You're The Boss & Employee!
A Tax Firm that specializes in the Ride Share industry!
Being an independent contractor means that you're self-employed . As far as the ride-share company is concerned, you're the owner of a separate business that it uses to provide driving services. Therefore, you've received a "paycheck," and likely no taxes have been taken out.
It's up to you to take care of federal and state income taxes, as well as Social Security and Medicare. Combined, these taxes can easily reach 30% to 50% of your income, so make sure to set aside money to pay them.
If you're accepting ride-sharing fares more than occasionally, you may be required to file quarterly income taxes?
When it comes to that time of the year to file or if you haven't filed already, you'll be reporting your self-employment income and expenses on a Schedule C as well as filling out a Schedule SE for self-employment tax if your net income from the work is greater than $400.
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