Top 3 Money Saving Tips For Independent Drivers

Do you pick up passengers for Uber or Lyft, make deliveries for Postmates or Doordash, visit clients, or otherwise use your vehicle for business purposes? If you do, read on! Here are our top 3 money saving tips for independent drivers to help you save hundreds or thousands of dollars on tax deductions.

Tip Number 3 – Educate Yourself

We’ve done multiple surveys over the last couple years asking independent workers and drivers if they know how tax and deductions work for them? The majority of responses were a resounding “No”.

What that means is pretty clear. Most independent drivers don’t know that they will owe potentially hundreds or thousands of dollars in taxes in April. Approximately 30% of their earnings might go to the government.

However, it’s quite easy to substantially reduce or eliminate what you owe with some simple education (like this blog post on filing taxes on the on-demand economy).

The point is simple, especially if you’re new to being an independent or self-employed worker: Take the time to do a little reading and learn about record keeping and filing taxes. And if you have specific questions, seek help from online forums or discussion groups too!

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Tip Number 2 – Keep A Record Of Your Expenses

Here’s a brief overview of expenses you should keep a record because you may be able to deduct them: Car payments, interest on the auto loan, license, title, and registration, fuel costs, maintenance, insurance, mobile phone and charger, wireless plan, and car washes.

If your a rideshare (Uber or Lyft) driver or other independent driver, these costs can become substantial and potentially offset any potential tax owed.

Whether you’re keeping receipts or using an app, the main point is to keep a record and always think about keeping a record of these expenses. The best practice for many independent workers is to get in the habit of entering an expense when you’re filling up at the pump, in the car wash, or otherwise have just made the purchase.

 

Tip Number 1 – Track Your Mileage

It’s always worth re-emphasizing this because if you do one thing, this would be it: Track your business miles. The reason is that most self-employed or independent workers use the standard mileage deduction when filing taxes ($0.54 per mile in 2016).

If you use an app like SherpaShare for this, you’ll have an online record of all of your trips, including maps of where they took place to use for taxes and to defend against any potential audit in the future.

If you drive 100 miles in a day for business, that’s a $54 deduction right there! You can quickly see how just by tracking miles automatically you can end up deducting thousands of dollars from your taxable income.

Have any other tips you’d recommend to your fellow independent workers? Leave a comment! Want a free trial of SherpaShare to get unlimited mileage, expense, and earnings tracking – and more. Get your 14 day free trial.

Introducing Groups on SherpaShare Pulse

 Introducing Groups on SherpaShare Pulse

Introducing “Groups” on SherpaShare Pulse

We’re thrilled to roll-out the “Groups” feature in Pulse, which allows any independent workers to join and create their own groups.

When we launched our Pulse app in January, we did it in order to give an even stronger voice to drivers and independent workers around the world. The new “Groups” feature continues that mission of giving independent workers even more of a voice and more control.

Continue reading “Introducing Groups on SherpaShare Pulse”

Filing taxes for Uber, Lyft, and others in the on-demand economy

SherpaShare was built to help independent contractors maximize their earnings potential by providing them with more accurate analysis, mileage tracking and a real time community network. If you haven’t already, download our App and start tracking 2016 miles now.  Communicate with your local drivers and get ahead of the game. We’ve partnered with Shared Economy CPA to give you the important tax information you need as an independent contractor. 

Continue reading “Filing taxes for Uber, Lyft, and others in the on-demand economy”

2015 Mileage Report Now Available

 

Did you track mileage with SherpaShare in 2015? If so, you can now do an instant-download to see your year end mileage summary and full trip-by-trip details directly on the Driver Dashboard under “Get 2015 Report”. Read the details below.

UPDATE: Tracking for 2016-2017? Here’s how you can get more tracking with our Premium.

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Your 2015 Mileage Report

On your Driver Dashboard look for the “Get 2015 Report” button. Once you click, you’ll see the brief description of the reporting:

  • Your mileage tracked by SherpaShare in full CSV format
  • Directly sent to your email with unlimited downloads
  • Save hundreds or thousands of dollars from owed taxes
  • One-time payment of $10

Once processed, you’ll receive an email with your summary and full mileage details. If you still want to manually check and export your miles into a PDF you still have that option on the dashboard.

ProTip: Remember just one 17 mile trip is worth $10 toward your tax deduction, based on the 2015 IRS rate. If you’re looking for tax tips check out our “What You Absolutely Need to Know About Rideshare Taxes

We’re thrilled to offer this to you and continue to be able to grow and expand our driver support service and network, the largest in the world.

Read More: When will I receive my 2015 tax info from Uber, Lyft? 

How to label, edit, and export your mileage with SherpaShare

While the SherpaShare App is designed to run in the background and track your driving mileage automatically, that alone is not useful if you don’t know what to do with this mileage afterwords. Here are 5 tips on viewing, labeling, editing, adding, and exporting your mileage.

 Pro Tip: Download the free app first on iOS or Android, then read below

How to see your past trips

When you login to your web dashboard, under the Mileage screen you’ll see a list of your tracked mileage. You can scroll or search by date, and tap the map marker icon under Miles. Once you do, you’ll see the full map of that trip.

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Continue reading “How to label, edit, and export your mileage with SherpaShare”

Tips on how to save thousands with mileage tracking, and avoid getting in trouble with the IRS

IRS Rideshare Mileage Compliance

Any business mileage submitted to the IRS is likely to be closely scrutinized, and your mileage log is the most important piece of evidence for this. The reason: Mileage can be an enormous deduction for tax filers and the IRS knows how to quickly find record keeping mistakes that could wipe out your entire deduction. Here’s how you can avoid common mistakes when submitting your business mileage.

Continue reading “Tips on how to save thousands with mileage tracking, and avoid getting in trouble with the IRS”

How do I get started with the SherpaShare App? Check out these videos.

SherpaShare App Store Images

Our mission is to help independent workers work smarter and earn more, and we’ve started with independent drivers! So, if you’re wondering what exactly that looks like in the app, look no further. We’ve whipped up 5 short videos to help answer some of your questions!

Continue reading “How do I get started with the SherpaShare App? Check out these videos.”