If I make $30000 on Uber Eats what percentage does IRS take? First time dealing with self-employment taxes

There's no simple flat percentage since self-employment taxes are a bit more complex than regular W-2 employment, but I can break it down for you. As an Uber Eats driver making $30,000, you'll first need to calculate your net profit after business expenses. This includes mileage (65.5 cents per mile for 2025), phone costs, insulated bags, etc. Let's say your expenses reduce your taxable income to about $20,000. For self-employment taxes, you'll pay approximately 15.3% on your net profit (12.4% for Social Security + 2.9% for Medicare). That's about $3,060 on $20,000 of net profit. Then you'll also pay regular income tax on your profit (after deducting half of your self-employment tax and other possible deductions). For a single person with just this income, you'd be in the 10% or 12% bracket typically. So between both taxes, you're looking at roughly 25-30% of your net profit (not gross earnings) going to taxes.

I was in a similar situation last year with DoorDash. Totally overwhelmed by all the tax forms and wasn't sure what I could deduct or how much I'd owe. I used this service called taxr.ai (https://taxr.ai) that really helped me understand my 1099 situation. You upload your tax documents and it explains everything in super simple terms plus shows you all the deductions you qualify for. Saved me from paying way too much because I had no idea how many business expenses I could claim!

Came back to say I tried taxr.ai after seeing this thread and wow - it actually found like $4,000 in deductions I would have missed! I had no idea I could deduct part of my phone bill, my insulated bags, and even a percentage of my car insurance. The mileage tracker feature is pretty sweet too. Way easier than trying to figure all this out myself!

If you need to talk to the IRS about your situation (which might be a good idea if you're facing penalties for not making quarterly payments), good luck getting through on the phone. I spent DAYS trying to reach someone. Then I found this service called Claimyr (https://claimyr.com) that somehow gets you through to an actual IRS person. Check out how it works: https://youtu.be/_kiP6q8DX5c - saved me hours of hold music and frustration. The IRS agent I talked to helped me set up a payment plan with minimal penalties.

I take back what I said. I actually tried Claimyr after posting that skeptical comment because my frustration with the IRS reached a breaking point. Got connected to an agent in about 2 hours (instead of the 3+ days I was trying on my own). The agent helped me set up a payment plan for my self-employment taxes and even got some of the penalties reduced because it was my first time dealing with gig work. Having an actual conversation with a real IRS person made a huge difference in sorting out my situation.

Don't forget you can also deduct a portion of your car insurance, maintenance, and possibly even your cell phone plan since you need it for the app! I'm an Uber driver (not eats) and last year on $35000 gross income, after all deductions my taxable income was only about $18000. Huge difference in what I ended up owing.

Just a heads up since I learned this the hard way - the IRS doesn't just "take a percentage" like a normal job. Since you're self-employed, you're responsible for BOTH the employer and employee portion of Social Security and Medicare taxes. That's why it feels higher than when you work a regular job where taxes are withheld!

Something nobody mentioned yet - look into the Qualified Business Income deduction (Section 199A). As a self-employed person, you might qualify to deduct up to 20% of your net business income. It's a HUGE tax break that many gig workers don't know about!

Just wanted to add some reassurance since you mentioned being terrified - I was in your exact shoes two years ago with Grubhub earnings and felt completely overwhelmed. The good news is that the IRS isn't out to destroy you, especially for first-time self-employment situations. A few practical tips from my experience: 1. Download a mileage tracking app NOW for future reference (I use MileIQ but there are free options) 2. Create a simple spreadsheet to track business expenses going forward 3. The penalty for not making quarterly payments isn't as scary as it sounds - it's usually just a few hundred dollars on $30k income 4. Consider getting an ITIN or making sure your SSN is correct on all 1099 forms to avoid processing delays Most importantly, don't let the stress paralyze you into doing nothing. Even if you file a basic return without maximizing every deduction, that's infinitely better than not filing at all. You can always amend your return later if you discover missed deductions. The IRS actually has pretty reasonable payment plan options if you can't pay everything at once. You've got this! It's way less complicated than it seems once you get through your first year.

I'm dealing with a similar situation but with different gig work - been doing TaskRabbit and Fiverr freelancing. One thing that's helped me is setting up a separate bank account just for business income and expenses. Makes tracking everything so much easier when tax time comes around. Also, don't beat yourself up about the quarterly payments - tons of first-time gig workers miss this. The IRS is used to it. When you do talk to them (if needed), just be honest about it being your first year with self-employment. They're usually pretty understanding. Quick tip: start putting aside 25-30% of your weekly earnings into a separate savings account NOW for next year's taxes. Even if it's just $50-100 a week, it'll save you from this same panic next year. I learned this lesson the hard way but now I never have to stress about having the money ready. Good luck with everything - you're definitely not alone in feeling overwhelmed by this stuff!

One thing I haven't seen mentioned yet is the home office deduction - if you use part of your home exclusively for managing your Uber Eats business (like a desk where you track expenses, plan routes, or handle paperwork), you might be able to deduct a portion of your rent/mortgage and utilities. It's called the simplified home office deduction and you can claim $5 per square foot up to 300 square feet. Also, don't forget about other potential deductions like: - Hot/cold bags and other delivery equipment - Car phone mounts or GPS devices - Hand sanitizer and masks (still deductible if used for work) - Parking fees and tolls during deliveries The key thing to remember is that you're running a small business, so think like a business owner when it comes to expenses. Keep receipts for everything and when in doubt, ask a tax professional. Many will do a quick consultation for free to tell you if something is deductible. You're going to be fine! The first year is always the scariest but once you get through it, you'll have a system down for next time.