What Is Tax Planning for Uber Drivers?

Tax planning is the analysis and organization of a person’s financial situation with the goal of ensuring the most “tax-efficient” outcome. In other words, the goal of tax planning is to make sure you are legally paying as little in taxes as possible.

For UberPeople, tax planning require keeping good record of your expenses. Try to separate your personal expense from your business expense. This is hardest this for most gig workers to do. Why? Because UberPeople use their personal bank accounts as their business account. That’s ok. But you will eventually have to separate your business expenses from your personal expenses.

In the tax preparation world, tax planning for UberPeople means good record keeping. So then, how do you do this? We recommend you do the following

  1. Use a debit card or credit card to make purchases and record your transactions.
  2. Get an accounting software (Quickbooks Self-EmployedPatriot Software, Waveapps or some free expense ledger
  3. Diligently categorize your monthly expenses. Which ones are business or personal. I mean monthly do this.
  4. Print out a Profit and Loss Statement Monthly and review the statement for accuracy.

By doing these four items above, you will cut half the fee to prepare your taxes by about $300. You have don’t the leg work. Without doing this, you end up paying a higher tax prep fees. It’s all about keeping good records.

Hope this helps……

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