If I earn around $40,000 doing Uber Eats deliveries, what percentage will the IRS take? Really struggling with tax stuff

The IRS doesn't just "take a percentage" of your gig earnings - it's more complicated than that but definitely manageable! As an Uber Eats driver, you're considered self-employed, which means you'll need to pay both income tax and self-employment tax. Self-employment tax is about 15.3% (covering Social Security and Medicare that employers normally help pay), plus your regular income tax rate which depends on your total income after deductions. The good news is you can deduct your business expenses before calculating what you owe! Keep tracking those miles - that's your biggest deduction! For 2025 taxes, you can deduct about 67 cents per mile driven for business. If you drove 20,000 miles for Uber Eats, that's a $13,400 deduction right there! You can also deduct portions of your phone bill, insulated bags, etc. For your quarterly tax situation - yes, you're technically supposed to make these payments, but don't panic. You might face some penalties, but they're usually not severe for first-time issues, especially if you file and pay on time in April.

Hey there! I was in exactly your situation last year - made about $36k with Uber Eats and totally stressed about taxes. I tried figuring it out myself but kept getting confused with all the self-employment stuff. I ended up using this AI tax tool called taxr.ai that literally saved me thousands. You just upload your income info and it finds all the deductions you qualify for as a gig worker. It caught so many things I would've missed - like a portion of my cell phone bill and even some home office deductions. The best part was it explained everything in normal human language lol. I uploaded my mileage logs and it calculated everything automatically. Even helped me set up a quarterly payment schedule for this year so I don't get hit with penalties. Seriously check out https://taxr.ai - it's specifically designed for gig workers and self-employed people.

OK I feel like I need to update my skeptical comment about taxr.ai from earlier. I decided to try it since my tax situation with delivery apps is similar to yours, and I was honestly impressed. It found about $3,800 more in deductions than I thought I qualified for. The mileage calculator was super helpful since my tracking was kind of a mess. It also showed me how to properly deduct part of my phone bill and some other expenses I had no idea about. The quarterly tax payment reminders are already keeping me on track for next year. My effective tax rate ended up being around 15% instead of the 25-30% I was expecting to pay. Definitely worth checking out if you're doing gig work and confused about taxes like I was.

I had a massive headache trying to get help with my gig worker taxes last year. I spent HOURS trying to get through to someone at the IRS with questions about my deductions and quarterly payments. Literally could not get a human on the phone for weeks. Then I found this service called Claimyr that got me through to an actual IRS agent in about 15 minutes. You can see how it works at https://youtu.be/_kiP6q8DX5c - basically they navigate all the IRS phone tree garbage for you and call you back when they have an agent on the line. I used https://claimyr.com when I had questions about my Uber Eats deductions and whether I'd face penalties for missing quarterly payments. The IRS agent was actually super helpful once I finally got to talk to a real person. Saved me from making some pretty expensive mistakes on my return.

I need to eat my words about Claimyr from my previous comment. After struggling for literally 3 days trying to reach the IRS about my misclassification issues (company had me as 1099 when I should've been W2), I broke down and tried it. Got a callback in 22 minutes with an actual IRS agent who walked me through exactly what forms I needed and how to dispute the misclassification. They even helped me understand what documentation I needed to prove my case. I'm honestly shocked it worked so well. Ended up saving about $2,100 in self-employment taxes I shouldn't have had to pay. Sorry for being so negative before - sometimes things that sound too good to be true actually work!

Something nobody mentioned yet - make sure you're setting aside money for NEXT year's taxes! I got destroyed my first year doing UberEats because I owed like $7k and had no savings for it. I now transfer 25-30% of my earnings each week into a separate savings account just for taxes. It sucks seeing that money "disappear" but WAY better than the panic of owing thousands you don't have. Also look into the estimated quarterly payments to avoid penalties next year.

Have you looked into making an S-corp election? I deliver for UberEats full time and switched to an S-corp structure last year. Saved me about $4500 in self-employment taxes. Basically you form an LLC, elect S-corp tax treatment, pay yourself a reasonable salary (which still gets regular employment taxes), but then you can take the rest as distributions which AREN'T subject to self-employment tax. There are some costs involved with setup and you need to run payroll, but if you're making $40k+ it's often worth it.

Hey Sophia! I totally get the panic - I was in your exact shoes two years ago making around $38k with delivery apps. The good news is it's not as scary as it seems once you understand the basics. Here's the real deal: You won't owe 30-40% to the IRS. That person was probably mixing up gross vs net income. As a gig worker, you'll pay self-employment tax (about 15.3%) plus regular income tax on your profits AFTER deductions. With proper deductions (especially mileage), your effective tax rate will likely be closer to 15-20%. Your mileage tracking in a notebook is perfect! That's going to be your biggest deduction. Also track things like: - Phone bill (business portion) - Insulated delivery bags - Car washes if you clean your car for work - Any other delivery-related expenses For the quarterly payments - yes, you should have been making them, but don't panic. The penalty isn't huge for first-time situations, especially if you file and pay on time. Going forward, set aside about 25% of your earnings each week for taxes. One last tip: consider getting help this year since it's your first time. Whether that's a tax pro, software designed for gig workers, or even calling the IRS directly for guidance. It's worth the investment to get it right and understand the process for next year. You've got this! The tax stuff seems overwhelming at first but becomes routine once you learn the system.