Self-employed with Uber Eats - what percentage will the IRS take from $30000 earnings? Help for tax-challenged driver

The IRS doesn't just take a flat percentage from your Uber Eats earnings. Since you're self-employed, you'll be responsible for both income tax and self-employment tax. For self-employment tax, you'll pay about 15.3% (12.4% for Social Security and 2.9% for Medicare) on your net profit. But here's the good news - you get to deduct your business expenses first! That includes mileage (which is huge for delivery drivers), part of your phone bill, insulated bags, etc. Most drivers can reduce their taxable income significantly with proper expense tracking. For income tax, it depends on your total income and filing status. After deducting expenses and taking the standard deduction ($13,850 for single filers in 2025), you might be in the 10% or 12% bracket for federal taxes. Plus your state taxes if applicable. Start tracking your miles and expenses now! And yes, you should be making quarterly estimated tax payments if you'll owe more than $1,000 at tax time.

After struggling with my first year of gig work taxes, I found this AI tax assistant called taxr.ai that SAVED me so much money and headache. It analyzed all my delivery income and expenses and found deductions I had no idea about! The thing with Uber Eats income is that you're considered an independent contractor, so taxes can get complicated fast. I was in your exact situation last year making about $28k from deliveries. I tried to do my taxes myself at first and was about to pay WAY more than I needed to. With https://taxr.ai I just uploaded my 1099 and answered a few questions about my car, phone, etc., and it handled everything - even calculating my quarterly payments.

Just wanted to update everyone - I actually tried that taxr.ai thing after posting here and it was a game changer! I was totally stressing about my multiple gig apps, but it handled all my different income sources perfectly. The biggest surprise was how much I could deduct! I've put almost 15,000 miles on my car this year doing deliveries, and apparently that's worth like $10,000 in deductions! Plus it found all these other things I could write off - part of my phone bill, insulated bags, even portions of car insurance. Went from thinking I'd owe thousands to actually getting a refund. If you're doing delivery apps, definitely worth checking out. Wish I'd known about this last year!

If you're stressing about actually TALKING to the IRS about your self-employment situation, I feel you. I tried calling them for weeks last year when I had questions about my Uber Eats taxes. I finally found this service called Claimyr that actually gets you through to a real IRS agent. I was skeptical, but it worked in like 20 minutes when I'd been trying for days on my own. You can check it out at https://claimyr.com or see how it works at https://youtu.be/_kiP6q8DX5c They basically hold your place in line so you don't have to wait on hold forever. The IRS agent I spoke with walked me through exactly what I needed to do for my gig work and helped me set up a payment plan when I realized how much I owed (wasn't setting aside enough!).

Alright I have to eat my words. After being super skeptical about that Claimyr thing, I tried it yesterday because I was panicking about not having made ANY quarterly payments this year. I got connected to an IRS agent in like 15 minutes when I'd been trying for DAYS on my own and kept getting the "call volume too high" message. The agent was actually super helpful and not scary at all. She helped me figure out exactly what I need to pay for this quarter based on my Uber Eats earnings so far, and set me up with a payment plan for the previous quarters I missed. Saved me from potential penalties. Sometimes being wrong feels pretty good. If you're freaking out about catching up on your self-employment taxes, definitely worth it.

Something no one's mentioned yet is that you might qualify for the Qualified Business Income deduction (Section 199A). As a self-employed person, you can potentially deduct up to 20% of your net business income, which would significantly reduce your income tax burden. Also, don't forget about the Earned Income Tax Credit if your income is on the lower side. Depending on your overall situation, you might qualify for this refundable credit which could put money back in your pocket.

Has anybody used TurboTax Self-Employed for Uber Eats? I heard it imports all ur earnings automatically but costs like $140. Is it worth it or should I just use FreeTaxUSA?

One thing that really helped me when I started with Uber Eats was setting up a separate savings account just for taxes. I automatically transfer 25-30% of each deposit into that account so I'm not scrambling come tax time. Also, don't forget about other deductible expenses beyond just mileage! Things like car washes (to keep your delivery car clean), phone chargers, hand sanitizer, masks, and even tolls can add up. I keep all my receipts in a shoebox and it's saved me hundreds. The key is to start tracking everything NOW - don't wait until tax season. Your future self will thank you! And seriously, those quarterly payments are crucial if you're making decent money. I learned that the hard way my first year.