Tag Archives: Uber Taxes

Uber Tax Series: All About Your Uber Taxes

 

 

Become an Uber Driver

For Uber drivers in the US, we know what tax time means. Tax time means you fall into one of two buckets:  (1) Getting a refund check or (2) paying the U.S government money owed. The way you file your taxes, how you have managed your expenses and your income for the preceding year largely govern which bucket you fall into.

In our attempt to write an article that is thorough and backed with knowledge from tax industry experts, we did two things: (1) provided links to existing websites with very relevant Uber Tax information, and (2) we interviewed 3 tax experts (Andrew PoulosMicah Fraim, and Anil Melwani) with over 40 years of experience. Please continue reading to learn more about your Uber Taxes:

 

You Are the Boss:

When you are an Uber driver, you are the boss (an independent contractor of Uber). An Uber driver is not an Uber employee, and as such has to pay his/her own taxes.  As mentioned in this article, “Uber classifies its drivers as independent contractors [or self employed individuals]”.  This is why you receive a 1099K and/or 1099 Misc and not a W2 when you work with Uber.

Andrew Poulos says, “A self-employed person is required to pay federal and state income taxes, which they would pay even if they were an employee. The difference in being self-employed is the person is responsible for paying 15.3% FICA taxes, which is 7.65% for the employee portion, and 7.65% for the employer portion”.

FICA Taxes “… are the Social Security and Medicare taxes sole proprietors pay. When you’re an independent contractor, you have to pay all your Social Security and Medicare taxes out of your own pocket … a flat 15.3 percent tax on your first $118,500 in net self-employment income (in 2015). ” – See more information here

 

Become an Uber Driver

Tax Deductions – Standard or Itemized?

The way you take tax deductions can impact how much you receive from the Government as a refund, or how much the IRS determines you owe the Government.  You can either track your car mileage, or take actual deductions of expenses directly attributable to your Uber business. Before deciding what expense method to follow, realize that you cannot reverse it in any subsequent years- as Anil Melwani puts it, “once one of the methods is chosen you must stick to that method for the life of the vehicle”.

Also realize that there is no clear cut way to select which expense method to follow for your taxes:  Andrew Poulos says, “[The choice of] standard mileage or actual expenses is best determined on a case by case basis [by your accountant]”

 

What Are the Deductions?

If your expense method is the itemized method, here is a list of some of the deductions you should consider:

 

Some deductions:

  • Automobile,

“When you are dealing with tax deductible business expenses, you need to keep very detailed records. The biggest business expense is usually your car, so make sure you have detailed mileage logs for every day you drive. You can usually fill in your mileage logs say for the past week or two, but don’t try to estimate your mileage logs at the end of the year. It needs to be recorded as they happened and not hastily filled in during tax season” – (see here).

  • Automobile depreciation
  • Car payment, Lease (deduct only portion used for ridesharing)
  • Interest on Auto Loan only (deduct only portion used for ridesharing)
  • Insurance
  • Repairs
  • Tires
  • Maintenance
  • Gas and oil

Other deductions:

  • Roadside assistance charge
  • Car washes and interior cleaning
  • Water, gum, or snacks for passengers
  • Tolls and parking fees
  • The fraction of your mobile phone expenses attributable to your rideshare/uber driver work can be used to reduce your self-employment income.

 

Documentation You Should Keep to Support Your Itemized Deductions:

If your chosen expense method is itemized deductions, then this section is for you. As Andrew Poulos says, Uber drivers need to keep “accurate records of their expenses because if they ever get audited the IRS will disallow any expenses claimed on the tax return that [can’t] be substantiated with supporting documentation”.

The IRS could disallow any tax deductions you can’t support with (See link for more information):

  • Receipts
  • Mileage logs
  • Any other documentation

 

About Your 1099k:

“Payments for processing your customers’ [fares] are reported on Form 1099-K. The amount shown in Box 1a of this form is all the money [including Uber’s commission] that the ride-share operator collected from customers for rides that you provided.” – TurboTax.

 

Note, if you don’t receive your 1099k from Uber, Micah Fraim advises that you “contact Uber directly to ensure one has been issued”. Micah Fraim also warns that “failure to report the income can cause serious headaches down the road [in the form of potential IRS audits]”.

 

About Your 1099 Misc:

If you didn’t get any driver or passenger referrals, this section is probably not for you. Any income outside the income made from transporting customers is likely going to be reported on this form. More specifically Micah Fraim mentions that “If the driver makes over $600 [in Uber referral commissions] in the year, Uber is required to issue the Uber driver a 1099-MISC form and also file that with the IRS”: So in essence you might not receive a 1099-MISC if your miscellaneous (referral) income is less than $600.

Note – in respect to both your 1099-K and 1099-MISC, whether or not you receive one from Uber you are expected to report the income and pay taxes on it. As Anil Melwani says, “It is ILLEGAL not to declare ALL income.  Most WORLDWIDE income is reportable (and sometimes taxable) for U.S. citizens and green card holders.”

Editor’s Note:  If you don’t receive your tax forms (1099-K and/or 1099-MISC) from Uber, send them an email.

 

Preparing for Next Year’s Taxes:

  1. Tools to use for tracking your expenses:

Per our tax experts, consider using any combination of these tools – Quickbooks, Freshbooks, Mint.com, Zoho books, Expensify, MileIQ.com, Xero and for very simple bookkeeping a spreadsheet can also work.

 

  1. What to do to prepare for next year’s taxes:

Per Andrew Poulos, “A person operating as an Uber driver should keep good records for their income and expenses, and they should pay in quarterly estimated tax payments to avoid having a tax liability when they file their tax return. Since having self-employment income adds complexity to an individual’s tax return, it’s recommended that an Uber driver consult with a licensed and qualified tax professional to make sure they are estimating properly for quarterly tax payments, and taking advantage of all deductions they are allowed to claim”.

Thanks for reading. We hope this was a very informative article. For links to transcripts from the individual Q&A sessions we had with the tax experts, answers to questions not covered in the article above, and how to contact the tax experts, see the links below:

Q&A with Andrew Poulos

Q&A with Micah Fraim

Q&A with Anil Melwani

 

To receive professionally vetted information that will assist you in running a profitable Uber business whilst staying insured download our Uber kit at the top right of this page.

 

Other Interesting Uber Related Posts

For our blog posts on some of Uber’s Services, see the links below:

For other popular posts you might be interested in, check the links below:

Uber Tax Series:  Perspectives from an Industry Expert – Andrew Poulos

 

 

Andrew Poulos, Uber TaxesSince the tax season is fast approaching for the Uber drivers in the United States, we decided to do a Question and Answer session (Q & A session) with Andrew Poulos, a tax expert with over 21 years of experience.

 

Andrew is very knowledgeable and provides insights for Uber drivers and Entrepreneurs that will help them save money this tax season. Andrew also provides tips that will help you plan your  tax strategy this year, so that in the coming year you have a bigger tax refund.  Read the full Q & A below to find out his expert opinion and general thoughts as it relates to your Uber taxes.

 

a) What is your name?

Andrew Poulos

 

b) Where do you work, and what is your position/title?

Poulos Accounting & Consulting, Inc., Atlanta, GA.  My title is principal of the firm.

 

c) What does your job entail?

I work with individuals and businesses across the country and internationally, providing accounting, tax preparation, tax representation services, and representation for collections, and audits at both the IRS and state labor level.

 

d) How long have you been in the Accounting/Tax field?

21   years

 

e) What is your general opinion on the Uber business?

I think it’s a great business model, but of course there are concerns about the treatment of the drivers as independent contractors.

 

f)  Where do you stand on the widespread notion that Uber is disrupting long held industry regulations? (Specifically relating to W2 vs. independent contractor classification of workers)

Being that I represent employers for worker classification audits at the IRS and state level, I foresee the W-2 vs. Independent Contractor worker classification turning into a federal case which will ultimately go to U.S. Tax Court, and will set precedent for the industry.

 

g) What would happen to Uber drivers in the US, if they become classified as W2 employees?

If drivers become classified as W-2 employees, they will be impacted several ways. They will have federal, state, and FICA taxes withheld from their paychecks, they will be entitled to any benefits that other Uber employees are offered, and they won’t have to pay for their own gas. Most significantly, Uber drivers will not file a Schedule C on their personal tax return, and will not be able to deduct other business expenses they may have for operating their independent Uber business.

 

h)What are the major differences in taxation between someone driving for Uber full time and someone driving part time?

Driving full-time or part-time doesn’t necessarily determine if someone should be classified as an independent contractor or W-2 employee. If drivers are classified as W-2 employees, they will all be employees regardless if someone drives full-time or part-time.  The one major difference is, depending on what Uber sets in their company policies and employee manual, part-time drivers may not be entitled to benefits or the same benefits as full-time drivers.

 

i) Do I have to file quarterly tax reports, as a self-employed person in a part-time Uber driver role?

Operating as a sole proprietor you don’t file quarterly tax returns like you do if you operate as a corporation or LLC and have W-2 employees. However, a self-employed person in a part-time Uber driver role will receive a 1099 just like a full-time driver, and may have a tax liability from the self-employment income earned. Therefore, it is recommended that all Uber drivers [part time or full time] that are independent contractors pay quarterly estimated tax payments to avoid having a tax liability when they file their tax return. Having a tax liability also subjects a person to incurring penalties and interest on the balance due.

Note- Paying quarterly estimated taxes is different than filing quarterly tax reports, which are usually filed by a business that has W-2 employees.

 

j) What taxes are paid by an employer that a self-employed person would need to pay themselves?

A self-employed person is required to pay federal and state income taxes, which they would pay even if they were an employee. The difference in being self-employed is the person is responsible for paying 15.3% FICA taxes, which is 7.65% for the employee portion, and 7.65% for the employer portion. By being self-employed they are paying the additional 7.65% that the employer would pay if they were an employee instead of an independent contractor.

 

k)  What are the various types of tax considerations that impact an Uber partner and/or driver?

An Uber driver is considered self-employed thus the person has to file a Schedule C on their tax return. This makes it a bit more complex because they have to claim their Uber income, and any deductions they have on Schedule C, and the net income is taxed for 15.3% FICA, federal, and state taxes. By being self-employed it adds more complexity to a tax return that perhaps a person wouldn’t have if they weren’t an Uber driver or partner.

 

l)Would you advise an Uber driver/Partner to form an LLC in order to operate his/her Uber business?

It may be advantageous to form an LLC for tax purposes. This depends on several factors, one of which is how much income does the Uber driver/partner expect to earn during the year. A single member LLC defaults to a sole proprietorship for tax purposes, therefore the individual won’t have any tax advantage unless they convert the LLC to an S Corporation for tax purposes. In determining if an Uber driver should form an LLC and convert the entity to an S Corporation, they should consider the added record keeping and cost for quarterly tax filings, and year-end corporate tax return preparation, in addition to other factors that should be considered.

 

m)  What does an Uber driver need to do from the start of the business to ensure that they never have issues when filing their taxes?

A person operating as an Uber driver should keep good records for their income and expenses, and they should pay in quarterly estimated tax payments to avoid having a tax liability when they file their tax return. Since having self-employment income adds complexity to an individual’s tax return, it’s recommended that an Uber driver consult with a licensed and qualified tax professional to make sure they are estimating properly for quarterly tax payments, and taking advantage of all deductions they are allowed to claim.

 

n)What professional advice would you give an entrepreneur hoping to operate a fleet of cars as regards taxes?

I highly recommend an entrepreneur consult with a qualified and licensed tax professional or accountant prior to getting started so they can form the correct entity that will be the most tax advantageous to them.

 

o)  Standard Mileage or Track Expenses? What is the better option for an Uber driver/Uber partner?

Standard mileage or actual expenses is best determined on a case by case basis: the percentage of business use of the vehicle used for Uber,  the cost of the vehicle, maintenance and gas, would be factors to consider if actual expenses or standard deduction should be claimed.  The important factor to know is that whichever method an Uber driver elects to use in the first year of filing their tax return, they must use the same method each year thereafter for as long as that vehicle is in business use.

 

p)  What are the top deductions that an Uber driver needs to track?

Some of the top deductions that an Uber driver should keep track of is business miles driven, fuel cost, maintenance cost, auto insurance, cell phone, navigation fees if they have a GPS for business use, health insurance that may be deductible on Schedule C since Uber drivers are self-employed, tax preparation and consulting fees, and office supplies.

 

q) What tools do you recommend for an Uber driver to use to track their various expenses?

There are several good tools depending on how sophisticated an Uber driver wants to be. They can use an app called Expensify, Mileiq.com, QuickBooks, or Xero depending on their preference.

 

r) What is the best way for an Uber driver to estimate taxes for the current year, so they don’t have a cash flow situation come tax time?

The best way to estimate and pay quarterly taxes is to take the projected net income (Uber income less expenses) and factor 15.3% for FICA, federal taxes (at whatever income tax bracket the driver is projected to fall in, after taking into account all sources of income), and also account for state income taxes.

 

s)  What can an Uber driver do, if he/she does not receive a 1099 from Uber?

Uber drivers should keep accurate records of all the income received and claim all the income on their tax return even if they don’t receive a 1099 from Uber. By law everyone is responsible for claiming all their income even if they don’t receive a 1099 from a company they do business with.

 

t) What is likely to happen if an Uber driver doesn’t report the income made driving for Uber?

Uber will report the income to the IRS, so if an Uber driver doesn’t report the income they earned driving for Uber, the IRS will send the person a proposed notice of adjustment and they will be taxed on the entire gross income reported by Uber without accounting for any expenses.  The worst thing that anyone can do is not report on their tax return income they earned because the IRS will match up the 1099 reported and adjust their tax return without deducting any expenses. Depending on the amount of income that is not reported, the Uber driver may get audited. The ramifications for not reporting income earned can be serious so it’s advisable that an Uber driver claim all the income earned and deduct all their business expenses correctly.

 

u) Since you have helped Uber drivers prepare their taxes, what common problems have you seen?

The most common problem is record keeping for their expenses.  This tends to be a problem for many self-employed people.

 

v)Can our readers reach you, if they are looking for help with their 2015 taxes?

Yes, readers can find out more about me at www.savvytaxguy.com and can contact me at (770) 938-6300.

 

w) Any last words?

Uber drivers should keep accurate records of their expenses because if they ever get audited the IRS will disallow any expenses claimed on the tax return that [can’t] be substantiated with supporting documentation.  Good record keeping goes a long way.  Additionally, paying estimated quarterly taxes is important so an individual doesn’t owe at year-end and have to pay penalties and interest.

 

For more information about Andrew Poulos, and to drop him a note follow the links below:

Andrew Poulos – Twitter

Andrew Poulos – Website

Andrew Poulos – Email

 

To receive professionally vetted information that will assist you in running a profitable Uber business whilst staying insured download our Uber kit at the top right of this page.

 

 

Become an Uber Driver

Other Interesting Uber Related Posts

For our blog posts on some of Uber’s Services, see the links below:

For other popular posts you might be interested in, check the links below:

 

Uber Taxes : Perspectives From an Industry Expert – Micah Fraim

 

 

 

Micah Fraim, Uber Taxes

There are only two things you cannot escape in life – taxes and death. The former at least you can prepare for. To help you prepare for your upcoming tax filing we did a Question and Answer session (Q & A session)  with Micah Fraim, a very knowledgeable CPA (Certified Public Accountant) and owner of his own Accounting firm.

If you are interested in Uber Taxes, Micah is very knowledgeable about taxes as it affects Uber drivers, and workers in the “on demand” (gig) industry as a whole:  Read the full Q & A below to find out his expert opinion and general thoughts as it relates to Uber and your taxes.

 

a) What is your name?

Micah Fraim

 

b)Where do you work, and what is your position/title?

I am the owner of Micah Fraim, CPA.

 

c)What does your job entail?

My job includes advising clients on all aspects of their businesses with a focus on tax planning, business planning, and marketing advisory services.

 

d)What is your general opinion on the Uber business?

It is a nice secondary option to traditional cabs and can (in some cases) be a good way to make money on the side.

 

e)Where do you stand on the widespread notion that Uber is disrupting long held industry regulations? (specifically relating to W2 vs. independent contractor classification of workers)

I was surprised by the decisions in California and Florida because in many ways Uber drivers fit the classification criteria to be considered 1099 subcontractors.

 

f)What would happen to Uber drivers in the US, if they become classified as W2 employees?

There are two major shifts that would occur if Uber drivers became classified as W-2 employees:

  1. As 1099 subcontractors, Uber drivers are de-facto self-employed. This means that they are responsible for both sides of Social Security and Medicare on any profit. It also means that any expenses in their business are fully deductible
  2.   As W-2 employees, Uber drivers would only be responsible for paying half of Social Security and Medicare taxes while Uber would pay the other half; however, deducting their expenses becomes much more difficult. As W-2 employees, Uber drivers will now become “unreimbursed employee expenses” that fall under itemized deductions. Two things happen here:
    •   In order to deduct the expenses, total itemized deductions must exceed the standard deduction ($6,300 for single taxpayers and $12,600 for married couples)
    • The unreimbursed expenses are subject to a threshold of 2% of your Adjusted Gross Income. That first 2% gets disallowed automatically.
  3. So while the notion of classifying Uber drivers as employees on the surface sounds like a favorable change for them, it might actually end up costing them money in some cases – unless Uber reimburses them for expenses as well.

 

g)What are the major differences in taxation between someone driving for Uber full time and someone driving part time?

From a tax standpoint and under the current setup, there is no difference between driving Uber full time and driving part time. Note- Labor commissions like California and Florida might take a different view.

 

h)Do I have to file quarterly tax reports, as a self-employed person in an Uber driving role?

The only quarterly forms that are required (unless the driver runs payroll for themselves), would be quarterly estimated tax payments to the IRS and state. Failure to do so will result in a small penalty for not paying throughout the year.

 

i)What does an Uber driver need to do from the start of the business to ensure that they never have issues when filing their taxes?

Good record keeping and planning from the start of your Uber business are vital. Keeping track of all expenses, monitoring your profit, and setting aside money for tax payments are all very important because there is no employer to do any of that for you.

 

j) What professional advice would you give an entrepreneur hoping to operate a fleet of cars as regards taxes?

Cash outflows do not always equate to reductions in taxable income. If you take on debt, the principal portion of the loan repayments is not an expense for tax purposes. Be very careful in your planning to make sure these discrepancies do not get you into trouble.

 

k) Would you advise an Uber driver/Partner to form an LLC in order to operate his/her Uber business?

A single member LLC can make sense from a legal standpoint to potentially shield against liability, but from a tax standpoint an LLC is treated the same as a sole proprietorship. In the right situations an S-Corp can make sense and save you on taxes.

 

l)Standard Mileage or Track Expenses? What is the better option for an Uber driver/Uber partner?

For most vehicles (and over the long-term) the standard mileage deduction is the safer bet. There can always be exceptions, so drivers should at least track mileage as well.

 

m) What are the top deductions that an Uber driver needs to track?

Mileage and auto expenses are obviously the most important. Beyond that, the business percentage of their cell phone, home internet bill, and other expenses like office supplies, computer equipment, etc. should all be tracked.

 

n) What tools do you recommend for an Uber driver to use to track their various expenses?

QuickBooks or QuickBooks Online/Xero are good approaches. For very simple bookkeeping a spreadsheet can also work.

 

o) What is the best way for an Uber driver to estimate taxes for the current year, so they don’t have a cash flow situation come tax time?

Checking in with a tax professional throughout the year is always the best idea. Short of that, setting aside 30-40% of their business profit for taxes can be a good approach.

 

p) What can an Uber driver do, if he/she does not receive a 1099 from Uber?

Contact Uber directly to ensure one has been issued. Failure to report the income can cause serious headaches down the road.

 

q) What is likely to happen if an Uber driver doesn’t report the income made driving for Uber?

If the driver makes over $600 in the year, Uber is required to issue the Uber driver a 1099-MISC form and also file that with the IRS. If the Uber driver fails to report the income, the IRS will almost certainly flag it and require payment on the additional income. Note- the IRS’ tax figure will usually be worse than if the driver had actually claimed the income in the first place.

 

r) Can our readers reach you, if they are looking for help with their 2015 taxes?

FraimCPA.com

 

s) Any last words?

I’m available for anyone needing their taxes prepared or help growing and managing their businesses

 

For more information about Micah Fraim, and to drop him a note follow the links below:

Micah Fraim – Website

Micah Fraim- Twitter

Micah Fraim – Facebook

 

To receive professionally vetted information that will assist you in running a profitable Uber business whilst maximizing your profits, download our Uber kit at the top right of this page.

 

 

Become an Uber Driver

Other Interesting Uber Related Posts

If you liked our post on Uber Taxes, see other  informative Uber related posts below:

For other popular posts you might be interested in, check the links below:

 

Uber Taxes:  Perspectives From an Industry Expert – Anil Melwani

 

 

 

Anil Melwani, Uber Taxes

Anytime I think about taxes, I think of the unnecessary and unavoidable journey of pain I am about to embark on. For most Uber drivers in the United States, I am sure it is the same and as such, we decided to do a Question and Answer session (Q & A session) centered on Uber Taxes with Anil Melwani, the president of a tax firm, who has over 16 years of experience in Accounting.

Anil is very knowledgeable about taxes as it affects Uber drivers, and workers in the “on demand” (gig) industry as a whole, as shown in his responses below.  Read the full Q & A below to find out his expert opinion and general thoughts as it relates to Uber and your taxes.

 

a)What is your name?

Anil Melwani

 

b)Where do you work, and what is your position/title?

I work at 212 Tax & Accounting Services and I am the President of the firm.

 

c) What does 212 Tax & Accounting do?

We operate a full service C.P.A. (tax and accounting) firm.

 

d)How long have you managed your own company?

Since 2008.

 

e)What is your general opinion on the Uber business?

I love Uber.  I use it for work purposes. I also use Uber for me and my family almost every day.   The typical Uber is usually much more comfortable for us to ride in than a yellow cab.   We [my family] live and work in Manhattan.

 

f)Where do you stand on the widespread notion that Uber is disrupting long held industry regulations? (specifically relating to W2 vs independent contractor classification of workers)

From my understanding most if not all Uber drivers are treated as independent contractors.   As a licensed C.P.A who focuses on preparing and filing tax returns for individuals and businesses, this seems completely fine and legal to me.

 

g)What would happen to Uber drivers in the US, if they become classified as W2 employees?

 It probably won’t be beneficial for most of them, because they won’t be able to write off and take advantage of the several tax deductions that they are able to as independent contractors.  But on a W-2, Uber would be responsible for paying half of the self-employment taxes (FICA/SS [social security] and Medicare taxes), so it wouldn’t be all bad for the drivers.

 

h)What are the major differences in taxation between someone driving for Uber full time and someone driving part time.

Not much if they are both classified as independent contractors. The full time driver should have more income and expenses to report.

 

i)Do I have to make quarterly tax payments, as a self-employed person in a part-time Uber driver role?

Most self-employed taxpayers should be PAYING (not filing) their taxes quarterly in the form of estimated tax payments.

 

j)What are the various types of tax considerations that impact an Uber partner and/or driver?

 

  1. An Uber driver needs to make sure that the depreciation on the cost of his/her vehicle is calculated and reported correctly. This is probably the most confusing issue for most Uber drivers.
  2. An Uber driver also needs to keep track of the car mileage and Uber trips just in case of an IRS audit.
  3. Making sure you are keeping good books, records, receipts, and invoices of all business related expenses such as gas, insurance, repairs & maintenance, license fees, cleaning, car wash, cell phone / Wi-Fi / computer and internet costs.

 

k)What does an Uber driver need to do from the start of the business to ensure that they never have issues when filing their taxes?

Keep good books & records (receipts, invoices, cancelled checks, credit card statements, bank statements) for at least three (3) years.   Make sure you review your tax returns to ensure it makes sense. Don’t just sign it and give it back to your accountant to e-file.   Consider using some kind of bookkeeping software such as Quickbooks or Xero.  There are several other more basic ones out there too like Freshbooks, Mint.com, and Zoho books.

 

l)What professional advice would you give an entrepreneur hoping to operate a fleet of cars as regards taxes?

Make sure your accountant is calculating the correct amount of depreciation each year on your tax return.  This is probably going to be one of your biggest write-offs and you (not your accountant) will probably be liable for additional taxes, penalties, and interest if it is not done correctly.  Also, see the previous answer.  You should definitely look into using formal bookkeeping software such as Quickbooks or Xero.

 

m)Would you advise an Uber driver/Partner form an LLC to operate his/her Uber business?

This question should be directed to an attorney.   For tax purposes, single member LLCs and regular sole proprietor are treated and taxed the exact same way.

 

n)Standard Mileage or Track Expenses? What is the better option for an Uber driver/Uber partner?

This is decided on a case by case basis for whichever is better for the taxpayer, but once one of the methods is chosen you must stick to that method for the life of the vehicle.

 

o)What are the top deductions that an Uber driver needs to track?

Gas, insurance, repairs & maintenance, license fees, cleaning, car wash, cell phone, Wi-Fi, computer  and internet costs.

 

p)What is likely to happen if an Uber driver doesn’t report the income made driving for Uber?

They will first receive a notice from the IRS and then if they don’t file an accurate return at that point they will have much serious issues with the IRS and State they are earning income in.   It is ILLEGAL not to declare ALL income.  Most WORLDWIDE income is reportable (and sometimes taxable) for U.S. citizens and green card holders.

 

q)Can our readers reach you, if they are looking for help with their 2015 taxes?

Of course!   We are at 212tax.com and 212-475-1040.

 

r)Any last words?

File your taxes early if you can.  We LOVE early filers!!

 

For more information about Anil Melwani, and to drop him a note follow the links below:

Anil Melwani – Website

Anil Melwani – Linkedin

Anil Melwani – Twitter

Anil Melwani – Facebook

 

To receive professionally vetted information that will assist you in running a profitable Uber business whilst staying insured download our Uber kit at the top right of this page.

 

Become an Uber Driver

Other Interesting Uber Related Posts

For our blog posts on some of Uber’s Services, see the links below:

For other popular posts you might be interested in, check the links below: