Over the past few months, I’ve seen a lot of misinformation being passed around in regards to rideshare taxes. I definitely commend the drivers who have taken an active approach to figuring it all out but this is not a matter to be taken lightly. I’ve even talked to CPA’s and tax professionals who didn’t really fully understand how rideshare taxes work so you shouldn’t feel too bad.
The problem that I see over and over though is that most people (including some tax professionals) don’t specialize in the sharing economy and 1099 employment. Most of us have only ever worked W2 jobs so these new expense tracking requirements and deductions probably seem like a foreign concept to a lot of us. Don’t worry though, you’re not alone.
Today, I’m happy to bring on Derek Davis, a CPA who specializes in the shared economy to help share a brand new downloadable and free PDF with some tax deductions that you need to know! If you end up hiring someone to help you with your taxes, make sure that they specialize in small business, 1099 or even better the sharing economy. And if you’re like me and you want to do your taxes yourself this year, stay tuned because we’re going to be providing a ton of resources, courses and videos to help with all of that!
Veteran readers of this site should probably already know the basics about driving for a rideshare company and its tax implications. Harry’s podcast explained it pretty well but believe it or not there are a lot of nuances that go into self-employment taxes and rideshare driving in particular.
Nearly everyone is probably aware of the fact that you can deduct the miles you drive as a rideshare driver and some of you may even already understand the difference between the standard mileage rate and the actual expenses method. But the reason why you want to learn and get help from a professional CPA is because there are so many more deductions that go beyond that that you can take advantage of.
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Remember, this site is all about helping drivers earn more money by working smarter, not harder. And taking advantage of tax deductions is one of the easiest ways to keep more money in your pocket. But you have to understand them and know how and when they apply. [Read more…]