It’s Time to Start Thinking about Taxes
Its definitely that time of year to start thinking about your taxes. This is the best time to start thinking about it ahead of the tax season as there are some things you can do this month to lower your taxes and make it easier to file come tax time.
Things to start doing now:
- Collecting receipts (for the expenses deduction if you choose to deduct expenses, rather than mileage)
- Finalizing your mileage logs (for the mileage deduction)
- Calculating how much you earned from Uber and Lyft (Uber and Lyft will provide a 1099 but this is to double check their numbers and to give yourself an idea of how much taxes you need to pay come March (estimated taxes) and April (2015 tax bill, if you owe)
- Make any last minute purchases to count as depreciable business expenses, such as new tools, GPS, dashcams, car accessories.
The earlier you start your taxes, the earlier you will be filing your taxes and getting your refund! Many tax professionals are recommend that you file your taxes early since there was a large spike in fraudulent tax returns last year by scammers to steal refunds from other people. Don’t let that happen to you!
If you are still unsure about your self employment income taxes due to driving on Uber, Lyft, or as a delivery driver, check out the articles I have written about taxes as they pertain to Uber and Lyft drivers (they are also applicable to delivery drivers as well):
It goes in depth about how to file your taxes, what you can and cannot deduct, and so much more!
If you still need help on tax related matters, check out our tax course. It is at a discounted price before the tax season, but we anticipate raising the prices in December and again in February so get in now before the sale ends!
As another reminder, there are two estimated taxes payment due BEFORE you even file for your taxes in April 2016:
- December 15, 2015 (if you owe more than $1000 in taxes for the past three months of self-employment income)
- March 15th, 2016 (most likely you will need to pay this (1/4 of your total tax bill from Uber and Lyft) due to tax laws)
This is why it is critical that you get a sense of how much you owe so you will be ready for these two estimated tax payments, the most critical being in March 2016, the first estimated tax payments for most drivers who started in 2015.
Have more questions about Uber or Lyft? Head on over to our Rideshare Driver Training Course!