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Can you claim both the mileage deduction and standard deduction when driving for Uber?

So I'm pretty new to being a gig driver and I have a tax question that's confusing me. I started driving for Lyft this year and made about $37k total driving passengers around. I've kept really good records and I've driven roughly 28,000 miles for work. I was looking at the tax stuff and saw that I can deduct my business miles at 65.5 cents per mile (for 2023). That would be like $18,340 in deductions from my business income. But then I was wondering - can I ALSO claim the standard deduction ($13,850 for single filers) on top of that? Because if I can do both, that would mean my taxable income would be super low! Like $37,000 - $18,340 - $13,850 = $4,810 taxable income. That seems too good to be true, which is why I'm questioning if I'm allowed to do both deductions or if I have to choose one or the other. Any help would be appreciated!

I used to be a rideshare driver and made this exact mistake my first year! I thought I had to choose between mileage deduction OR standard deduction and overpaid by thousands. Here's what I learned the hard way: 1. The mileage deduction goes on Schedule C to reduce your business income 2. The standard deduction is totally separate and goes on your 1040 3. You definitely get BOTH! Also make sure you're tracking all your miles correctly. Any driving between passengers counts too (not just when someone's in your car). And don't forget other expenses like a portion of your phone bill, car washes, etc.

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Wait really? I've been driving for UberEats for 6 months and only counting miles when I have food in the car. So I can count ALL the miles when I'm logged into the app and available for deliveries?

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Yes! Any miles driven while you're actively working (logged into the app and available) count as business miles, even if you don't currently have a passenger or food in the car. The IRS considers this "on the clock" time. The only miles you can't count are your personal trips or your commute to your starting point before logging in. But once you're logged in and working, those "empty" miles between rides or deliveries are absolutely deductible business miles. This is a huge thing many drivers miss! Make sure you're tracking all those miles - it can make a big difference in your tax bill.

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Is anybody else worried about getting audited? I'm claiming both deductions like everyone says but my taxable income is coming out to like $3,500 on $42,000 in rideshare earnings and I'm kinda freaking out that the IRS is gonna come after me.

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I was worried about the same thing last year, so I asked my brother-in-law who's an accountant. He said just make sure you have good documentation for your mileage. Like a detailed log with dates and miles. The IRS knows rideshare drivers have high expenses, especially with mileage, so the low taxable income by itself isn't a red flag. Just make sure you can back up your numbers if they ask.

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That's a relief to hear! I've been using MileIQ to track all my driving so I should have pretty good records. I guess I was just shocked at how much difference the deductions made. Thanks for the reassurance!

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Need help making sense of this IRS computation notice - will I owe $3,364?

I just received this notice from the IRS and I'm honestly freaking out a bit. There's this computation form they want me to agree to, and it says something about owing $3,364. I don't really understand all the tax jargon in the document. Basically, the letter asks me to either agree to their computation or dispute it. If I just sign and return the form agreeing to their numbers, does that mean I'll immediately owe them $3,364? I don't have that kind of money sitting around! The notice mentions something about adjustments to my reported income from last year, but I thought I filed everything correctly. I used TurboTax and double-checked everything. I'm totally confused about what to do next and really don't want to make a mistake that costs me thousands. Any advice would be super appreciated.

I've dealt with these computation notices before. One important thing to note: even if you agree with their assessment, you might qualify for penalty abatement, especially if this is your first notice or you've had a good compliance history. You can specifically request "First Time Penalty Abatement" if you've had no significant issues with the IRS for the past 3 years. This won't reduce the tax amount or interest, but could save you hundreds in penalties. Just call the IRS (or use one of those services mentioned) and specifically ask about penalty abatement options. The worst they can say is no!

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Is this something you have to specifically request? I paid a similar notice last year and no one mentioned anything about penalty abatement to me. I had a perfect tax record before that too.

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Yes, you absolutely have to specifically request penalty abatement - the IRS will almost never offer it voluntarily! It's not widely advertised, but it's an official IRS administrative waiver. Many people qualify but never know to ask for it. If you paid penalties within the last 2-3 years and had a clean record before that, you might be able to request a retroactive abatement and get those penalties refunded. You'd need to call the IRS and specifically request "First Time Penalty Abatement" for the tax year in question, explaining that you had a good compliance history before that. It's definitely worth trying!

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Whatever you do, DON'T ignore this notice!! My brother thought his CP2000 was a mistake and just tossed it aside. Fast forward 6 months and his bank account got levied. The IRS had gone ahead with their computation, added more penalties for non-response, and then took collection action. Even if you need more time to sort it out, make sure you respond before the deadline (usually 30 days) requesting more time. The IRS is actually pretty reasonable if you communicate with them, but they have zero patience for people who ignore their notices.

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This is solid advice. I work in a tax office and we see this all the time. People bring in final collection notices for issues that could have been easily resolved months earlier. By that point, options are much more limited and the amounts owed have usually increased significantly.

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How to Complete a W-9 Form Correctly as a Window Cleaner - Business Name vs Disregarded Entity Name

I've been doing window cleaning as a side gig for about a year now, and I'm getting more serious clients. Back in January, one of my bigger clients (a property management company) asked me to fill out a W-9 form before they would process my payment of $1,200. Being new to all this tax stuff, I think I messed up the form. I filled out the "Business name/disregarded entity name" line with my personal name instead of leaving it blank since I'm just a sole proprietor working under my own name. Now I'm worried the client will reject my invoice or I'll have issues with the IRS when tax time comes around. I'm starting to get more commercial clients who will probably require W-9s and I want to make sure I'm doing this right going forward. Should I go back to this client with a corrected form? Will this cause problems at tax time? I've heard horror stories about people getting audited over simple form mistakes like this.

Former bookkeeper here. Just to add something important: make sure your name on the W-9 EXACTLY matches your name on your Social Security card. If there's any discrepancy (like using a nickname, middle initial vs. full middle name, etc.), it can cause matching problems when the company issues your 1099-NEC next January. Also, don't forget to check the right tax classification box. For a sole proprietor, check the first box "Individual/sole proprietor or single-member LLC" - unless you've actually formed an LLC.

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What about if I'm using my maiden name for business but my married name is on my social security card? Will that cause problems?

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That's exactly the kind of situation that causes tax matching problems. You should use your legal name (the one on your Social Security card) on the first line of the W-9 form. If you're using your maiden name as a business name, you would put that on the second line "Business name/disregarded entity name." Ideally, you should consider filing for a proper DBA ("doing business as") with your local government if you're consistently using your maiden name for business purposes. This creates a clear paper trail between your legal name and business name.

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quick question - do i need to give clients a new w-9 every year? or just once when we start working together? one client is asking for a new one and im not sure if thats normal.

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You typically only need to provide a W-9 once unless your information changes (like a new address, name change, or tax ID change). Some companies have policies requiring annual updates just to ensure they have current information, but it's not an IRS requirement. It's not unusual for a client to request an updated form each year - they're just being thorough with their record-keeping. If nothing has changed in your information, you can just complete a new form with the same details.

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Help needed entering my tax data when filing my 2025 federal tax return

Hey everyone, I'm really struggling with entering all my tax information correctly on my federal return this year. It's my first time filing with multiple income sources and I'm totally lost about where to put everything on the forms. I have a W-2 from my main job, some freelance income, and also sold some stocks. The tax software I'm using keeps asking for numbers from documents I can barely understand. I've tried watching tutorial videos but they're confusing me even more. How do you guys organize all these forms and figure out where each number goes? Every time I think I'm done, the program finds some error or says I'm missing something. Is there some system I should follow when entering all this data for my federal tax return? Help!!!

One thing that really helped me with entering tax data was creating a simple checklist of all my tax documents before I even started. I literally make a spreadsheet with: - Document type (W-2, 1099-INT, 1099-B, etc.) - Who it's from - Amount on the form - Status (entered, pending, questions) This way I can methodically check off each document as I enter it and make notes about any questions. It prevents that panicky feeling of "did I forget something?" when you're about to submit your federal return.

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That's smart! Do you just use a regular spreadsheet or is there a template somewhere? Also, how do you handle documents that have multiple numbers on them like investment statements?

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I just use a regular Excel or Google Sheets spreadsheet that I created myself. Nothing fancy, just those columns I mentioned. For complex documents like investment statements, I expand my tracking approach. I create sub-rows under the main document listing key figures (dividends, capital gains distributions, etc.) and note the specific form boxes where those numbers should go. Sometimes I even take screenshots of the tax software entry screens and note which box on my document goes to which field in the software. It's a bit more work upfront, but it saves me tons of confusion, especially for documents that have dozens of figures on them.

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Has anyone had success using the IRS Free File options? I'm trying to save money but I'm worried the free versions won't handle multiple income sources or that they'll push me to upgrade halfway through...

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I used IRS Free File last year with W-2, some freelance income, and a small amount of stocks. It worked fine for me! Just make sure you go through the IRS website (irs.gov/freefile) rather than going directly to the tax company sites. If you go direct, they sometimes don't show the free options.

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Should I pay my property taxes in advance for my newly built home?

So my wife and I just finished building our dream house last year and now we're dealing with some tax confusion. The bank that holds our mortgage escrow sent us a check for around $7,400, saying something about how the property assessment didn't properly account for the new house that was built on the land. I've been sitting on this check because it felt weird, but the bank keeps calling saying we need to cash it already. I talked to our realtor who basically said "cash the check but don't spend the money yet" which isn't super helpful. Now we just received our property tax bill and we owe $3,200 for each half of the year (so $6,400 total). I'm assuming this tax bill is for last year, right? Would it be smart to just use the funds we got from the bank to pay off these property taxes now? The tax bill doesn't specify much else. I'm worried if I don't pay it now something will get messed up, but also concerned about using this money if I'll need it later for something else tax-related. Any advice would be appreciated!

Make sure you check if you're eligible for any property tax exemptions with the newly built house! Many counties offer homestead exemptions, and some have additional ones for veterans, seniors, or primary residences. This could save you thousands each year. Also, keep all documentation about this situation - the original escrow refund, the tax bills, and receipts of payment. Tax assessments on new construction often get adjusted in the first 2-3 years as counties fully process everything, and having a paper trail will help if there are any disputes.

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Thank you for this suggestion! I didn't even think about exemptions. Do I need to apply for these or are they automatic? Our county website is pretty awful and hard to navigate.

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You almost always need to apply for exemptions - they're rarely automatic. Most homestead exemptions require an application within the first year or two of occupancy. Your county's tax assessor's office should have the forms, even if their website is terrible. It's worth calling them directly or visiting in person since these exemptions can save you significant money every year. Some counties also have partial exemptions for energy-efficient new construction, so ask about that too if your home has any green features. Don't wait on this - many exemptions have filing deadlines that, if missed, mean you'll have to wait until next tax year.

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Don't forget to double check if your property tax bill is paid in arrears in your state! This is super important. In some states, you're paying for the previous year's taxes, while in others you're paying for the current year. If you're in a state that pays in arrears, that bill might actually be for the time period when your house was still under construction, which might explain some of the confusion.

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This is such an important point! I'm in Illinois and our property taxes are always paid in arrears. Made for a very confusing first year in our new build because the tax bills didn't match what we expected.

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