[MikesUber]

So for quarterly tax prep my CPA is telling me the following:

46% of net earnings

25% Fed
15.3 % FICA
3.07% State
3% City

Pittsburgh, PA

Having zero experience with taxes, is this remotely correct? I've read about 25-30% is what should be set aside for taxes. But nearly half? That seems way too high.

Any help?


Thanks

 

[I_Like_Spam]

The figures are absolutely correct, IF you have another regular job.

If Uber is your sole gig, the taxes are less.

25% Fed tax is right for a single file earning more than 37 after deductions and exemptions.

 

[UberTaxPro]

So for quarterly tax prep my CPA is telling me the following:

46% of net earnings

25% Fed
15.3 % FICA
3.07% State
3% City

Pittsburgh, PA

Having zero experience with taxes, is this remotely correct? I thought this forum was quoting 25-30% as what should be set aside for taxes. But nearly half? That seems way too high.

Any help?

Thanks

How much money are you planning on making? http://www.bankrate.com/finance/taxes/tax-brackets.aspx
The FICA is correct. The Fed depends on how much you end up making for the year. The State is correct for PA. The city I don't know.

 

[MikesUber]

The figures are absolutely correct, IF you have another regular job.

If Uber is your sole gig, the taxes are less.

25% Fed tax is right for a single file earning more than 37 after deductions and exemptions.

Much appreciated, and from another Pittsburgher as well!

I do have a full-time job so that would explain the taxation. Well damn that is HIGH

 

[MikesUber]

How much money are you planning on making? http://www.bankrate.com/finance/taxes/tax-brackets.aspx

Awesome resources guys I appreciate the prompt responses. Yes that 25% Fed rate is correct as I am single (unmarried) and will fall in the $37,451 to $90,750 earnings bracket for 2016.

 

[Stygge]

So for quarterly tax prep my CPA is telling me the following:

46% of net earnings

25% Fed
15.3 % FICA
3.07% State
3% City

Pittsburgh, PA

Having zero experience with taxes, is this remotely correct? I've read about 25-30% is what should be set aside for taxes. But nearly half? That seems way too high.

Any help?

Thanks

46% of close to zero is even closer to zero!

 

[MikesUber]

46% of close to zero is even closer to zero!

You mean net earnings after expenses? What I'm claiming as taxable income?

 

[Disgusted Driver]

Yeah but what are your net earnings from Uber? Certainly not what you get paid each week. After considering mileage your net earnings should be less than 1/2 the payments you received. No point in deducting more just to wait to get it back. One other tip. If you have a regular job, up your withholding in Nov. and Dec . by 1K or so to pay some of the estimated tax. Money withheld from your check is considered to have come in throughout the year so you won't be penalized as much for not paying quarterly.

 

[MikesUber]

you won't be penalized as much for not paying quarterly

I am paying quarterly though?

 

[Stygge]

You mean net earnings after expenses? What I'm claiming as taxable income?

Yes. As you can deduct about $1.08 per paid mile plus uber fees, there shouldn't be a lot of net income unless you're a master of the surge game.

 

[Disgusted Driver]

What I'm saying is that if I suspect I will owe 3K in fed taxes at the end of the year, In Nov. and Dec. I'll instruct my employer to withhold 1.5K additional from my check for Nov. and Dec., giving them the 3K at the end of the year instead of throughout the year. I get to hold onto my money longer and use it for other things.

 

[I_Like_Spam]

As long as you pay 100% of your 2015 tax liability through your regular job, you won't have a tax penalty in 2016. If 2016 is your first year ubering and you got an tax refund for your 2015 taxes, you should be good to go.

You'll still owe the same amount of money, however and need to pay it by next april.

 

[MikesUber]

As long as you pay 100% of your 2015 tax liability through your regular job, you won't have a tax penalty in 2016. If 2016 is your first year ubering and you got an tax refund for your 2015 taxes, you should be good to go.

You'll still owe the same amount of money, however and need to pay it by next april.

I started October 2015, paid 2015 taxes on U/L this past April on my F/T W2. I'm prepping 2016 Q2 payments now for U/L

 

[I_Like_Spam]

I started October 2015, paid 2015 taxes on U/L this past April on my F/T W2. I'm prepping 2016 Q2 payments now for U/L

If you had to cut an additional check in April to the IRS, you definitely should be making quarterlies.

However, you have another option, you can just increase your withholding at your regular job, by submitting a new W-4 to the employer

 

[LAuberX]

do you log your miles? if you have one dead mile for every paid mile you will owe zero taxes driving UberX/Pool

 

[MikesUber]

If you had to cut an additional check in April to the IRS, you definitely should be making quarterlies.

However, you have another option, you can just increase your withholding at your regular job, by submitting a new W-4 to the employer

My CPA just took my 2015 U/L taxes from my tax refund this year. It was like, "You owe X in rideshare taxes, you're getting back Y from your FT tax refund, so I'll just take what you owe from Y and you'll get the balance of Z". From reading on here quarterlies seemed like the best way to go to avoid penalties but I see the other option that you mentioned.

Only second full quarter doing this so it's very new to me. I'm one of those "just tell me where to sign [what I owe]" type of people that just want it done and am too fast moving for the details. I did want to take a step back however and start this thread to at least understand some basics of what's happening here tax-wise.

 

[MikesUber]

do you log your miles? if you have one dead mile for every paid mile you will owe zero taxes driving UberX/Pool

I try to drive surge only so I was seeing 1 mile = $1.50/$2.00 (estimate). Rarely will I drive more miles than dollars earned in a night.

For mileage I just have an overall number for the night, I'll zero out my trip meter then record the ending mileage when I pull in the driveway at the end of my shift.

Edit: For my Excel documentation I did add up Uber's on-trip mileage and compared it to my total mileage which would give me dead miles as the difference.

 

[Older Chauffeur]

I try to drive surge only so I was seeing 1 mile = $1.50/$2.00 (estimate). Rarely will I drive more miles than dollars earned in a night.

For mileage I just have an overall number for the night, I'll zero out my trip meter then record the ending mileage when I pull in the driveway at the end of my shift.

Edit: For my Excel documentation I did add up Uber's on-trip mileage and compared it to my total mileage which would give me dead miles as the difference.

You need a contemporaneous mileage log for the IRS. Total miles from each shift based on the trip meter won't cut it. Use the starting and ending permanent odometer readings instead, and keep a written record of the date and purpose of business miles, such as "rideshare." Some drivers use mileage programs, but I have not tried them, so can't speak to that. Discussions elsewhere in this forum about those programs.

 

[I_Like_Spam]

The tax

My CPA just took my 2015 U/L taxes from my tax refund this year. It was like, "You owe X in rideshare taxes, you're getting back Y from your FT tax refund, so I'll just take what you owe from Y and you'll get the balance of Z". From reading on here quarterlies seemed like the best way to go to avoid penalties but I see the other option that you mentioned.

When I was driving Yellow Cab, the taxes were the worst thing for me, I didn't have a CPA. Estimating how much of a check to cut them on the quarterlies, was the worst as income was really all over the place. I got a $3000 refund one year, and owed $3600 to the feds the next it was crazy.

And of course, with YC, I didn't have to log mileage, the deductions were just the paid leases and gas receipts- the hard part was figuring how much in gross income as there were no 1099's of course.

 

[MikesUber]

The tax

When I was driving Yellow Cab, the taxes were the worst thing for me, I didn't have a CPA. Estimating how much of a check to cut them on the quarterlies, was the worst as income was really all over the place. I got a $3000 refund one year, and owed $3600 to the feds the next it was crazy.

And of course, with YC, I didn't have to log mileage, the deductions were just the paid leases and gas receipts- the hard part was figuring how much in gross income as there were no 1099's of course.

Yeah taxes are definitely a pain, I'll just have to plan on setting aside a little more taxes. That's why I wanted to check so I wouldn't get slammed with huge quarterlies and no money set aside. Thanks again