More and more people see the advantages of working with the transportation services company Uber; If that is your case, then you may be wondering: “How do I file taxes if I am from Uber?” What is your tax regime? In this post we explain everything.
Before starting, it is important to highlight that those who work at Uber providing taxi services 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 fiscal year.
Necessary requirements to declare taxes if you are from Uber
Because each nation has its own laws relating to or applicable to the collection of taxes, the forms requested may vary in coding, but the principles are the same. Take note of what you will need.
- Submit the forms and annexes provided by the Uber application for the tax return. For example form 1040, Schedule C and SE.
- Keep a detailed record of the income obtained from the provision of the service. Have the invoices issued to users for the charges or the one given by Uber for the operations carried out with the general public.
- It is very important that you keep a list and the supports of all the deductible expenses accumulated throughout the year, since these will reduce the amount of income that you will have to pay taxes.
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The tax system that is generally required is the RIF, so you must be registered in your country’s system as a taxpayer or “individual”.
- You can use a specialist accountant who keeps your tax records of commercial activity for profits and expenses, but you can learn to make the corresponding tax declaration yourself.
With all this information, you are ready to enter the page of the tax collection agency or government entity so that you can declare your taxes if you work with Uber.
Additional tips for filing your taxes
The vast majority of Uber workers or drivers have other jobs, so this work is considered additional income. Actually, if your income is less than 400 dollars per year (again it depends on the country), you are not required to declare taxes. Take these other factors into account to speed up the process.
- In some cases, it will be necessary to have a physical backup of all invoices for expenses or services rendered, to present them when declaring.
- The invoices of expenses generated by the car can be: gasoline consumption, tires, maintenance and cleaning of the car, telephony, additional services to the passenger.
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The declared activity can be “Passenger ground transportation service or food delivery service prepared through a technological platform”. (Depending on the option, you can pay more or less taxes)
- As the economic activity is handled 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 (transport driver) in this case, being an Uber driver.
- Keep in mind that Uber does not provide any incentives to its workers, such as medical insurance or vacations, nor does it maintain any tax on their income.
Working under the Uber service platform as a driver 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 the pain. Now you know how to file your taxes if you are an Uber driver, so keep on succeeding!
