# Tax Time is Here...



## UberPissed (Aug 13, 2014)

Just a friendly reminder -- if you are driving this year, you need to make estimated payments to the IRS. The third quarter payment is due September 15, 2014. 4Q payments are due January 15.

Google "1040ES" for the PDF containing all the information necessary to complete the voucher.

Remember, 15.2% of your net profit must be paid to the IRS for Employment Taxes, and you will also have to pay Income tax on the income as well (marginal rates are 10, 15, 25, 28, 33, and 35 percent, depending on income) so you will have to set aside an additional amount for income taxes.

If you fail to make estimated payments, you will be subject to a small penalty, which in all honesty, is not that much; however, the selling point is that you will avoid a huge tax bill come April.

For example, based on 2013 numbers, you will owe the following taxes (assuming no other deductions, dependents, withholdings, or adjustments)

30k
2235 - Income Tax
4239 - Self Employment Tax
6474 - total tax due

Quarterly Payments of $1,618 would eliminate the estimated tax penalty of about 117.

In other words, 30k of net profit = $125 of taxes per week. Don't get railroaded by Uber AND the IRS.


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