Uber, the popular taxi alternative, now operates in 250 cities in 50 countries, and has drivers worldwide. Uber pays their drivers their full wage and it is up to the driver to pay their own taxes.
If you are an Uber driver, you are considered a self employed employee, which means you must make quarterly estimated tax payments to the IRS if both of the following apply:
- you expect to owe at least $1,000 in federal tax for 2014, after subtracting federal tax withholding and credits, and
- you expect federal withholding and credits to be less than the smaller of:
- 90% of the tax to be shown on your 2014 federal tax return, or
- 100% of the tax shown on your 2013 federal tax return
An estimate of when you will need to pay estimated taxes:
| PAYMENT PERIOD | DUE DATE |
| January 1 – March 31, 2014 | April 15, 2014 |
| April 1 – May 31, 2014 | June 16, 2014 |
| June 1 – August 31, 2014 | September 15, 2014 |
| September 1 – December 31, 2014 | January 15, 2015* |
*Always remember to pay your taxes to avoid IRS Debt. If you do owe back taxes to the IRS contact a licensed professional for tax defense and tax relief representation! It is always smart to be proactive when facing IRS problems.
More information about quarterly estimated tax payments
Information from: http://ridesharedashboard.com/2014/10/23/lyft-uber-drivers-pay-taxes/
Or refer to IRS Form 1040-ES Instructions and IRS Publication 505, Tax Withholding and Estimated Tax
If you ever have any tax questions or problems call the tax experts at Advocate Tax Solutions at 888-737-0200 or visit www.advocatetaxsolutions.com
ATS | Advocate Tax Solutions | Back Tax Help 