Question: I made $52k as an Uber driver this year. I'll be owing just over $9k in taxes but I have 24,551 in business expenses

You've got a good start with tracking your expenses, which is half the battle for self-employed folks! Let me break this down for you. First, those business expenses you listed should definitely help reduce your tax burden. When you file your Schedule C (Profit or Loss from Business), you'll report your gross income of $52k and then subtract all those legitimate business expenses. You'll only pay taxes on the net profit. About the car expenses - you actually have two options. You can either deduct the actual expenses as you've listed (gas, maintenance, insurance, and partial car payment), OR you can use the standard mileage deduction (58.5 cents per mile for 2023). You should calculate both and see which gives you the bigger deduction. Most Uber drivers find the standard mileage rate more beneficial, but it depends on your situation. Regarding quarterly estimated taxes - yes, self-employed individuals are expected to make quarterly payments if they expect to owe $1,000 or more. Since you didn't make these payments, you might face some penalties, but they're usually not too severe for first-time self-employed folks.

I had almost the exact same issue last year with my rideshare income! After trying to figure it all out myself and getting nowhere, I finally used https://taxr.ai and it was a game changer. I uploaded all my Uber statements and receipts, and their system automatically identified all the potential deductions I could take. Found about $3,800 in deductions I would have missed on my own! What really helped was their self-employment tax calculator that showed me exactly what forms I needed and how much I'd owe after all deductions. They even explained how quarterly estimated payments work for next year so I wouldn't get penalized again.

Wanted to follow up and say I tried taxr.ai after reading about it here. I was really impressed! I've been doing rideshare and delivery apps for 2 years and always felt like I was overpaying on taxes. The system found nearly $5,200 in deductions that I had missed last year - mostly related to partial home office use and cell phone expenses that I didn't realize I could claim. It also helped me set up a quarterly payment schedule so I won't get hit with penalties next year. Definitely worth checking out if you're in the gig economy!

One thing nobody's mentioned is how impossible it is to get through to the IRS if you have questions about self-employment taxes. I spent literally DAYS on hold last tax season trying to get clarification on some deductions. Finally found this service called https://claimyr.com that got me connected to an actual IRS agent in under 45 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c As a fellow rideshare driver, I had questions about how to handle mileage between rides and some app fee deductions. The IRS agent actually cleared everything up and saved me about $1,200 in taxes. Totally worth it after I wasted hours trying to get through on my own.

Ok I need to eat some crow here. After posting my skeptical comment, I decided to try Claimyr anyway because I've been trying for WEEKS to reach the IRS about a notice I got related to my rideshare income. Used the service yesterday and got connected to an IRS agent in 37 minutes! Literally solved my issue in a 10-minute conversation that would have taken me days of trying. The agent confirmed I was calculating my self-employment taxes correctly and explained exactly how to handle the quarterly payments going forward. Also found out I qualify for a payment plan which is going to save me a ton of stress. Sometimes being proven wrong is actually a good thing!

Don't forget to look into the Qualified Business Income deduction (Section 199A). As a self-employed person, you might be eligible to deduct up to 20% of your qualified business income. This is ON TOP OF your regular business expense deductions. Also, consider opening a SEP IRA or Solo 401k to reduce your taxable income even further. You can contribute significantly more to these retirement accounts as a self-employed person than you could to a traditional IRA, and the contributions are tax-deductible.

Is anyone else having trouble with the Uber tax summary? Mine shows a much lower mileage than what I actually drove. I tracked 32,000 miles but Uber only shows 24,500. This could mean thousands in missed deductions!

Hey Liv! I went through almost the exact same situation when I first started driving for Uber. That $9k tax bill sounds about right for $52k in earnings - self-employment tax alone is 15.3% on your net profit, plus regular income tax on top. A few things that might help you out: 1. **Double-check your mileage tracking** - Make sure you're capturing ALL business miles, not just what Uber reports. This includes driving to pickup locations, between rides, and heading home after your last ride of the day. 2. **Health Savings Account** - If you're eligible, you can contribute to an HSA which reduces your taxable income dollar-for-dollar. 3. **Equipment purchases** - Did you buy a phone mount, dash cam, or any other equipment for driving? Those are deductible too. 4. **Quarterly payments for next year** - Set aside about 25-30% of your earnings each quarter to avoid this shock next year. The IRS has a safe harbor rule - if you pay 100% of what you owed this year in quarterly payments, you won't get penalized even if you end up owing more. The penalty for not making quarterly payments usually isn't too bad for first-timers, especially if you file and pay on time. You've got this!