3 ms·
On the plus side, can't an independent truck driver or an Uber/Lyft driver claim tax deductions for all business-related expenses? From talking to a couple Uber
by freefal 8y ago
On the plus side, can't an independent truck driver or an Uber/Lyft driver claim tax deductions for all business-related expenses? From talking to a couple Uber drivers, my sense it that many are aggressive with the definition of "business-related" and deduct most of all their expenses. Appreciating the downsides (need to provide for one's own health insurance and retirement) I don't often see this increase net pay discussed.
- edoceo 8y agoDeductions are not like free money. There is not so much an increase in net pay, that's why it's not talked about.
- michaelmrose 8y agoThe only way you deduct most of your expenses is to lie on your taxes and risk prison. Your friends are probably either exaggerating or criminals of the white collar variety. Furthermore say you are able to deduct $100 from your taxable income that you would have paid $30 taxes on you have saved the $30 not the $100 a tax deduction is a reduction on the amount taxed not in most cases free money remitted to the taxpayer. Most peoples expenses are heavily weighted towards, food medical, savings, living space. Whatever they can deduct will be a small portion of their overall expenses. So in turn you don't see this increase in net pay discussed because A) Its not an increase in pay its a tax deduction B) Its a small benefit that is absolutely dwarfed by the additional tax burdens + medical expenses. In short its not discussed because its imaginary.