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!

tracking-expenses-saving-money-sherpashare

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.

Pulse Q&A with Derek from sharedeconomycpa.com

SherpaShare's CPA answers 1099 Tax Questions for Drivers
SherpaShare answers 1099 Tax Questions for Uber, Lyft Drivers

Derek hosted an Ask Me Anything session on Pulse on both Friday and Monday. Here is the transcript.. All of Derek’s answers are highlighted! Continue reading “Pulse Q&A with Derek from sharedeconomycpa.com”

Uber, Taxes, and New Orleans: An interview with @HippyChick

With tax season in full swing we decided to dive deeper with one of our community experts, @HippyChick on Pulse, who has boatloads of tax expertise and opinions on what its like to drive in New Orleans. Here’s our in-depth Q&A with her… Continue reading “Uber, Taxes, and New Orleans: An interview with @HippyChick”

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”

When will I receive my 2015 Tax Information from Uber, Lyft?

Tax season is here for Uber and Lyft drivers. For many drivers this will be their first year filing taxes as an independent contractor. We are here to make it easier for you. This is for educational purposes only and should not be taken as actual tax advice.

Uber Lyft Tax Information

When does Uber send me my 2015 Tax Information?

It became available online on your partner dashboard on January 29th – so you can view it now! You can find this information on your partner dashboard under “Tax information”.

What’s included? You’ll see 3 actual forms on your dashboard, your 1099-K, 1099-Misc, and Other Potential Deductions. This should be all you need to file with your Uber info, however if you tracked other mileage (non-passenger mileage) or driving expenses, you should also gather these.

Continue reading “When will I receive my 2015 Tax Information from Uber, Lyft?”

Want an early jump on your 2016 1099 taxes? Here’s the key info you need.

Since New Year’s Day, we’ve had a record number of drivers interested in filing their taxes early and asking for our help! We know it can be a nightmare trying to navigate various help systems, Google searches, and other information that’s floating around on forums and in Facebook groups. We’re here to help set the record straight and give you an easy reference guide.

Key-Rideshare-Tax-Dates-for-2016

This page will help you understand:

  1. The most important tax dates you should know for 2016
  2. When you can expect certain information from service companies
  3. When you can expect certain information from SherpaShare
  4. How you can easily file it to the government

Continue reading “Want an early jump on your 2016 1099 taxes? Here’s the key info you need.”