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Discussion Starter · #1 ·
UPDATED FEES:
25% UBER X FEE FOR NEW DRIVERS IN CLE
EFFECTIVE 9/25/2015


For new drivers activated on or after 9/25/2015 the Uber Fee Schedule is 25% for X.
The XL, rate has been lowered to 25% (from 28%) for all XL drivers.
Select, remains unchanged at 25%

The old (and grandfathered) rate was 20% for X,
so new X drivers will pay Uber 25% more of their fares than existing drivers pay Uber.
While XL drivers will pay Uber about 10.5% less than they were paying.
 

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Discussion Starter · #5 · (Edited)
We have to claim it as income we never had for starters...
FAIL.
and you get to deduct any charge as an expense - just as you have before.
Any change in the SRF fee has no effect on you or me as drivers.

Try again... if that was 'for starters', what's next?
 

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FAIL.
and you get to deduct any change as an expense - just as you have before.
Any change in the SRF fee has no effect on you (or me) as drivers.

Try again... if that was 'for starters', what's next?
That's good news--guess I need to understand the tax code more, as I've never filed a 1099 before. Thank you for clarifying and making me realize I need to do more research before January.

Next up--SRF messes with the guarantees, which adds up over time. Uber calculates the gross fare amount for guarantees, which includes the SRF before they deduct it--but when they payout the guaranteed per hour amount, they pay out net. How can they take a fee I've never had to begin with and use those extra dollars to keep me from getting an hourly guarantee? Makes no sense.
 

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Discussion Starter · #7 · (Edited)
That's good news--guess I need to understand the tax code more, as I've never filed a 1099 before.
Different types of work generate different types of income reporting to the IRS:
An employee receiving wages, salary and commissions, bonuses, etc. receives a W2 form from their employer.
A company or individual who pays you as an independent contractor is required to provide you (and the IRS) a form 1099 ("Miscellaneous Income").

The difference is huge.

As a statutory employee, your employer is responsible for paying 50% of your Social Security/Medicare tax (1/2 of ~15% of earnings) - as well as covering your unemployment insurance premiums and providing workers compensation coverage. The employer is also responsible for withholding income taxes for most employees, and remitting those to the IRS quarterly.
As an independent contractor, you are responsible for BOTH halves of the social security and medicare tax...
AND may have to pay for your own unemployment insurance and workers comp coverage (requirements vary by state).
ICs also must also set save, or have enough money available, to pay their income tax.

By classifying drivers as ICs/1099 workers, Uber, Lyft, etc. shift all of the payroll tax burden to the worker.

Regardless of worker classification, all workers are allowed to deduct their un-reimbursed expenses from their gross receipts, which lowers the amount of income which is taxable.

As an IC, if you receive $31,200/yr from Uber/Lyft) - which is $600/wk -
and drive 1,000 miles/wk to generate that gross revenue
instead of paying taxes on $31,200, using the standard mileage deduction, your tax would be figured on
($31,200 less (52,000 mi X .575=$29,900) = $1,300)
the 'adjusted gross income' of $1,300.
 
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Different types of work generate different types of income reporting to the IRS:
As an employee receiving wages, salary and commissions, bonuses, etc. receives a W2 form from their employer.
A company or individual who pays you as an independent contractor is required to provide you (and the IRS) a form 1099 ("Miscellaneous Income").

The difference is huge.
As an employee, your employer is responsible for paying 50% of your Social Security/Medicare tax (1/2 of ~15% of earnings) - as well as cover your unemployment insurance premiums and provide workers compensation coverage.
As an independent contractor, you are responsible for BOTH halves of the social security and medicare tax...
AND may have to pay for your own unemployment insurance and workers comp coverage (requirements vary by state).

By classifying drivers as ICs/1099 workers, Uber, Lyft, etc. shift all of the payroll tax burden to the worker.

Regardless of worker classification, all workers are allowed to deduct their un-reimbursed expenses from their gross receipts, which lowers the amount of income which is taxable.

As an IC, if you receive $31,200/yr from Uber/Lyft)
and drive 1,000 miles/wk to generate that gross revenue
instead of paying taxes on $31,200, using the standard mileage deduction your tax would be figured on
($31,200 less (52,000 mi X .575=$29,900) = $1,300)​
the 'adjusted gross income' of $1,300.
Thank you so much for taking the time to explain! This is the clearest explanation I've seen/heard regarding the 1099 and how the deductions for mileage and expenses work in my favor. Appreciate your help!
 

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Discussion Starter · #9 ·
Thank you so much for taking the time to explain! This is the clearest explanation I've seen/heard regarding the 1099 and how the deductions for mileage and expenses work in my favor. Appreciate your help!
Glad you found it helpful.
Now, here's the disclaimer:
I am not a professional tax adviser - and the information I've provided is for illustrative purposes only.
Only a qualified tax-preparer, or licensed accountant or tax attorney can provide you with advice on your individual tax situation, tax deductions and tax filing procedures.
:)
But this ain't rocket science
and any store-front tax-preparer
or decent tax-software package can handle all of this for you.
 
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Glad you found it helpful.
Now, here's the disclaimer:
I am not a professional tax adviser - and the information I've provided is for illustrative purposes only.
Only a qualified tax-preparer, or licensed accountant or tax attorney can provide you with advice on your individual tax situation, tax deductions and tax filing procedures.
:)
But this ain't rocket science
and any store-front tax-preparer
or decent tax-software package can handle all of this for you.
Thanks for the disclaimer--ha! I'm an English/literature teacher, so anything involving math seems like rocket science (and magic), which is exactly how I was lured into driving for Guber with dollar signs in my eyes. Now, I'm just trying to make it work for me to pay student loans and other cumbersome monthly bills.
 

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Discussion Starter · #12 ·
UberHammer and/or chi1cabby - do you have anything written up on
the difference between the standard mileage deduction vs. actual expenses & section 179 depreciation
that you'd like to add here?
(I don't feel like writing a manifesto - especially since it would be better explained by a tax professional)
 

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Discussion Starter · #13 ·
Drove a few rides earlier in the week and all was normal on my pay statement: 20% UberX Fee.
Went out tonight and did a few rides (2 cancellations of $5 ea and a decent trip)...
all three were subject to a 25% fee.

Not happy.

I wrote to support - can't wait to see how many emails it takes to get this corrected.
 

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That's good news--guess I need to understand the tax code more, as I've never filed a 1099 before. Thank you for clarifying and making me realize I need to do more research before January.

Next up--SRF messes with the guarantees, which adds up over time. Uber calculates the gross fare amount for guarantees, which includes the SRF before they deduct it--but when they payout the guaranteed per hour amount, they pay out net. How can they take a fee I've never had to begin with and use those extra dollars to keep me from getting an hourly guarantee? Makes no sense.
Hey Jedi Driver if you need any help with your taxes I can do that. I've been preparing tax returns for over 20yrs. It's another one of my self employed endevors. Keep track of your miles driven for uber and also all of your driver related expenses.
 

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Hey Jedi Driver if you need any help with your taxes I can do that. I've been preparing tax returns for over 20yrs. It's another one of my self employed endevors. Keep track of your miles driven for uber and also all of your driver related expenses.
I've definitely been keeping track... If I go to H&R Block in January, would someone be able to help me file the 1099 along with my usual tax documents? That's my plan...
 

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H&R Block will really gouge you with their fees. I used to work for them (11 years) and quit because of their business practices. I have been preparing and filing tax returns from my home for the past 10 years. You can contact me if you need help my rates are very resonable. Less than half of what Block would charge you
 
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