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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10100
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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If working as an uber driver in NYC and also being a NYC

Customer Question

If working as an uber driver in NYC and also being a NYC resident, what can be written off for tax purposes and what amount of return can I expect? I will gross approximately 100K per year.
-gas?
-car payment?
-car insurance?
-personal insurance?
Submitted: 4 months ago.
Category: Tax
Expert:  Lane replied 4 months ago.

Hi,

...

I can't really project the numberical amount of the return until you can give me some estimates of what you spend ON the items, but here's what's deductible for UBER Drivers:

...

FOr UBER drivers (and anyone else using their car as a business vehicle) you have the choice of using the actual cost method, or the standard mileage but no both.

...

Actual cost includes (not the paymenton you car LOAN, but rather depreciation on your vehicle (which is how you get that car investment as a tax deduction, oil, gas, maintenance & repair, tires, essentially all the costs of operating your car.

...

THe mileage method a much SIMPLER approach, and many times of you don't have a lot of car maintenance, the bigger deduction for an UBER driver (54 cents per mile for 2016). ... The mileage rate is supposed to be an average cost of all of those actual costs, but a simpler way to do it.

...

There are also some specific costs that Uber Drives can deduct ... bear with me a minute and I'll pull those up... (Be Right Back).

...

...

Expert:  Lane replied 4 months ago.

Here's a good one:

...

Uber’s breakdown in their dashboard gives you the total miles you drove while driving passengers. However, you can also write off mileage from:

  • Driving around waiting for ride requests
  • Driving to a passenger after receiving a ride request

Uber doesn’t track the mileage for these extra commutes, so you’ll be responsible for keeping records on this mileage

...

(more to come)

Expert:  Lane replied 4 months ago.

You'll get a tax summary from Uber and on that are some things that you need to deduct ... some of these things were ehat UBER took out before paying you ... so you need to deduct these to be sure to get the tax benefit (lowering your taxable perofit) fo them:

...

Tolls, Split Fare fee, & safe rides fee

...

Device subscriptioin and Uber Fee, as well

...

Check out the atrtachment for a great summary by Tristan Zier on what thos numbers on the Tax summary mean

Expert:  Lane replied 4 months ago.

And yes, insurance (proportionate to the amount of business use of the car - if you use your car for business 75% of the time you can deduct 75% of the insurance cost) is a business expense for you.

...

And yes, for health insurance, you'll use the Self-employed health insurance deduction:

...

here's the IRS guidance on that: https://www.irs.gov/uac/newsroom/dont-miss-the-health-insurance-deduction-if-youre-self-employed

Expert:  Lane replied 4 months ago.

If you'd like me to project the taxes for you, get me your e stimates on those expenses and we can go from there

AND, Please let me know if you have any questions at all.

...

If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

Otherwise I’m working for no crediting at all here

...

Thank you!

Lane

I hold a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.