I set aside a small amount every week (usually $50) to handle any extraordinary maintenence or expense such as engine/transmission work, new tires, etc. Typically, fuel takes another 18-20% of the original gross, so if I do $100 in fares, my profit is usually $60+. The way I calculate my earnings is simple: Fare -$1, -20%, - Fuel. The tax savings alone on that would be over $20,000, enough to buy your next vehicle IN CASH. Using the IRS deduction, that means you can reduce your earned income by well over $100,000, typically, in the life of the vehicle while it drives for Uber. You only deduct it for tax purposes.Ĥ) Todays cars average about 190,000 miles on the road. Its federal and state, and several states don't have an income tax at all.ģ) You don't subtract the irs deduction from your net to determine your income. Sorry, thats not happening.Ģ) There is no such thing as a 'local tax rate' on income. In order to have 37k worth of taxable income driving for Uber, you'd have to make about 250k in fares after commission. All statements below based on the default values in the sheet.ġ) They use the number for taxes based on taxable income of between 37k and 89k. The spreadsheet in OP statement is typical of the bad math by so many people in this forum.
