How to File Taxes for Uber Drivers (2023-2024) | Write-offs and Benefits
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- Опубликовано: 13 окт 2024
- Going through and showing you exactly how I've filed my taxes as an Uber Driver
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Seems that a lot of people get confused with the tax summary form that uber sends out showing gross income and then the fee section. Be sure when you are doing your schedule c that you count the fees as an expense. Then also count your mileage deduction for standard miles if do that route. Also can count expenses with hot bags, drink carriers, a percentage of your phone and service (full bill and phone cost if used solely for business), car charger, car phone holder, etc... Definitely take advantage of the 1 thing that being an independent contractor benefits you with since you don't get employee benefits from a w2 job.
Exactly if he also write off his expenses he shouldn't be owing anything.
You can’t deduct miles AND expenses! You use either the standard mile deduction OR you deduct all expenses. You also can not switch from year to year - once you go with one, you have to stick with it until you sell your car. It’s basically linked to your vehicle
@@keinohrtini that is incorrect. Only if you do actual vehicle expenses for the first year, you can't switch to standard mileage in the future years. The expenses are vehicle specific that you are thinking of dealing with the fuel and maintenance of the vehicle. You can also deduct expenses related to your other non vehicle maintenance related expenses like insulation bags and drink carriers along with the fees that Uber charges as the 3rd party. You can't do standard mileage deduction AND claim fuel, oil changes, tires, expenses related to the upkeep of the vehicle.
@@Bamapride1985 that’s what I meant
Thank you! This was helpful Who did you file with? I’m trying to do it through cash app but, I don’t know how to add the expenses. It’s saying I owe over $17,000 😮💨
You didn't show how to fill out the forms or anything
By any chance do you know if I could file my taxes and get a child tax credit as a Uber driver?
Why on earth can't I find anywhere online which BUSINESS TYPE I select on the schedule C drop down? There is noway to just type gig economy anywhere. You have to pick from that list and the closest I see are: Courier & Messenger, Transportation & Warehousing....others are Food & Beverage retailers, Food Services & Drink Places....what are self tax preparers selecting? I don't need anyone telling me, well my tax preparer does all that or get a ACP or accountant...No, No, No. I don't need them milking me out of $119 to do nothing! I barely made $1,300!!! I only need people who do their own self employed taxes to assist me!!!!!😂😂😂
The business code is 492000. Transportation and Warehousing : Couriers and messengers, so u got it right.
He said pay "$15 a month and you get it for free" THAT MAKES PERFECT SENSE!😅😁
And that shit was 100 he went up 150 that must be an ad
Moore says he is not accountant but since he did this video he should tell people where to get the number of how much they made for the year 2023. That is on the Yearly Summary that Uber puts in the app and on the internet. I am not an accountant either but what DD does for income tax purposes as far as how much money is made makes more sense than what Uber does.
I want to understand why they say I made so little on the 1099-NEC form but on the annual it's what I was expecting that I made. Make it make sense.
When you look at your Yearly Summary on the left hand side it should say:Your gross payment and under that it should say:Gross trip earnings and Additional Earnings. I dont understand why but people pay tax on the amount of Gross Trip Earnings not on the amount of money that gets deposited into a person's bank account. Uber for some reason looks at Incentive Pay, Referral Money and Rewards money to determine if a person gets a 1099 form. I know that the yearly summary does not mention Incentive P, Referral M and Rewards M.
Read uber tax q&A for some reason it says if you made more than 20k they will provide you 1099 K . So my understanding to it you made less than that you don’t get the 1099k form .
@@edpadz5004 Would really like to see someone give an opinion on this. A lot of this in general isn't making sense to me. I haven't started taking orders yet, but all this is giving me some pause.
@@edpadz5004so I won’t have to worry about filing?
@@watermalone1376you still have to file taxes if youve made over $600+ in a year doing gig work
I know how much I made in total in 2023, just not sure which business type to pick in the pre selected drop-down window, which box to enter the total in. I don't have any 1099 of any kind. It sounds simple but there are all types of boxes, but they don't actually show you a C schedule form. Does total go in other income box? I never get an answer here, so I will try to contact cash app taxes...😏😒
I was told by Jackson Hewitt that you can write off miles at .655 per mile, but can also write off Car insurance, Oil Changes and Car Warranty, tires, brakes and any other maintenance. This sounds wrong to me though. I would think that the .655 per mile is supposed to cover ALL vehicle maintenance.
Thank you very much, you just made my life a lot easier....
Wouldn’t your write off total be greater if your a food delivery driver such as adding 50% of registration, phone plan, new bought phone, car repairs & maintenance, auto insurance, and car loan interest rate, and supplies needed for delivering?
its 2 options standard mileage deduction or expense deduction which would go with what youre saying
I use the HR Block software. It’s great!
Thank you for your video. I was under the impression that you had to pay your taxes every quarter..cause if I can just do it at the end of the year when I file my taxes for my main job that would be so much easier
you saved me $400.00 - Thanks so much!
Uber is crazy everywhere... Two forms for bonuses and base pay. If you earned less then 20k for bonuses, you should smoke alot to understand there "paid", "expenses" and "transferred to bank" games
Got penalties for not paying taxes on Uber and Lyft after putting numbers of the money that I made in 2022. If I do amendment and put all my expenses ( mileage drove?) are they going to wave the penalties? Please respond
Hi. If i made under $11,000 in the year 2023. Do i need to file taxes on that ?
Yes, you are supposed too.
Absolutely
What about the car expenses, I didn’t see you adding it. Also what about the deduction Uber made
Like he said, he’s not the best financial advisor, but that’s the formula he used🤷🏾
You got maybe 4 oil changes($300) , tires ($500) (which you can't claim 100%, car washes ($1,000) , drinks, phone service, sunglasses, sunscreen, misc. Did that COST MORE than $3,000? Usually, not. It's close, maybe.
Again all of the phone and tires ARE PARTIAL deductions.
If you drove your car 60k and 45k was UBER. (15+15+15+15 =60)
75% of your TIRE cost would be tax deductible.
$1,000 for tires would 750 deduction.
Then your phone service.
61,320 hours in a year...
Divided by hours in the app. Then take off your yearly bill.
I love stats and math but...
This is understandable why the mileage method is mostly used?
Yes paying 15 or 20 per month? Its not cheaper total a year you ended up paying up to $240?? I used turbo tax they just charge me $109
This helped alot. This is my first time doing taxes EVER. Im 19, and I understood everything in this video but my only question is how do you file the taxes? Like lets say you find out how much you owe. Where do you pay it? I thought about using cashapp tax filing but i have no idea. Hopefully the irs will have mercy
If you watch to the end of the video I explain where to go. You can download solo with the link in the description and filed through them for really cheap!
I am an experienced in paying income tax. Taxes are paid to the IRS (Internal Revenue Service). You can go to H and R Block for instance although I would not recommend H and R Block as a first choice. At your age I would not be too worried about the IRS. The income tax return always starts out for personal income taxes with Form 1040 which is on the internet. Your parents must know something about paying income tax.
You can file taxes on paper and that is I would recommend doing so you understand how to do income tax before you put the information into software. To start with you need a 1040 form which is on the internet. You will also need a Schedule C and SE form. Your parents must know something about how to pay income tax.
Or you check out turbo tax - they even have a video here on yt for gig worker and how to file it.
There are plenty of free tax return services out there. I personally use freetaxusa, but I've heard good things out of turbotax and others. You may have to pay a fee to file state taxes depending
Why didnt you claim the uber platform fees, tolls , etc?
Shouldn't we just use the forms that rideshare submitted to us? Not that it makes it easier. I may have to pay for expert help for tax act.
Right? It’s bullshit that most people have to pay someone to do their taxes! It seriously shouldn’t be that difficult… but they make it that way on purpose.
i do uber taxi and my total income is 3500$ ..so in Line 101 in sales and revenue i have to write total income (3500$)
or i have to minus my expenses and than put the remaining amount sales and revenue column??
Thank you for the equations! VERY appreciated. I have my Uber annuals, Though I dont agree with the mileage- I understand they only calculate the mileage from when I accept the ride/food pickup to when I complete the ride/food.
I think that's not correct. You can deduct mileage from start of session(leaving home) to the end of your last trip. Just be sure there is a gap between your end of your last trip and the next start-of-session. (You can deduct miles going to the area you begin working and the miles between trips. You can't deduct the miles of the drive back home after last trip is done.)
Uber taxes are a nightmare. It doesn’t make sense how they don’t just send out a 1099 just like Door Dash! What’s the difference?
You have to go in the uber driving app to find it
Yes they are. With my 2, W2’s, I would have a refund of $6085 but when I add schedule c for the 3059(gross amount) I made with Uber, it knocks me down by a little over 2k, I know I have to be doing something wrong atp because how and when I add in expenses, it makes my refund even lower. I also have 2 dependents
you telling me i cant write off gas and hot bags, tires oil changes and all the expenses?
How do I do that? Thats what i wanna know
@@schoolaccountbopp4077
If you use the standard mileage deduction for the vehicle, you can't write off for vehicle maintenance type expenses since they are counted into the standard mileage deduction. This is limited to vehicle expenses. You can still count the expenses of the hot bag, drink carrier, phone, phone service, car charger, phone holder, etc..
Because it's already included in the standard mileage deduction..I used turbo tax
Moore, I used two different vehicles for Doordash how do you report two vehicles in Schedule C ??
I have this same problem
Actually you add both vehicles mileages and entered them as one
Actually you add both vehicles mileages and entered them as one
Actually you add both vehicles mileages and entered them as one
Actually you add both vehicles mileages and entered them as one
Is he supposed to take off other expenses while driving from that 3k he owes?
if you do rideshare in texas, taxes on 40k would be 12% federal + 0% state + 15.3% = 27.3%, correct?
Depends on how much taxable income you have after you deducted the tax writeoff you get from the 67 cents a mile credit. At first I was confused also and was using my gross projected total income. I'm projected to make 36k but my taxable ended up being 10,000 and some change. So 12% went down to 10% federal. So if you made same mistake as me at first its 25.3% not 27.3%
@@matrixbeastreloadedi have driven 20k miles (January 2024-May 2024) while online with uber before i downloaded an app that tracks my miles in May. How do i prove that i indeed drove 20k while driving for uber? heard uber only declares your number of miles when you have someone in the car)?
@@obiwanfrenchy11 Without an app tracking it its a he said she said type thing but I just keep my own log book. I should probably get a tracking app but I dont use one. We are allowed to include miles it took while leaving house to go pickup customer and drop them off and to get gas and car wash and anything that has nothing to do with outside of work.
You confused me, you said your taxable income was $29,000 then you use the tax rate from a chart that went up to $20,000 for 10 %, the next box down down is what you should have went with which is 12%.
The 29,000 was his deduction for the milage so it was only 10,000 left as taxable income from 40,000 it got me at first too!
Just curious if Uber takes out federal, state, and local taxes?
nothing, they pay us as 1099 contractors but do not even provide a 1099
Hello bro,do we consider tips also in our uber eats income or just uber fares?can you please confirm me this
Tips too
@@Moore.Driven bro I just $605 in total and after standard mileage deductions i am left with $476 do i need to file it or not?
I have an issue.
Last year, I was a full time driver.
I drove 32450 km but my Uber tax summary says that I can only deduct the paid km by Uber, in my case drove 8000km.
What happens to the other 24450km?
Report the 32450. If my app is on i am tracking my miles, whether or not i have an order
Thanks for the info Blake! I just do DD but might hit the Uber sooner or later man. Thanks for keeping the dashes fun brother!
No problem! Thanks for watching!
Anytime man, your videos are really informative bro looking forward to the next one 👍👍👍
@@Moore.Driven what deductions can you get with ebike or scooter for this business?
@@Moore.Driven Can you still deduct cell phone for business expenses with using option A mileage deduction
It’s .67 now for the mileage be diligent or another RUclipsr will and is
For 2023 taxes it’s .655
Why does Uber put the GROSS amount onto the driver? I never saw that amount ever. I do this part time and they say I made $23,682 GROSS, BUT I only deposited $16,943 into my bank account. Then I had $5,049 in expenses. So at the end of it all, I made $11,894. So when I do income based repayment on school loans they want GROSS amount when I never saw any of it and none of that went to Federal, State or SS...etc... Doesn't make sense to me. Someone?
I just found this video and it explains what Uber is doing. Very confusing....
ruclips.net/video/byqrnAPmLcQ/видео.htmlfeature=shared
Uber has to report the total gross for all your completed orders that the customer paid. Then they will take their fees from that which is for you to claim on your schedule c form as expenses. Sounds to me that you are mistakenly wanting to count Uber as a W2 type pay when comes to gross. Uber pay is business income and then you have expenses. It is usually counted differently on forms from gross income from a W2 pay. Is there anything about self employment income on the school loan form? That would be more of where you would report the income from the business. I have a full time job and do ubereats as supplemental income and just seldomly (3k in 2023) but after the mileage and then other expenses (even the Uber fees from the gross amount), it shows as -200 so was not liable for any taxes on the earnings I made doing it. This actually helps me get a bit more refunded from taxes I pay in on my W2 job by reporting a loss.
@@Bamapride1985Thanks for commenting!
Hi Jerry, Excellent questions! Uber's Tax summary (found on the driver's dashboard) IS not your gross income. That is the total amount generated from the ride, INCLUDING Uber's share.
Uber drivers are NOT employees, They are their own boss - Independant Contractors. An employee recieves a W2. Independant contractors recieve a 1099 to show how much they earned. (their are different types of 1099, but for simpicity and for now let's just say 1099). The 1099 includes the whole shabang, INCLUDING what Uber made. It is your mission, if you chose to accept it, to deduct as much as you possibly can from that impossibly ridiculous number (legally of course).
What Uber lists as your net income is not your true net ( or taxable income), it is simply the total money generated from the ride minus Uber fees.
As an independant contractor, on a schedule C ( for buisness owners), to show income., DEDUCT your expenses related to the buisness (driving).
What if I just started this gig work business in 2024? Would I still have to pay taxes?
No, not until next year
@@Moore.Driven ok, wasn’t sure bc I keep getting the taxes notifications on solo
Yes!
You can pay mine🥰😊
@@Moore.Drivenas far as I understand, self employment income taxes need to be paid in quarterly payments throughout the year. Otherwise you potentially face penalties. Though it’s complicated. Like I believe if you didn’t make self employment income for the previous year you don’t have to do this. And you are supposed to base it off of what you made last year. Like I said, it’s complicated. This is why people should utilize a CPA.
@@Ggg496nice!
You do net or gross on your 40,000
i made $3.16 do i still have to do taxes
Hey Moore, you left out something both left and Uber put on you 1099 the money thy made, looking at your video $40,000 then you add the $25,000 that comes to $65,000, so look at your 1099 they added their money on you which put you in a different tax bracket take care
The guy in the video forgot about uber fees, app fees etc. So for 40k I would assume 20k are uber fees so he really made 20k himself in gross income
say i make 30k driving uber this year. let's say i drive 40k miles. i deduct 40x $.67= $26,800. am i only getting taxed on 30k-26.8k= $3,200?😢
If you made 30k and drove 40k you’d only be taxed on $3,200 meaning you owe $0 in taxes. I’m not a tax professional though, that’s just how the math works out
@@Moore.Driven i've been putting 30% of whatever i made on Uber in a "uber taxes" for the past 4 months... i have a first job (w2) though that makes 70-100k per year though so how does that work?
Do you have to pay quarterly taxes
you can make quarterly estimated tax payments.
Yes u do but also can pay taxes at the end of the year if u don’t if u don’t have much deductions so if I was u I will save $2,000 or more depends on what u can prove for those deductions
I don’t pay quarterly taxes because each month I set aside 25% to a higher interest earning ‘escrow’ account. That way it’s making some money for me. I pay Uncle Sam yearly on April 15th.
I am not an IRS agent, but I know that they want people to pay 90% of the amount owed before April 15 or for people to owe less than $1,000 when April 15 comes. That is why the IRS prefers quarterly tax payments.@@zuozhen4758
Good explanation!
If your working full time making 40k a year your doing something wrong can easily make over 100k
I need your help my husband just received 28334$ as income 15000: but the account told him you have to pay total of 11000$ between GST and income tax we live at ottawa ontario and i found that is so much for such small salary that he has as an uber driver
Did you add your write offs?
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