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My operating cost per mile is $.59. I profit in my market.

Make note of your beginning miles and then when done for the night ending miles.

Multiply that by your per mile operating cost to see what your oop was for the night. Then subtract that from your after Uber earnings minus 15%(taxes,social security). Then you will have your profits for the night. Divide by the amount of hours to get your hourly wage (if you want but its a business not job, so that is pointless)

If your doing this full time then you will also need to deduct medical expenses and or life insurance(if you want it).

You cant profit doing this full time BTW.

From my study.. its impossible to profit from less that $1 per mile. If your market is that.. stop driving.
 
Don't forget to deduct your federal deduction of $.56/mile from your total before you figure your taxable amount. As a 1099 employee, yhsts how it works. Income minus operating expenses and $.56/mile is the rate the use of you chose to deduct by the federal rate.
I look to be reporting about $10,000 of the $44,000 ($850/week) that I plan to make after my deductions of 5200 miles (1000/week).
15% of $10,000 is $1500.
So that leaves me with $42500 to pay for gas and vehicle expenses...plenty! At $2.50 a gallon, I spend about $100 a week and next to nothing in repairs.
For me, a retired guy with a fair pension (less then the Uber wage) and working wife, I'm there.... no boss, work when I can/want...who wouldn't
But everyone has to weigh out their needs
 
REPEAT REPEAT REPEAT
If rates were sustainable they would lose their ability to control drivers. The system would like fail if the number of drivers on the app was more linear, for a bunch of reasons.

In my opinion, if your area surged, you might feel as if you were doing better, but mostly, it is just a hook, they hand you a winning rub off ticket a couple times a night, it is not much of a solution for the long term however. It is completely ****ed up and manipulative.
 
If anyone has a more accurate word than Ponzi, I'd love to hear it.
Any work 'opportunity' that gets you to spend your time and money to make someone else money,
and pays you back less than you've invested
is an EXPLOITIVE SCAM
 
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Have you taken into consideration costs of vehicle mileage, brakes,oil changes,tires,etc...
And taxes, that will make your $600 = $400 real quick...
No, actually if you're going to include income taxes, then you also have to account for the deductible expenses. All miles driven while working (not just 'paid trip' miles) are deductible, as are all related repair and maintenance costs. For someone driving 60 hours/wk as the gentleman said he was, he will owe very little in the way of taxes on his Uber revenues.
 
No, actually if you're going to include income taxes, then you also have to account for the deductible expenses. All miles driven while working (not just 'paid trip' miles) are deductible, as are all related repair and maintenance costs. For someone driving 60 hours/wk as the gentleman said he was, he will owe very little in the way of taxes on his Uber revenues.
"All miles driven while working (not just 'paid trip' miles) are deductible, as are all related repair and maintenance costs"

If you take the standard deduction of $0.56/mile you do not then get to deduct the cost of individual repairs. It is either or. If you do the mile deduct, that is all you get.

http://www.irs.gov/pub/irs-pdf/p463.pdf

From therein, page 16:

"If you use the standard mileage rate for a year, you cannot deduct your actual car expenses for that year. You cannot deduct depreciation, lease payments, maintenance and repairs, gasoline (including gasoline taxes), oil, insurance, or vehicle registration fees."
 
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"All miles driven while working (not just 'paid trip' miles) are deductible, as are all related repair and maintenance costs"If you take the standard deduction of $0.56/mile you do not then get to deduct the cost of individual repairs. It is either or. If you do the mile deduct, that is all you get."If you use the standard mileage rate for a year, you cannot deduct your actual car expenses for that year. You cannot deduct depreciation, lease payments, maintenance and repairs, gasoline (including gasoline taxes), oil, insurance, or vehicle registration fees."
Yes... that's correct - except the IRS std mileage deduction for 2105 is 2 1/2% higher than what you said... it's now $0.575/mi.
You figure it both ways and use whichever method is to your advantage.
For the example he gave of 250/mi day he's driving and 60 hours a week I'll assume 6 days = 1,500mi/wk
1,500 X .0575 = $43,125 dedcution based on 50 wks/yr
 
Yes... that's correct - except the IRS std mileage deduction for 2105 is 2 1/2% higher than what you said... it's now $0.575/mi.
You figure it both ways and use whichever method is to your advantage.
For the example he gave of 250/mi day he's driving and 60 hours a week I'll assume 6 days = 1,500/wk
1,500 X .0575 = $43,125 dedcution based on 50 wks/yr
That is correct. What you don't get to do is figure your cost/miles and deduct expenses such as repairs, gas etc. I have seen people claim to do both.
 
That is correct. What you don't get to do is figure your cost/miles and deduct expenses such as repairs, gas etc. I have seen people claim to do both.
Did someone here suggest you could claim the deduction for car expenses both ways?
Geez - all I did was point out that the comment about net earnings being reduced significantly by tax liability wasn't true if you also account for and consider the tax deductions available: you can't bemoan tax liabilities if you're not also considering tax deductions. That would be as disingenuous as Uber implying that total FARES are the equivalent of total EARNINGS.
 
Did someone here suggest you could claim the deduction for car expenses both ways?
Geez - all I did was point out that the comment about net earnings being reduced significantly by tax liability wasn't true if you also account for consider tax deductions available.
It is quite possible I misread your. I have seen on the forum people claiming you get to do both. You may not have said so much yourself, but you came close, apparently without the intent to do so.

Here is what I read from you as a direct quote: "All miles driven while working (not just 'paid trip' miles) are deductible, as are all related repair and maintenance costs".

There was no mention a person needs to chose one or the other. Clearly, you do seem aware of that fact, but that awareness wasn't obvious. My inclination was to assume you meant a person can do both, for the simple reason I have seen people suggest they do both.

It isn't important, just an example of poor communication.
 
Here is what I read from you as a direct quote: "All miles driven while working (not just 'paid trip' miles) are deductible, as are all related repair and maintenance costs". There was no mention a person needs to chose one or the other.
I never mentioned the std deduction - there was no 'other'! :)

But I'm glad you brought it up because it is important for someone to know that there are two ways to calculate your expenses.
And unless I'm mistaken, it's important to get it right the first time you choose, because I don't think the IRS allows you switch methods for the same work from one year to the next.
 
It's a legit question and the answers is:
in addition to the std deduction ($.575/mi) "you can add to your deduction any parking fees and tolls incurred for business purposes."
And since you are an independent contractor, you can also deduct your non-automobile related expenses, including marketing and sales expenses - and your supplies (mints, water anyone?). And don't forget your 'uniform' costs and dry cleaning. What you can't do is claim depreciation of your car because that's already included in the std deduction.
 
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