Monthly Archives

January 2016

Rideshare Independent Contractors

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FREE REPORT: How to Pay Taxes as a Click-and-Ride/Rideshare Partner

 

As a click-and-ride partner/rideshare driver, the first thing that you need to keep in mind is that you’re not an employee – you’re an independent contractor.  It’s awesome being a solopreneur – you work when you want and you make as much money as your car can afford you to.  However, you also bear the brunt of your tax reporting.  An independent contractor files taxes as a self-employed individual (4 times a year) and THAT also means that you’ve gotta keep an awesome record of your expenses.

 

It’s likely at the end of the year you receive a 1099 from your click-and-ride company (if you earned over $600) and you’re going to use this docoment to report your net income.  The form you’d use to report this income is the Schedule C of Form 1040.  Here’s one of the most important things I can drill into your head: you have HAVE to pay self-employment taxes on your net income.  Just to be sure you heard me, read that last sentence again.  Don’t forget to account for this or you could be in for a bam-pow from Uncle Sam.  Your self-employment tax (Social Security and Medicare) is roughly 15% of your net income.

 

All in all, paying your taxes as a click-and-ride partner/rideshare driver isn’t the worst experience you can have – an audit is much, much worse.  For our FREE REPORT on How to Pay Taxes as a Click-and-Ride Partner/rideshare driver, visit www.MillennialTax.com.

Solopreneurs Ushering in 2016

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Let’s be honest here – we all like to start off the year with lofty goals and ambition for the future.  Everyone on social media is posting their what it’s ‘bout to be in 2016 affirmations.  But then, right around when the WORK starts kicking in, reality tends to smack us back down to size pretty quickly.  Here’s one New Year’s resolution for all the resolutions: don’t let 2016 be another year with great goals but faux follow through.

 

Health. You know one thing a lot of people talk about but never bother to actually do?  Take care of themselves.  Eat healthier.  If you want to be healthy, you gotta put in the effort!  Going to the gym this entire year may be a stretch, but at least vow to take yourself to the grocery and buy healthier food.  I mean, especially if you know you’re not going exercise at all.  I too am guilt of not exercising enough and that’s why Fresh Direct is my friend.

 

Wealth. Getting their businesses and finances under control is something else I hear a lot of talk about.  You’re a proud solopreneur and you’ve started your own business – what now?  Think about it. Take the time to set up a retirement account or make some good investments today, not tomorrow or when the “business makes enough money.”  Real talk –the business is never going to make enough money if you don’t start with good HABITS today.  Thinking you can do this stuff “later” is a good example of not letting this year be another of fake follow through.

 

Relationships. Let 2016 be your year of forgiveness and love. It’s not easy to let bygones be bygones – but it’s the best policy for both your health and your sanity.  That doesn’t mean you can’t cut toxic people right out of your life if needed, of course.  But if you decide to keep them in your life, then embrace it.  Be a bigger you by not letting resentment hold you back.  I’ll admit that I didn’t know how to forgive until I read Bishop T.D. Jakes’ book, “Let It Go: Forgive So You Can Be Forgiven,” but it changed my life once I did.

 

Wishing all my fellow solopreneurs a fabulous New Year and here’s to a healthy, wealthy, and happy relationship-filled year ahead of us!

 

Quarterly Taxes for Rideshare Drivers

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FREE REPORT: How to Pay Taxes as a Click-and-Ride/Rideshare Partner

 

As an experienced entrepreneur and tax professional, I get it: taxes are stressful.  If you’re going to play the self-employment game, though, you gotta be ready to ace it.  The hustle of driving and working for yourself, great customer service (for good ratings) and taxes, you have to do it all.  I know it’s not easy – believe me, I’ve been at this for years.  It’s especially hard for click-and-ride partners and rideshare drivers because the industry is so new.

 

Here’s how you should be paying taxes as a click-and-ride partner/rideshare driver.

 

Quarterly Taxes

A “perk” of being an independent contractor is that you now are responsible for withholding your own taxes.  Did you know depending on how much you earn, you may be required and need to pay taxes more times a year?  If you earn over $600 for the year as a rideshare driver,  you’ll need to report the additional income to the IRS, but if you earn more than that, you might need to pay estimated quarterly taxes.  Ah, the joys of independence.  The fun part is there are a ton of potential deductions you can claim.  Some of them are things you’ve probably never even considered, like water and tissues for your passengers.  You’ll only be able to maximize your tax savings if you keep good books and records.  Deductions and good records are like sneakers and shoe laces – you need both.

 

All in all, paying your taxes as a click-and-ride partner isn’t the worst experience you can have – an audit is much, much worse.  For our FREE REPORT on How to Pay Taxes as a Click-and-Ride Partner (rideshare), visit www.MillennialTax.com.