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Uber quarterly estimated income taxes

Forum|Forum|7 years ago
June 6, 2019
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I started driving as as driver using Uber and Lyft platforms. I make approximately around $300 per week. Do I need to file for quarterly estimated income taxes or do I pay taxes at the end of year with you guys along with my other day job? If I have to do the quarterly estimated income taxes, how do I do it with Turbotax? How do I pay my taxes "as I go" for the income I gain from Uber and Lyft?

TurboTax Premier Online

Best answer by ChristinaS

You don't need to remit quarterly payments if your other withholding can cover this liability. If you make $300 per week after expenses, that's in the ballpark of $15,000 in net income per year. You must cover the regular tax rate on that income, plus Self-Employment tax. The SE tax would be about $2100 on $15,000 in net income. If your income tax rate is 15%, you can add another $2250 to that. Your tax return can also be impacted by an increase in income, which can reduce certain credits and deductions.

So, does your current withholding cover an additional c $4350 in tax liability? If your refunds are usually low, not paying estimated taxes can cause you to pay a penalty and owe a big chunk when you file.

You don't absolutely have to make the estimated payments. You can see how it goes and prepare to pay when you file. Its just a good idea to make some changes to pay in a little more during the year.

I would recommend that you at least lower your day job's W4 exemptions or add an additional amount per paycheck. For instance, if you are claiming Single 1, change to Single 0 so they can take out more. If claiming 0, maybe add $50 per paycheck. Or do both.

C

ChristinaSAnswer

Employee

You don't need to remit quarterly payments if your other withholding can cover this liability. If you make $300 per week after expenses, that's in the ballpark of $15,000 in net income per year. You must cover the regular tax rate on that income, plus Self-Employment tax. The SE tax would be about $2100 on $15,000 in net income. If your income tax rate is 15%, you can add another $2250 to that. Your tax return can also be impacted by an increase in income, which can reduce certain credits and deductions.

So, does your current withholding cover an additional c $4350 in tax liability? If your refunds are usually low, not paying estimated taxes can cause you to pay a penalty and owe a big chunk when you file.

You don't absolutely have to make the estimated payments. You can see how it goes and prepare to pay when you file. Its just a good idea to make some changes to pay in a little more during the year.

I would recommend that you at least lower your day job's W4 exemptions or add an additional amount per paycheck. For instance, if you are claiming Single 1, change to Single 0 so they can take out more. If claiming 0, maybe add $50 per paycheck. Or do both.

C

ChristinaS

Employee

You can generate vouchers to pay the IRS here:
Federal Taxes- Other Tax Situations- Other Tax Forms- Form W-4 and Estimated Taxes
This simply generates vouchers to mail payments. You can also just pay the IRS online with amounts you estimate on your own-
<a rel="nofollow" target="_blank" href="https://www.irs.gov/payments">https://www.irs.gov/payments</a>
You can't actually pay the estimated taxes through Turbo Tax.