Uber Taxes Archives | LA PREMIER Tax Service

Accountant | Tax Preparer for Uber or Lyft Drivers

Posted on March 23, 2022June 29, 2022 by Archie

I came across this post on FORUM uberpeople.net and commented on it. The questions asked on the forum is below.

Discussion Starter · #1 · Oct 3, 2018
Any clues on how to find the best recordkeeping, tax filing advice? Key word search shows a lot of info on this from 2016. Bah-humbug. I’m thinking I might get a CPA’s help once, and see how they organize and arrange…and do my own work after. But maybe there are tax magicians to be found.
I save receipts and records, and am moderately educated on common deductions. I have been hammered with car expenses over and over and have not contacted the IRS at all this year (last year I did not earn enough to get a 1099 and just used TurboTax).
Perhaps I’m equipped to handle it on my own. I use Excel, although I’m kinda playing catch-up with logging everything and thinking my bookkeeping may not need to be as meticulous as I’m making it. I enter weekly earnings. I copy & paste fueling records from Speedway. I document mileage at every fill-up. My mileage is for sure 95% rideshare–maybe higher (I record exceptions)!
Not looking for app suggestions, by the way. I know the best rated ones and am not interested.
I’m not real big on traveling far from New Lenox/Mokena for help. But I suppose it’s a 1x or 2x consult and maybe there’s a real magician out there with Illinois-specific advice.

Here is our response:

Here is my advice. Coming from an Accountant, Tax Expert and a former Uber Driver.
Most of us drive ourselves to work and to other destinations. If we do not have a car, we use public transportation. There is a difference between driving yourself and driving as a Uber or Lyft driver.
Here is the difference
When we are driving ourselves, all we do is to sit at the wheel, turn on the engine and get going. We do not put any thoughts into what the rules of the road are. The rules are subconsciously programmed into our heads. That is, we start the engine and go to where ever we are heading. We stopped at the stop lights, stop signs, and signal left or right and get to where we want to go. That is so easy. It’s routine !!!
When I am driving for uber, I do much the same as above. The difference being is that I am more conscientious of the laws that governs driving. I tend to drive for Uber with my antenna up. I now know that have the responsibility of taking my passenger to his/her destination safely. The same applies to Do-it-Yourself taxes and have a Tax Expert do your taxes.
A Tax Professional is much more verse in the laws that govern preparing taxes. He or She can save you time and money. He or she has been trained to know what is allowable or not allowable. What is deductible or not deductible. For example, you can not say I made $50,000 driving and my expenses are $45,000. Like how do you support yourself? Are you married or single? What makes up the $45,000 allowable expenses?
That knowledge the Tax Preparer has comes from education, training and experience. You can not do taxes without knowing the ramifications and consequences of taking non-deductible expenses.
We can help you with your taxes.
We can help save you money and time.
We are Tax Experts. We are LA PREMIER Tax Service.
Call us (213) 418-9600 or set an appointment | FRIENDLY Tax Services (Accountants and Tax Preparers)

What Is a Tax Accountant?

Posted on January 3, 2022January 7, 2022 by Archie

Ok. So, you ask what a tax accountant is. The short answer, a Tax Accountant is someone who has been train in preparing income tax returns and is an Accountant. Thus, the term Tax Accountant refer to someone that specialize in the tax laws, rules, and regulations.

Ideally, a Tax Accountant training must include any of the following.

An Attorney
CPA – Certified Public Accountant
Enrolled Agent
Tax Practitioner

These are the four categories of people the IRS considers preparing taxes and represent their clients. The list of people practicing before the IRS is much longer. See Publication 947 (02/2018), Practice Before the IRS and Power of Attorney | Internal Revenue Service

However, a Tax Accountant must know tax laws as well as General Accepted Accounting Principles (GAAP). Sixty percent (60%) of tax filing deals with tax laws and the other forty percent (40%) deals with accounting.

So then, a Tax Accounting is someone with adequate knowledge of tax laws as well as General Accepted Accounting Principles. These two qualities are not mutually exclusive.

Uber Driver’s Taxes

Posted on November 28, 2021December 6, 2021 by Archie

Filing Uber Driver’s Taxes Is Not As Easy As You Think

As a Uber Driver, you are technically Self-Employed or an Independent Contractor. Under California Laws (AB5) known as the gig workers law, employers are to classify you as an employee. Nevertheless, if you received a 1099-K or 1099-MISC or a 1099-NEC, the IRS classify you as self-employed. Meaning you would have to prepare your tax return showing your business Income (1099) and Expenses (Schedule C).

So you say to yourself this is easy, right? Uber have provided me with a annual statement that tell me my monthly income, mileage drove, etc. etc. etc. This sounds good, right? Nope. The record keeping is incomplete.

Turbotax tells you it easy, sign up and do your taxes or get Expert help. That also sounds good, Right?
Nope. Here is why. You need to speak with the Tax Expert to guide him or her as to your expenses for the year. The Tax Expert will also need to sometimes see the physical copy of the document that make up the expense so as to categorize that expense.

At PREMIER Financial Tax & Accounting Services dba Friendly Tax Services, we can help you with this.
That is what we do. WE ARE EXPERTS.

Call Us (866)542-9551 | (213)418-9600

A Tax Expert is a Phone Call Away

Smart Income Tax Filing for Uber & Lyft Drivers

Posted on October 19, 2021April 14, 2022 by Archie

Most Uber and Lyft drivers i.e. gig economy workers such as DoorDash Driver, InstaCart, UberEats, Postmate, or eveb Airbnb people prepare for tax filing by waking up and gathering receipts laying around or pulling out receipts they may have stuck away some where to file their tax return.

Next, they began price hunting googling and calling tax preparation services. The other option is to walk into a tax store such as Jackson Hewitt or H&R BLOCK ready to file their tax returns with the papers they gathered.

Alternatively, others choose the easier and simple way to file their tax return using intuit Turbotax. The Do-It-Yourself method.

These approaches are cavalier. This is the lazy man approach. This rob you of the Tax Deductions and Tax Credits you are entitle to if you keep good records.

Ridsharing workers (Uber & Lyft drivers) need to fully understand the Tax Benefits and Tax Advantages that come with good record keeping; or partnering with a Tax Professional such as a Tax Accountant all year round to take advantages of the Tax Savings, Deductions, and Credits you are entitle to.

At PREMIER Financial Tax & Accounting Services dba FRIENDLY Tax Services, we like to help you benefits from these tax deductions and credits tax by partnering wiith you all year round. We are gig economy experts; Uber and Lyft Income Tax Preparer Expert serving the Glendale, Burbank, Pasadena and the greater Los Angeles area. We will help you throughout the year in keeping good records so at tax time, we will prepare and file your tax return for half the cost you will pay a CPA.

We like to partner with you.

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