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Queen driver
New Member

How do figure out how much money to set aside for taxes as a self employed driver?

 
1 Reply
conniem123
Employee Tax Expert

How do figure out how much money to set aside for taxes as a self employed driver?

Hi queen driver,  Many newly self-employed people are surprised at their tax bills at the end of the year because they notice they're suddenly paying a lot more in tax as a self-employed person than as an employee. That's because they're carrying the full burden of paying for their Social Security and Medicare.

 

Here is a great resource with an example of calculating your self employment taxes,

https://turbotax.intuit.com/tax-tips/self-employment-taxes/the-self-employment-tax/L8xXjolB4

 

Also be sure to keep track of all your business expenses, as that will lower your business profit, and lower your taxable income.

 

https://blog.turbotax.intuit.com/self-employed/i-work-for-a-rideshare-company-how-can-i-get-my-bigge...

 

I hope you find this helpful!

 

 

 

 

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