# Another taxes question....



## lazyamerican (Jul 15, 2017)

Would asking my day time employer to increase tax withholdings from that pay check basically negate uber/lyft taxes owed?


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## Older Chauffeur (Oct 16, 2014)

lazyamerican said:


> Would asking my day time employer to increase tax withholdings from that pay check basically negate uber/lyft taxes owed?


Yes, if you have sufficient money withheld. If your net profit is over $400 you will owe 15.3% FICA plus regular income tax.

Disclosure: I'm not a tax professional.


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

lazyamerican said:


> Would asking my day time employer to increase tax withholdings from that pay check basically negate uber/lyft taxes owed?


umm yes, your prepaying more of your taxes, another option is to make bi-monthly (every other month) payments to the IRS based on what you actually made Ubering.

https://www.irs.gov/uac/pay-taxes-by-credit-or-debit-card

Assuming your in a market that generates taxable income, some places driving uberX actually generates a net loss in terms of taxable income and therefore it generates a deduction for any other revenue source.

_*As strange as this sounds, what market your in will have a bigger impact on how much you owe in taxes than how much you work.*_

In order to figure out if your putting enough aside for taxes you need to figure out if you are even making any profit according to the IRS.

Take your total mileage driven doing uber, and multiply it by $.535.

Then take this amount and deduct it from your total uber revenue, (this will either be positive or negative. It can be either positive or negative either way is possible.

Then deduct tolls,

(if you have no mileage log your already screwed i'm a afraid.)

So
with 8549 miles driven

$8,549 (total revenue)
-$286 (tolls)
-$4,530 (mileage deduction)

$3,733 in profit

$559 in tax bill

OR ORLANDO MATH
17,098 miles

$8,549 (total revenue)
-$500 (tolls)
-$9,147 (deductible miles)

-$1098
(an $82.50 deduction off a w2 job)

Or a taxable loss,

The same amount in total revenue is a swing of owing $559 or getting an extra $82 in refund, based on what market your in.


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## lazyamerican (Jul 15, 2017)

Only been doing it for a little over a week...so I'm alright for now. Just trying to get a system down to make this process painless since before this uber/lyft business came about all I did was almost blindly click all the typical boxes of a single guy living at home making an extremely low amount of money per year.


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## UberSelect07 (May 17, 2016)

I have been driving for 2 years now. Driving UberX and tracking your miles usually makes your Uber income just about tax free. The IRS requires a log and I use MyRideTrac to keep track of my miles. The miles you drive while active, but empty are also deductible. MyRideTrac lets me track my empty miles too. I send myself a spreadsheet at the end of the year. The app shows me my deductible miles, calculates the deduction and attaches a spreadsheet with the detail for my logs. Very affordable at 1.99/month.


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## lazyamerican (Jul 15, 2017)

So you can do it annually? I've read you need to pay taxes quarterly for rideshare companies.


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## Older Chauffeur (Oct 16, 2014)

lazyamerican said:


> So you can do it annually? I've read you need to pay taxes quarterly for rideshare companies.


There are rules about when you are required to pay quarterly, but basically the IRS just wants to be sure to get their money from self employed people like they do from employees who pay through witholding. If you adjust your witholding on your day job you can probably avoid paying quarterly. If you owe less than $1000 at tax time you shouldn't owe any penalties. Also, if you have paid in at least an amount equal to 100% of the prior year's net tax liability, you're in the clear. Similarly, if you have paid in 90% of the tax owed for the current year, there won't be a penalty.
So if you were to take your tax from 2016 that you just paid, and and make sure you have enough withheld to match that amount by the end of the year, you should be in compliance. Also, if you got a refund this year, I would think you're going to be okay. It's wise to be planning ahead. Good luck.


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## UberTaxPro (Oct 3, 2014)

lazyamerican said:


> So you can do it annually? I've read you need to pay taxes quarterly for rideshare companies.


You would only need to pay quarterly if you have NET income. Like UberSelect07 said above "Driving UberX and tracking your miles usually makes your Uber income just about tax free. " If you keep good records it's very possible that your NET income will be somewhere close to $0.


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## UberSelect07 (May 17, 2016)

Agree! I do not file my quarterly taxes... my end of the year taxes are just about zero.


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

UberTaxPro said:


> You would only need to pay quarterly if you have NET income. Like UberSelect07 said above "Driving UberX and tracking your miles usually makes your Uber income just about tax free. " If you keep good records it's very possible that your NET income will be somewhere close to $0.


 I just paid my tax bill for april 1st to June 3o...

Youch!...

If i had been ubering instead i'd have 1/3 as much revenue, more in deductions (my taxi costs less than the standard mile rate to rent/fuel per day) and no tax bill at all..

But that's the cost of getting $2.40 a mile, having to pay taxes...


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## lazyamerican (Jul 15, 2017)

Do I need to somehow separate uber/lyft mileage while I'm using a mileage tracking app? Using strider currently and it's quite convienent just that if I had to sift through each and every single ride to separate each one to determine approximate mileage for each company....well that'd take a while simply put.


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## UberTaxPro (Oct 3, 2014)

lazyamerican said:


> Do I need to somehow separate uber/lyft mileage while I'm using a mileage tracking app? Using strider currently and it's quite convienent just that if I had to sift through each and every single ride to separate each one to determine approximate mileage for each company....well that'd take a while simply put.


No, you can file one schedule C for all your ride-share activities. One ride-share business with two customers...Uber and Lyft. One mileage log for each vehicle is all you need.


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

UberTaxPro said:


> No, you can file one schedule C for all your ride-share activities. One ride-share business with two customers...Uber and Lyft. One mileage log for each vehicle is all you need.


I just lump everything together, taxi income, uber income, black car income, everything.

I list all my 1099s, 
Uber
lyft
square
the taxi company

cash income, and that's it.

then i deduct the miles i use my personal car, the total i spend renting taxis, gasoline (FOR THE TAXI NOT MY PERSONAL VEHICLE) tolls

and it all lumps together.

There's no reason to separate out your businesses between uber and lyft.


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## lazyamerican (Jul 15, 2017)

Cool....also surprised to learn that apparently you can deduct cell phone purchases/service usage....how would I go about doing this? Strider offers a percentage of business usage....seems vague to me as I dont always have the apps on.


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## Uber Duber Chick (Jun 29, 2017)

Mears Troll Number 4 said:


> umm yes, your prepaying more of your taxes, another option is to make bi-monthly (every other month) payments to the IRS based on what you actually made Ubering.
> 
> https://www.irs.gov/uac/pay-taxes-by-credit-or-debit-card
> 
> ...


Don't forget to deduct all Uber Fees. That will help reduce the tax bill!


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## mattsilva7 (Aug 14, 2017)

I'm still a bit confused about what we can deduct.

Actual cost: allows you to deduct more but its actual cost of all expenses.

If we use the standard mileage deduction: what can we deduct specifically?

parking, tickets, phone (data and line only or payments on phone as well), car washes, car payments? registration, home office supplies and equipment, etc.

Still looking for a comprehensive list somewhere.

Thanx


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

mattsilva7 said:


> I'm still a bit confused about what we can deduct.
> 
> Actual cost: allows you to deduct more but its actual cost of all expenses.
> 
> ...


OK, actual cost USUALLY IS LESS than standard mileage rate, just so you know.

over 150,000 miles a car will generate $80,250 in deductions using the SMR.

Actual allows you to individually write off everything.

For standard mileage you can write off anything that its't a direct expense of turning on the engine and going up and down a road.


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## mattsilva7 (Aug 14, 2017)

so with standard, I cant write off carwashes, tickets, phone, parking, office supplies, computer, etc?


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## Older Chauffeur (Oct 16, 2014)

mattsilva7 said:


> so with standard, I cant write off carwashes, tickets, phone, parking, office supplies, computer, etc?


The standard mileage rate for business miles applies to the costs of operating your vehicle, period. Deductible expenses for cell phone, office supplies, etc are separate. Re things like tickets (assuming you mean traffic citations) you should be ready to make a solid case while facing an IRS auditor across his desk. Same thing with car washes- in excess of one per week because you need to always present a clean car to your pax? Parking? For what business purpose? Anything you list, like your phone or computer you may have to split if it's used for personal reasons as well as business.
Google "IRS Publication 463" for examples and instructions on deducting vehicle expenses.
Disclosure: I'm not a tax pro, but UberTaxPro is, and he may see your post and answer. Also, check out the threads in the Taxes Forum on the subject- there are plenty of discussions about what's deductible.


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## mattsilva7 (Aug 14, 2017)

Thank you that sheds some light on it. I am not looking for huge write offs by any means but I was to use as much as possible by law of course.

I hope he does chime in, but I will look on the taxes forum. not sure if I got far enough to see it yet


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## steveK2016 (Jul 31, 2016)

My cpa would not let me deduct the unlimited carwash plan i paid for but did deduct a percentage of my phone bill that we deemed wss used for ubering. 

My tablets and the daya plan were deducted because i use 100% for uber. 

Office supplies and computer will be a rough sell. I hear home office deductions can be red flags to the IRS. Too many people trying to add excess deductions calling their dining room nook their home office. You drive a car for hire, not a freelance graphic artist that literally works from a home office.


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## mattsilva7 (Aug 14, 2017)

Thank you those are the exceptions I was looking for. there are no carwash plans locally here but a car wash once a week seems ok according to most (not sure). but phone and data plan although is not used 100% for rideshare... easily 80%+ for me. happy to split it at 50% if its legitimate to do so.

The clearer the picture I can put together the less I have to log. trying to maximize whats allowed and limit time recording items that wont be of use while using the standard mileage deduction.


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## UberTaxPro (Oct 3, 2014)

mattsilva7 said:


> so with standard, I cant write off carwashes, tickets, phone, parking, office supplies, computer, etc?


1. Car washes generally no. Extra washes to clean up after pax yes as long as you're not reimbursed.
2. Tickets NEVER.
3. Phone, office supplies and computer yes but subject to % of business use like Older Chauffeur said.


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## Skinny1 (Sep 24, 2015)

I owe about $6k right now but still anticipate that as a household (wife's income) we will still get a refund.

It's my understanding if that's the case I am fine not filing quarterly , should I just send in a check at the end of September for a couple grand to make sure we don't owe at year end? Is that the most important thing not owing at year end?
I need to just start filing quarterly. Making a net profit really makes this gig worse.... I may pull the trigger on an auto purchase to offset that liability before year end ... which could climb to $8+k


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

Skinny1 said:


> I owe about $6k right now but still anticipate that as a household (wife's income) we will still get a refund.
> 
> It's my understanding if that's the case I am fine not filing quarterly , should I just send in a check at the end of September for a couple grand to make sure we don't owe at year end? Is that the most important thing not owing at year end?
> I need to just start filing quarterly. Making a net profit really makes this gig worse.... I may pull the trigger on an auto purchase to offset that liability before year end ... which could climb to $8+k


Owing 8K with uber is a phenomenal accomplishment, you have to be in like Seattle?

Umm... yeah your going to need make payments...

(as a profitible cab driver according to the IRS)

What I do is a set aside about 7.5% of my *PROFIT* every day and make a payment every other month based on 7.5% of my total profit.

Now this isn't 7.5% of my earnings, this is 7.5% of my PROFIT... PROFIT!

So on $210-$300 per day in revenue they are getting like $10-15 per day on me...

Which is why i'm truly truly shocked at you owing $8,000


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## UberTaxPro (Oct 3, 2014)

Skinny1 said:


> I owe about $6k right now but still anticipate that as a household (wife's income) we will still get a refund.
> 
> It's my understanding if that's the case I am fine not filing quarterly , should I just send in a check at the end of September for a couple grand to make sure we don't owe at year end? Is that the most important thing not owing at year end?
> I need to just start filing quarterly. Making a net profit really makes this gig worse.... I may pull the trigger on an auto purchase to offset that liability before year end ... which could climb to $8+k


Generally, to avoid penalties you don't want to owe more than $1000 at year end.


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## Skinny1 (Sep 24, 2015)

Mears Troll Number 4 said:


> Owing 8K with uber is a phenomenal accomplishment, you have to be in like Seattle?
> 
> Umm... yeah your going to need make payments...
> 
> ...


My income is in addition to my wife's so the bracket on profit is quite high. I have been netting $1.50 per every mile driven average.(including dead) ...no other expenses really but small cell phone and other miscellaneous (bought a nice work bag )  ....

Like I said may do something by year end to negate that huge tax bill. My cpa friend says don't let the tax tail, wag the dog.....but it's hard not to.


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## UberTaxPro (Oct 3, 2014)

Skinny1 said:


> My income is in addition to my wife's so the bracket on profit is quite high. I have been netting $1.50 per every mile driven average.(including dead) ...no other expenses really but small cell phone and other miscellaneous (bought a nice work bag )  ....
> 
> Like I said may do something by year end to negate that huge tax bill. My cpa friend says don't let the tax tail, wag the dog.....but it's hard not to.


You could have your wife withhold more from her income. If she's anything like my wife however, that will never happen, hahaha.


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

Skinny1 said:


> My income is in addition to my wife's so the bracket on profit is quite high. I have been netting $1.50 per every mile driven average.(including dead) ...no other expenses really but small cell phone and other miscellaneous (bought a nice work bag )  ....
> 
> Like I said may do something by year end to negate that huge tax bill. My cpa friend says don't let the tax tail, wag the dog.....but it's hard not to.


If your getting $1.50 per mile driven that is a heck of an accomplishment. I can rarely even do that in a taxi when i'm charging $2.40 a mile.

I'm usually around $1.00 to $1.20 at the most in a taxi, and like i said that's getting $2.40 a mile.

So if some don't believe your numbers that's why.

Wish i could get half that in Orlando ubering, Around here X will get you about 80c-90c per PAID MILE,and about 25-30c per driven mile (Orlando among the worst paid uber markets in the nation, and lower than many places in south america)


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