary, minus the Reimbursements, the amounts don't total up correctly or match Expenses, Fees and Tax on page1 of the Tax Summary. Maybe why everything is on hold!!


page 1 says EXPENSES, FEES AND TAX
which would include
Uber service fee/other adjustments
Booking fee
Split fare fee

page 1 does NOT say EXPENSES, FEES AND TAX minus Reimbursements.

I notice (Reimbursements:Tolls, Airport fees, and Surcharges) is added under YOUR NET PAYOUT on Page 1

*QUESTION:*
*1) Do you include (Reimbursements: Tolls, Airport fees, and Surcharges) as INCOME? *
*and then later include (Tolls, Airport fees, and Surcharges) as an additional EXPENSE?*


----------



## UberTaxPro

PTB said:


> page 1 says EXPENSES, FEES AND TAX
> which would include
> Uber service fee/other adjustments
> Booking fee
> Split fare fee
> 
> page 1 does NOT say EXPENSES, FEES AND TAX minus Reimbursements.
> 
> I notice (Reimbursements:Tolls, Airport fees, and Surcharges) is added under YOUR NET PAYOUT on Page 1
> 
> *QUESTION:*
> *1) Do you include (Reimbursements: Tolls, Airport fees, and Surcharges) as INCOME? *
> *and then later include (Tolls, Airport fees, and Surcharges) as an additional EXPENSE?*


Reimbursements are not income or expenses. Using reimbursements as an expense is called "double dipping".


----------



## PTB

I had too much INCOME last year (2020), Lawsuit Settlement + PUA and as a result, have to pay back all the CoveredCA advanced premium tax credit (APTC).
Also, I cannot contribute $7000 to an IRA to reduce my INCOME as we are now into 2021.
two things I should have done last year
1) report INCOME change to CoveredCA
2) contribute $7000 to IRA
totally screwed on 2020 taxes


----------



## UberTaxPro

PTB said:


> I had too much INCOME last year (2020) and as a result, have to pay back all the CoveredCA advanced premium tax credit (APTC).
> Also, I cannot contribute $7000 to an IRA to reduce my INCOME as we are now into 2021.
> two things I should have done last year
> 1) report INCOME change to CoveredCA
> 2) contribute $7000 to IRA
> totally screwed on 2020 taxes


you can make 2020 ira contributions till 4/15/21


----------



## PTB

UberTaxPro said:


> you can make 2020 ira contributions till 4/15/21


Yea, I tried that, but the next question in TurboTAX is How much money was contributed between Jan 1, 2021 and April 15, 2021.
If you contributed most your money in 2021, you are screwed.
You have to contribute in the 2020 TAX YEAR to make a difference.


----------



## UberTaxPro

PTB said:


> Yea, I tried that, but the next question in TurboTAX is How much money was contributed between Jan 1, 2021 and April 15, 2021.
> If you contributed most your money in 2021, you are screwed.


can't help you with turbo tax, haven't used it in a few years


----------



## PTB

UberTaxPro said:


> can't help you with turbo tax, haven't used it in a few years


it not really a TurboTax thing were talking about here, 
contributions to an IRA only reduce your income in the YEAR that you contribute.
so if you contribute on Jan 22, 2021, then your INCOME will be less on your 2021 taxes, not your 2020 taxes.


----------



## UberTaxPro

PTB said:


> Yea, I tried that, but the next question in TurboTAX is How much money was contributed between Jan 1, 2021 and April 15, 2021.
> If you contributed most your money in 2021, you are screwed.


can't help you with turbo tax, haven't used it in a few years


PTB said:


> it not really a TurboTax thing were talking about here,
> contributions to an IRA only reduce your income in the YEAR that you contribute.
> so if you contribute on Jan 22, 2021, then your INCOME will be less on your 2021 taxes, not your 2020 taxes.


*you can make 2020 ira contributions till 4/15/21!!!!!!!!!*


----------



## SHalester

PTB said:


> your income in the YEAR that you contribute.


that isn't exactly right. You can make contribution up to April. However, you have to make sure the bank or whatever marks the contribution for 2020; if you don't they plunk it in 2021.


----------



## UberTaxPro

SHalester said:


> that isn't exactly right. You can make contribution up to April. However, you have to make sure the bank or whatever marks the contribution for 2020; if you don't they plunk it in 2021.


you have to choose which year, yes


----------



## PTB

I typed $7000 into the first space and my taxes went down by $8048, NICE
THEN I also typed $7000 into the second space , then my taxes went UP by $238 dollars from the Original amount
screwed in 2020,
AGAIN, THIS IS NOT A TURBOTAX THING!!!!!!


----------



## SHalester

UberTaxPro said:


> you have to choose which year, yes


exactly what I said. You must direct the bank to apply it to 2020 or by default it will be 2021.


----------



## PTB

you must indicate how much of your total contribution for 2020 you contributed between Jan 1 2021 and April 15, 2021
and if most of your money was contributed between these months, you are screwed,.


----------



## Uberscum

I'm a CPA, and don't agree.

Most of you have got it wrong.


----------



## UberTaxPro

SHalester said:


> exactly what I said. You must direct the bank to apply it to 2020 or by default it will be 2021.


Please keep my replies in context, I wasn't talking about individual financial institutions specific method for making the selection of year, I was responding to the following,: "If you contributed most your money in 2021, you are screwed." "Also, I cannot contribute $7000 to an IRA to reduce my INCOME as we are now into 2021."


----------



## PTB

Hello, they are asking the second question in TurboTax for a reason

second question is
"Tell us how much of the above total contribution for 2020 you contributed between January 1, 2021 and April 15, 2021"

Hello, the goal is to lower my taxes, NOT just to contribute to the IRA !!!!!!


----------



## SHalester

PTB said:


> most of your money was contributed between these months, you are screwed,.


.....Is there a limit on those months total wise? I've not heard of that, and I'm too lazy to go research it. I'll let the CPA answer, easier.


----------



## PTB

SHalester said:


> .....Is there a limit on those months total wise? I've not heard of that, and I'm too lazy to go research it. I'll let the CPA answer, easier.


[HEADING=1]more information below, [/HEADING]
my EARNED INCOME is basically ZERO for 2020
[HEADING=1]"You Can Only Contribute 'Earned Income". to an IRA[/HEADING]
Some types of income don't count as earned income, including:2


*Alimony*
*Child support*
*Income from rental property*
*Interest and dividends from investments*
*Pay you received while an inmate in a penal institution*
*Retirement income*
*Social Security*
*Unemployment benefits*


----------



## SHalester

PTB said:


> "You Can Only Contribute 'Earned Income". to an IRA


oh, you changed a major variable. Because otherwise you can contriubute the annual max on the last possible valid date. Assuming you have 'earned' income that is at least equals the contribution.


----------



## PTB

SHalester said:


> oh, you changed a major variable. Because otherwise you can contriubute the annual max on the last possible valid date. Assuming you have 'earned' income that is at least equals the contribution.


so for example, let's say I had $7000 of EARNED INCOME listed on my tax return.
TurboTax would not ask me that second question?

Second Question-
"Tell us how much of the above total contribution for 2020 you contributed between January 1, 2021 and April 15, 2021"

research needed


----------



## Mota-Driven

@UberTaxPro or anyone else.

I qualify for a 1099K, [as I met the threshold requirements]. That said, my 2020 yearly summary is available on Uber's website, but my 1099K is not as of yet. Is it generally posted on the 31st or before? I thought I recall somebody else mentioned there's was already posted. (I also opted for a hard copy to be mailed.)

Thanks.


----------



## PTB

Here is a TIP for you.
1099K income is entered in TurboTax under
Business > Business Income and Expenses > General Income > (Description) Uber Gross Trip Earnings > (Amount) x,xxx.
I typed "Uber Gross Trip Earnings as the Description
I typed" x,xxx. as the Amount

1099K box 1a Gross amount of payment card/third party network transactions
this amount for box 1a can also be found on the Uber Tax Summary for 2020
it is listed on page 1 as "Gross Trip Earnings".
also included on page 1 is "Total Additional Earnings" which you will also list under the same section in TurboTax
I typed "Incentives" as the Description
I typed "xx.xx" as the Amount
Incentive pay can also be found on page 2 of the Uber Tax Summary for 2020

so basically what I am saying is all the information you need is already supplied on the Uber Tax Summary for 2020 regarding 1099K

btw, I looked at my 2019 tax return and the 1099k from Uber amount in box 1a matches exactly the amount on the Uber Tax Summary.


----------



## Mota-Driven

PTB said:


> Here is a TIP for you.
> 1099K income is entered in TurboTax under
> Business > Business Income and Expenses > General Income > (Description) Uber Gross Trip Earnings > (Amount) x,xxx.
> I typed "Uber Gross Trip Earnings as the Description
> I typed" x,xxx. as the Amount
> 
> 1099K box 1a Gross amount of payment card/third party network transactions
> this amount for box 1a can also be found on the Uber Tax Summary for 2020
> it is listed on page 1 as "Gross Trip Earnings".
> also included on page 1 is "Total Additional Earnings" which you will also list under the same section in TurboTax
> I typed "Incentives" as the Description
> I typed "xx.xx" as the Amount
> Incentive pay can also be found on page 2 of the Uber Tax Summary for 2020
> 
> so basically what I am saying is all the information you need is already supplied on the Uber Tax Summary for 2020 regarding 1099K
> 
> btw, I looked at my 2019 tax return and the 1099k from Uber amount in box 1a matches exactly the amount on the Uber Tax Summary.


Thank you for the info. Appreciated. I'm not sure if you qualify for the 1099K, if so, was yours posted on Uber's website yet? [Aside from the annual summary.]


----------



## islanddriver

Mota-Driven said:


> Thank you for the info. Appreciated. I'm not sure if you qualify for the 1099K, if so, was yours posted on Uber's website yet? [Aside from the annual summary.]


Uber said 1099k would post on or after the 31. Some one else said Uber said there was a problem with the 1099k and the corrected one would be out 2/15/2021.


----------



## Mota-Driven

islanddriver said:


> Uber said 1099k would post on or *after* the 31..


It doesn't say 'after' anywhere on their site from my research.

What it does say:

*By* January 31,2021: Tax documents, including tax summaries will be available for drivers to download.

{Uber.com//tax information}



islanddriver said:


> Some one else said Uber said there was a problem with the 1099k and the corrected one would be out 2/15/2021.


One random person doesn't Indicate anything without a source/link. Also, there's nothing formally posted anything by February 15 on Ubers site. By mandated law, they have to post all tax information by the 31.


----------



## FLKeys

Last year the 1099's came out on 01/29/2020. Many people used them and filed taxes right away. Then people started reporting inconsistencies in their numbers vs the 1099's. Uber issued corrected 1099's later on in Early Feb after many people filed taxes already. 

You should be keeping your own records and not relying on Uber. This way when you get your 1099 you can verify it is correct.


----------



## islanddriver

Mota-Driven said:


> It doesn't say 'after' anywhere on their site from my research.
> 
> What it does say:
> 
> *By* January 31,2021: Tax documents, including tax summaries will be available for drivers to download.
> 
> {Uber.com//tax information}
> 
> One random person doesn't Indicate anything without a source/link. Also, there's nothing formally posted anything by February 15 on Ubers site. By mandated law, they have to post all tax information by the 31.


If you read my answer I told you what was on Uber's site And I never said that Uber said it, I did say one person on here said Feb 15. 
If you already knew the answer why do you post the question?


----------



## Seamus

PTB said:


> so basically what I am saying is all the information you need is already supplied on the Uber Tax Summary for 2020 regarding 1099K
> 
> btw, I looked at my 2019 tax return and the 1099k from Uber amount in box 1a matches exactly the amount on the Uber Tax Summary.


That may be true in most cases. However, out of an abundance of of caution it's best to wait for the 1099k. There have been isolated reports in the past of people who posted discrepancies in their tax summary compared to the 1099k. Further, in the past their have been instances like @FLKeys mentioned were Uber sent corrected 1099k s in February.

The problem with rushing too quickly before the 1099k is in hand, is the IRS uses the information on the 1099k. Therefore if there was a discrepancy on your tax summary you won't match the info the IRS has and the troubles start.

Although in the far majority of cases you are correct, best to wait until 1099k received. _An ounce of prevention is worth a pound of cure_.


----------



## UberTaxPro

Mota-Driven said:


> @UberTaxPro or anyone else.
> 
> I qualify for a 1099K, [as I met the threshold requirements]. That said, my 2020 yearly summary is available on Uber's website, but my 1099K is not as of yet. Is it generally posted on the 31st or before? I thought I recall somebody else mentioned there's was already posted. (I also opted for a hard copy to be mailed.)
> 
> Thanks.


By law the 1099K has to be sent by 1/31, many companies wait to the last day


----------



## UberPasco

@UberTaxPro Last year I traded in my 2012 prius ( in service 10/15) for a 2015 (5/20) for $4350. I drove 7700 deductible miles for the 2012 and 14350 on the 2015. When I did my turbotax SE, it isn't allowing for the 2012 expense, yet it is adding the $4350 as income.( I calculated all the previous years depreciation portion of the standard deduction per the chart). What am I doing wrong??


----------



## JD1

Schedule C looks a lot less impressive this year without "gross payment transactions" on 1099-MISC, lol. 

Anyone know why they changed it up?


----------



## charly21

I drove 35k miles last year that's mean I have a $19k credit?


----------



## Older Chauffeur

charly21 said:


> I drove 35k miles last year that's mean I have a $19k credit?


Perhaps a deduction on Schedule C to offset some of your earnings, rather than a credit.


----------



## UberTaxPro

Mota-Driven said:


> @UberTaxPro or anyone else.
> 
> I qualify for a 1099K, [as I met the threshold requirements]. That said, my 2020 yearly summary is available on Uber's website, but my 1099K is not as of yet. Is it generally posted on the 31st or before? I thought I recall somebody else mentioned there's was already posted. (I also opted for a hard copy to be mailed.)
> 
> Thanks.


They have to be mailed by 1/31, not unusual for companies to wait till last day


----------



## CaptainToo

In past years I have taken the standard mileage deduction as the sensible approach. But having only driven some 2000 miles in 2020 due to the pandemic, the question of the standard mileage deduction is less clear. Assuming I claim the car as ridesharing use only, the annual costs of the car are much more than the $1,200 standard deduction. However I believe it is a problem to switch this car cost basis from one year to another for the same vehicle. Does anyone know for sure that you can do so, and does it in fact make sense just for 2020?


----------



## Older Chauffeur

CaptainToo said:


> In past years I have taken the standard mileage deduction as the sensible approach. But having only driven some 2000 miles in 2020 due to the pandemic, the question of the standard mileage deduction is less clear. Assuming I claim the car as ridesharing use only, the annual costs of the car are much more than the $1,200 standard deduction. However I believe it is a problem to switch this car cost basis from one year to another for the same vehicle. Does anyone know for sure that you can do so, and does it in fact make sense just for 2020?


Google IRS Publication 463 for rules related to switching between methods year to year. If you own the vehicle and use the SMR the first year you put it in service, you can switch methods in later years. If the vehicle is leased
and you want to use the SMR, you have to use it for the entire term of the lease.


----------



## Seamus

CaptainToo said:


> In past years I have taken the standard mileage deduction as the sensible approach. But having only driven some 2000 miles in 2020 due to the pandemic, the question of the standard mileage deduction is less clear. Assuming I claim the car as ridesharing use only, the annual costs of the car are much more than the $1,200 standard deduction. However I believe it is a problem to switch this car cost basis from one year to another for the same vehicle. Does anyone know for sure that you can do so, and does it in fact make sense just for 2020?


As @Older Chauffeur said yes* IF *you used the standard mileage deduction in the *first year *of the car being in service for rideshare. It sounds like you did.

I give you credit for thinking this way @CaptainToo, due to Covid circumstances a lot of drivers may have cut way back on driving this year. This may be a real advantage for 2020 tax year.


----------



## driver-timer

@UberTaxPro 
I am trying to file on turbotax. When I import the information from uber, it automatically uploads a vehicle section. I know uber keeps track of my miles, but I did not personally keep track of my personal miles. Is there any way around it? Also, If I estimate what I think the additional milage would be, it actually decreases my refund by about $1000. Does that make sense?? And if I upload everything manually and don't put any vehicle information in at all, it actually increases my return by about $2000. It doesn't make sense to me.


----------



## Daisey77

charly21 said:


> I drove 35k miles last year that's mean I have a $19k credit?


It would actually be $20,125, as long as all those miles are used for rideshare



CaptainToo said:


> In past years I have taken the standard mileage deduction as the sensible approach. But having only driven some 2000 miles in 2020 due to the pandemic, the question of the standard mileage deduction is less clear. Assuming I claim the car as ridesharing use only, the annual costs of the car are much more than the $1,200 standard deduction. However I believe it is a problem to switch this car cost basis from one year to another for the same vehicle. Does anyone know for sure that you can do so, and does it in fact make sense just for 2020?


If you use mileage the first year that the opposing service you can switch back and forth between standard mileage and actual expenses. If you used actual expenses the first year oh, you have to stay with that the entire time you have the vehicle in service


driver-timer said:


> @UberTaxPro
> I am trying to file on turbotax. When I import the information from uber, it automatically uploads a vehicle section. I know uber keeps track of my miles, but I did not personally keep track of my personal miles. Is there any way around it? Also, If I estimate what I think the additional milage would be, it actually decreases my refund by about $1000. Does that make sense?? And if I upload everything manually and don't put any vehicle information in at all, it actually increases my return by about $2000. It doesn't make sense to me.


Don't import Uber's information directly. Manually enter it all. If their mileage is more than yours, use theirs. especially since you don't have records of your own

@UberTaxPro tell me about this 7202 form! It cannot be e-filed right? So I have to actually mail in my tax return? Someone said you have to address it to you can't just delete the form from TurboTax and keep going. Is that correct? I want to file mine but TurboTax is saying they won't have the form ready for another week but there's also a deadline with Uber to get it for free. Any info you got on the 7202 would be much appreciated&#128513;


----------



## Taxi2Uber

I bought my rideshare car for $6500, 4 years ago.
Sold it for $4600.
Based on 95% business usage, I have to pay tax on the "gain" of $4400? 
Considered income (according to TurboTax)?
I couldn't write off the purchase price, but I get taxed on the selling price?

Am I understanding this right?


----------



## islanddriver

charly21 said:


> I drove 35k miles last year that's mean I have a $19k credit?


that's not a tax credit it is a deduction that reduces your taxes


----------



## Daisey77

Taxi2Uber said:


> I bought my rideshare car for $6500, 4 years ago.
> Sold it for $4600.
> Based on 95% business usage, I have to pay tax on the "gain" of $4400?
> Considered income (according to TurboTax)?
> I couldn't write off the purchase price, but I get taxed on the selling price?
> 
> Am I understanding this right?


So is the $2,100 difference considered depreciation over the couple of years? Are you doing actual expenses? I'm wondering if they considered it an asset you sold?


----------



## Taxi2Uber

Daisey77 said:


> So is the $2,100 difference considered depreciation over the couple of years? Are you doing actual expenses? I'm wondering if they considered it an asset you sold?


I'm puzzled by it. Don't understand it and didn't expect it.
I did standard mileage all years.

Yes, the term 'asset' was used and there were several follow up questions regarding 'adjusted basis'.
There were formulas to calculate....something, I forget now...where I had to use business miles each of the last 4 years, times $.25 for 2017,2018, $.26 for 2019, and $.27 for 2020.

I don't know. To me paying $6500 and selling for $4600 is a loss, not a 'gain' as they called it.
It said the $4400 is considered income and now must be taxed.

Doesn't make sense to me, or I didn't something wrong.


----------



## Older Chauffeur

Waiting for @UberTaxPro to answer, but I think it may be because part of the SMR included depreciation. I have no idea how it's figured, but maybe the depreciation takes the value down to less than you sold the car for?


----------



## Seamus

Taxi2Uber said:


> I'm puzzled by it. Don't understand it and didn't expect it.
> I did standard mileage all years.
> 
> Yes, the term 'asset' was used and there were several follow up questions regarding 'adjusted basis'.
> There were formulas to calculate....something, I forget now...where I had to use business miles each of the last 4 years, times $.25 for 2017,2018, $.26 for 2019, and $.27 for 2020.
> 
> I don't know. To me paying $6500 and selling for $4600 is a loss, not a 'gain' as they called it.
> It said the $4400 is considered income and now must be taxed.
> 
> Doesn't make sense to me, or I didn't something wrong.


I also didn't respond but @UberTaxPro did say he was very busy and would be slower to respond this year.

All I can say is in my estimation 99% of people who sell _private deal_ cars never report the sale for tax purposes.

I can't tell you to ignore the car sale, but you would be part of an elite small group who would ever do that. If you were a C corp and carrying assets on a balance sheet that needed to be written off that would be a different story. Assuming you're not a C corp, I would use the ignore function but that's just me.


----------



## UberTaxPro

Taxi2Uber said:


> I'm puzzled by it. Don't understand it and didn't expect it.
> I did standard mileage all years.
> 
> Yes, the term 'asset' was used and there were several follow up questions regarding 'adjusted basis'.
> There were formulas to calculate....something, I forget now...where I had to use business miles each of the last 4 years, times $.25 for 2017,2018, $.26 for 2019, and $.27 for 2020.
> 
> I don't know. To me paying $6500 and selling for $4600 is a loss, not a 'gain' as they called it.
> It said the $4400 is considered income and now must be taxed.
> 
> Doesn't make sense to me, or I didn't something wrong.


You're using the purchase price $6500 as the *basis. *Often, the purchase price of an asset will = basis, but not always. Your basis is reduced by the accumulated depreciation that was built into the SMR (the .25, .26 & .27 are most likely the deprecation portion of the SMR)



Taxi2Uber said:


> I bought my rideshare car for $6500, 4 years ago.
> Sold it for $4600.
> Based on 95% business usage, I have to pay tax on the "gain" of $4400?
> Considered income (according to TurboTax)?
> I couldn't write off the purchase price, but I get taxed on the selling price?
> 
> Am I understanding this right?


You're using the purchase price $6500 as the *basis. *Often, the purchase price of an asset will = basis, but not always. Your basis is reduced by the accumulated depreciation that was built into the SMR


----------



## Taxi2Uber

Seamus said:


> All I can say is in my estimation 99% of people who sell _private deal_ cars never report the sale for tax purposes.


As I didn't expect the end result, I was just answering questions in a series of menus, the first being, "Are you still using this particular car for your business" -No. "Did you sell your car" -Yes.....and on from there.
Next thing I knew, I'm being taxed on 95%(business usage) of sale price.
I was just answering honestly since I did sell the car and bought another.
Maybe I answered a question incorrectly though.



UberTaxPro said:


> You're using the purchase price $6500 as the *basis. *Often, the purchase price of an asset will = basis, but not always. Your basis is reduced by the accumulated depreciation that was built into the SMR (the .25, .26 & .27 are most likely the deprecation portion of the SMR)


After calculating the "built in accumulated depreciation", that total far exceeded the purchase price.
The box said not to enter value larger than purchase price, so I entered $6500.
Maybe I misread the question and the value I should have entered was zero (6500-depreciation), I don't know, as I don't recall the exact wording of the question.


----------



## Daisey77

Taxi2Uber said:


> As I didn't expect the end result, I was just answering questions in a series of menus, the first being, "Are you still using this particular car for your business" -No. "Did you sell your car" -Yes.....and on from there.
> Next thing I knew, I'm being taxed on 95%(business usage) of sale price.
> I was just answering honestly since I did sell the car and bought another.
> Maybe I answered a question incorrectly though.
> 
> After calculating the "built in accumulated depreciation", that total far exceeded the purchase price.
> The box said not to enter value larger than purchase price, so I entered $6500.
> Maybe I misread the question and the value I should have entered was zero (6500-depreciation), I don't know, as I don't recall the exact wording of thequestio


You better go get your car back! Tell them just kidding I need my car back&#128517;


----------



## Jon Stoppable

Bear says that if you traded the car, then the realized gain on sale (based on the depreciation from the mileage rate) would qualify for like-kind exchange treatment, and thus just reduce the basis of the new car. But if you sold the old car for cash, no such luck ...

To avoid this fate, instead of selling an old car or buying a new one, just eat another human and take his vehicle.


----------



## Daisey77

Jon Stoppable said:


> just eat another human and take his vehicle.


There are laws against this. I don't know how Bear World works but human world this is a big No-No


----------



## Jon Stoppable

Daisey77 said:


> There are laws against this. I don't know how Bear World works but human world this is a big No-No


In the swamp the only law is eat or be eaten. Also, the more bear eats, the more successful bear is at mating.


----------



## Darrell Green Fan

FLKeys said:


> Last year the 1099's came out on 01/29/2020. Many people used them and filed taxes right away. Then people started reporting inconsistencies in their numbers vs the 1099's. Uber issued corrected 1099's later on in Early Feb after many people filed taxes already.
> 
> You should be keeping your own records and not relying on Uber. This way when you get your 1099 you can verify it is correct.


A quick glance at my 1099 shows a larger figure in box 1a than my records indicate. This is only my 2nd year doing this, I seem to recall last year that a figure represented fees Uber charged the customer that does not count as our income. Am I wrong here? Should I just go with the 1099 figure in box 1a?


----------



## Seamus

Darrell Green Fan said:


> A quick glance at my 1099 shows a larger figure in box 1a than my records indicate. This is only my 2nd year doing this, I seem to recall last year that a figure represented fees Uber charged the customer that does not count as our income. Am I wrong here? Should I just go with the 1099 figure in box 1a?


Are you referring to a 1099k from Uber or Lyft? If so you have to list the gross amount on your schedule C and then write off the fees as an expense which should equal the net amount of your records. Even though it nets the same you still use the gross or your tax filing won't match the 1099k the IRS received and the chances are high you will eventually be flagged for not matching.


----------



## Darrell Green Fan

Seamus said:


> Are you referring to a 1099k from Uber or Lyft? If so you have to list the gross amount on your schedule C and then write off the fees as an expense which should equal the net amount of your records. Even though it nets the same you still use the gross or your tax filing won't match the 1099k the IRS received and the chances are high you will eventually be flagged for not matching.


Yeah I'm talking about Uber and Lyft. I don't see where I would find the figures for the fees, it only lists the gross amount and the breakout by month. I write off my miles, and have the appropriate documentation, but how do I document the fees?


----------



## islanddriver

Darrell Green Fan said:


> Yeah I'm talking about Uber and Lyft. I don't see where I would find the figures for the fees, it only lists the gross amount and the breakout by month. I write off my miles, and have the appropriate documentation, but how do I document the fees?


Look on Uber web site for year end statement it is on there.


----------



## Seamus

Darrell Green Fan said:


> Yeah I'm talking about Uber and Lyft. I don't see where I would find the figures for the fees, it only lists the gross amount and the breakout by month. I write off my miles, and have the appropriate documentation, but how do I document the fees?


As @islanddriver said just go on the website and after you sign in click on tax information and it will be spelled out in the summary. That number goes on your schedule C business expenses commission and fees.


----------



## Darrell Green Fan

Seamus said:


> As @islanddriver said just go on the website and after you sign in click on tax information and it will be spelled out in the summary. That number goes on your schedule C business expenses commission and fees.


Thanks guys. I saw that link but it said something like "not an official tax document" or some such tag line so I neglected it. I'm good now, thanks again.


----------



## Phoenix123

Do you do Lyft as a separate business and Uber as a separate business and Grub Hub as a separate business and Door Dash business, Instacart as a separate business ect or do you combine them all in one?


----------



## Seamus

Phoenix123 said:


> Do you do Lyft as a separate business and Uber as a separate business and Grub Hub as a separate business and Door Dash business, Instacart as a separate business ect or do you combine them all in one?


You can combine them on 1 schedule C.


----------



## Phoenix123

Seamus said:


> You can combine them on 1 schedule C.


But you don't have to.... I never have, I was wondering if @UberTaxPro had any recommendations.

Uber / Lyft is usually a lost for me, but since I separated them it help me get PPP and a California Business grant as you needed to have some income to apply for that..


----------



## Seamus

Phoenix123 said:


> But you don't have to.... I never have, I was wondering if @UberTaxPro had any recommendations.
> 
> Uber / Lyft is usually a lost for me, but since I separated them it help me get PPP and a California Business grant as you needed to have some income to apply for that..


I misunderstood your question. I read your question as "can" you combine them.


----------



## UberHammer

Taxi2Uber said:


> I'm puzzled by it. Don't understand it and didn't expect it.
> I did standard mileage all years.
> 
> Yes, the term 'asset' was used and there were several follow up questions regarding 'adjusted basis'.
> There were formulas to calculate....something, I forget now...where I had to use business miles each of the last 4 years, times $.25 for 2017,2018, $.26 for 2019, and $.27 for 2020.
> 
> I don't know. To me paying $6500 and selling for $4600 is a loss, not a 'gain' as they called it.
> It said the $4400 is considered income and now must be taxed.
> 
> Doesn't make sense to me, or I didn't something wrong.


You did it correctly.
Yes, it's true that when you buy something for $6500 and sell it for $4600, you incurred a $1900 loss. 
What you are missing though is that every mile you claim as a "standard mileage deduction" on that specific car, you are already claiming that loss. You can't claim the loss twice. Say for example you claimed 4000 miles on your 2017 taxes. The standard mileage deduction was something like $0.55 per mile, but $0.25 of that $0.55 is considered depreciation. 4000 times $0.25 is $1000, so you've already claimed $1000 of that $1900 loss. And you claimed some in 2018, and in 2019, and in 2020, to the point where by selling it for $4600 it's worth more than you've depreciated it to be worth, which means the sale resulted in a profit.

But don't think this is a bad thing, because the IRS is actually pretty cool about an important point here. Imagine you had put 100,000 miles on that car in 2017 that were all eligible for the standard mileage deduction. Claiming the standard mileage deduction you claimed $25,000 in depreciation, so by buying it for only $6500, it now has a book value of negative $18,500. Say you sold it for $1000, your profit is actually $19,500. But the IRS lets you completely ignore negative values and considers it to be a book value of $0, so the taxable profit is only $1000.

This is why buying a five year old car with 60K miles on it for $10K to $12K and then running it up to 250K+ miles works out so well for gig workers. The standard mileage deduction is allowing you to claim $50K to $60K of depreciation on something you only paid $10K to $12K for.


----------



## Taxi2Uber

UberHammer said:


> You did it correctly.
> Yes, it's true that when you buy something for $6500 and sell it for $4600, you incurred a $1900 loss.
> What you are missing though is that every mile you claim as a "standard mileage deduction" on that specific car, you are already claiming that loss. You can't claim the loss twice. Say for example you claimed 4000 miles on your 2017 taxes. The standard mileage deduction was something like $0.55 per mile, but $0.25 of that $0.55 is considered depreciation. 4000 times $0.25 is $1000, so you've already claimed $1000 of that $1900 loss. And you claimed some in 2018, and in 2019, and in 2020, to the point where by selling it for $4600 it's worth more than you've depreciated it to be worth, which means the sale resulted in a profit.
> 
> But don't think this is a bad thing, because the IRS is actually pretty cool about an important point here. Imagine you had put 100,000 miles on that car in 2017 that were all eligible for the standard mileage deduction. Claiming the standard mileage deduction you claimed $25,000 in depreciation, so by buying it for only $6500, it now has a book value of negative $18,500. Say you sold it for $1000, your profit is actually $19,500. But the IRS lets you completely ignore negative values and considers it to be a book value of $0, so the taxable profit is only $1000.
> 
> This is why buying a five year old car with 60K miles on it for $10K to $12K and then running it up to 250K+ miles works out so well for gig workers. The standard mileage deduction is allowing you to claim $50K to $60K of depreciation on something you only paid $10K to $12K for.


Thanks, that helped a lot. (especially the examples)

Somewhat related....
I claimed 100% of sales tax on that car purchase 4 years ago, as it was a dedicated rideshare car and I had another personal car.
I have since sold my personal car and the rideshare car and replaced them with the one car I have now, bought in 2020.

How much of the sales tax can I claim?
An estimated percentage of business use, right?
I figured it would have been roughly 75%, if not for the shutdown.
For 2020 it's about 10%, and who knows in the future.
Difficult to put a fair percentage.


----------



## UberTaxPro

Phoenix123 said:


> But you don't have to.... I never have, I was wondering if @UberTaxPro had any recommendations.
> 
> Uber / Lyft is usually a lost for me, but since I separated them it help me get PPP and a California Business grant as you needed to have some income to apply for that..


All like activities can be on one schedule C. This would include all ride-share activities including deliveries. Net income should be the same whether you use 1 or 20 schedule c's.


----------



## Diamondraider

Mr.Do said:


> Ok so the correct way to figure this out is if I work 40 hours a week, which is full time, and there are a total of 168 hours in a week (7x24). I would only be able to claim 23.8% deduction off the phone? And if I worked 80 hours a week, I still couldn't claim 50% of the phone? Only 47.6%


Get a dedicated phone/device.


----------



## Jon Stoppable

Diamondraider said:


> Get a dedicated phone/device.


Bear says it is not a good idea to incur an otherwise unnecessary expense for a 40%-ish tax benefit.


----------



## Daisey77

Jon Stoppable said:


> Bear says it is not a good idea to incur an otherwise unnecessary expense for a 40%-ish tax benefit.


If that second phone is strictly for Uber or Lyft, it's 100% tax deductible


----------



## Older Chauffeur

Daisey77 said:


> If that second phone is strictly for Uber or Lyft, it's 100% tax deductible


Right, but you only save the tax on the cost; you don't get back 100% of the cost.


----------



## Diamondraider

Older Chauffeur said:


> Right, but you only save the tax on the cost; you don't get back 100% of the cost.


There are benefits beyond the tax.


----------



## Older Chauffeur

Diamondraider said:


> There are benefits beyond the tax.


Of course, but I was commenting on the two prior posts, one referring to a 40%ish tax benefit, the other a 100% benefit.


----------



## Daisey77

You can write off the entire cost of the phone if it's purchased for the job and used for the job only, can't you? I'm pretty sure you can as an asset or as a business expense


----------



## Jon Stoppable

Older Chauffeur said:


> Of course, but I was commenting on the two prior posts, one referring to a 40%ish tax benefit, the other a 100% benefit.


Correct. Human would save the 15.3% SECA tax (a bit less, due to the net of the benefit of the SECA tax deduction for income tax), plus federal rate (prob between 0-22% for a RS driver) plus state (pick your state). 40% was close enough for bear.

If human *wants* to run two phones for RS, that's a different issue. Bear is only talking about tax-motivated purchases. Don't spend an *otherwise unnecessary* $1 to save $0.40 in tax. That $0.60 could have been spent on food!


----------



## Chinazac

UberTaxPro said:


> I am a long-time member here and after last years extensive rideshare tax AMA I think it's time to start anew. I'll do my best to help with your questions this year. Please be patient as I'll be working with one of the larger remote tax services this year and they are keeping me very busy. Thanks also to everyone else that pitches in with great answers!
> 
> If you need help preparing your taxes for 2019 please contact me here: UberTaxPro.com


Pls forgive me for bringing up all sorts of questions. I'm about to file the new return. Tried to understand how my AGI cones out by looking at the 1040 form. I don't know if I understanding is correct or not. Do we subtract our benefits income (1099-G) from our Total Income ( here mine is just Uber income 1099-k ), then it comes out of the Taxable income? If so , in this case mine would be negative number because my pandemic unemployment benefit amount is way more than my Uber earning in 2020. Pls see attached and help me understand this. My point is, don't we have to pay tax for the benefit payments? But from the 1040 form , I got the opposite impression


----------



## SHalester

Chinazac said:


> My point is, don't we have to pay tax for the benefit payments?


you need to have schedule 1 and see line 9. That is where UI 1099-G amount is put and then on line 8 of the 1040.

UI is very much part of your AGI and it is taxed as regular income.


----------



## Chinazac

SHalester said:


> you need to have schedule 1 and see line 9. That is where UI 1099-G amount is put and then on line 8 of the 1040.
> 
> UI is very much part of your AGI and it is taxed as regular income.


I thought so at the beginning, then I confused myself with the line numbers. Now I got it. Appreciated!


----------



## Chinazac

SHalester said:


> you need to have schedule 1 and see line 9. That is where UI 1099-G amount is put and then on line 8 of the 1040.
> 
> UI is very much part of your AGI and it is taxed as regular income.


Hi! Do you know how to calculate Earn Income Credit or EITC? I used a free community taxpayer service for 2018 return where I had EITC. for 2020 I'm trying to figure it out right now since Turbo Tax I used doesn't show me that part. My 2020 schedule C line 31 is less than 5k, would it qualified for EITC? 
Thanks for any insight!


----------



## Older Chauffeur

T/T should calculate it for you, based on the information and numbers that you provide. Here's an article from them about the EIC. T/T gave it to me one year when I had no idea that I even qualified.
https://turbotax.intuit.com/tax-tip...-about-the-earned-income-tax-credit/L6YfN8sCL


----------



## IRME4EVER

Deojuvante said:


> Hi mate
> 
> Hi mate I am a New driver driver full Time (about 50h/week) in Brisbane.
> 
> I am renting my car to a re tal company who works with uber called SPLEND.
> 
> I am paying 269 dollars a week for my car (registration insurance services inclused) and about 200 of fuel.
> Im making about 1500$ per week.
> 
> I put this car on 100% uber use.
> 
> Could you help me regarding the payable/déductible taxes for my case ? Thank you


 I used rentals for Uber. Through Maven Gig. Keep all your records per car that you rented. Trust me it helps!!


----------



## Chinazac

Older Chauffeur said:


> T/T should calculate it for you, based on the information and numbers that you provide. Here's an article from them about the EIC. T/T gave it to me one year when I had no idea that I even qualified.
> https://turbotax.intuit.com/tax-tip...-about-the-earned-income-tax-credit/L6YfN8sCL


Thank you for the info. So in general T/T would automatically fighter it out for me if I wee to use it again his year? I applied my number for walk through , just didn't see EIC


----------



## _Tron_

[HEADING=3]UberTaxPro, if the question has not already been asked, can you summarize any significant changes to the code from 2019 to 2020 that TNC drivers should be aware of. Or is everything about the same (pandemic stuff aside)?[/HEADING]
thank you


----------



## Daisey77

Older Chauffeur said:


> T/T should calculate it for you, based on the information and numbers that you provide. Here's an article from them about the EIC. T/T gave it to me one year when I had no idea that I even qualified.
> https://turbotax.intuit.com/tax-tip...-about-the-earned-income-tax-credit/L6YfN8sCL





Chinazac said:


> Thank you for the info. So in general T/T would automatically fighter it out for me if I wee to use it again his year? I applied my number for walk through , just didn't see EIC


TurboTax figures it out for me. I didn't qualify this year because of my unemployment but I did last year. Are you using the self-employed version of TurboTax?


----------



## _Tron_

I always do my own taxes. By hand. Since forever. But now that they have all these new forms (Sch 1, Sch 2, etc.) I might just run my numbers through TT. I've seen some references to a free version through Uber ? ...


----------



## Chinazac

Daisey77 said:


> TurboTax figures it out for me. I didn't qualify this year because of my unemployment but I did last year. Are you using the self-employed version of TurboTax?


Yes , I used the self- employed version with Uber discount. This year I had planned to do it by myself , but just started to run the numbers through to see how much I'd owe. I guess I just treat it like my EIC would be included in the end of computing process, if I were qualified for it


----------



## Daisey77

_Tron_ said:


> I always do my own taxes. By hand. Since forever. But now that they have all these new forms (Sch 1, Sch 2, etc.) I might just run my numbers through TT. I've seen some references to a free version through Uber ? ...


I have used the free version for both federal and state for a few years now. You usually have to file by the end of February to get both free otherwise you have to pay for one of them and I can't remember which one. I Got a notification in my inbox but I think if you go to the website and go to the tax section there's a link. someone said they thought it was linked to our Uber Pro status but I'm not sure about that


Chinazac said:


> Yes , I used the self- employed version with Uber discount. This year I had planned to do it by myself , but just started to run the numbers through to see how much I'd owe. I guess I just treat it like my EIC would be included in the end of computing process, if I were qualified for it


 I just remember coming across the section for this and the program popped up up a message saying let's see if you qualify for EIC. It then kicked me back a message saying, unfortunately "you dont qualify this year but let's keep checking for further savings" or something similar.

On the 2020 tax return should be line 27 on your 1040. Mine says 0. On the 2019 tax return, it's line 18a on your 1040. mine said 446.


----------



## Taxi2Uber

_Tron_ said:


> I've seen some references to a free version through Uber ? ...


Lyft also.
Last year the Uber link gave an error page for me, so I used Lyft's, no problem.
I just went ahead and used Lyft's promo again this year, without even trying Uber's.
Once you do the link and the offer is applied, you don't have to keep using Lyft's link to access TurboTax in order to get it for free. 
The offer is locked in, then just access TurboTax directly if it takes more than one sitting.
It took me a few days and several log-ins to complete.


----------



## Older Chauffeur

Daisey77 said:


> TurboTax figures it out for me. I didn't qualify this year because of my unemployment but I did last year. Are you using the self-employed version of TurboTax?


The Deluxe version of T/T has Schedules C and SE, which is all you need for dr as an independent contractor. It's less expensive at about $40 at Costco and other discount stores. The Home and Business version is marketed toward ICs, but not necessary.


----------



## Jon Stoppable

Bear says if you got unemployment cheese (bear hearts cheese) and your return is showing taxable income, don't file yet because the humans in Congress are kicking around tax relief for unemployment benes.

https://www.forbes.com/sites/shahar...f-2020-unemployment-benefits/?sh=1b6f8b725f2f
But since Congresshumans have spent all week deciding whether or not to shun the old fat former alpha human (bear is old and fat, but still alpha! bear gets it done during mating season!), bear doesn't think too much has happened on that bill.

https://www.congress.gov/bill/117th-congress/senate-bill/175?s=1&r=22
With respect to EITC, unemployment income is (currently) taxable but does not qualify as earned income for the EITC. But that counts as total income that can disqualify the credit if you are in the phase-out. Again, unless Congress provides some relief.

https://www.taxpolicycenter.org/tax...le-income-may-reduce-eitc-refunds-next-spring


----------



## Amsoil Uber Connect

I'm late to the party, so much to read. But question.

On Lyft's Summary Report, Third-party fees, when does that go on Schedule C ? Line 10.


----------



## _Tron_

Daisey77 said:


> I have used the free version for both federal and state for a few years now. You usually have to file by the end of February to get both free otherwise you have to pay for one of them and I can't remember which one. I Got a notification in my inbox but I think if you go to the website and go to the tax section there's a link. someone said they thought it was linked to our Uber Pro status but I'm not sure about that
> 
> I just remember coming across the section for this and the program popped up up a message saying let's see if you qualify for EIC. It then kicked me back a message saying, unfortunately "you dont qualify this year but let's keep checking for further savings" or something similar.
> 
> On the 2020 tax return should be line 27 on your 1040. Mine says 0. On the 2019 tax return, it's line 18a on your 1040. mine said 446.


So I checked, and Uber is offering free _filing_ for drivers, and a discount for the SE TT version under $100. That was too rich for my blood just to double-check my work, but now I know. :>


----------



## Daisey77

Older Chauffeur said:


> The Deluxe version of T/T has Schedules C and SE, which is all you need for dr as an independent contractor. It's less expensive at about $40 at Costco and other discount stores. The Home and Business version is marketed toward ICs, but not necessary.





_Tron_ said:


> So I checked, and Uber is offering free _filing_ for drivers, and a discount for the SE TT version under $100. That was too rich for my blood just to double-check my work, but now I know. :>


All I know is I got the self-employed version through Uber for free. Both state and federal. I just got an email today my federal was accepted.












Amsoil Uber Connect said:


> I'm late to the party, so much to read. But question.
> 
> On Lyft's Summary Report, Third-party fees, when does that go on Schedule C ? Line 10.


That's where I was putting all of that stuff but after being prompted the last couple years I have now moved it to part V, line 48. That's where my Uber and Lyft service fees as well as my Uber and Lyft operational costs went too


----------



## _Tron_

Daisey77 said:


> All I know is I got the self-employed version through Uber for free. Both state and federal. I just got an email today my federal was accepted.


Nice. Consider yourself fortunate. Not everyone apparently gets the promotion. I am Uber Pro Gold. I even checked the site (I presume you meant the uber partner site). No promo.


----------



## Daisey77

_Tron_ said:


> Nice. Consider yourself fortunate. Not everyone apparently gets the promotion. I am Uber Pro Gold. I even checked the site (I presume you meant the uber partner site). No promo.


so according to this the self-employed LIVE version is less than 100 but the basic TurboTax self-employed is free. Do you have this thing pop up under tax information on the website?


----------



## _Tron_

No. All i got under that tab was some stuff about how to get a W-9.

Wait. No. I was looking under tax setting. I looked under tax information and it was there. Thanx daisey!!


----------



## UberTaxPro

_Tron_ said:


> [HEADING=3]UberTaxPro, if the question has not already been asked, can you summarize any significant changes to the code from 2019 to 2020 that TNC drivers should be aware of. Or is everything about the same (pandemic stuff aside)?[/HEADING]
> thank you


No significant changes. We're still operating under the TCJA changes from 2017. One pandemic related change is that you can deduct up to $300 for charitable giving in 2020, normally not allowed under the TCJA when taking the standard deduction and not itemizing,


----------



## ptuber18

My first schedule C. Part IV asks for commuting miles. What is appropriate for rideshare.


----------



## Daisey77

ptuber18 said:


> My first schedule C. Part IV asks for commuting miles. What is appropriate for rideshare.


Everyone is completely different. How many miles did you drive while online?


----------



## ptuber18

4282 miles for rideshare, 17976 total.


----------



## Seamus

I'


ptuber18 said:


> 4282 miles for rideshare, 17976 total.


I'm assuming what you are saying is that for the total year 2020 your mileage was 17,976 total on your personal car and that 4,282 of those miles was for rideshare (business). If that is correct, I ignore the commuting miles as for business I turn on the app in my driveway and turn off the app in my driveway. All other miles are personal and aren't expensed so:

line 44 schedule C
a). 4,282
b). 0
c). 13,694
This is only my opinion as this is how I've done it for years. Make sure you keep a mileage log for your business miles.


----------



## ptuber18

Thank you


----------



## Seamus

Amsoil Uber Connect said:


> I'm late to the party, so much to read. But question.
> 
> On Lyft's Summary Report, Third-party fees, when does that go on Schedule C ? Line 10.


Correct.


----------



## New Uber

I did not get a 1099 with Uber this year. What do I do then? And I received UI for most of 2021 plus I have a 1099 misc from a 3rd party


----------



## Daisey77

New Uber said:


> I did not get a 1099 with Uber this year. What do I do then? And I received UI for most of 2021 plus I have a 1099 misc from a 3rd party


You will use your tax summary for Uber earnings. There's a place for unemployment where you can enter your information from your tax form they sent you


----------



## Seamus

New Uber said:


> I did not get a 1099 with Uber this year. What do I do then? And I received UI for most of 2021 plus I have a 1099 misc from a 3rd party


If you didn't get a 1099k from Uber you grossed less than 20k. Therefore you go to the Uber website and sign in using your ID and password. Then go to the tax information tab and you will see a "tax summary" that contains the info you can use.


----------



## Chinazac

Older Chauffeur said:


> T/T should calculate it for you, based on the information and numbers that you provide. Here's an article from them about the EIC. T/T gave it to me one year when I had no idea that I even qualified.
> https://turbotax.intuit.com/tax-tip...-about-the-earned-income-tax-credit/L6YfN8sCL


Hi! I read the


Older Chauffeur said:


> T/T should calculate it for you, based on the information and numbers that you provide. Here's an article from them about the EIC. T/T gave it to me one year when I had no idea that I even qualified.
> https://turbotax.intuit.com/tax-tip...-about-the-earned-income-tax-credit/L6YfN8sCL


Hi! I read the article. I'd still like to know if T/T whether or not shows EIC in a ride share driver's filing process before the final tax number comes out. I thought I might qualify for it because the number on schedule C , net of loss or profit is less than $5k. But how do I know if T/T has looked at EIC for me? Pls explain if you're familiar with this n my matter.


----------



## Daisey77

Chinazac said:


> Hi! I read the
> 
> Hi! I read the article. I'd still like to know if T/T whether or not shows EIC in a ride share driver's filing process before the final tax number comes out. I thought I might qualify for it because the number on schedule C , net of loss or profit is less than $5k. But how do I know if T/T has looked at EIC for me? Pls explain if you're familiar with this n my matter.


I know it looked at it for me. It said I did not qualify this year. Meaning my business profit is less than last tax season, I'm assuming the unemployment threw me outside of the range


----------



## blssed2bme

Help pls - are there any other deductions that I can take besides the standard mileage ones. This was my first year of earning from driving and I didn’t track my miles or expenses at all.

per the Uber tax statement, I made $15k minus $3k in expenses for a total earning of $13k with 14k online miles and 1300 trips.

I don’t want to leave anything on the table for Uncle Sam to tax me on


----------



## Seamus

blssed2bme said:


> Help pls - are there any other deductions that I can take besides the standard mileage ones. This was my first year of earning from driving and I didn't track my miles or expenses at all.
> 
> per the Uber tax statement, I made $15k minus $3k in expenses for a total earning of $13k with 14k online miles and 1300 trips.
> 
> I don't want to leave anything on the table for Uncle Sam to tax me on


https://turbotax.intuit.com/tax-tip...ike these are generally a deductible expense.


----------



## Older Chauffeur

blssed2bme said:


> Help pls - are there any other deductions that I can take besides the standard mileage ones. This was my first year of earning from driving and I didn't track my miles or expenses at all.
> 
> per the Uber tax statement, I made $15k minus $3k in expenses for a total earning of $13k with 14k online miles and 1300 trips.
> 
> I don't want to leave anything on the table for Uncle Sam to tax me on


Well, you already know that you need to track and keep records in order to know what to claim, so I hope you have started doing it for the current year. Also, it looks like you have $12k in gross earnings after deducting "expenses" (Uber fees, I assume) since 15-3 =12, not 13. The SRM is only going to get you a deduction of about $8K. To claim business miles you are supposed to have a contemporaneous mileage log. Many drivers find that the deduction of total miles gets their net income down to near zero or even a loss, while roughly doubling the Uber online miles.

You can deduct the portion of your cellphone bill attributable to business, along with any specific expenses you incur impressing your clients, such as mints and candy, auxiliary cables, extra car washes and detailing, etc.

Sorry, but it looks like you're going to be leaving a lot on the table this time. In addition to income tax on the net from Schedule C, you will owe SECA in the amount of 15.3% on net earnings. This is the equivalent of FICA taxes withheld by your employer on a regular job, except that in that case the employer is contributing half. When you are self employed you contribute the whole 15.3%.

You may want to have a your tax return done by a professional, which I am not. Good luck, and keep good records going forward!


----------



## Daisey77

You're just going to have to use Uber's miles that they gave you. They usually lowball you but $15,000 minus $3,000 in commissions equals $12,000 - $8050 (14000x0.57)=$3950. You can subtract out any cleaning supplies or covid masks, snacks or drinks for passengers, portion of your phone bill used for work, premiums for Rideshare insurance or roadside assistance. Either way 3950 ish isn't horrible. I think my net income was 6200 last year and I paid I want to say $450 in taxes. So not terrible


----------



## Older Chauffeur

Daisey77 said:


> You're just going to have to use Uber's miles that they gave you. They usually lowball you but $15,000 minus $3,000 in commissions equals $12,000 - $8050 (14000x0.57)=$3950. You can subtract out any cleaning supplies or covid masks, snacks or drinks for passengers, portion of your phone bill used for work, premiums for Rideshare insurance or roadside assistance. Either way 3950 ish isn't horrible. I think my net income was 6200 last year and I paid I want to say $450 in taxes. So not terrible


Wouldn't 15.3% SECA have been about $950? (Or is that after the credit for half of it on Form 1040?)


----------



## Daisey77

Older Chauffeur said:


> Wouldn't 15.3% SECA have been about $950? (Or is that after the credit for half of it on Form 1040?)


I ended up paying 450 or around there. So that was after the tax credit. I'll look at it in a second. I'm out driving in a blizzard &#128556;

Yeah so it was $882 before the credit and I paid $441


----------



## Chinazac

Daisey77 said:


> I ended up paying 450 or around there. So that was after the tax credit. I'll look at it in a second. I'm out driving in a blizzard &#128556;
> 
> Yeah so it was $882 before the credit and I paid $44





Daisey77 said:


> Are you talking about
> 
> 
> Daisey77 said:
> 
> 
> 
> I ended up paying 450 or around there. So that was after the tax credit. I'll look at it in a second. I'm out driving in a blizzard &#128556;
> 
> Yeah so it was $882 before the credit and I paid $441
> 
> 
> 
> What type of credit you talking about ? Does it have to do with EIC? My net income of 2020 is a little above $4k. So do I get to pay my tax in such a way( half after the credit)?
Click to expand...


----------



## Darrell Green Fan

I have yet to receive my Grubhub 1099 despite a number of attempts, 2020 was my first year with them. But I need clarification, an email I received said the 1099 shows total gross including fees. How do we get the actual income figure?


----------



## Older Chauffeur

@Chinazac asked, "What type of credit you talking about ? Does it have to do with EIC? My net income of 2020 is a little above $4k. So do I get to pay my tax in such a way( half after the credit)?"

As explained earlier, you have to figure your SECA at 15.3% of net earnings on Schedule C, but a credit for half of it reduces your taxable income on your Form 1040. Nothing to do with EIC.


----------



## Seamus

Darrell Green Fan said:


> I have yet to receive my Grubhub 1099 despite a number of attempts, 2020 was my first year with them. But I need clarification, an email I received said the 1099 shows total gross including fees. How do we get the actual income figure?


If you made over $600 they have to give you a 1099 NEC. GH doesn't do the Uber thing with gross minus fees. Their 1099 NEC will be the straightforward amount they paid you, there are no fees to deduct.

You probably have it in your app and don't know it. Follow these steps:

Open up your GrubHub app and sign in.
Open the menu square in the upper left corner.
Click on "view profile"
scroll down to "Tax Information"
Click on "Download my 2020 tax"
That should do it. Good Luck!


----------



## Darrell Green Fan

Seamus said:


> If you made over $600 they have to give you a 1099 NEC. GH doesn't do the Uber thing with gross minus fees. Their 1099 NEC will be the straightforward amount they paid you, there are no fees to deduct.
> 
> You probably have it in your app and don't know it. Follow these steps:
> 
> Open up your GrubHub app and sign in.
> Open the menu square in the upper left corner.
> Click on "view profile"
> scroll down to "Tax Information"
> Click on "Download my 2020 tax"
> That should do it. Good Luck!


I opted out of the electronic version as I wanted a hard copy, so I can't access via the app. I just found the email again, that was for restaurants. I'm a dumb ass.


----------



## Chinazac

Older Chauffeur said:


> @Chinazac asked, "What type of credit you talking about ? Does it have to do with EIC? My net income of 2020 is a little above $4k. So do I get to pay my tax in such a way( half after the credit)?"
> 
> As explained earlier, you have to figure your SECA at 15.3% of net earnings on Schedule C, but a credit for half of it reduces your taxable income on your Form 1040. Nothing to do with EIC.


Sry, I tried not to be annoying. The reason I mentioned EIC is that, in the 2018 return which I filed at a free community service center. On the 2nd page of 1040, it shows my tax due is $1103, but an EIC of 519 comes out after it , I end up paying $584 final tax. 
for 2019 return , I used T/T and the number on schedule C line 31 net profit is above $10000, so I didn't worry about EIC. For 2020 return I have walked thru T/T, my net profit is around 4K, but the software doesn't tell if I qualify for EIC. I don't want to miss it since I received it for 2018 return. How do I figure out ? Can I have more insightful suggestions, pls?

This is the 2nd page of the 2018 return done by a free preparer.


----------



## Older Chauffeur

Chinazac said:


> Sry, I tried not to be annoying. The reason I mentioned EIC is that, in the 2018 return which I filed at a free community service center. On the 2nd page of 1040, it shows my tax due is $1103, but an EIC of 519 comes out after it , I end up paying $584 final tax.
> for 2019 return , I used T/T and the number on schedule C line 31 net profit is above $10000, so I didn't worry about EIC. For 2020 return I have walked thru T/T, my net profit is around 4K, but the software doesn't tell if I qualify for EIC. I don't want to miss it since I received it for 2018 return. How do I figure out ? Can I have more insightful suggestions, pls?
> 
> This is the 2nd page of the 2018 return done by a free preparer.


When your software gets to the point where it adds your net business income into any other earnings, it will figure out what credits you can claim. It may depend on whether you have income besides what you're showing on Schedule C. Sorry, that's all I can offer based on what I understand from the information you have provided. Again, I'm not a tax professional. Perhaps you should have a professional or go back to the free help from the community center to prepare your return.


----------



## Chinazac

Daisey77 said:


> I know it looked at it for me. It said I did not qualify this year. Meaning my business profit is less than last tax season, I'm assuming the unemployment threw me outside of the rangers!





Older Chauffeur said:


> When your software gets to the point where it adds your net business income into any other earnings, it will figure out what credits you can claim. It may depend on whether you have income besides what you're showing on Schedule C. Sorry, that's all I can offer based on what I understand from the information you have provided. Again, I'm not a tax professional. Perhaps you should have a professional or go back to the free help from the community center to prepare your return.


Ok. I see. I probably ignored the 1099-G as income which is the first time for everyone due to pandemic. I was quite paranoid. Never mind. Let the tax software machine roll by itself. Thank you for the patience to address my concern!


----------



## Chinazac

Daisey77 said:


> All I know is I got the self-employed version through Uber for free. Both state and federal. I just got an email today my federal was accepted.
> 
> View attachment 563461
> 
> 
> That's where I was putting all of that stuff but after being prompted the last couple years I have now moved it to part V, line 48. That's where my Uber and Lyft service fees as well as my Uber and Lyft operational costs went too


Hi Daisey 77, do you know when the driver free filing version expires? By the end of this month or the IRS filing deadline ? Thanks!


----------



## Daisey77

Chinazac said:


> Hi Daisey 77, do you know when the driver free filing version expires? By the end of this month or the IRS filing deadline ? Thanks!


It's February 28th to get both free.


----------



## Chinazac

Daisey77 said:


> It's February 28th to get both free.


Thank you! I don't know if you're ran into this or not. When I was almost done and proceeded to filing. T/T kept bringing the question during reviewing. The 1099-nec was automatically incorporated into the software from my Uber account. The number was correct and there's nothing else from the form itself I could enter. I don't why it kept saying I needed to go back to complete the form again. Otherwise it wouldn't proceed or it would ask to delete my form 1099-nec.last yr when it automatically entered my 109-misc, there wasn't problem like this. Can you tell what the problem is about ? I even deleted the 1099-nec and added the amount to my 1099-k( the same tax due), it still ask me the same. It's like a loose.

It's typo. I meant it's like a loop


----------



## Seamus

Chinazac said:


> Thank you! I don't know if you're ran into this or not. When I was almost done and proceeded to filing. T/T kept bringing the question during reviewing. The 1099-nec was automatically incorporated into the software from my Uber account. The number was correct and there's nothing else from the form itself I could enter. I don't why it kept saying I needed to go back to complete the form again. Otherwise it wouldn't proceed or it would ask to delete my form 1099-nec.last yr when it automatically entered my 109-misc, there wasn't problem like this. Can you tell what the problem is about ? I even deleted the 1099-nec and added the amount to my 1099-k( the same tax due), it still ask me the same. It's like a loose.
> 
> It's typo. I meant it's like a loop


It's a software glitch. Many many people have posted the same problem. The solution is don't try to download Uber's information. Enter the information manually and you won't have this problem.


----------



## Chinazac

Seamus said:


> It's a software glitch. Many many people have posted the same problem. The solution is don't try to download Uber's information. Enter the information manually and you won't have this problem.


I have had my T/T account log in without going into Uber account. But when I signed I again, T/T would use my previously entered info to continue where it was left off. Should I delete my uber earnings in self-employed income and expenses section and start over? Thank you!


----------



## Seamus

Chinazac said:


> I have had my T/T account log in without going into Uber account. But when I signed I again, T/T would use my previously entered info to continue where it was left off. Should I delete my uber earnings in self-employed income and expenses section and start over? Thank you!


Unfortunately, I think you'll have to.


----------



## Chinazac

Seamus said:


> Unfortunately, I think you'll have to.


But it wouldn't get over this problem after I deleted the self-employed entries. I even logged out of my T/T and logged back in. When I added the SE income by entering 1099-K and 1099-NEC, in the software, it only let me fill out the blank boxes with the amounts , not a blank 1099-nec or K form in T/T. Again, after that it still repeated the same loop , providing me the same glitch. I'm so frustrated. Could we just enter the whole Uber earning into the 1099-k, without going through the drama? The tax due would be the same, though, in this case


----------



## New Uber

So, I filed through Fuber Turbo Tax for free and got back 100% of my UI Tax. I love it!


----------



## Chinazac

Seamus said:


> Unfortunately, I think you'll have to.


I just ignored the glitch and proceeded to the filing phase anyway. By the way, I have over $240 federal tax withheld paid in my 1099-G, I don't know at which phase my federal tax due will be deducted by this amount. I'm at entering my bank account for payment direct debiting process. Still doble see where it shows the $240 payment is shown.

Do I enter the payment of the federal withheld in the Deductions&Credits section ?


----------



## Amsoil Uber Connect

I found with T/T is to just start over , click on New return and don't import anything.

Doing paper returns for years its just easier for me and takes far less time. But like anything else the more you use it the easier it becomes.


----------



## New Uber

At first TT did NOT import my Uber info. I just went BACK to Uber and started over and then it imported the data. And just found out the IRS accepted it. I should see money in about 2 weeks I estimate


----------



## Chinazac

Chinazac said:


> I just ignored the glitch and proceeded to the filing phase anyway. By the way, I have over $240 federal tax withheld paid in my 1099-G, I don't know at which phase my federal tax due will be deducted by this amount. I'm at entering my bank account for payment direct debiting process. Still doble see where it shows the $240 payment is shown.
> 
> Do I enter the payment of the federal withheld in the Deductions&Credits section ?


I figured it out. The software automatically runs it. So it's been deducted.


----------



## Daisey77

Chinazac said:


> Thank you! I don't know if you're ran into this or not. When I was almost done and proceeded to filing. T/T kept bringing the question during reviewing. The 1099-nec was automatically incorporated into the software from my Uber account. The number was correct and there's nothing else from the form itself I could enter. I don't why it kept saying I needed to go back to complete the form again. Otherwise it wouldn't proceed or it would ask to delete my form 1099-nec.last yr when it automatically entered my 109-misc, there wasn't problem like this. Can you tell what the problem is about ? I even deleted the 1099-nec and added the amount to my 1099-k( the same tax due), it still ask me the same. It's like a loose.
> 
> It's typo. I meant it's like a loop


Sorry I know it's too late but I would delete the form and then manually enter it. I never have anything imported and I haven't had any issues but I've heard people importing info have had problems


New Uber said:


> At first TT did NOT import my Uber info. I just went BACK to Uber and started over and then it imported the data. And just found out the IRS accepted it. I should see money in about 2 weeks I estimate


Mine was accepted the first day the IRS accepted returns, February 12th and mind still says accepted. It hasn't been approved yet


----------



## Chinazac

Has this just become a law? So we don’t have to pay the portion of our UI benefit? But I already filed my return over 2 weeks ago and ended up paying tax for all the amount received from 1099-G last yr. does it mean I over paid? Will this part be refunded by IRS?


----------



## FLKeys

I'm guessing the IRS will automatically recalculate everyone's taxes that have already filed and not require them to send in an amended return. Just my guess.


----------



## Seamus

Many on this forum did not file their taxes and held off anticipating this passing. Yes, you now therefore overpaid your taxes. It's not very likely that they will make you amend your tax return because that's cumbersome both for you and them to process. They haven't announced yet but I am guessing you won't have to re-file an amendment but rather they will refund you without you having to do anything.


----------



## Chinazac

Seamus said:


> Many on this forum did not file their taxes and held off anticipating this passing. Yes, you now therefore overpaid your taxes. It's not very likely that they will make you amend your tax return because that's cumbersome both for you and them to process. They haven't announced yet but I am guessing you won't have to re-file an amendment but rather they will refund you without you having to do anything.


That sounds reasonable. Thanks for the suggestion!


----------



## islanddriver

Chinazac said:


> That sounds reasonable. Thanks for the suggestion!


Yes it does. But then again we are talking about the Government IRS...... Nothing is ever easy. or the way a normal person would do things.


----------



## Amsoil Uber Connect

Seamus said:


> Many on this forum did not file their taxes and held off anticipating this passing. Yes, *you now therefore overpaid your taxes*. It's not very likely that they will make you amend your tax return because that's cumbersome both for you and them to process. They haven't announced yet but I am guessing you won't have to re-file an amendment but rather they will refund you without you having to do anything.


Ya, all they have to do is change the computer programing to give a credit of 10,200. But then it will cause the computers to kick out letters, "We have changed your return" Which is no big deal cause it is a credit in our favor.


----------



## Daisey77

Amsoil Uber Connect said:


> Ya, all they have to do is change the computer programing to give a credit of 10,200. But then it will cause the computers to kick out letters, "We have changed your return" Which is no big deal cause it is a credit in our favor.


And then will that trigger a refund to be sent automatically, with nothing to do on our end?


----------



## Amsoil Uber Connect

That would be nice. Lets hope so. Depends If a refund has already been issued, if so, an amended return may still have to be filed. It should be pretty easy to do.

Although I filed an extension for 2019, so the lien date would expire and I'd get a refund, they are 90 days late. Called today to say, so WTF where is my refund ? Finally they said, under staffed, covid, which I figured. Unknown how much longer it would take. I guess the agent I talked to 6 weeks ago is right about , Saying they are 5 - 6 months behind. I wasn't allowed to e-file. 

For those of us who have not filed yet. It maybe wise to file an extension to wait for them to get there act together on the EDD part. 
I'm considering to just change the amount on Line 8 Schedule 1 and write in (10,200) Covid Relief to the left of it.


----------



## UberTaxPro

Chinazac said:


> Has this just become a law? So we don't have to pay the portion of our UI benefit? But I already filed my return over 2 weeks ago and ended up paying tax for all the amount received from 1099-G last yr. does it mean I over paid? Will this part be refunded by IRS?


Yes you overpaid. We're waiting for IRS guidance on this issue. I've been holding off filing any returns with unemployment until my software is updated and today...it was updated! Most likely IRS will adjust and send you the difference however you always have the right to amend your return. Patience for now...


----------



## Chinazac

Last week I received the refund of about $270 form Georgia dept. of Revenue back to my bank account I paid my tax due from this year, without doing anything. I guess it’s the overpaid amount according to the new law of $100,200 tax free amendment. I wonder if other fellow drivers have gotten the something like mine. If so , what about the overpaid refund from IRS? Would be wise to just wait instead of trying to amend the Fede rerun on the tax filing site?


----------



## Daisey77

Chinazac said:


> Last week I received the refund of about $270 form Georgia dept. of Revenue back to my bank account I paid my tax due from this year, without doing anything. I guess it's the overpaid amount according to the new law of $100,200 tax free amendment. I wonder if other fellow drivers have gotten the something like mine. If so , what about the overpaid refund from IRS? Would be wise to just wait instead of trying to amend the Fede rerun on the tax filing site?


They're suggesting not doing an amendment yet. It's possible they're able to do an adjustment within the system and automatically calculate the difference. The $270 you got is most likely not related to the $10,200 tax free unemployment because that is federal and the 270 you got is state money. You filed your taxes this year, right? Did you owe on your state taxes or were you do a refund? It's also possible your state did a state stimulus. Colorado did for 300 back in December


----------



## Chinazac

Daisey77 said:


> They're suggesting not doing an amendment yet. It's possible they're able to do an adjustment within the system and automatically calculate the difference. The $270 you got is most likely not related to the $10,200 tax free unemployment because that is federal and the 270 you got is state money. You filed your taxes this year, right? Did you owe on your state taxes or were you do a refund? It's also possible your state did a state stimulus. Colorado did for 300 back in December


I paid the state over $900 tax, mainly for the UI income of 2020( believe it's 6% )l for Georgia). I thought the refund of 262 has to with the new guidelines


----------



## Seamus

Chinazac said:


> I paid the state over $900 tax, mainly for the UI income of 2020( believe it's 6% )l for Georgia). I thought the refund of 262 has to with the new guidelines


I'm sure you're correct. In most states you pay federal and state income tax on unemployment. Therefore in most states you will receive a refund on your federal and state taxes separately. I highly doubt you will ever have to file an amended tax return. It is much cheaper and simpler for them to just make the adjustment. If everyone had to file an amended return it would be overwhelming.


----------



## _Tron_

[HEADING=3]UberTaxPro, QUESTION ON SCHEDULE C, LINE 15 (INSURANCE)[/HEADING]
If I am taking the standard mileage deduction it looks like I can also take a deduction for the cost of auto insurance. Do you concur?

thank you.


----------



## Older Chauffeur

In case @UberTaxPro is busy and doesn't see this soon, here's a quote from IRS Publication 463 re the SMR:

"If you use the standard mileage rate for a year, you can't deduct your actual car expenses for that year. You can't deduct depreciation, lease payments, maintenance and repairs, gasoline (including gasoline taxes), oil, insurance, or vehicle registration fees."


----------



## Daisey77

_Tron_ said:


> [HEADING=3]UberTaxPro, QUESTION ON SCHEDULE C, LINE 15 (INSURANCE)[/HEADING]
> If I am taking the standard mileage deduction it looks like I can also take a deduction for the cost of auto insurance. Do you concur?
> 
> thank you.


I've been under the impression you cannot deduct your regular everyday car insurance but you can deduct any special Insurance you purchased for the job such as rideshare gap insurance, roadside assistance, etc.


----------



## Seamus

Daisey77 said:


> I've been under the impression you cannot deduct your regular everyday car insurance but you can deduct any special Insurance you purchased for the job such as rideshare gap insurance, roadside assistance, etc.


This has been an area of discussion for years on the forum. According to @UberTaxPro, he has stated that 100% of the insurance is included in the standard mile deduction and therefore no part of insurance is separately tax deductible. I tagged him so he can correct me if I misrepresented what he said. AAA fees may be different, I don't know.


----------



## Daisey77

Seamus said:


> This has been an area of discussion for years on the forum. According to @UberTaxPro, he has stated that 100% of the insurance is included in the standard mile deduction and therefore no part of insurance is separately tax deductible. I tagged him so he can correct me if I misrepresented what he said. AAA fees may be different, I don't know.


AAA is considered a common operating expense


----------



## FLKeys

I'm deducting the portion of my rideshare endorsement each year. I will take the chance on arguing this with the IRS if I ever get audited. It is a direct cost to me that is for the sole purpose of rideshare. In my opinion it is deductible and I'll take my chances. If I lose I a am willing to pay the additional taxes, interest, and penalties if the deny it. Pretty sure I could get the penalties waved for one of two reasons:

Reasonable Cause
Administrative Waiver and First Time Penalty Abatement


----------



## Seamus

FLKeys said:


> I'm deducting the portion of my rideshare endorsement each year. I will take the chance on arguing this with the IRS if I ever get audited. It is a direct cost to me that is for the sole purpose of rideshare. In my opinion it is deductible and I'll take my chances. If I lose I a am willing to pay the additional taxes, interest, and penalties if the deny it. Pretty sure I could get the penalties waved for one of two reasons:
> 
> Reasonable Cause
> Administrative Waiver and First Time Penalty Abatement


Do you write it off using the insurance line (line 15)?


----------



## FLKeys

Seamus said:


> Do you write it off using the insurance line (line 15)?


Yes


----------



## Seamus

FLKeys said:


> Yes


Ok so not the kind of item that would set off a flag but could come up in discussion in an audit for something else. Probably not big money anyway, for many it is probably only a couple hundred bucks. Many people probably pay more for their cellphone than for R/S insurance.


----------



## SHalester

FLKeys said:


> I'm deducting the portion of my rideshare endorsement each year.


....just a portion? I deducted the entire rider (for RS). It's only in force when I'm online and provides no coverage for personal driving.

Well, if the IRS has a fit they can whine to the CPA who actually did the deed, i just provided the number. &#129335;‍♂


----------



## FLKeys

SHalester said:


> ....just a portion? I deducted the entire rider (for RS). It's only in force when I'm online and provides no coverage for personal driving.
> 
> Well, if the IRS has a fit they can whine to the CPA who actually did the deed, i just provided the number. &#129335;‍♂


I'm deducting the entire portion of the rideshare part of my insurance. I guess when I said portion I meant the rideshare portion of my premium since it is all one premium.


----------



## nj9000

I had no withholding setup on the PUA.

Is my math correct on this?

Received $19k in PUA.
Earned $3200 net from Uber.
Earned $1500 in other 1099 income.
$23700 in taxable income. 

$10200 of PUA won't be taxed.
So $13500 in taxable income.

Standard deduction of $12400
So $1100 in taxable income.

Federal tax rate would be 10%, so I'd owe the federal government $110?

State taxes, I just run the overall figure of $23700 in a GA state income tax calculator online and it says $771?


----------



## islanddriver

nj9000 said:


> I had no withholding setup on the PUA.
> 
> Is my math correct on this?
> 
> Received $19k in PUA.
> Earned $3200 net from Uber.
> Earned $1500 in other 1099 income.
> $23700 in taxable income.
> 
> $10200 of PUA won't be taxed.
> So $13500 in taxable income.
> 
> Standard deduction of $12400
> So $1100 in taxable income.
> 
> Federal tax rate would be 10%, so I'd owe the federal government $110?
> 
> State taxes, I just run the overall figure of $23700 in a GA state income tax calculator online and it says $771?


$10200 of PUA won't be taxed for Federal Tax only States are still taxing that money. your State taxable income is $23700 income.


----------



## _Tron_

islanddriver said:


> $10200 of PUA won't be taxed for Federal Tax only States are still taxing that money.


I just did my California state taxes and your assertion does not seem to be true. At least in California. Form 540 has you enter your Adjusted Gross Income from line 11 of fed form 1040. That amount already reflects the 10,200 (max) deduction entered on line 8 of Schedule 1.

If I'm wrong about where I took the 10,200 deduction on the fed form someone please let me know!


----------



## Amsoil Uber Connect

^ That is correct ^

Now I am wondering if we will still get that same 10,200 deduction for tax period 2021 ? Cause I'm not going to have the same deductions as last year and my have to pay tax on 8,000 of Edd payments. Ugh...

And when will the Federal Refunds get processed. They still haven't processed my 2019 refund return.
An IRS official last month said they are still 7 million returns behind.


----------



## SHalester

_Tron_ said:


> If I'm wrong about where I took the 10,200 deduction on the fed form someone please let me know!


in calif there is no state tax on UI; just Fed.


----------



## _Tron_

I read through the text of the bill and as best I recall the 10.2K deduction applied to 2021 as well.

I am short my first $500 stimulus check due to a mistake on my 2019 return (forgot to include new schedules 1-4). Because the IRS is so backed up I am not expecting the $1400 stimulus payment either (even though I quickly mailed the balance of the return). So I took the entire $2k as a rebate claim on my 2020 return. And I gave them my direct deposit info for the first time. So maybe one day my checking account will suddenly grow by 2K.


----------



## Amsoil Uber Connect

Ya I still haven't received the 1400 either. I haven't heard or read if it will another ATM card or check. Assuming a card since that's what came last time. 

And know that I'm coming of age, tax on SSI has / is becoming a problem. I'm not going to be able to get out of the 50% rate and at some point will be taxed at 85%. Ugh...


----------



## nj9000

islanddriver said:


> $10200 of PUA won't be taxed for Federal Tax only States are still taxing that money. your State taxable income is $23700 income.


So my numbers were right? What you just said is what I did with the GA state income tax calculator and it said I owe $771.


----------



## TobyD

UberTaxPro said:


> I am a long-time member here and after last years extensive rideshare tax AMA I think it's time to start anew. I'll do my best to help with your questions this year. Please be patient as I'll be working with one of the larger remote tax services this year and they are keeping me very busy. Thanks also to everyone else that pitches in with great answers!
> 
> If you need help preparing your taxes for 2019 please contact me here: UberTaxPro.com


What's the KFC secret recipe?


----------



## Older Chauffeur

Amsoil Uber Connect said:


> And know that I'm coming of age, tax on SSI has / is becoming a problem. I'm not going to be able to get out of the 50% rate and at some point will be taxed at 85%. Ugh.


Just to be clear, Social Security retirement benefits aren't taxed at those rates, but rather, depending on your other income, up to 85% of your benefits may be subject to tax at the rate for your combined income.
OTOH, if you are collecting SSI, which is different from retirement benefits, it's not taxable.


----------



## islanddriver

_Tron_ said:


> I just did my California state taxes and your assertion does not seem to be true. At least in California. Form 540 has you enter your Adjusted Gross Income from line 11 of fed form 1040. That amount already reflects the 10,200 (max) deduction entered on line 8 of Schedule 1.
> 
> If I'm wrong about where I took the 10,200 deduction on the fed form someone please let me know!


I know some states do take the 10200 . In NY it is also deductible


----------



## _Tron_

islanddriver said:


> I know some states do take the 10200 . In NY it is also deductible


Yeah, I've always thought it was a nice bonus (and a little surprising in a state as liberal as California) that they worked off of federal adjusted income as opposed to gross income. So whatever the feds are allowing for deduction the state is playing along. Well, you take your tax breaks where you can find them.


----------



## FLKeys

TobyD said:


> What's the KFC secret recipe?


Road Kill.


----------



## UberTaxPro

TobyD said:


> What's the KFC secret recipe?


[HEADING=2]Assets = Liabilities + Equity[/HEADING]



Seamus said:


> This has been an area of discussion for years on the forum. According to @UberTaxPro, he has stated that 100% of the insurance is included in the standard mile deduction and therefore no part of insurance is separately tax deductible. I tagged him so he can correct me if I misrepresented what he said. AAA fees may be different, I don't know.


The IRS wording states "insurance". Doesn't specify, include or exclude any particular type of insurance. The context is about business expenses so it seems to me to be even more directed at the extra business insurance than the personal insurance. AAA & roadside assistance are not insurance however "towing" would fall under repairs, but emergency repairs are different, like the cost of cleaning up after someone puking in your car...wait, I'm starting to overthink this.....


----------



## joom

Hi, at first I'm so happy to meet a tax expert like you.
I'm a uber driver. I'm gonna file my hst via the CRA website, but I'm so confused.

First, I have to put the number 'Sales and Other revenue' section for filing my hst.
Do I have to put the sum of the 'Fare Breakdown' and 'Other income breakdown' in my annual tax summary into the Sales and Other revenue section?

Second, I was told I needed to know the 'total amount of gross fare' if I calculate the HST using the Quick method.
How can I find my total amount of gross fare in my annual tax summary?
Someone said it was the same as 'Fare Breakdown' and 'Other income breakdown', while another said it was the same as the (Fare Breakdown + Other income breakdown) - (Airport fee + Booking Fee + Uber Service Fee).

I've searched for lots of websites related to taxes, but I'm still on the same page.

To summarise, what is the Sales and Other revenue in my annual tax summary?
and what is my total amount of gross fare(total earning) in my annual tax summary?

Please let me know. 
Thank you in advance.


----------



## Uberking999

Hey, I need some input.

In 2019 earned 41000 ( after service fee) and payed nearly 2750 in taxes after expenses. Does this seem accurate?

I’m from Canada so you cannot deduct km....

In 2020 i earned nearly the same 42500.l and have almost indentical expenses.

But I have spoke with other drivers and they say i am paying too much...


----------



## GIGorJOB

If the amount of unemployment taken in 2020 is less than the $10,200 deduction, will the amount taken raise your federal adjusted gross income?

Will it have an affect on the taxable amount of social security benefits either way?

Thanks


----------



## Lee239

If you just use the standard mileage deduction which other deductions are allowed. I know tolls you had to pay would be as well as parking, which I never had to pay, I've heard that part of your phone plan can be written off but is that as rideshare deduction or do you have to itemize those instead of standard deduction? and can you deduct extra rideshare insurance costs too?


----------



## TCar

Lee239 said:


> If you just use the standard mileage deduction which other deductions are allowed. I know tolls you had to pay would be as well as parking, which I never had to pay, I've heard that part of your phone plan can be written off but is that as rideshare deduction or do you have to itemize those instead of standard deduction? and can you deduct extra rideshare insurance costs too?


I am not a tax pro, I use the one who started this thread for past couple and next years.
But that said, I deduct %50 of all phone service as well as cost of phone on my taxes.
Just keeping it simple. Probably could do more, but dont wanta get the feds involved.
Uber Tax Pro is the tax man!


----------



## Amsoil Uber Connect

Ya I would think one could deduct the car Ins rider part. mine is 31 a month. I think I did 80% of phone b4 covid.


----------



## Daisey77

Lee239 said:


> If you just use the standard mileage deduction which other deductions are allowed. I know tolls you had to pay would be as well as parking, which I never had to pay, I've heard that part of your phone plan can be written off but is that as rideshare deduction or do you have to itemize those instead of standard deduction? and can you deduct extra rideshare insurance costs too?


If you use the phone for both personal use and work, you can deduct the portion you use for work. So let's say 70% is personal and 30% is for work, then you get to claim cream 30% of your bill as a deduction.

As far as insurance goes, if you purchased any additional or extra coverage specifically for this job, it's my understanding you can claim it. So nothing from your regular insurance policy can you claim because you had that for this job and you have to have that anyways. Now if you purchase the ride share Gap policy, my understanding is you can claim that. 

Again this is my understanding.

Also any snacks or drinks bought for passengers. Any cleaning supplies to keep the car clean and to keep you covid free are also deductible


----------



## Seamus

In addition to already mentioned don’t forget bank feed if you have a dedicated account


----------



## FLKeys

Consult your tax advisor!

If you aree paying interest on a car loan you can deduct a portion of that based on your personal/business miles.


----------



## Lee239

FLKeys said:


> Consult your tax advisor!
> 
> If you aree paying interest on a car loan you can deduct a portion of that based on your personal/business miles.


and call your tax attorney that charges you $500 an hour too.


----------



## Lee239

I have a question about the SECA self FICA taxes. Do you pay that no matter what? Like say you owe $1200 for SECA but use the standard deduction and drove so much that you are getting $1500 back, do they already factor in the SECA tax or do you just get the difference back, or is it already factored in with the $1500?


----------



## Bevital

If your vehicle is totaled in an accident, can you claim the cost of a new vehicle even if you use the mileage rate for auto expenses?


----------



## Daisey77

Bevital said:


> If your vehicle is totaled in an accident, can you claim the cost of a new vehicle even if you use the mileage rate for auto expenses?


I know you add the vehicle into service that year. I use TurboTax. it asks all the questions needed and calculates things accordingly. That's all I know. Sorry


----------



## Ted Fink

I was putting some preliminary data into turbotax today and I saw that for 2021 and 2022 we can claim 100% on our meals instead of the usual 50%


----------



## Daisey77

Ted Fink said:


> I was putting some preliminary data into turbotax today and I saw that for 2021 and 2022 we can claim 100% on our meals instead of the usual 50%


There's typically two different sections for Meals one is for 100% and one is for 50%. I believe they have different criteria and one of them specifically says you have to be more than 30 miles from your home or something like that. I would double-check the criteria on them


----------



## Ted Fink

Daisey77 said:


> There's typically two different sections for Meals one is for 100% and one is for 50%. I believe they have different criteria and one of them specifically says you have to be more than 30 miles from your home or something like that. I would double-check the criteria on them


yes i'm aware of all the rules. this is a 2021 and 2022 only, can take 100% of meals you normally take 50%


----------



## _Tron_

*Tax Season is upon us! Ask me Whatever!*

What is bitcoin going to do in 22?


----------



## Lee239

Bevital said:


> If your vehicle is totaled in an accident, can you claim the cost of a new vehicle even if you use the mileage rate for auto expenses?


No. You can use expenses from the old vehicle or miles from the old vehicle. Once you use the new one you can do the same, But once you have a car and deduct actual expenses you can't go back to miles again.


----------



## Daisey77

Lee239 said:


> No. You can use expenses from the old vehicle or miles from the old vehicle. Once you use the new one you can do the same, But once you have a car and deduct actual expenses you can't go back to miles again.


That's only if you use expenses the first year you put the vehicle in the service. In order to be able to switch back and forth you have to use standard mileage the first year.


----------



## Lee239

Daisey77 said:


> That's only if you use expenses the first year you put the vehicle in the service. In order to be able to switch back and forth you have to use standard mileage the first year.


No once you switch to actual costs instead of mileage you have to use that for the rest of the time you have that car.


----------



## Lee239

Daisey77 said:


> That's only if you use expenses the first year you put the vehicle in the service. In order to be able to switch back and forth you have to use standard mileage the first year.


* Once you use actual expenses for the vehicle (even if it's the first year you used it for business), you can't switch to standard mileage rate. You must continue using actual expenses as long as you use that car for business.
*





Can I switch between the standard mileage rate and actual expense method?


If you want to use the standard mileage rate to calculate vehicle expenses, you must choose it in the first year you use the car for business. In later years yo




ttlc.intuit.com




.


----------



## Daisey77

Lee239 said:


> * Once you use actual expenses for the vehicle (even if it's the first year you used it for business), you can't switch to standard mileage rate. You must continue using actual expenses as long as you use that car for business.*
> 
> 
> 
> 
> 
> 
> Can I switch between the standard mileage rate and actual expense method?
> 
> 
> If you want to use the standard mileage rate to calculate vehicle expenses, you must choose it in the first year you use the car for business. In later years yo
> 
> 
> 
> 
> ttlc.intuit.com
> 
> 
> 
> 
> .


Hmmmm . . .


----------



## Older Chauffeur

Directly from IRS Pub 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 business. 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.“

So you both may be right. The key is whether you own or lease the vehicle.


----------



## Seamus

Lee239 said:


> * Once you use actual expenses for the vehicle (even if it's the first year you used it for business), you can't switch to standard mileage rate. You must continue using actual expenses as long as you use that car for business.*
> 
> 
> 
> 
> 
> 
> Can I switch between the standard mileage rate and actual expense method?
> 
> 
> If you want to use the standard mileage rate to calculate vehicle expenses, you must choose it in the first year you use the car for business. In later years yo
> 
> 
> 
> 
> ttlc.intuit.com
> 
> 
> 
> 
> .


They made an error with that post. As long as you use the standard mileage rate in the first year you absolutely can switch back and forth in subsequent years. There are a few minor caveats such as you can only do it if you used straight line depreciation when you did actual expenses.


----------



## jentaighmeg

UberTaxPro said:


> I am a long-time member here and after last years extensive rideshare tax AMA I think it's time to start anew. I'll do my best to help with your questions this year. Please be patient as I'll be working with one of the larger remote tax services this year and they are keeping me very busy. Thanks also to everyone else that pitches in with great answers!
> 
> If you need help preparing your taxes for 2019 please contact me here: UberTaxPro.com


My wife has always filled out our tax forms since we have been married. We have been retired since 2001 and filed 1040 forms but were never required to pay taxes. I have worked for UE since October 2021. I have been led to believe I need to file a quarterly tax form. 

Is this correct?

What forms do I need to file and how does this dovetail into my 1040 that we file once a year?

My only expenses are gasoline and future vehicle repairs. I have keep a record of mileages since day one from when I leave in the morning and when I return in the afternoon in anticipation of a mileage deduction. 

My income will be about $18,000 a year, more or less.

Thank you. 

If I posted to wrong forum please forgive a perhaps suggest another forum to post this.


----------



## Daisey77

jentaighmeg said:


> My wife has always filled out our tax forms since we have been married. We have been retired since 2001 and filed 1040 forms but were never required to pay taxes. I have worked for UE since October 2021. I have been led to believe I need to file a quarterly tax form.
> 
> Is this correct?
> 
> What forms do I need to file and how does this dovetail into my 1040 that we file once a year?
> 
> My only expenses are gasoline and future vehicle repairs. I have keep a record of mileages since day one from when I leave in the morning and when I return in the afternoon in anticipation of a mileage deduction.
> 
> My income will be about $18,000 a year, more or less.
> 
> Thank you.
> 
> If I posted to wrong forum please forgive a perhaps suggest another forum to post this.


Filing quarterly versus annually has been a debate since the beginning of the gig economy. I personally file annually and have for 7 years without any issues. I believe most of us do annually. Although I'm sure there are some that do quarterly. I'm not sure what technically we should be doing but I don't think anyone's had any issues in regards to their choice.

As far as deductions go, you can either do actual expenses or mileage. You cannot do both. There are few expenses you can use if you do mileage but it's very limited. If you do mileage the first year you put the car into service, you're allowed to switch back and forth between expenses and mileage in subsequent years. Whereas if you do actual expenses the first year you have to stick with that the entire time the vehicle is in service.


----------



## jentaighmeg

Thanks for the response. Very helpful. Just a couple more questions and then I wont bother you again.

What are the names (numbers?) of the tax forms I have to prepare in addition to the 1040? Additionally, I just started multiapping and have noticed that Grub Hub breaks down their payment into delivery pay and mileage pay with $1.66 per mile. Does Grub Hub hub paying the stipend for mileage make for problems when filling out the tax forms?

Thanks again for your input.

Tim


----------



## Seamus

jentaighmeg said:


> Thanks for the response. Very helpful. Just a couple more questions and then I wont bother you again.
> 
> What are the names (numbers?) of the tax forms I have to prepare in addition to the 1040? Additionally, I just started multiapping and have noticed that Grub Hub breaks down their payment into delivery pay and mileage pay with $1.66 per mile. Does Grub Hub hub paying the stipend for mileage make for problems when filling out the tax forms?
> 
> Thanks again for your input.
> 
> Tim


The very least in addition to your 1040 is a schedule C (business income/loss). However no one can tell you what else you may need without knowing all your specific information.

Do yourself a favor and get a tax prep person with experience doing Rideshare returns, at least for your first year until you learn.

The breakdown on GH is inconsequential to your taxes. It is not a mileage reimbursement but rather a part of your revenue. In January you will get a 1099 from GH and it will be a lump sum of what you have been paid. It will be a gross number, not broken down.


----------



## Daisey77

I personally use TurboTax self-employed. Uber usually gives us a code allowing us to do state and federal for free up until the end of February. It walks you through everything question by question and then it automatically populates the forms for you. So I honestly can't tell you what forms to use besides the 1040 and schedule C


----------



## Studentiguess

Just registered since i have a few questions.
I have never done taxes before, so i wanted to get it done way before April.

I am a dependent on my parents tax form, and only work uber eats occasionally for when i want to get a t shirt or something small. (No other job, either part or full time)

I had a gross payment of $501.00 for all of 2021 as a year.
(I didnt know how much uncle sam would take from it, so ~200 dollars are put in a bank account, unused)

Do I make enough money to have to file taxes? If so what form do i need to do?
In addition, the app tells me how many miles i drove while "online."
How do i calculate a deductible for those miles? (618 miles)

Thank you in advance.


----------



## Seamus

Studentiguess said:


> Just registered since i have a few questions.
> I have never done taxes before, so i wanted to get it done way before April.
> 
> I am a dependent on my parents tax form, and only work uber eats occasionally for when i want to get a t shirt or something small. (No other job, either part or full time)
> 
> I had a gross payment of $501.00 for all of 2021 as a year.
> (I didnt know how much uncle sam would take from it, so ~200 dollars are put in a bank account, unused)
> 
> Do I make enough money to have to file taxes? If so what form do i need to do?
> In addition, the app tells me how many miles i drove while "online."
> How do i calculate a deductible for those miles? (618 miles)
> 
> Thank you in advance.


Under $600 you shouldn’t even get a 1099! Only $600 and over get 1099s. If you don’t get a 1099 issued to you then the IRS hasn’t been notified and has no knowledge of your $501. You do as you please but I wouldn’t even consider filing under $600.


----------



## _Tron_

@Seamus you seem to be standing in for @UberTaxPro. Apologies if this has been asked and answered. Probably has. Just looking at my 2021 tax docs from Lyft. As best I can tell, Lyft only notifies the Feds if you had more than 20K in Ride Payments, and/or more than $600 in non-ride earnings. So just to take myself as an example, not tax information will NOT be forwarded to the IRS with below numbers? Is that correct? Do you or anyone have a definitive answer?

(no moral judgments please. Just clarifying how the system is working now)


----------



## Daisey77

_Tron_ said:


> @Seamus you seem to be standing in for @UberTaxPro. Apologies if this has been asked and answered. Probably has. Just looking at my 2021 tax docs from Lyft. As best I can tell, Lyft only notifies the Feds if you had more than 20K in Ride Payments, and/or more than $600 in non-ride earnings. So just to take myself as an example, not tax information will NOT be forwarded to the IRS with below numbers? Is that correct? Do you or anyone have a definitive answer?
> 
> (no moral judgments please. Just clarifying how the system is working now)
> 
> View attachment 639381


Recent laws have changed this. Beginning in 2022 that 20K drops clear down to $600, the same as our 1099-nec.

Also, they're also requiring you to report any income via cash apps or the square if they total more than $600


----------



## Seamus

As Daisy said the law changed and I expect a lot of very surprised drivers this year. Everyone knew the1099k was essentially a tax dodge so beginnng in 2020 several states lowered the 1099k threshold to $600 for state tax purposes. The feds caught up and lowered the threshold to $600. Game over for the Uber/Lyft drivers who never reported their under 20k earnings.


----------



## _Tron_

Do we understand how the feds ever let such a huge-o loophole be created in the first place? That seems on the surface to be profoundly stupid even for bureaucrats.


----------



## Seamus

_Tron_ said:


> Do we understand how the feds ever let such a huge-o loophole be created in the first place? That seems on the surface to be profoundly stupid even for bureaucrats.


Well the original 1099k classification was designed for “payment processors”. In other words companies that literally did nothing but process a payment. (Like cc companies). This was long before the gig economy. Then came along gigs like Uber, Lyft, and Arbnb who considered themselves only “payment processors”

With all Uber’s T&C and rules for IC drivers can anyone say with a straight face they are only payment processors? It’s laughable.

Remembering that only 4% of drivers last more than a year would indicate that the vast majority of drivers never had to get a 1099k from Uber. This alleviated a lot of expense and requirements on Uber’s part.


----------



## Seamus

_Tron_ said:


> you seem to be standing in for @UberTaxPro


He’s a very knowledgeable guy and him and I had numerous conversations. Like him, I had a tax prep business for many years. He specialized in RS taxes and was very knowledgeable. Many tax prep people have zero RS experience, which made him all the more valuable.

For years he worked on his own. Now, some company hired him and gives him a ton of business so he doesn’t have much time for UP anymore. Our loss!

At least he had a lot of credibility. There are many on the forum who are free with “tax advice”. You can get some excellent tax advice here.....or you can get horrible advice from people who have no actual clue of what their talking about. The problem is that for many, there is no way to distinguish the difference!


----------



## _Tron_

Sooooo..... here's another one. Just totaled up my income for 21. Big payout on unemployment. Can we assume at this point that we will have the same federal tax waiver as we did for 2020?

Which as I recall was a max of $10,200.


----------



## _Tron_

_Tron_ said:


> Sooooo..... here's another one. Just totaled up my income for 21. Big payout on unemployment. Can we assume at this point that we will have the same federal tax waiver as we did for 2020?
> 
> Which as I recall was a max of $10,200.


No one? Well here we go. It's not good news...

In March 2021, President Joe Biden signed into law a massive relief bill called the American Rescue Plan Act (ARPA). One of the things it did was allow the first $10,200 in unemployment benefits collected in 2020 to be waived from federal income taxes for those with household incomes of as much as $150,000.

*However, there's been no sign that a similar tax break might be offered for the 2021 tax year.*

"No unemployment compensation exclusion is on the books for tax year 2021," says Angela Anderson, a certified public accountant who provides professional advice through the online question-and-answer service JustAnswer. "However, just because that is the case now, does not mean that the situation will not change."









Unemployment is taxable for 2021. The American Rescue Plan Act waiver applied only to benefits collected in 2020


Most unemployment benefits are subject to income tax by the federal government as well as some states that also tax income.




www.businessinsider.com




.


----------



## Daisey77

I don't know of any and I'd be surprised if they do because all the stimulus we got during this year was an advance on a tax credit this upcoming year. The government wants their money back


----------



## UberTaxPro

_Tron_ said:


> No one? Well here we go. It's not good news...
> 
> In March 2021, President Joe Biden signed into law a massive relief bill called the American Rescue Plan Act (ARPA). One of the things it did was allow the first $10,200 in unemployment benefits collected in 2020 to be waived from federal income taxes for those with household incomes of as much as $150,000.
> 
> *However, there's been no sign that a similar tax break might be offered for the 2021 tax year.*
> 
> "No unemployment compensation exclusion is on the books for tax year 2021," says Angela Anderson, a certified public accountant who provides professional advice through the online question-and-answer service JustAnswer. "However, just because that is the case now, does not mean that the situation will not change."
> 
> 
> 
> 
> 
> 
> 
> 
> 
> Unemployment is taxable for 2021. The American Rescue Plan Act waiver applied only to benefits collected in 2020
> 
> 
> Most unemployment benefits are subject to income tax by the federal government as well as some states that also tax income.
> 
> 
> 
> 
> www.businessinsider.com
> 
> 
> 
> 
> .


no, unemployment is taxable for tax year 2021


----------



## UberTaxPro

Studentiguess said:


> Just registered since i have a few questions.
> I have never done taxes before, so i wanted to get it done way before April.
> 
> I am a dependent on my parents tax form, and only work uber eats occasionally for when i want to get a t shirt or something small. (No other job, either part or full time)
> 
> I had a gross payment of $501.00 for all of 2021 as a year.
> (I didnt know how much uncle sam would take from it, so ~200 dollars are put in a bank account, unused)
> 
> Do I make enough money to have to file taxes? If so what form do i need to do?
> In addition, the app tells me how many miles i drove while "online."
> How do i calculate a deductible for those miles? (618 miles)
> 
> Thank you in advance.


no need to file


----------



## El Gato

New one here for me. I traded in may car and as I go through Turbo Tax I am getting questions about the sale of my car. I mean this is ridehsare and the car was mixed use for personal and ridshare use, so am I going to have tio pay tax on the trade in value of the vehicle I got from the dealership?


----------



## El Gato

Also, something I always enter in different on the Schedule C I feel like very every year is _Line 22 - Supplies_ and _Line 27- Other Expenses_.

Deducting car washes, iphone cables, tax software, music subscriptions should be done on which of these two lines? Does it really matter, it all totals to the same thing in the end?


----------



## uberboy48

what is your opinion on this video saying there is no law that states we have to pay taxes???


----------



## Seamus

uberboy48 said:


> what is your opinion on this video saying there is no law that states we have to pay taxes???


I'm not sure who you are asking. My opinion is it's complete nonsense and a good way to end up being in major trouble with the IRS. Tax liens, asset seizures, and other consequences await anyone who buys in to this lunacy.


----------



## Darrell Green Fan

I hope this thread is still alive and the OP is active. 

With all the talk of reclassifying us as employees my tax person said that will prevent us from capturing the business mile deduction. Obviously this has huge tax ramifications, as well as other ramifications for those of us who benefit from having such a low taxable income. 

Is this true? What will the advantages be for becoming an employee?


----------



## Daisey77

Darrell Green Fan said:


> I hope this thread is still alive and the OP is active.
> 
> With all the talk of reclassifying us as employees my tax person said that will prevent us from capturing the business mile deduction. Obviously this has huge tax ramifications, as well as other ramifications for those of us who benefit from having such a low taxable income.
> 
> Is this true? What will the advantages be for becoming an employee?


 yes you will not get the mileage deduction but the companies have to reimburse you the mileage you drive.


----------



## Seamus

Darrell Green Fan said:


> I hope this thread is still alive and the OP is active.
> 
> With all the talk of reclassifying us as employees my tax person said that will prevent us from capturing the business mile deduction. Obviously this has huge tax ramifications, as well as other ramifications for those of us who benefit from having such a low taxable income.
> 
> Is this true? What will the advantages be for becoming an employee?


We have to just Wait and see, one year at a time. For 2022 we are still good with this. The biggest change affecting us for 2022 is that a 1099k must be issued to all earning $600 or higher instead of the past 20k threshold. This will be a rude awakening for some!


----------



## Darrell Green Fan

Daisey77 said:


> yes you will not get the mileage deduction but the companies have to reimburse you the mileage you drive.


And that mileage is determined by the miles logged on the app? We all know those figures aren't accurate. But this still means instead of claiming $10,000 in taxable income I will now be forced to claim the entire gross of $53,000. That is HUGE, why aren't more talking about this?

While getting reimbursed for miles is great I'm not sure how these companies, who are not even profitable, can absorb all of these additional costs. 

How close is this to actually happening?


----------



## Daisey77

Darrell Green Fan said:


> And that mileage is determined by the miles logged on the app? We all know those figures aren't accurate. But this still means instead of claiming $10,000 in taxable income I will now be forced to claim the entire gross of $53,000. That is HUGE, why aren't more talking about this?
> 
> While getting reimbursed for miles is great I'm not sure how these companies, who are not even profitable, can absorb all of these additional costs.
> 
> How close is this to actually happening?


Yeah but they'll also withhold taxes from your pay. So that will be used to offset what you owe. Just like when you have a regular W-2 job. You have to claim all your income you made but the taxes withheld from your paychecks offset what you owe at the end of the year. 

I don't know what they'll use to determine your mileage. The companies aren't complying with any of the court rulings yet, as far as I know.More and more states are ruling that gig economy workers are employees. I don't think any of the gig companies are operating in that manner. From my understanding they're appealing all of those decisions so who knows how long it'll be until they're forced to comply. We saw what happened in California back in 2020 when the state ordered them to comply. They introduced proposition 22. 

people may not necessarily be talking about it now but the topic has been beat like a dead horse for years. The discussions tend to get very heated. Ultimately there's nothing we can do. These companies do whatever the hell they want and until the government puts a stop to it they're going to continue getting away with it.

as for them absorbing the cost, I don't think you'll find one driver that gives a shit about the financial impact on them. Wuth as much as they have cut rates and them still not turning profit, they need to look within themselves for the answers to turn profit. They're not turning profit with cutting our earnings in half. The drivers could have used the money more productively than the companies have used our money. They have been skirting the laws for years with nothing but slaps on the hand by any enforcement agency. It's really quite simple. Treat us as we're classified. They don't get their cake and eat it too. They don't get to enjoy the benefits of both classifications while the drivers get screwed on both classifications


----------



## Darrell Green Fan

Daisey77 said:


> Yeah but they'll also withhold taxes from your pay. So that will be used to offset what you owe. Just like when you have a regular W-2 job. You have to claim all your income you made but the taxes withheld from your paychecks offset what you owe at the end of the year.
> 
> I don't know what they'll use to determine your mileage. The companies aren't complying with any of the court rulings yet, as far as I know.More and more states are ruling that gig economy workers are employees. I don't think any of the gig companies are operating in that manner. From my understanding they're appealing all of those decisions so who knows how long it'll be until they're forced to comply. We saw what happened in California back in 2020 when the state ordered them to comply. They introduced proposition 22.
> 
> people may not necessarily be talking about it now but the topic has been beat like a dead horse for years. The discussions tend to get very heated. Ultimately there's nothing we can do. These companies do whatever the hell they want and until the government puts a stop to it they're going to continue getting away with it.
> 
> as for them absorbing the cost, I don't think you'll find one driver that gives a shit about the financial impact on them. Wuth as much as they have cut rates and them still not turning profit, they need to look within themselves for the answers to turn profit. They're not turning profit with cutting our earnings in half. The drivers could have used the money more productively than the companies have used our money. They have been skirting the laws for years with nothing but slaps on the hand by any enforcement agency. It's really quite simple. Treat us as we're classified. They don't get their cake and eat it too. They don't get to enjoy the benefits of both classifications while the drivers get screwed on both classifications


Thanks for keeping this dialogue going. I did a search on the topic to see the other discussions but they were from years ago.

I see nothing positive about this. As you said they will deduct taxes from our weekly earnings. So our take home pay will be less, we now pay taxes on our gross and not the net and that's huge. But if the do reimburse us for our mileage that will more than take care of that, but as you said they have not complied with that. So you say Uber and Lyft are not complying with the new rulings, but we still have to comply and claim our gross and not net right? How is that right? If they are not withholding our taxes we face a huge tax bill on our gross. 

I took advantage of the law and used my low net income to qualify for Medicaid, now I would lose free medical insurance. I had planned to file for Social Security when I turned 65 in a little over a year. When I do that I can only earn about 20 grand before they start reducing my benefit until I reach full retirement age which is nearly 2 years later. It would have been no problem with the business mile write off.

We should care how this will impact Uber and Lyft. You never want to work for an unstable company, these new requirements will leave them no choice but to cut our pay even more or raise the price so high it will reduce demand.


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## Daisey77

Darrell Green Fan said:


> We should care how this will impact Uber and Lyft. You never want to work for an unstable company, these new requirements will leave them no choice but to cut our pay even more or raise the price so high it will reduce demand.


because you think they're stable now?

they have cut our pay so drastically over the years and they're not going to stop. We have to suffer because their business model does not allow them to turn profit. These requirements will actually prevent them from undercutting us so bad we can't make a living. There are laws employers have to follow such as minimum wage



Darrell Green Fan said:


> As you said they will deduct taxes from our weekly earnings. So our take home pay will be less, we now pay taxes on our gross and not the net and that's huge.


No we pay taxes on our business profit. We don't pay taxes on our gross. We have to claim everything Uber and Lyft charges the customers but we expense out their Commission. So we don't pay taxes on our gross.



Darrell Green Fan said:


> But if the do reimburse us for our mileage that will more than take care of that, but as you said they have not complied with that. So you say Uber and Lyft are not complying with the new rulings,


They will have to reimburse us for our mileage. You cannot have your employees Drive their personal vehicle for work use and not reimburse mileage. The only state they did not officially complain was California. The other states it's still being appealed and they're going to draw it out as long as they can. It was supposed to go in effect in California January of 2020 but when covid hit it wasn't a priority of the state to go after them. Once California got stuck paying all of the employee drivers unemployment from State money instead of the federal cares Act, then they went after them and the gig economy employers lost. It was supposed to start being enforced I believe in October of 2020 but the gig economies pulled that proposition 22 out of their ass and lied through their teeth to get people's boats on it which then overturned the employee status. However from my understanding the proposition 22 was ruled as unconstitutional. I don't know what has happened since then I quit following it but if that's the case they're going to remain employees and it will be enforced. So most States it's not that they're not complying. It's more so it's still going through the appeal process.


Darrell Green Fan said:


> So you say Uber and Lyft are not complying with the new rulings, but we still have to comply and claim our gross and not net right


Yes we have to claim our gross but we expense out their commission so we're only paying taxes on our net business profit. As employees we would never claim their Commission so we'd still be getting taxed on the same amount only we wouldn't have to pay it all at once at the end of the year because it would be withheld throughout the year


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## Darrell Green Fan

Daisey77 said:


> because you think they're stable now?
> 
> they have cut our pay so drastically over the years and they're not going to stop. We have to suffer because their business model does not allow them to turn profit. These requirements will actually prevent them from undercutting us so bad we can't make a living. There are laws employers have to follow such as minimum wage
> 
> 
> 
> No we pay taxes on our business profit. We don't pay taxes on our gross. We have to claim everything Uber and Lyft charges the customers but we expense out their Commission. So we don't pay taxes on our gross.
> 
> 
> 
> They will have to reimburse us for our mileage. You cannot have your employees Drive their personal vehicle for work use and not reimburse mileage. The only state they did not officially complain was California. The other states it's still being appealed and they're going to draw it out as long as they can. It was supposed to go in effect in California January of 2020 but when covid hit it wasn't a priority of the state to go after them. Once California got stuck paying all of the employee drivers unemployment from State money instead of the federal cares Act, then they went after them and the gig economy employers lost. It was supposed to start being enforced I believe in October of 2020 but the gig economies pulled that proposition 22 out of their ass and lied through their teeth to get people's boats on it which then overturned the employee status. However from my understanding the proposition 22 was ruled as unconstitutional. I don't know what has happened since then I quit following it but if that's the case they're going to remain employees and it will be enforced. So most States it's not that they're not complying. It's more so it's still going through the appeal process.
> 
> Yes we have to claim our gross but we expense out their commission so we're only paying taxes on our net business profit. As employees we would never claim their Commission so we'd still be getting taxed on the same amount only we wouldn't have to pay it all at once at the end of the year because it would be withheld throughout the year


By gross I was referring to the amount of money I took home, not talking about the Uber commission. I had a bit over $50,000 deposited into my account, that was my gross. After mile deduction my net was around $9,500. I claimed $9,500 on my tax return as this was my income after the deduction. With the Earned Income Tax Credit for low income wage earners we got a tax refund. If this passes I would have had to claim $50,000 as taxable income. So not only will my tax obligation be much higher I lose the Earned Income Tax Credit, I lose my free medical care and have issues when I file Social Security as I can only earn (gross) $20,000 before they reduce my SS benefit. I don't come close to earning lower than the minimum wage and I doubt you do too so that's a non issue. 

So what are the benefits to being an employee? Well if they reimburse for miles that would be huge. Clearly being paid per mile is more beneficial than deducting this amount from our earnings, even with what I said above. As you said they are not profitable now, this will crush them I would think. So how do they survived that? Now if we are deactivated we would be eligible for unemployment? That's a big benefit as well. 

So they've been batting this back and forth for years. But if the Labor Department makes this change early next year, as I had read, what options do Uber/Lyft have? Can this drag this decision out in court? Do they sue the Department of Labor?


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## Daisey77

Darrell Green Fan said:


> If this passes I would have had to claim $50,000 as taxable income. So not only will my tax obligation be much higher I lose the Earned Income Tax Credit, I lose my free medical care and have issues when I file Social Security as I can only earn (gross) $20,000 before they reduce my SS benefit. I don't come close to earning lower than the minimum wage and I doubt you do too so that's a non issue.


50,000 as taxable income but the taxes would have been withheld throughout the year. so you don't have to pay them at the end of the year, in one massive lump sum. You'd have your $50, 000 earned income plus your reimbursement for your miles which you do not get taxed on. So you'd take home 38k + all the mileage. I don't know how many miles you drive a year but my miles sure equal more than the $12,000 difference. Plus they'd have to reimburse you for maintenance on the vehicles.

Losing your earned tax income credit is a good thing. It means you're actually making money. This is exactly why the government needs to wean people off government assistance. People learn the limits and refuse to live up to their fullest potential because they don't want to give up the assistance. They compromise themselves by learning how to live their lives maximizing benefits instead of living up to their fullest potential. Your "free" medical care may be free to you but it's not to everyone else. That money comes from somewhere.

You said you grossed 50k last year. So you have already lost your Social Security right? If you can't earn more than 20K and you did 50K you've already lost it. I'm sorry but $9,500 is very much below minimum wage, I'm quite sure . Driving 20 hours a week, that would equal $9.13 an hour. Either way there's nothing in place to stop these companies from lowering our income. How many times have they lowered our income over the years? Do you think they're going to stop now. Being an employee would create a bottom floor that they don't have right now


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## Darrell Green Fan

Daisey77 said:


> 50,000 as taxable income but the taxes would have been withheld throughout the year. so you don't have to pay them at the end of the year, in one massive lump sum. You'd have your $50, 000 earned income plus your reimbursement for your miles which you do not get taxed on. So you'd take home 38k + all the mileage. I don't know how many miles you drive a year but my miles sure equal more than the $12,000 difference. Plus they'd have to reimburse you for maintenance on the vehicles.
> 
> Losing your earned tax income credit is a good thing. It means you're actually making money. This is exactly why the government needs to wean people off government assistance. People learn the limits and refuse to live up to their fullest potential because they don't want to give up the assistance. They compromise themselves by learning how to live their lives maximizing benefits instead of living up to their fullest potential. Your "free" medical care may be free to you but it's not to everyone else. That money comes from somewhere.
> 
> You said you grossed 50k last year. So you have already lost your Social Security right? If you can't earn more than 20K and you did 50K you've already lost it. I'm sorry but $9,500 is very much below minimum wage, I'm quite sure . Driving 20 hours a week, that would equal $9.13 an hour. Either way there's nothing in place to stop these companies from lowering our income. How many times have they lowered our income over the years? Do you think they're going to stop now. Being an employee would create a bottom floor that they don't have right now


Again thanks for keeping the conversation going. I remember you as one of the better posters here.

I do not take Social Security yet. But if I did my income after the business mile deduction would have been $9,500 not $50,000 as an independent contractor so the benefits would not be reduced. This is my total income per the federal government. It's the amount I pay taxes on and it's the amount that qualified us for MEDICAID and free medical insurance. Now my wife is on Medicare and I will be in a year and a half when I turn 65. 

My 5 year plan was to earn what I needed via rideshare, and that $50,000 take home pay was just enough (no debt). In a year and a half I was to take it, now I may probably have to file earlier as my take home pay from rideshare won't be enough and my benefits with taxes, FICA etc withheld. My benefits will be reduced for the rest of my life. But if they really do reimburse for miles that will be a wash or better. But as you said Uber/Lyft will be forced to reduce our pay again to compensate for all of these costs. This is not a good thing for drivers. 

Again paying taxes on $50,000 is considerably different than paying taxes on $9,500. Taken out weekly does not change this, we still would pay considerably more taxes. And losing free medical care is brutal, but it's only for a year and a half. As you said Uber/Lyft will be forced to reduce our pay more to offset all of these costs. How is being an employee a good thing again given all of this?

The business mile deduction is very generous and my 2017 Civic does not come close to costing me .59/mile or whatever the new rate is, even factoring in a replacement car every 3-5 years. So no I'm not close to minimum wage once my costs are calculated against earnings.

So what are the benefits to being an employee? Can we file for unemployment if deactivated? What other benefits? Vacation pay would be great, don't need benefits or minimum wage guarantees.


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## Seamus

Darrell Green Fan said:


> Again thanks for keeping the conversation going. I remember you as one of the better posters here.
> 
> I do not take Social Security yet. But if I did my income after the business mile deduction would have been $9,500 not $50,000 as an independent contractor so the benefits would not be reduced. This is my total income per the federal government. It's the amount I pay taxes on and it's the amount that qualified us for MEDICAID and free medical insurance. Now my wife is on Medicare and I will be in a year and a half when I turn 65.
> 
> My 5 year plan was to earn what I needed via rideshare, and that $50,000 take home pay was just enough (no debt). In a year and a half I was to take it, now I may probably have to file earlier as my take home pay from rideshare won't be enough and my benefits with taxes, FICA etc withheld. My benefits will be reduced for the rest of my life. But if they really do reimburse for miles that will be a wash or better. But as you said Uber/Lyft will be forced to reduce our pay again to compensate for all of these costs. This is not a good thing for drivers.
> 
> Again paying taxes on $50,000 is considerably different than paying taxes on $9,500. Taken out weekly does not change this, we still would pay considerably more taxes. And losing free medical care is brutal, but it's only for a year and a half. As you said Uber/Lyft will be forced to reduce our pay more to offset all of these costs. How is being an employee a good thing again given all of this?
> 
> The business mile deduction is very generous and my 2017 Civic does not come close to costing me .59/mile or whatever the new rate is, even factoring in a replacement car every 3-5 years. So no I'm not close to minimum wage once my costs are calculated against earnings.
> 
> So what are the benefits to being an employee? Can we file for unemployment if deactivated? What other benefits? Vacation pay would be great, don't need benefits or minimum wage guarantees.


As you know Medicaid is an excellent medical plan and is better than Medicare. For you and people like you who are receiving benefits based on income, becoming an employee will put an end to some of those benefits. In your situation there is no upside to being an employee.

I wouldn’t get too concerned yet, there is a long way to go before this is ever decided.

By the way, I have a 2018 Civic and thoroughly analyzed my ”real” cost/mi. At my best calculations taking all cost of ownership variables take into account, my true cost per mile is $0.27. That was last year so with the gas increases it likely has gone up an additional 1 or 2 cents. Thank God for the Standard Mileage Deduction rate.


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## Seamus

Daisey77 said:


> You said you grossed 50k last year. So you have already lost your Social Security right? If you can't earn more than 20K and you did 50K you've already lost it.


For people with Schedule C income, all government benefits are based on “net income”.


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## Daisey77

Darrell Green Fan said:


> The business mile deduction is very generous and my 2017 Civic does not come close to costing me .59/mile or whatever the new rate is, even factoring in a replacement car every 3-5 years. So no I'm not close to minimum wage once my costs are calculated against earnings


Your actual costs may not be close to minimum wage but on paper, it is. Remember on paper we are poor



Darrell Green Fan said:


> So what are the benefits to being an employee? Can we file for unemployment if deactivated? What other benefits? Vacation pay would be great, don't need benefits or minimum wage guarantees


I think the actual push behind becoming an employee is simply recourse. We all know we don't get benefits and vacation time. We're all okay with that. What we're not okay with is these companies getting away with things that other companies cannot get away with. As an employer they can't not allow you to work for 2 months and not pay you while waiting for a background check. They can't simply take your money due to a customer complaining. They can't simply fire you without a valid reason and get out of paying unemployment. There is recourse against false allegations from customers or passengers in our situation. It's more so protection for us


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## Darrell Green Fan

Seamus said:


> As you know Medicaid is an excellent medical plan and is better than Medicare. For you and people like you who are receiving benefits based on income, becoming an employee will put an end to some of those benefits. In your situation there is no upside to being an employee.
> 
> I wouldn’t get too concerned yet, there is a long way to go before this is ever decided.
> 
> By the way, I have a 2018 Civic and thoroughly analyzed my ”real” cost/mi. At my best calculations taking all cost of ownership variables take into account, my true cost per mile is $0.27. That was last year so with the gas increases it likely has gone up an additional 1 or 2 cents. Thank God for the Standard Mileage Deduction rate.


I did the same when I had a 2012 Civic, I came up with .17/mile including car depreciation. But that was a few years ago when gas was lower, and of course the .50/ride gas surcharge takes care of most of the additional as costs as I mostly do short quick rides that add up.

As I said a year from March and all this is minor for me. But they've been batting this back and forth for several years, the article I saw made it sound like it will happen shortly after the first of the year. Can the Dept of Labor just make this announcement and that's that or will there be court cases to follow? 

As for the benefits will it really protect us from unfair deactivation? Will that make us eligible for unemployment? Obviously UE is temporary and a big pay cut but it would be helpful. But if Uber deactivates you can't they argue that we have Lyft as an option and fight the claim?


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## bobby747

should most of us be an S CORP to save on self employment taxes


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## michigandriver

If I do the following:

(note: for the same driver profile)
(1) Spent part of the year using one LLC (with its own EIN) while driving with Uber - driving enough to receive a 1099k
(2) Then spent the rest of the year (using the same driver profile) but switched payments to another LLC (that of course has a different EIN) - driving enough to receive a 1099k during this period too.

Do I then get TWO (2) 1099ks - one for each EIN and the respective payments received for each when tax season comes up? My accountant tells me that I "should" receive two 1099Ks (one for each EIN) given one LLC received payments and had a different EIN.

However, I can't get a clear answer from Uber about whether they'll just take all of your payments for a tax year and issue only one 1099k for the last EIN/LLC you registered with Uber or if they'll (correctly split it up by LLC). The phone rep says she thinks you only get one 1099K given its the same driver profile, but that seems wrong. There are two different EINs logging payments for that tax year, Uber should match the payments to each EIN into two different 1099Ks, right? I want Uber to do this, because I'd then have one LLC paying taxes for payments it didn't receive.

Also, if anyone has actual experience with this and can tell us what Uber did, please respond.

Thanks!


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## oldfart

I drove a "paid for" car for several years and at tax time I used the standard mileage deduction and I never thought about interest

This year I financed a used car. Can I use the standard mileage deduction , and also deduct the interest I paid
I also took a EIDL loan and although payments were differed. interest did accrue to the loan, can I deduct that interest too

Thank you


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## Daisey77

oldfart said:


> I drove a "paid for" car for several years and at tax time I used the standard mileage deduction and I never thought about interest
> 
> This year I financed a used car. Can I use the standard mileage deduction , and also deduct the interest I paid
> I also took a EIDL loan and although payments were differed. interest did accrue to the loan, can I deduct that interest too
> 
> Thank you


I know you can do interest on your car loan regardless if you do itemized or standard. I don't know about the eidl loan though. I think it's only interest paid not accrued. So if you started making payments, any amount applied to the interest would be deductible. I just don't know if you can use it on itemized and standard or just itemized


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## Liam_Niam

if i took a trip on Dec 31st, but i cashed out the payment for that trip on January 1st, will that trip be included in my 2022 1099k or my 2023 1099k??


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## Amsoil Uber Connect

The work / earnings was performed on the 31th, so 2022.


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## Lpearce

how often do I need to do my tax for Uber eats delivery?


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## Uberscum

Lpearce said:


> how often do I need to do my tax for Uber eats delivery?


I do it once a year.


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## Daisey77

Lpearce said:


> how often do I need to do my tax for Uber eats delivery?


 technically any self-employed person is supposed to send in money quarterly on a guesstimate of what you may owe but I don't know any gig economy worker that does it this way. If they want to be jerks and enforce this we're all screwed


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## Lpearce

Uberscum said:


> I do it once a year.


But Uber tells us to keep a log book for 12 weeks? So what happens to after 12 weeks when you do it once a year?


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## Lpearce

Daisey77 said:


> technically any self-employed person is supposed to send in money quarterly on a guesstimate of what you may owe but I don't know any gig economy worker that does it this way. If they want to be jerks and enforce this we're all screwed


We keep a log book for 12 weeks, so do we do tax every two weeks?


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## Uberscum

Lpearce said:


> But Uber tells us to keep a log book for 12 weeks? So what happens to after 12 weeks when you do it once a year?


I have no idea, all I know is I send all my income details, and my sister's friend who is tax professional does the rest. I just remind her to deduct 58 cents a mile. I paid her $150 to do my taxes and I got back 7 bucks from the IRS LOL but it was worth it not to have to deal with that mess.


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## Daisey77

Lpearce said:


> We keep a log book for 12 weeks, so do we do tax every two weeks?


I don't know where the 12 weeks is coming from and you really lost me when you asked if we do taxes every two weeks. You better be keeping your log books for The Last 7 Years. I think that's how long they have... 7 years to come back and audit you. All my records are annual. January 1st to December 31st. If I wanted to follow the quarterly schedule it would be every 3 months


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## Daisey77

Lpearce said:


> But Uber tells us to keep a log book for 12 weeks? So what happens to after 12 weeks when you do it once a year?


Where does Uber tell you this? If you're doing it quarterly I would file that 12-week log with your quarterly taxes just like you would file your annual log with your annual taxes


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## FLKeys

Liam_Niam said:


> if i took a trip on Dec 31st, but i cashed out the payment for that trip on January 1st, will that trip be included in my 2022 1099k or my 2023 1099k??


Depends on what accounting method you use. I use the Cash Method, so in my case it would be 2023 earnings. Not sure what Uber includes in the 1099K in your case. I never cash out early so never had to deal with this.



*How Cash Accounting Works*
In cash accounting, a transaction is recorded when money actually changes hands. Income is recorded when you receive the money and expenses are recorded when they are paid.3

Example 1: For an income transaction, if you perform a service and bill a client, you record the income for cash accounting purposes only when you have received the payment for that service. If you send out an invoice on August 12 and you don't receive payment until September 1, you record the payment on September 1.


Example 2: For an expense transaction, you might receive a bill for phone service, but in cash accounting, you don't record the expense until you have actually paid the bill. if you receive a bill on August 15 and you don't pay the bill until September 1, you don't record the expense until September 1.


*How Accrual Accounting Works*
In accrual accounting, you can deduct business expenses when either


Liability has been fixed or can be determined with reasonable accuracy, or
Economic performance, when property or services are provided or property is used.3

_In Example 1: For an income transaction,_ using the accrual method, you would record the income when the work is complete or the product has been received; that is, you have earned the payment. In the examples above, income to you is recorded when you send out the bill, even though you have not yet been paid. The liability is recorded when you receive the bill, even though you have not paid.

_In Example 2: For an expense transaction. _When you receive a bill for an expense, it's considered a liability. So you can deduct it for that year, even if you haven't paid the bill yet.

Prepaid expenses are a special case. In general, you can't deduct expenses in advance. For example, if you paid for internet service for five years, you can only deduct the cost of one year on your business tax return for the year.4


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