Stevie The magic Unicorn· Premium Member
2019 Reproduction 1860s era Stage Coach, Vintage Italian Leather Saddle, A-36 stainless horse shoes
What market are you in?I am a 71 year young social security recipient. My wife works part time as a caregiver. I am signed up to become an Uber driver and will start next week. Can anyone give me advice as to how to handle the income stream from Uber and my social security account? How will my taxes be handled? Any special considerations to look @? Any advice would be appreciated. I did not expect to be working after I retired but due to the economy, inflation and taxes I am obligated to do something to assist our income stream!
Because what city you are working in has a bigger impact on your federal/state taxes than any other detail, including how much you make. Yes, what city you are in matters more than how much money you make.
I don't know EVERYTHING but I know some things.
Next up is social security benifits.
Assuming you are full retirement age (which if you are 71 i think this would be the case, but don't quote me on it)
If you are over full retirement age earnings do not impact your social security payments.
So you won't have your income reduced by working... I don't think. It might have some tax implications in terms of state taxes. (I have no idea)
Next comes the tax situation, depending on where you are located and what kind of car you are operating the tax situation will vary.
For instance, in Orlando an X driver will virtually never owe anything for taxes
And in Orlando an ubertaxi driver will Owe taxes for uber earnings.
Other high pay cities such as NYC and Seattle will generate a tax bill with any vehicle type,
Areas like Orlando never will on lower services, but on higher services like Select and Black you can generate a tax bill.
As an orlando uberX driver I wouldn't need to set aside anything for taxes. If you are amarried and jointly filing it can actually result in your spouses tax bill going down.
Once you start working you need to calculate whether or not you have any IRS taxable profit. So this is a situation where you will know very fast whether or not you will owe taxes and roughly how much.
From day 1 start a log.
Total deposited by app companies
Column 6 total revenue
Column 7 Column 2 minus Column 1 multiplied by .625
So for 11/9/22
cash tips $12
Total revenue $217
Mileage ded ($125)
Taxable profit $87.85
So for 11/9/22 I would consider $87.85 as "income" as per the IRS. Take note that my "income" in this example is only a small portion of the total revenue. (40% in my example).
the portion of your deposits that is considering "income" can reach as low as NEGATIVE 30%. Meaning the IRS thinks you are losing money on paper.
And gasoline receipts don't matter, what matters is your odometer readings.