@@boohere2 Traditionally, individuals are required to pay taxes on income, including if it's from a gig like Uber Eats or DoorDash. However, there is such a thing as "minimum income amount to file taxes". There are a lot of specifics around it though. You can learn more here: www.hrblock.com/tax-center/income/other-income/how-much-do-you-have-to-make-to-file-taxes
I know a guy who works for Uber eats for about 4 years and he never even filed any taxes.. And he's doing this full time and makes about 8 hundred bucks a week..
@@koala4204 Yes, that's true.. If you leave a trail that can be traced back there is always a chance they can get you.. Obviously if you have a side gig where you get paid in cash under the hat then the IRS will never be the wiser..
There's two ways you can go about deductions: standard mileage deduction OR actual expenses. Most people prefer to go with the standard mileage deduction - because it's easy to calculate and they find it's pretty fair. If you go with the standard mileage deduction, that already includes fuel, repairs/maintenance, insurance, and car value depreciation within it. Alternatively, you could opt to go with actual car expenses. But that requires tracking ALL your expenses that occurred just while driving for work.
Thank you for the recommendation! At this time, we don't have a video, but we do have an article on Lyft Taxes. Check it out here: www.netpayadvance.com/blog/do-i-owe-taxes-working-for-lyft/
Keeping track on your own, or using an app to track, is most accurate. But the good news is your Uber app does record the miles you drive as you have the app open! There may be miles it misses though, if you drive without the app open. The miles you drive with the app open are called “online miles” - and you'll find them on your Uber tax documents. Your annual tax summary will be available by the end of today (Jan 31) on the Driver Dashboard Tax Information Tab.
Great question! The biggest difference is going to be the mileage tax deductions. With a car, you can deduct mileage fairly easily. But a bike is a little harder. Consider the ratio that you drive your bike for Uber Eats VS for personal use. You may be able to get a tax deduction on the percent that you drive for Uber Eats. This includes a percentage of the depreciation value of the bike, as well as a percentage of any costs for maintenance and repair of the bike. Keep receipts and proof of use! There's a discussion on ttlc.intuit.com/community/tax-credits-deductions/discussion/i-work-for-uber-eats-on-a-bicycle-can-you-still-use-standard-mileage-deduction-even-with-a-bicycle/00/2366719 with more info you might find helpful!
Why is the tax bracket that high, isn't 10% more normal unless you make high income. I don't know, i figure my hubbys taxes at 15% on ( 75k ) to cover everything, his insurance etc , he is a mechanic. Thanks for the video.
Great question! There are a lot of possible reasons. 1) Independent contractors pay more in self-employment taxes than direct employees do. 2) The exact amount owed can vary state by state. It also depends how much a person makes for a gig like this. 3) A person working this gig as a full-time job won't pay the same as a person working this gig part-time only. There may be other reasons, but those are the ones that come to mind.
Does Uber tell you how much you made per quarter? Or is that something we would have to keep track of ourselves so that we’re not paying taxes on a quarter that we already paid for.
Great question Angela! Unfortunately, Uber only sends out the 1099 tax form once a year around tax time. If you want to break up what's owed to taxes throughout the year by paying during those quarterly dates, then you'll need to keep track of what you made during that quarterly period, and when you paid the quarterly taxes. I don't know if it helps, but I like to keep a folder with all my receipts and tax paper work throughout the year so that I have all of the information in once place.
Great question! Certainly an issue you're not alone on - others are experiencing the same thing. We actually have an article on that with more info! www.netpayadvance.com/blog/what-happens-if-you-dont-pay-taxes/
@@netpayadvanceinc Thank you very much for the link ! i also wanted to know if student have to pay taxes when they're working (a non federal student aid job).
@@kadija4055 The work you do now (even as a student) will need to be taxed. However, if you are financially dependent on your parent(s), your parent(s) may file taxes in one fail swoop for the whole family. Check with your parent(s) to see if they're claiming you as a dependent on their taxes. If they are, they'll need your work tax information to include for the family taxes. If your parent(s) are not claiming you as a dependent on their taxes, you'll need to file your taxes on your own.
Great question! Consider the ratio that you drive your bike for Uber Eats VS for personal use. You may be able to get a tax deduction on the percent that you drive for Uber Eats on the depreciation value of the bike, as well as a percentage of any costs for maintenance and repair of the bike. Keep receipts and proof of use! There's a discussion on ttlc.intuit.com/community/tax-credits-deductions/discussion/i-work-for-uber-eats-on-a-bicycle-can-you-still-use-standard-mileage-deduction-even-with-a-bicycle/00/2366719 with more info you might find helpful! Hope this helps!
You're not alone Jay. A lot of people don't realize this when they first start with UberEats. That's why we wanted to share this info to make it easier! You got this!
Great question! You have two ways to go about deductions: standard mileage deduction OR actual expenses. Most people prefer to go with the standard mileage deduction - because it's easy to calculate and they find it's pretty fair. If you go with the standard mileage deduction, which already considers things like average costs regarding fuel, repairs/maintenance, insurance, and car value depreciation within it. Alternatively, you could opt to go with actual car expenses. But that requires tracking ALL your expenses that occurred just while driving for work.
I'll be honest, that we're US-based, so I'm unfortunately not familiar with taxes in other countries like Canada, as well as hst/gst registration numbers. I did find this article below, and I hope it helps you! help.uber.com/driving-and-delivering/article/how-do-taxes-work-as-a-delivery-partner-with-uber-eats-what-if-im-a-delivery-partner-with-uber-eats-and-a-ridesharing-driver-partner?nodeId=dd247b9d-329d-4df7-8193-0ed70e97c3be Wishing you a fantastic day! ⭐
LOL if people listen to you and do their taxes they'll be in jail... so basically if you do everything the correct way you're not going to make any money doing Uber Eats
The IRS does seem to have payment plan options, which you can find here. www.irs.gov/payments/payment-plans-installment-agreements There's an application, and it appears some of the plans have a fee. If you're looking ahead at taxes for this upcoming annual tax season, you have time to save up money! Tax cutoff is generally April 15th. Some people that need just a couple extra $100 consider a personal loan as a sometimes more affordable option over the IRS installment plan. You can find more info here on our solutions. www.netpayadvance.com/rates-and-terms/ If you don't have the full amount for taxes, you're not alone. Compare your options, and choose the best solution that fits your unique needs!
I appreciate the video as there’s been A Lot of confusing and misinformation regarding gig work and taxes lol.. I had two questions are you fine a penalty for missing quarterly payment if you waited to do a lump sum payment? Second question if you have a W-2 job and then also do gig work a lot on your off time are you free from having to pay quarterly taxes? Thank you
Our understanding is there's no fine for missing quarterly payments so long as you meet the annual taxes date in April - this should be the case whether it's a part-time gig or your main source of income. The difference though, and the reason a lot of people prefer to pay quarterly, is that if you wait until traditional tax time, you'll be paying way more $ at once, than if you split it up throughout the year. If you miss taxes in April, there can be a fine. We actually have an article on that topic here. www.netpayadvance.com/blog/what-happens-if-you-dont-pay-taxes/
There's two ways you can go about deductions: standard mileage deduction OR actual expenses. Most people prefer to go with the standard mileage deduction - because it's easy to calculate and they find it's pretty fair. If you go with the standard mileage deduction, that already includes fuel, repairs/maintenance, and car value depreciation within it. Alternatively, you could opt to go with actual car expenses. But that requires tracking ALL your expenses that occured just while driving for work.
Thanks for the feedback! We'll consider that for sure! Until then though, we do have an article on our website with information on Instacart taxes. www.netpayadvance.com/blog/what-you-need-to-know-about-instacart-taxes/
Thank you! Finally got a good and simple explanation for how taxes work with Uber Eats!
Thanks for your kind words. We're glad to be of service! :)
@@netpayadvanceinc how do we avoid paying taxes on Uber Eats?
@@boohere2 Traditionally, individuals are required to pay taxes on income, including if it's from a gig like Uber Eats or DoorDash. However, there is such a thing as "minimum income amount to file taxes". There are a lot of specifics around it though. You can learn more here: www.hrblock.com/tax-center/income/other-income/how-much-do-you-have-to-make-to-file-taxes
Glad I came across you 😀 first time doing taxes for uber eats.
We're so glad we could help!
I know a guy who works for Uber eats for about 4 years and he never even filed any taxes.. And he's doing this full time and makes about 8 hundred bucks a week..
When was the last time he checked his status?
I feel for him when they get wind. He'll owe a huge chunk of change. This happened to my cousin a few years ago and he ended up owing like 12k to IRS.
😂 my cousin owed 300k for not paying over the years(construction) guy really taught he was gonna get away with it
@@koala4204 Yes, that's true.. If you leave a trail that can be traced back there is always a chance they can get you.. Obviously if you have a side gig where you get paid in cash under the hat then the IRS will never be the wiser..
Very informative, thank you
Can you deduct vehicle maintenance items ie oil changes, parts, tires etc. What about insurance costs?
There's two ways you can go about deductions: standard mileage deduction OR actual expenses.
Most people prefer to go with the standard mileage deduction - because it's easy to calculate and they find it's pretty fair. If you go with the standard mileage deduction, that already includes fuel, repairs/maintenance, insurance, and car value depreciation within it.
Alternatively, you could opt to go with actual car expenses. But that requires tracking ALL your expenses that occurred just while driving for work.
Nice information. Please make a video on lyft also.
Thank you for the recommendation! At this time, we don't have a video, but we do have an article on Lyft Taxes. Check it out here: www.netpayadvance.com/blog/do-i-owe-taxes-working-for-lyft/
Is there something in the app to tell you how many miles you drove making deliveries in the year, if you didn't keep track?
Keeping track on your own, or using an app to track, is most accurate. But the good news is your Uber app does record the miles you drive as you have the app open! There may be miles it misses though, if you drive without the app open.
The miles you drive with the app open are called “online miles” - and you'll find them on your Uber tax documents. Your annual tax summary will be available by the end of today (Jan 31) on the Driver Dashboard Tax Information Tab.
how about uber eats bikers? Is there a difference between a car and a bike?
thank you
Great question! The biggest difference is going to be the mileage tax deductions. With a car, you can deduct mileage fairly easily. But a bike is a little harder.
Consider the ratio that you drive your bike for Uber Eats VS for personal use. You may be able to get a tax deduction on the percent that you drive for Uber Eats. This includes a percentage of the depreciation value of the bike, as well as a percentage of any costs for maintenance and repair of the bike. Keep receipts and proof of use!
There's a discussion on ttlc.intuit.com/community/tax-credits-deductions/discussion/i-work-for-uber-eats-on-a-bicycle-can-you-still-use-standard-mileage-deduction-even-with-a-bicycle/00/2366719 with more info you might find helpful!
Exactly what I was looking for
Why is the tax bracket that high, isn't 10% more normal unless you make high income. I don't know, i figure my hubbys taxes at 15% on ( 75k ) to cover everything, his insurance etc , he is a mechanic. Thanks for the video.
Great question! There are a lot of possible reasons. 1) Independent contractors pay more in self-employment taxes than direct employees do. 2) The exact amount owed can vary state by state. It also depends how much a person makes for a gig like this. 3) A person working this gig as a full-time job won't pay the same as a person working this gig part-time only.
There may be other reasons, but those are the ones that come to mind.
Does Uber tell you how much you made per quarter? Or is that something we would have to keep track of ourselves so that we’re not paying taxes on a quarter that we already paid for.
Great question Angela! Unfortunately, Uber only sends out the 1099 tax form once a year around tax time. If you want to break up what's owed to taxes throughout the year by paying during those quarterly dates, then you'll need to keep track of what you made during that quarterly period, and when you paid the quarterly taxes. I don't know if it helps, but I like to keep a folder with all my receipts and tax paper work throughout the year so that I have all of the information in once place.
What happens when you don't pay your taxes ?
Great question! Certainly an issue you're not alone on - others are experiencing the same thing. We actually have an article on that with more info! www.netpayadvance.com/blog/what-happens-if-you-dont-pay-taxes/
@@netpayadvanceinc Thank you very much for the link ! i also wanted to know if student have to pay taxes when they're working (a non federal student aid job).
@@kadija4055 The work you do now (even as a student) will need to be taxed.
However, if you are financially dependent on your parent(s), your parent(s) may file taxes in one fail swoop for the whole family. Check with your parent(s) to see if they're claiming you as a dependent on their taxes. If they are, they'll need your work tax information to include for the family taxes.
If your parent(s) are not claiming you as a dependent on their taxes, you'll need to file your taxes on your own.
If I use a bike to do Uber eats, should I still count the mileage since I am not using gas ?
Great question! Consider the ratio that you drive your bike for Uber Eats VS for personal use. You may be able to get a tax deduction on the percent that you drive for Uber Eats on the depreciation value of the bike, as well as a percentage of any costs for maintenance and repair of the bike. Keep receipts and proof of use!
There's a discussion on ttlc.intuit.com/community/tax-credits-deductions/discussion/i-work-for-uber-eats-on-a-bicycle-can-you-still-use-standard-mileage-deduction-even-with-a-bicycle/00/2366719 with more info you might find helpful!
Hope this helps!
@@netpayadvanceinc but if he fixed on his own you can’t deduct unless you purchases the tools to fix your bike
This is worrying 😂
Yeah I basically just noticed it wasn’t taking out income tax already as i used to deliver for dominos and it was always taken out
You're not alone Jay. A lot of people don't realize this when they first start with UberEats. That's why we wanted to share this info to make it easier! You got this!
Can I deduct mileage along with other expenses? I thought I had to choose mileage or other expenses.
Great question! You have two ways to go about deductions: standard mileage deduction OR actual expenses.
Most people prefer to go with the standard mileage deduction - because it's easy to calculate and they find it's pretty fair. If you go with the standard mileage deduction, which already considers things like average costs regarding fuel, repairs/maintenance, insurance, and car value depreciation within it.
Alternatively, you could opt to go with actual car expenses. But that requires tracking ALL your expenses that occurred just while driving for work.
Great video very simple I'm new to uber eats i fully understand now
We are glad this video helped you understand!
So you don’t have to do anything if you don’t make more then 600$?
Do I pay hst and gst from my pocket as well ?
I'll be honest, that we're US-based, so I'm unfortunately not familiar with taxes in other countries like Canada, as well as hst/gst registration numbers. I did find this article below, and I hope it helps you!
help.uber.com/driving-and-delivering/article/how-do-taxes-work-as-a-delivery-partner-with-uber-eats-what-if-im-a-delivery-partner-with-uber-eats-and-a-ridesharing-driver-partner?nodeId=dd247b9d-329d-4df7-8193-0ed70e97c3be
Wishing you a fantastic day! ⭐
I just started doing uber and I'm already getting emails from uber about taxes, any tips??
Great question! We've got you - Check out our article on Uber taxes: www.netpayadvance.com/blog/understanding-uber-tax-documents/
Same ☝️
LOL if people listen to you and do their taxes they'll be in jail... so basically if you do everything the correct way you're not going to make any money doing Uber Eats
But if you got deactivated during the year you still have to pay taxes on it
Why do people say to save 30% of your income.
Awesome video. Quick question, can we make a payment plan if i don't have the full amount?
The IRS does seem to have payment plan options, which you can find here. www.irs.gov/payments/payment-plans-installment-agreements
There's an application, and it appears some of the plans have a fee.
If you're looking ahead at taxes for this upcoming annual tax season, you have time to save up money! Tax cutoff is generally April 15th.
Some people that need just a couple extra $100 consider a personal loan as a sometimes more affordable option over the IRS installment plan. You can find more info here on our solutions. www.netpayadvance.com/rates-and-terms/
If you don't have the full amount for taxes, you're not alone. Compare your options, and choose the best solution that fits your unique needs!
I appreciate the video as there’s been A Lot of confusing and misinformation regarding gig work and taxes lol.. I had two questions are you fine a penalty for missing quarterly payment if you waited to do a lump sum payment? Second question if you have a W-2 job and then also do gig work a lot on your off time are you free from having to pay quarterly taxes? Thank you
Our understanding is there's no fine for missing quarterly payments so long as you meet the annual taxes date in April - this should be the case whether it's a part-time gig or your main source of income. The difference though, and the reason a lot of people prefer to pay quarterly, is that if you wait until traditional tax time, you'll be paying way more $ at once, than if you split it up throughout the year.
If you miss taxes in April, there can be a fine. We actually have an article on that topic here. www.netpayadvance.com/blog/what-happens-if-you-dont-pay-taxes/
Is fuel part of the deductions? Or is that our own expenses
There's two ways you can go about deductions: standard mileage deduction OR actual expenses.
Most people prefer to go with the standard mileage deduction - because it's easy to calculate and they find it's pretty fair. If you go with the standard mileage deduction, that already includes fuel, repairs/maintenance, and car value depreciation within it.
Alternatively, you could opt to go with actual car expenses. But that requires tracking ALL your expenses that occured just while driving for work.
Can you please make a video on Instacart taxes
Thanks for the feedback! We'll consider that for sure! Until then though, we do have an article on our website with information on Instacart taxes. www.netpayadvance.com/blog/what-you-need-to-know-about-instacart-taxes/
I thought the tax rate for self employed was 30%?
it depend on what state you at