Uber Drivers Forum banner
1 - 10 of 10 Posts

·
Registered
Joined
·
9,688 Posts
Maybe others have noticed but I haven't seen much about this. You've got to hand it to uber, their accountants are geniuses. Not only do they have us incurring all costs related to operating the business, and we are making the money for them, but Have you noticed that Uber taxes us on the total fare not the actual amount that hit our bank account.
So really simply, let's say you made 800 dollars in one week. That's the amount you saw and Uber took out 200 dollars for their deduction and also booking fees etc. So the total fares for the week totaled 1150 dollars. This is what youre being taxed. We are being taxed as though we make all the money and we give a portion to uber for their services. Thus allowing uber to beat the taxes and for us to have to claim more miles and expenses to get our income to app3ar lower than it actually was. Yes I know about deductions but we shouldn't be taxed the way we are. Does anybody else see this as a scam like I do. I may be wrong....
Those fees are deductible for a no net loss. So if you have $10,000 in gross fare with $2,000 in booking and service fees, you just deduct the $2,000 and pay taxes on the $8,000 that you did get deposited. If you are paying taxes on the $10,000 I would fire your Accountant/Tax Preparer. If that is yourself, then fire yourself and hire someone to do your taxes for you.

It's pretty simple and this isn't uncommon with credit card processing companies, which is what Uber is in this instance because they are collecting the Calculated Fare from the Pax and paying you, but they keep their fees before paying you.

Amazon is the same way as they do the credit card processing themselves, unlike Ebay that uses Paypal.

On Amazon, we sell a product for $20 and Amazon charges $4 for the transaction, but on our taxes we still show a gross sale of $20 then deduct Amazon as a service fee, even though we never see that $4.

On your driver contract, you authorized Uber to be your collection agent for credit card payments.

It's pretty common and far from a scam.

Uber will pay their taxes on the income they generate from those transactions of $2000 as it will show as an income on their books, but will be offset by their $3 billion in loses regardless.

Either way, you aren't paying those taxes if you are filing your taxes correctly...
 

·
Registered
Joined
·
9,688 Posts
Hold on my friend.... how is it not true? According to tax information that I received, Uber said that I made 3600 dollars one month but according to my bank statements and the uber app from what I received it showed that I made 25 percent less than they hit me with taxes. The numbers don't lie. I didn't make as much as I was being charged tax wise. After taking away ubers 20 percent fee and booking fees and adding that to how much I was actually paid it came to the figure they charged me. Please explain this. I don't understand.
Right, so the Calculated Fare is $10,000. The booking fee and service fee is $2,000. You deduct the $2,000 as service fees on your taxes. Now you only owe taxes on the original $8,000 that was deposited into your account.

This is about as basic as you can get, if this is racking your brain, please, for the love of god, hire a tax professional immediately!
 

·
Registered
Joined
·
317 Posts
Now -- we could definitely argue that Uber classifies us as independent contractors and treats us otherwise -- thereby scamming us on the employer side of SS/Medicare taxes. That could be a valid claim (and was what I was expecting when I opened your thread).
 

·
Registered
Joined
·
9,688 Posts
That's what I thought. I haven't worked for credit card companies. I also haven't done my taxes this year. I did do them last year for uber. I know how to do deductions, so I know that I won't be charged for the amount that they are filing to me. My question is... by uber filing this way do they pay their fair share? That's also why I said that I could be wrong. This is not something I'm holding to them, as it is what it is. Just wanted other people's opinions. Damn, by the way everyone's replying I would think y'all work for corporate lol. Just putting something out there. Thanks for providing info lol
I mean, what's the real question? Will Uber actually pay taxes? No, or not much of any, because they had a net operating loss of $3 billion last year.

Will the service and booking fee be booked as taxable income for Uber? Yes it will be.

Even after they start becoming profitable, they can carry forward those net operating loses up to 20 years.
 

·
Registered
Joined
·
443 Posts
Even after they start becoming profitable, they can carry forward those net operating loses up to 20 years.
I would like to add that WE as 1099 employees can carry forward OUR net losses forward as well:), thus adding yet further deductions in the future.

As I've said before, if your actually paying taxes for Uber income your doing something very very wrong.

After finishing my taxes for last year I had a net loss of over $10k. Thank you standard mileage deduction, Spotify, car washes, a few business dinners, cell phone/wifi, a few tolls, and a small iPad I bought to shut up tourists asking to many questions lol.
 

·
Registered
Joined
·
9,688 Posts
I would like to add that WE as 1099 employees can carry forward OUR net losses forward as well:), thus adding yet further deductions in the future.

As I've said before, if your actually paying taxes for Uber income your doing something very very wrong.
Or making too much money.

My taxes are finalized, I owe $300 in taxes but I was netting well over $1 a mile including dead miles. The only thing that didn't get fully covered was a portion of the Self Employment tax.
 

·
Registered
Joined
·
443 Posts
Or making too much money.

My taxes are finalized, I owe $300 in taxes but I was netting well over $1 a mile including dead miles. The only thing that didn't get fully covered was a portion of the Self Employment tax.
Yes, in your case I could see that. As select pays so much more I should have clarified that statement was for for the UberX folks mainly.

Still, $300 owed is funny:).
 
  • Like
Reactions: negeorgia
1 - 10 of 10 Posts
Top