topic How to I deduct doordash mileage from my earnings to pay Q3 taxes? Do I subtract (Mileage * .575 cents) and then take 22% of the remaining monies? in Deductions & credits

How to I deduct doordash mileage from my earnings to pay Q3 taxes? Do I subtract (Mileage * .575 cents) and then take 22% of the remaining monies?

mikefried12 — Fri, 04 Sep 2020 16:53:20 GMT

Re: How to I deduct doordash mileage from my earnings to pay Q3 taxes? Do I subtract (Mileage * .575 cents) and then take 22% of the remaining monies?

Critter-3 — Fri, 04 Sep 2020 17:19:53 GMT

That would work.

Re: How to I deduct doordash mileage from my earnings to pay Q3 taxes? Do I subtract (Mileage * .575 cents) and then take 22% of the remaining monies?

Carl — Fri, 04 Sep 2020 23:57:34 GMT

Just another opinion here (and we all know what opinions are like).

I've been self-employed for 15+ years now, and I've found all this calculating stuff for quarterly taxes to be an absolute waste of my time and effort. All I do each quarter is send the IRS 20% from my *GROSS* earnings for that quarter, and call it good. I have found that when I "calculate" my quarterly taxes, it always falls between 19% and 23% of my *GROSS* income for that quarter. So knowing that, I quit wasting my time "calculating" and just send the IRS 20% of the gross income each quarter. I've been doing that for over 10 years.

In the years I've been doing that, at tax filing time I am "ALWAYS" within $1000 of my total tax liability for the year. Only twice in the 15 years I've been in business have I actually owed the IRS at tax filing time, and both times what I owed was less than $500. All other years resulted in a refund.

At tax filing time if what you owe the IRS is more than $1000 or more than 10% of your total tax liability (whichever is *HIGHER*) then, and only then will an underpayment penalty be assessed. I've never paid such a penalty. In the two years I owed the IRS, since it was less than $500 it was no problem to just write the check, pay it, and be done with it. No need to set up payment plans or any of that other crap.

Re: How to I deduct doordash mileage from my earnings to pay Q3 taxes? Do I subtract (Mileage * .575 cents) and then take 22% of the remaining monies?

mellish7777 — Sat, 05 Sep 2020 15:45:38 GMT

An underpayment penalty is NOT automatically assessed if you owe more than $1000 or more than 10% of your tax liability at tax filing time. A penalty is assessed if you didn't pay at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller. There's a difference. So if you owe $100,000 in tax for the current year there would be no penalty if you paid 100% of the tax shown on your return for the prior year even if the tax liability for the prior year was $5000 and $5000 is all you paid. You'd owe a lot for the current year but you wouldn't get a penalty.