Uber driver needs tax advice
As a self employed uber driver how much money should I put aside to cover federal, state, social security and Medicare. I don't want to come up short. Thank you
Terry Says
Wow -- I'm glad you asked now -- before the tax bill comes due! The answer is: more than you're probably saving! You need advice from a tax professional to set up a quarterly estimated tax payment (for both Federal and state taxes if you live in a state that has an income tax). Or TurboTax Self-Employed program could be the perfect answer for you, because it will help you figure that out and also track deductions (such as car costs and expenses) that could reduce your tax bill. Here is a link to Turbo Tax Self-Employed. It costs $114, but that includes free filing and personalized answers to your questions. It might save you more than enough to make it worthwhile! And don't forget to SAVE some of that money for your eventual retirement! Even a small amount set aside every month in an Individual Retirement Account could add up over the long run. Contact Fidelity or Vanguard (1-800-FIDELITY or 1-800 VANGUARD) to open an IRA and have them take the money out of your checking account on a monthly basis. You'll be glad you did.
