As with anyone with a livelihood in Australia, an Uber driver must pay their taxes. In fact, independent contractors are required to keep track of their income and expenses related to their work in order to file their tax returns accurately. Since Uber is well-known for offering a large number of rides to drivers, they often have several deductions they can claim on their tax forms.
One of the most common deductions for Uber drivers is the expense for tolls and gas and the cost of acquiring and maintaining a vehicle. Before the Australian Tax Office (ATO) had been informed of Uber’s existence, it was illegal to claim the cost of a vehicle on a tax return. However, in the past few years, this has changed. Now drivers will need to keep a log of their work hours and miles as well as their company’s name.
Doing a Proper Calculation
When it comes to claiming vehicle expenses, you will need to estimate your mileage. The amount of deduction you will receive will be based on the number of kilometres you drove for Uber.
To calculate your deductions, you will need to multiply the number of kilometres you drove by the average fuel consumption of your car. Meanwhile, you will also need to keep your logbook in order to back up your claims.
For the time being, you cannot claim the cost of your online marketing or the fee you paid to join Uber. Nonetheless, you can claim for the toll, your vehicle maintenance and your insurance policy for the car.
As you can see, even though you are an independent contractor, you have some deductions you can claim for. So as long as you keep careful records of your vehicle’s mileage as well as maintain a log of your trips, you should have no trouble getting a fair refund. Just be sure to consult your tax professional before claiming any expenses.
Average Uber Driver Tax Deduction for a Year
On average, an Uber driver can claim about $6,000 per year for expenses on their tax return. For those who have a full-time job, you will have to have the highest tax refund. If you don’t have a high income, you can claim about $3,000 per year. If you are using your car for more than Uber, you will have to claim fewer expenses.
As with any career, an Uber driver can claim tax deductions. These deductions usually come in the form of vehicle expenses, but you can also claim the cost of marketing your business. Just remember that you will need to keep a log of your work hours and car mileage and keep any receipts of your vehicle expenses.
You can expect to receive a $500 to $6,000 refund on your taxes if you have an Uber driver job. That’s more than enough to offset your expenses. Just remember that it’s important to keep a log of your vehicle’s mileage and keep any receipts of your vehicle expenses.
If you are an Uber driver, you might be eligible for a tax deduction. As long as you keep a log of your hours and the cost of your vehicle, you will have no trouble using those expenses on your tax return.
However, you should always consult a tax professional. You will not be able to claim any expenses without a written statement from Uber or their tax department. You will also need to provide the receipts of any expenses you want to claim on your taxes. If you work for Uber, you are classified as an independent contractor. This means you will have to keep all of your receipts and your logbook as proof.
If you are looking for experienced tax accountants for UBER drivers, look no further than our platform here at Rideshare Tax. Our free app is here to help you undergo a free ABN and GST registration and manage your BAS on the go. Download our app now and experience convenient tax processing unlike any other.