[Twanster]

I realize noone here is a tax expert but maybe someone that has been driving for the past couple years might be able to shed some light on this...what if the amount I've earned is less than the standard write off?

Let's say I've made $5,000 for the year and I have driven 10,000 miles total. (that includes with pax and without pax and the app is on.) I am including the empty mileage with app on because that is basically out looking for work, so I'm counting it.

So if I take the standard deduction of $.56 per mile and multiply that by the 10,000 miles I drove I get $5,600.00.

So how would that work?

 

[cindym]

For starters, the Standard Mileage Deduction was .54 per mile last year (down from 57.5 cents per mile for 2015) and dropped again, to 53.5 per mile for this year. And you can log every mile from first ping to last drop off.

Since I couldn't stage at home last year, I logged enough miles to pay $0.00 for Federal Income tax, State Income tax, Social Security or Medicare, and had enough left over to save some on my taxes on my teaching pension, the same as it would if I had a second job. You can't do that every year, something like only 2 or 3 years in 5, but since I'm staging at home this year I assume I will owe some this year.

 

[PolloMan]

I realize noone here is a tax expert but maybe someone that has been driving for the past couple years might be able to shed some light on this...what if the amount I've earned is less than the standard write off?

Let's say I've made $5,000 for the year and I have driven 10,000 miles total. (that includes with pax and without pax and the app is on.) I am including the empty mileage with app on because that is basically out looking for work, so I'm counting it.

So if I take the standard deduction of $.56 per mile and multiply that by the 10,000 miles I drove I get $5,600.00.

So how would that work?

Your best bet in my opinion is to track your miles. MileIQ is a great app to use. I also paid $0.00 last year in taxes for my Uber earnings.

 

[cindym]

If you use an app like that, make sure you double check the mileage it logs for a few days. I tried MileIQ and another, and both shorted my mileage by over 25%. So I uninstalled them and jot my starting and ending odometer reading each day into a small spiral notebook. (The versions I tested had auto start, which caused the inaccuracy. I might have continued if they had the option for me to start and end them manually.)

 

[mytheq63]

Try StrideDrive.

 

[Stlbatman]

I just started driving for Uber last night and so I don't know anything lol. Are you saying we should be logging our milage for tax write offs?

 

[cindym]

Yes, and to save us the trouble of repeating everything we've already written, it would be helpful if you browse past threads on the topic and then ask questions for anything that wasn't clear.

(There's also a lot of info already here for the other threads you started.)

 

[Stlbatman]

Yes, and to save us the trouble of repeating everything we've already written, it would be helpful if you browse past threads on the topic and then ask questions for anything that wasn't clear.

(There's also a lot of info already here for the other threads you started.)

Ain't nobody got time to read 100 pages of threads! We're too busy driving for Uber! besides, it pushes these questions to the top of the feed for the same people that don't want to go searching through the list to find their answers!

 

[cindym]

Using the Search box to browse the past threads that are appropriate and will answer your questions is likely to save you time over waiting for someone to reply to questions that are asked/answered over and over.

 

[Stlbatman]

Using the Search box to browse the past threads that are appropriate and will answer your questions is likely to save you time over waiting for someone to reply to questions that are asked/answered over and over.

fair enough sorry about that. Didn't realize there was a search ability.

 

[Twanster]

So I have some updated info. Sunday I took a guy to the airport and just so happens he is a lawyer from NY. Gave me his card so I know he's legit and not just saying he's a lawyer. Anyways, he said it is absolutely better to pad your mileage so that the deduction is more than what you actually have made.

He also informed me that so long as you are making an income the IRS won't even bother you because you are showing an earned income in relation to the mileage deduction. It's when you don't have any earned income in relation to a mileage deduction that it gets their attention.

He also mentioned, which probably goes without saying, to not pad it too much. In other words, don't make it to where you drove a million miles, keep it somewhat within reason. So long as your deduction is more than you actually earned it won't have any affect on your normal return (assuming you have a full time job as most of us do)

 

[cindym]

Imagine that, a lawyer suggesting you break the law...

You do what you want, I will continue to keep an accurate log. I can think of no good reason to pad it.

 

[Twanster]

Oh I will do what I want, it's what I do. I was just relaying info should anyone find it useful

 

[eodestroyer]

Friends don't tell friends to break the law. That lawyer is not my friend.

 

[Imnottellingyou]

Not to mention that anyone can have a business card. You hayseeds crack me up.