More and more people see the benefits of working with the transportation services company Uber; if that’s your case then you might ask yourself: “How do I file taxes if I’m from Uber?“What is your tax regime? In this post we will explain everything to you.
Before starting it is important to note that those who work at Uber providing taxi services, they are not directly working for the company. These are considered independent contractors.
They are like those who buy a franchise and work on their own, therefore, the Uber company will not withhold your taxes but you are responsible for declaring them at the end of the tax year.
Requirements to file taxes if you are from Uber
Because each nation has its own laws relative to or applicable to the tax collection, the requested forms may vary in coding, but the principles are the same. Take note of what you will need.
- Submit the forms and attachments provided by the Uber application for tax return. For example, Form 1040, Schedule C, and SE.
- Carry a detailed record of earned income for the provision of the service. Have the invoices issued to the users for the charges or the one that Uber gives for the operations carried out with the general public.
- It is very important that you maintain a list and supports of all deductible expenses accumulated throughout the year, as these will reduce the amount of income you will have to pay in taxes.
- The tax regime that is generally required is from RIF, so you must be registered in the system of your country as a taxpayer or “natural person”.
- You can use a specialist accountant Keep your tax records of business activity for profits and expenses, but you can learn how to make the corresponding tax declaration yourself.
With all this information, you are ready to enter the page of the government tax collection agency or entity so that you can declare your taxes if you work with Uber.
Additional tips for filing your tax return
The vast majority of Uber workers or drivers have other jobs, so it is considered this job as additional income. In reality, if your income is less than $ 400 per year (again it depends on the country), you are not required to file taxes. Take these other factors into account to streamline the process.
- In some cases it will be necessary have physical backup of all invoices for expenses or services rendered, to present them when declaring.
- The expense bills generated by the car can be: consumption of gasoline, tires, maintenance and cleaning of the car, telephony, additional services to the passenger.
- The declared activity It can be “Ground transportation service for passengers or food delivery prepared through a technological platform.” (It depends on the option, you can pay more or less taxes)
- As the economic activity is managed by you, you are known as a “natural person”. All your tax returns will go in a single payment, because you are the sole owner of your company (transportation driver), in this case being an Uber driver.
- Note that Uber does not provide any incentives to its workers, like health or vacation insurance, you also don’t keep any taxes on your income.
Work under the platform Uber services as a driverIt is an excellent option to generate extra income while you have another job. What you have to consider is that the biggest loss will be the expenses of your car.
However, you can always subtract these expenses from your annual tax return, including those of daily use, such as fuel, repairs, depreciation, rental costs if it is the case of your vehicle, among others, but the benefits are worth it. Now you know how to file your taxes if you are an Uber driver, so keep reaping success!