# How do I pay taxes to the IRS as an Uber driver?



## snyder1171 (Mar 26, 2019)

I just became an Uber driver over the weekend, I've only done a few trips and made about a total of 70 dollars. I was told that if I made over 600$ I have to file 1099 form to the IRS, where do I get the form? What do I write on it? How do I submit it?


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## Launchpad McQuack (Jan 8, 2019)

You don't have to file any Forms 1099 as a driver. If Uber pays you more than $600 in promotions for a tax year, Uber will file Form 1099-MISC with the IRS and send you a copy. If you make more than $20,000 in base trip fares, Uber will file Form 1099-K with the IRS and send you a copy. So you may receive both a 1099-K and a 1099-MISC, but you don't file either of them.

As for paying taxes, do you have a regular job as an employee? If so, the easiest way to pay taxes is to have your employer withhold more from your paycheck. You can do this by filling out a new Form W4 with your employer and requesting that they withhold more.

One thing to know is that when you drive for Uber you are self-employed and considered to be operating a business (even if that is not how you think of it). As such, you can deduct all of the costs of operating your business from your revenue. This will greatly reduce how much you owe in taxes. Some drivers end up having no taxable income from driving after they deduct their expenses. The reason for this is because the IRS allows you to deduct roughly $0.55 for every mile (I forget the exact number) that you drive (including unpaid dead miles between dropping off a passenger and picking up the next). Other drivers do have taxable income. It all depends on how you drive and your market.

The point is, start keeping records _*NOW*_ for your mileage and expenses. The earlier you start keeping records, the less gaps you'll have to fill in later on and the easier you will make things for yourself when you have to file your 2019 tax returns. I didn't do a good job when I started in 2018, and I am struggling now. Hopefully, my 2019 returns will be easier.


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## mmn (Oct 23, 2015)

If you just started, you will not file a return until next year for this year's income. Keep detailed mileage and business expense records, receipts.


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## Taksomotor (Mar 19, 2019)

mmn said:


> If you just started, you will not file a return until next year for this year's income. Keep detailed mileage and business expense records, receipts.


IRS doesn't like people to owe more than $1000 in taxes. So you might have to file quarterly as self employed to avoid getting a fine.


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## mmn (Oct 23, 2015)

Taksomotor said:


> IRS doesn't like people to owe more than $1000 in taxes. So you might have to file quarterly as self employed to avoid getting a fine.


Next year, but yes.


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## Homie G (Oct 19, 2017)

Taksomotor said:


> IRS doesn't like people to owe more than $1000 in taxes. So you might have to file quarterly as self employed to avoid getting a fine.


And all these years I thought the IRS LOVED people that owe big taxes.

You learn something new everyday.


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## mmn (Oct 23, 2015)

snyder1171 said:


> I just became an Uber driver over the weekend, I've only done a few trips and made about a total of 70 dollars. I was told that if I made over 600$ I have to file 1099 form to the IRS, where do I get the form? What do I write on it? How do I submit it?


You don't get the form, you don't write on it, and you don't submit it. If you make enough money this year, Uber will send you one and also send the IRS one. When you file your tax return next year, you will use the information Uber sends you and your mileage and expenses to figure out your taxes. You have a year to get educated.

You can download Schedule C and instructions from irs.gov, and there are several posts on this board that can help you.



Homie G said:


> And all these years I thought the IRS LOVED people that owe big taxes.
> 
> You learn something new everyday.


They still do. They just want them to withhold the amount they are projected to owe or pay quartery.


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## Launchpad McQuack (Jan 8, 2019)

mmn said:


> You have a year to get educated.


You have a year to get educated, but start keeping good records *NOW*. It's so much easier to do it right from the beginning than to go back and try to piece it together later.


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## mmn (Oct 23, 2015)

Launchpad McQuack said:


> You have a year to get educated, but start keeping good records *NOW*. It's so much easier to do it right from the beginning than to go back and try to piece it together later.


Is there an echo in here?...!



mmn said:


> If you just started, you will not file a return until next year for this year's income. Keep detailed mileage and business expense records, receipts.


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## Taksomotor (Mar 19, 2019)

Homie G said:


> And all these years I thought the IRS LOVED people that owe big taxes.
> 
> You learn something new everyday.


IRS actually prefers to owe you taxes back


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## mmn (Oct 23, 2015)

Taksomotor said:


> IRS actually prefers to owe you taxes back :smiles:


Yes, they held and used your money for a year interest free!


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## KK2929 (Feb 9, 2017)

snyder1171 said:


> I just became an Uber driver over the weekend, I've only done a few trips and made about a total of 70 dollars. I was told that if I made over 600$ I have to file 1099 form to the IRS, where do I get the form? What do I write on it? How do I submit it?


-----------------------

Welcome new driver. As everyone has stated, keep good records. Mileage, ( logged on and logged off ). You will need receipts for everything -- gas, service work, car washes, etc. IRS will not accept your word.
I recommend having a tax professional do your taxes. Much easier on you. There are several forms to fill out -- Form 1040, Schedule 1 & 4, Schedule A, Schedule C & Schedule SE. That is just federal taxes. You will have state taxes, too. 
It is recommended to make a tax payment every 3 months. I do not do it and know no one who does. I would think that you have to calculate what your taxes are for the three months and send a payment to the IRS. To me this is doing taxes every 3 months, instead of once a year. Also, means that the IRS has your money (interest free ) for several months. If you do not send in a payment quarterly ( every 3 months) you will owe for 2019 , which is due on April 15 , 2020, meaning, either put money away every week or you will pay big ( several thousand ) when taxes are due. Figure on 25% of your gross earnings. Example for every $100 total, gross not net, that you earn, put aside $25.00.


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## Stevie The magic Unicorn (Apr 3, 2018)

Start your accounting NOW

Each DAY (or shift if you straddle midnight)
Column 1. Starting odometer
Column 2. End odometer
Column 3. Cash tips
Column 4. Tolls total
Column 5. Miles driven.
Column 6. amount paid by Uber
Column 7. Amount paid by your next 1099
Column 8. Rinse lather repeat

That’s literally all you NEED for taxes. But you need that for every day.You don’t need receipts... you don’t need to figure out what expenses are business and what. You don’t “need” anything but what’s listed.


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## KK2929 (Feb 9, 2017)

Stevie The magic Unicorn said:


> Start your accounting NOW
> 
> Each DAY (or shift if you straddle midnight)
> Column 1. Starting odometer
> ...


----------------

Where is the column for gas and all the other expenses ? No receipts - you are joking, correct ??
If they follow your suggestion, the I.R.S. will love doing business with him.


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## Ssgcraig (Jul 8, 2015)

Stevie The magic Unicorn said:


> Start your accounting NOW
> 
> Each DAY (or shift if you straddle midnight)
> Column 1. Starting odometer
> ...


Definitely not LITERALLY all you need. Get an app that racks your miles, or keep an old school ledger of each trip.


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## mmn (Oct 23, 2015)

KK2929 said:


> ----------------
> 
> Where is the column for gas and all the other expenses ? No receipts - you are joking, correct ??
> If they follow your suggestion, the I.R.S. will love doing business with him.


He's talking about taking the standard mileage deduction rather than itemizing car related expenses.


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## KK2929 (Feb 9, 2017)

mmn said:


> He's talking about taking the standard mileage deduction rather than itemizing car related expenses.


----------------------
I feel it is best to work up both figures and see which saves you the most money. This year, I drove a personal car and a rental car. I used standard for the personal and Itemized for the rental. I did a draft tax form using one way for all vehicles. There was a huge difference. I would have had to pay much more if I had used the standard.


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## mmn (Oct 23, 2015)

KK2929 said:


> ----------------------
> I feel it is best to work up both figures and see which saves you the most money. This year, I drove a personal car and a rental car. I used standard for the personal and Itemized for the rental. I did a draft tax form using one way for all vehicles. There was a huge difference. I would have had to pay much more if I had used the standard.


I thought you had to do one or the other, but maybe that's for each car.


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## Stevie The magic Unicorn (Apr 3, 2018)

KK2929 said:


> ----------------
> 
> Where is the column for gas and all the other expenses ? No receipts - you are joking, correct ??
> If they follow your suggestion, the I.R.S. will love doing business with him.


Over the life of a vehicle, the standard mileage rate will pay out in excess of $150,000 worth of deductions if you solely use it for business.

A mere $30,000 of that will be fuel.

Standard mileage rate will work better for the first year you do Uber, because it will shift the deductions onto the first year. If you use actual expenses things like rebuilding your engine or reupholstering your car are super far into the future.

Also odds are that when major problems start hitting you if your already gone you can't write any of those expenses off.

Odds are that you won't last a year... Uber's turnover is in excess of 100% per year. (Which means for every 100 drivers they want on the road they have to sign up 120 per year.)
has

The end result is...

With the standard mileage rate, for every $20 in gas I burn I get $110 in deductible mileage. So in theory I put aside $90 a day towards a new car purchase or expensive repairs.

The reality is that in Orlando I'll get about $110 in deductions per every $80-100 made on scruber/gryft.



KK2929 said:


> ----------------------
> I feel it is best to work up both figures and see which saves you the most money. This year, I drove a personal car and a rental car. I used standard for the personal and Itemized for the rental. I did a draft tax form using one way for all vehicles. There was a huge difference. I would have had to pay much more if I had used the standard.


That's the smart way to do it yes. It's posible that you will have certain years being more or less profitable.

On my 2010 sienna my actual expenses for the first year was literally just gasoline and depreciation. I made out like a bandit on standard mileage rate.

The second year I was pushing 150,000 miles and not a lot broke.

and in the third year there was nothing left to depreciate but everything broke at least once, I also got crappy fuel economy and I think the exhaust was burning dirty.

So the per mile costs varies wildly but using standard mileage worked out because it is truly a fair number.


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## Older Chauffeur (Oct 16, 2014)

KK2929 said:


> ----------------------
> I feel it is best to work up both figures and see which saves you the most money. This year, I drove a personal car and a rental car. I used standard for the personal and Itemized for the rental. I did a draft tax form using one way for all vehicles. There was a huge difference. I would have had to pay much more if I had used the standard.


Something to keep in mind is that if in the first year of use of your car for business you choose the actual expenses method, you have to do the same in succeeding years. If you use the standard mileage rate in that first year you can change methods in later years. Source: IRS Publication 463

Disclaimer: I'm not a tax professional.


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## Launchpad McQuack (Jan 8, 2019)

Stevie The magic Unicorn said:


> Standard mileage rate will work better for the first year you do Uber, because it will shift the deductions onto the first year. If you use actual expenses things like rebuilding your engine or reupholstering your car are super far into the future.


Also, if you use actual expenses in the first year then you are locked into using actual expenses for the life of the vehicle. You can't switch to the standard mileage rate in later years. If you use the standard mileage rate the first year, then you are allowed to choose each following year whether to use actual expenses or standard mileage. (This all assumes that you own the vehicle and are not leasing.)


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## Older Chauffeur (Oct 16, 2014)

Re leased cars, if you choose the SMR you must use it for the entire lease term. Source: IRS Publication 463.


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## Stevie The magic Unicorn (Apr 3, 2018)

Honestly i'd be thrilled to get the SMR istead of only being able to deduct Gas and tolls for a year because nothing major broke...


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## KK2929 (Feb 9, 2017)

mmn said:


> I thought you had to do one or the other, but maybe that's for each car.


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Mine got confusing because I had 5 months of personal car and 7 months of rentals (3).
I did standard for the personal and itemized for the rentals.


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## Stevie The magic Unicorn (Apr 3, 2018)

You can’t do standard mileage on rentals by the way...


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