So what do we do when filing for taxes regarding a huge number of dead miles? I have like 11000 on trip miles but my dead miles are around 14000 or something. Meaning my total deductible miles is like 25000 total miles to be deducted. (I am finally learning that driving aimlessly around while waiting for fares added WAY up, not to mention the gasoline I wasted). Anyway, I won't get audited for this right? I am trying to be a good tax payingredients citizen but I also want to rightfully get the deductions I deserve, even though i stupidly racked up miles by driving around like a dope. Will the IRS hassle me for this, or do your dead miles need to be way higher in terms of ratios then what I'm showing? What should I do?
Crazy dead miles
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7,046 Posts
11 on trip miles to 25 total miles?
That sounds about right actually. This job is great at generating loads of mileage that can't be put on any particular task. It all boils down to situations where you drop someone off somewhere that you have a very low chance of getting a fare, and or just having to put in some mileage just to get somewhere you can park, or the inevitable, dropping someone off somewhere that you can't (or just don't want to) pick up at.
Most nights i have 70-100 paid miles with a passenger to 200-250 total miles driven.
That sounds about right actually. This job is great at generating loads of mileage that can't be put on any particular task. It all boils down to situations where you drop someone off somewhere that you have a very low chance of getting a fare, and or just having to put in some mileage just to get somewhere you can park, or the inevitable, dropping someone off somewhere that you can't (or just don't want to) pick up at.
Most nights i have 70-100 paid miles with a passenger to 200-250 total miles driven.
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2,997 Posts
Any miles, dead or otherwise, performing the work are deductible. Legally and ethically, Qowpel.
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9,688 Posts
Close to 1-1 on trip and on app miles, that's pretty solid. Shouldn't have an issue with an audit with those numbers. I've seen drivers claim almost 1-3 ratio, that sounded crazy!
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1,501 Posts
Most uber drivers won't get audited. It would literally cost the government more in the investigation than they would ever hope to get back by finding errors. We are small potatoes. Now, uber itself maybe there's something there - not small potatoes. But each individual driver is way down on their list.
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4,693 Posts
Some drivers erroneously think they can turn on the app, have no intention of driving and count that as Uber miles.
A driver can fib and maybe get away with it but if one were to be audited they would be screwed when they see how few trips you actually took.
Well I mean yeah that would be bad behavior on the driver'side part but I genuinely just keep going 95 percent of the time., meaning right after I drop someone off, I just keep driving around aimlessly waiting for the next trip, so that racked up a ton of miles. I mean I am entitled to them. And yes there have been days where I drive someone one one 40 miles away and keep the app on on returning to my main "spot" just hoping there will be a ride request and often times I go many miles on a highway with No requests, this frustrates me so I will just drive around more aimlessly till I get a request, genuinely searching for work. Why should I feel threatened to report this? I am entitled to these miles aren't I?
Anyone else?
My miles were crazy high but it is because I genuinely do not like stopping. I have anxiety and tend to get too anxious if I'm not driving around searching for more ride requests
Anyone else?
My miles were crazy high but it is because I genuinely do not like stopping. I have anxiety and tend to get too anxious if I'm not driving around searching for more ride requests
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829 Posts
Except for gas and depreciation on your car, I don't see any problem with putting crazy miles on.
Myself I track my $/hour and $/mile. I want to get really good $/miles. So your plan does not work for me.
If your going to drive your car into the ground anyway, your way at lest gets you 53.5 cents/mile tax write off.
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336 Posts
Look, here's the thing. While you're driving around looking for trips, it's costing you money. I know that Uber drivers think that they can drive their car for free or something since they already own it, but no matter what you're doing with the car, EVERY MILE YOU DRIVE COSTS YOU MONEY. People don't seem to understand this. (Never mind the IRS deduction for now.) Let's find out what your car *costs* you. The numbers are easily knowable, but there are a lot of variables.
Do you have a loan on the car? How expensive is your insurance? How expensive is gas in your area? Most cars can probably be operated in the $0.20 - $0.30 per mile range. Let's call it $0.20/mile. You say you accumulated 14,000 business miles while driving for Uber? Well, that cost you about $2,800. If you drove 11,000 revenue miles, then you probably only earned around $7,200 after Uber's commissions and fees. Then, after *your* expenses, you netted $4,400 ($7,200 - $2,800). Give or take.
Now let's look at the IRS. You "made" $7,200 from Uber. The IRS allows you to take off $0.54/mile for business. That's a deduction of $7,560 (14,000 X $0.54), which is more than you made. Good! You won't have any tax liability for 2016. But on the other hand, the IRS won't be giving you any money back, either.
$4,400, eh? Hope you're not doing this full-time!
Do you have a loan on the car? How expensive is your insurance? How expensive is gas in your area? Most cars can probably be operated in the $0.20 - $0.30 per mile range. Let's call it $0.20/mile. You say you accumulated 14,000 business miles while driving for Uber? Well, that cost you about $2,800. If you drove 11,000 revenue miles, then you probably only earned around $7,200 after Uber's commissions and fees. Then, after *your* expenses, you netted $4,400 ($7,200 - $2,800). Give or take.
Now let's look at the IRS. You "made" $7,200 from Uber. The IRS allows you to take off $0.54/mile for business. That's a deduction of $7,560 (14,000 X $0.54), which is more than you made. Good! You won't have any tax liability for 2016. But on the other hand, the IRS won't be giving you any money back, either.
$4,400, eh? Hope you're not doing this full-time!
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1,433 Posts
Bam ! Best answer.
And btw, although Uber might only pay you for the 40% of the time where you actually have pax in the car, it is totally within uourctax rights to claim all of your miles your away from your house to be driving for Uber.
All of this means you should easily be able to write off plenty of miles to completely cover all of your taxes. You might end ip having to pay a tax person $100 or $150..... But you will be close to tax free.
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69 Posts
People making less than $100,000 have a less than 2% chance of getting audited. Even if they do find some irregularities or deny some deductions the worst that'll happen is you have to pay it back with penalties and interest
The IRS does not give a shit about some Uber driver claiming a few extra miles. Stop worrying its no big deal
The IRS does not give a shit about some Uber driver claiming a few extra miles. Stop worrying its no big deal
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4,693 Posts
Yikes. Maybe you are in the wrong field. Driving around like this is silly. The fact you had so many dead miles just shows how little money you made doing this.
As go4 and ah jeez put it so well. You want to minimize your dead miles. You having a bunch just shows you are literally driving for charity rather than income. Sad
You should of driven the good ole $$$ saving way. If you are not utilizing DT optimally, then that is why you have so many dead miles. Your commutes should be DTs. That cuts a lot of dead miles also. High ETA pickups which should be down now that Uber does not impose a such a tyrannical acceptance rating requirement on drivers anymore. Do you always use the shortest routes to get back to your destination? Sometimes a shorter route takes double or triple the time. Time is also a cost that you will never be able to recoup. This is why I utilize multiple GPS apps simultaneously to keep me on routes that will surely get me to the next ping not only sooner, but also by burning less gas in between pings. BTW POOLs should only be used while on a DT or first trip, (not for me, but it can take you out of a dead zone right into a sweet spot or your preferred area to drive, while many X pings won't. Set a extremely strict guideline. I don't like burning gas hunting for a first trip, and neither would I want to sit for 4 hours waiting for an X ping, when I know that it is not likely to happen. That is why you must keep a strict schedule.
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