# Quarterly Tax Question 2021



## Jay Dope (Jul 28, 2020)

Hi! It's my second year doing rideshare jobs and I got a question I couldn't find the answer for yet.

During second year of self-employment you got to pay estimated taxes quarterly. And I'm okay with that. 
But how do you submit all this info at the end of the year when the tax return season due? Because while calculating estimate tax I was deducting only gas miles and other business expenses. Since there's also a standart deduction needs to be applied ($12,550) there might be a chance of overpaying and getting a tax refund. How does it work?


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## Older Chauffeur (Oct 16, 2014)

Jay Dope said:


> Hi! It's my second year doing rideshare jobs and I got a question I couldn't find the answer for yet.
> 
> During second year of self-employment you got to pay estimated taxes quarterly. And I'm okay with that.
> But how do you submit all this info at the end of the year when the tax return season due? Because while calculating estimate tax I was deducting only gas miles and other business expenses. Since there's also a standart deduction needs to be applied ($12,550) there might be a chance of overpaying and getting a tax refund. How does it work?


First, you said that you’re deducting “gas miles and other business expenses.” It’s either gas and other vehicle expenses, or mileage, not both. Second, those deductions apply only to your ride share gross income on Schedule C, and are separate from the standard deduction on your Form 1040. Third, wouldn’t it be better to have overpaid and get a refund rather than have to pay penalties and interest for underpaying?
You can avoid penalties if you have paid in an amount equal to 100% of the total taxes owed in the previous year, or 90% of the current year. If you have a regular W-2 job, you can ask your payroll people to withhold extra to cover your ride share income.
Finally, your tax program or preparer from last year’s return should have told you how much your quarterly payments would be and when they would be due. I’m not sure, but I think that calculation would be made with satisfying the 100% rule in mind.
Edit: You asked about providing the quarterly payment info at tax time. You will enter it where you enter payments and W-2 withholding. The IRS computers will match it up using the payment info.
Disclosure: I’m not a tax professional. However, @UberTaxPro is, and he may see your post and answer, or you can PM him for the straight scoop.


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## Disgusted Driver (Jan 9, 2015)

I believe that all that @Older Chauffeur has said is correct, I would add two things:
While the goal is to guess your tax liability and pay appropriately, if you are a little under (up to 10% I believe) then there is no penalty for underpayment (or 100% of last year as already mentioned).
Given that I have a w2 job as well, instead of filling quarterly what I do is increase my withholding in December by $2000 to cover self employment income. Withholding is treated as if it was taken out evenly throughout the year so I'm not penalized for waiting till the last moment to give them their money.


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