How do I pay taxes on my UBER Eats earnings?

Hello!

I've been driving for Uber Eats since March 18th 2019. I do about 24-25 hours a week. I don't have a traditional W-2 job at the moment as I'm working on building a small business out of my house.

So far, I've grossed about 7.1k for Uber Eats. I don't know how long I will be doing this for though -- could be one more year or one more month. I really don't know.

My question is: what do in terms of paying my taxes on the Uber Eats earnings? Can I wait til the end of the year? Or am I required to make estimated payments?

ANY help would be greatly appreciated.

9 Answers

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  • 10 months ago

    Estimate how much tax you will owe in April. If it's more than $1,000, start making the required quarterly estimated tax payments to avoid penalties and interest. If you won't owe tax, then you don't have to worry about anything other than filing the necessary return showing that to be the case.

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  • 10 months ago

    You should be filing quarterly estimated payments, or you'll owe too much when you file. If you owe over $1000 when you file, you are subject to penalties.

    • curtisports2
      Lv 7
      10 months agoReport

      Unless this person sees a sudden spike in activity the last four months of the year, there is NO WAY their NET earnings will exceed the $12,000 standard deduction. They won't owe a penny of federal income tax. The SE tax is collected annually, not periodically.

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  • 10 months ago

    What are your PROFITS, not your gross earnings? If this is the only work you've had all year, you won't be owing any federal income tax, so no periodic estimated payments are necessary, but you will owe self-employment tax of roughly 15% on your yearly NET income. I hope you've kept accurate records.

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  • 10 months ago

    You subtract your costs of doing business from your gross earnings and report them on IRS Form 1040 Schedule C or C-EZ and pay both halves of Social Security tax on Schedule SE.. You will probably find that getting a minimum wage job will bring in more money than what you are doing now.

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  • Judy
    Lv 7
    10 months ago

    Keep track of everything, including mileage daily. You'll file it as a small business, on schedules C and SE and form 1040. You're required to make estimated payments. If you don't and owe over $1000 for the year, you'll be penalized, plus coming up with that much all at once will be hard. If you make more than around $6000 for ALL YEAR TOTAL, you'll owe around $1000 since you have to pay not only income tax but also both halves of social security and medicare, plus any state and local taxes. good luck.

  • 10 months ago

    When you file after the end of the year, you have to fill out Schedule SE, either Schedule C or Schedule C-EZ, and Form 1040.

    You should make estimated payments. Use Form 1040-ES for that.

    • Nuff Sed
      Lv 7
      10 months agoReport

      You should only make estimated tax payments if your income (i.e., profit, not gross receipts) is on track to exceed the point where you would otherwise owed more than $1,000 at the end of the year.

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  • Anonymous
    10 months ago

    You need to pay quarterly estimated taxes. Don't pay enough and the IRS charges you penalties.

    • Nuff Sed
      Lv 7
      10 months agoReport

      Why pay taxes if you don't owe any taxes?

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  • 10 months ago

    I don't know the legalities of "when", but self employment taxes are no joke. You're likely to be in for a big and unpleasant surprise if you don't start figuring things out and coming up with a plan NOW.

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  • 10 months ago

    Yes, you have to report your earnings and pay taxes.

    • Nuff Sed
      Lv 7
      10 months agoReport

      Not everyone owes income taxes unless they have enough income.

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