Rideshare Self Employment Tax

[Morehousetax5]

Hello,

I began driving for Uber this year. I am wondering if there is a way to start my taxes for 2019 so I can make an estimated self employment tax to get a head start on what I may or may not owe?

Thank you! 

[Critter]

Tax Tips for Uber, Lyft, Sidecar and other Car Sharing Drivers FAQ
 https://turbotax.intuit.com/tax-tools/tax-tips/Self-Employment-Taxes/Tax-Tips-for-Uber--Lyft--Sideca... 

You will need to file a schedule C in your personal tax return for self employment income.  You will need to use the Self Employed Online version to fill out schedule C.

Here is some reading material……

IRS information on Self Employment….
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center 

Pulication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf 

Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf 

Self Employment tax (Scheduled SE) is generated if a person has $400 or more of net profit from self-employment on Schedule C.  You pay 15.3% for SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  You do get to take off the 50% ER portion of the SE tax as an adjustment on line 27 of the 1040.  The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 line 57.  The SE tax is in addition to your regular income tax on the net profit.

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed  return....
http://quickbooks.intuit.com/self-employed 


PAYING QUARTERLY ESTIMATES
The first year you don't need to pay estimates as long as you pay in (by withholding) as much as your tax was last year.  But if you will have a big income you should send in estimates so you don't owe too much next April on your tax return.

You must make quarterly estimated tax payments for the current tax year (or next year) if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits. 
 
- 2. You expect your withholding and credits to be less than the smaller of: 
    90% of the tax to be shown on your current year’s tax return, or 
  100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)

To prepare estimates for next year you start with your current return, You can just type W4 in the search box at the top of your return , click on Find. Then Click on Jump To and it will take you to the estimated tax payments section. Say no to changing your W-4 and the next screen will start the estimated taxes section.

OR Go to….
Federal Taxes or Personal (H&B/SE version)
Other Tax Situations
Other Tax Forms
Form W-4 and Estimated Taxes - Click the Start or Update button 

The 1040ES quarterly estimates for 2019 are due April 15, June 15, Sept 16 and Jan 15, 2020.  Your state will also have their own estimate forms.  You mail in the estimates with a check or you can do it electronically at the IRS and maybe your state.

To just estimate the remaining quarters put in that you paid $1 for the quarters you missed so it will only calculate the remaining quarters.

[Anonymous]

the 2019 software will not be out probably until november  (that's assuming no more major tax law changes)

if you used TT 2018 software, there is a section for estimating your 2019 taxes,.

generally to avoid underpayment penalties, you must timely pay in through withholding and estimated taxes 

90% of current year tax  or 100% (for high income taxpayers 110%) of prior year tax.

don't know when you started rideshare,  but estimated tax payments are due 4/15, 6/15, 9/15 and 1/15 of following year.       however, say you had no other income for 2019 and started rideshare in July 2019, no estimated payments would have been required on 4/15 and 6/15,