How do I pay taxes on my UBER Eats earnings?
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.
- Nuff SedLv 710 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.
- SlickterpLv 710 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.
- curtisports2Lv 710 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.
- Max HooplaLv 710 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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- JudyLv 710 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.
- StephenWeinsteinLv 710 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.
- Anonymous10 months ago
You need to pay quarterly estimated taxes. Don't pay enough and the IRS charges you penalties.
- As Mad As BirdsLv 710 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.
- conley39Lv 710 months ago
Yes, you have to report your earnings and pay taxes.