13 July

Rideshare Driver Tax Tips and Deductions



















How to Save Money on Taxes and Car Maintenance as a Rideshare Driver

If you're a rideshare driver for Uber, Lyft, or any other app-based service, you know how important it is to keep your car in good shape and your tax bill low. Driving for a living can be very rewarding, but it also comes with some challenges and expenses that you need to manage wisely.

In this article, I'll share some of the best tips and tricks I've learned from my years of experience as a rideshare driver. You'll discover how to:

- Claim the most tax deductions for your rideshare business

- Save money on gas, maintenance, and repairs for your car

- Boost your income and tips from happy passengers



Ready to learn more? Let's get started!!

Claim the Most Tax Deductions for Your Rdeshare Business

As a rideshare driver, you are considered an independent contractor, not an employee of the app company. This means that you're responsible for paying your own income taxes, Social Security, and Medicare taxes. It also means that you can deduct many of the expenses related to your business from your taxable income.

The first and most important deduction you can claim is for the miles you drive on the job. You can choose between two methods to calculate this deduction:

- The standard mileage rate: This is the easiest and most common method. You simply multiply the number of miles you drove for business by the IRS rate for that year. For 2022, the rate is 58.5 cents per mile for the first half of the year and 62.5 cents per mile for the last half of the year. This rate covers all the costs of operating your car, such as gas, oil, repairs, insurance, maintenance, and depreciation.

- The actual expense method: This method requires more record-keeping, but it may result in a higher deduction if your car expenses are high. You add up all the costs of operating your car for business, such as gas, oil, repairs, insurance, maintenance, depreciation, or lease payments. Then you multiply that amount by the percentage of miles you drove for business.

Whichever method you choose, make sure to keep a detailed mileage log and receipts for all your car expenses. You can use an app like Stride or Gridwise to track your mileage and expenses automatically.

Other tax deductions you can claim as a rideshare driver include:

- Commissions and fees you pay to the app company

- Technology costs, such as phone bills, chargers, mounts, dash cams and all.

- Car washes and cleaning supplies

- Snacks and drinks you provide for passengers

- Parking fees and tolls

- Business licenses and permits

- Accounting and tax preparation fees

To claim these deductions, you'll need to report your income and expenses on Schedule C when you file your taxes. You'll also need to pay self-employment tax on Schedule SE if your net income from driving is $400 or more.

To avoid a big tax bill at the end of the year, it's a good idea to make estimated tax payments every quarter. You can use an online calculator or a tax software like TurboTax to figure out how much you owe. Personally, I have always used TurboTax and have overall been satisfied with it.

Save Money on Gas, Maintenance, and Repairs for Your Vehicle

As a rideshare driver, your car is your most valuable asset. You want to keep it running smoothly and efficiently so that you can provide a safe and comfortable ride for your passengers and avoid costly breakdowns.

Here are some ways to save money on gas, maintenance, and repairs for your car:

- Properly inflate your tires: Underinflated tires can reduce your gas mileage by up to 3%. Check your tire pressure regularly and follow the manufacturer's recommendations for optimal inflation.

- Remove unused seats: If you don't need all the seats in your car, consider removing them to reduce weight and improve fuel efficiency. Just make sure you still have enough seats for the maximum number of passengers allowed by the app company.

- Minimize running the air conditioner: Running the AC can increase your fuel consumption by up to 25%. Try to use it sparingly and only when necessary. Use natural ventilation by opening the windows or sunroof when possible.

- Follow a regular maintenance schedule: Keeping up with routine maintenance can prevent major problems and extend the life of your car. Follow the manufacturer's guidelines for oil changes, tire rotations, fluid checks, brake inspections, etc.

- Shop around for parts and services: Don't settle for the first quote you get when you need to repair or replace something in your car. Compare prices from different mechanics, dealerships, and online retailers. You can also save money by doing some simple repairs yourself, such as changing the air filter, wiper blades, or headlights.

- Use a gas app: Gas prices can vary widely depending on the location, time of day, and demand. Use a gas app like GasBuddy or Waze to find the cheapest gas stations near you. You can also join a rewards program or use a cash-back credit card to get discounts on gas purchases.

Boost your Income and Tips from Happy Passengers

One of the best ways to save money as a rideshare driver is to make more money. The more income you earn, the more you can offset your expenses and increase your profit.

Here are some tips to boost your income and tips from happy passengers:

- Drive during peak hours and surge zones: You can earn more money by driving when and where the demand is high. This usually means during rush hours, weekends, holidays, events, etc. Check the app for surge pricing and bonuses and take advantage of them.

- Provide excellent customer service: Treat your passengers with respect and professionalism. Greet them warmly, confirm their destination, ask about their preferences for music, temperature, conversation, etc. Be friendly, courteous, and helpful. Thank them for choosing you and invite them to rate you.

- Offer extra amenities: You can impress your passengers and increase your chances of getting a tip by offering some extra amenities, such as water bottles, snacks, gum, mints, tissues, phone chargers, etc. You can also provide entertainment options, such as magazines, books, games, trivia, etc.

- Ask for referrals and reviews: Word-of-mouth is a powerful way to grow your business and attract more customers. Ask your satisfied passengers to refer you to their friends and family who need a ride. You can also ask them to leave you a positive review on the app or on social media. This will help you build your reputation and credibility as a rideshare driver.

Conclusion

Driving for a rideshare company can be a great way to make money on your own terms. But it also comes with some challenges and expenses that you need to manage wisely.

By following the tips in this article, you can save money on taxes and car maintenance as a rideshare driver. You can also boost your income and tips from happy passengers.

Remember that you're not just a driver; you're a business owner. Treat your rideshare business seriously and professionally. Invest in your car and your customer service. And don't forget to enjoy the ride!



Disclaimer: I am not a tax professional. This is not financial advice. Do your own due diligence and consult a tax professional.

08 July

Getting Started as a Rideshare Driver: Tips for Maximizing Your Earnings and Staying Safe

pretty lady beside car


















How To Get Started Driving With A Rideshare

Rideshare driving is a great way to earn extra money on your own schedule. Whether you're looking to make some extra cash on the side or you're considering rideshare driving as a full-time job, it's important to know how to maximize your earnings and stay safe on the road. When I started driving I drove for Lyft and really had a good experience with them. I used Uber at the same time to make sure I always had riders. If you wondering which company to work with here is an article on choosing between Lyft or Uber as a new driver. If you are in New York city there is a smaller company called Revel that operates a fleet of Tesla's.

Getting Started as a Rideshare Driver

If you are wondering how to get started driving for a rideshare company here is a guide. To get started as a driver, you'll need to meet certain requirements. These requirements vary depending on the company you choose to drive for, but generally include:

- A valid driver's license

- A clean driving record

- A reliable vehicle that meets the company's requirements

- Proof of insurance

Once you've met these requirements, you can sign up to drive for Uber or Lyft. The sign-up process is super quick and simple and can be completed online in just a few minutes. If you are interested in exploring reasons to be a rideshare driver this is a good overview.

Tips for Maximizing Your Earnings as a Rideshare Driver

To maximize your earnings as a rideshare driver, it's important to know when and where to drive. Some of the best times and places to drive for Uber or Lyft include:

- During rush hour

- On weekends and holidays

- Near airports and other transportation hubs

- During major events like concerts, sports games

In addition to driving during peak hours, you can also use surge pricing to your advantage. Surge pricing occurs when there is high demand for rides and not enough drivers available. During these times, fares are increased to encourage more drivers to get on the road.

Another way to maximize your earnings is by providing excellent customer service. This includes being friendly and professional with passengers, keeping your car clean and well-maintained, and going above and beyond to make sure your passengers have a great experience.























How to Stay Safe While Driving for Uber or Lyft

Staying safe while driving is essential. To stay safe on the road, follow these tips:

- Always wear your seatbelt

- Keep your vehicle well-maintained

- Be aware of your surroundings at all times

- Lock your car doors when driving or parked

- Never leave your car running unattended

In addition to these tips, it's important to know what to do in case of an accident or emergency. Review your companies policies. Make sure you have the necessary insurance coverage and know how to contact emergency services if needed.

Rideshare driving can be a great way to earn extra money on your own schedule. By following these tips for getting started as a rideshare driver, you can get the most when it comes to your money and stay safe out there on the roads.

Get the max Lyft driver referral bonus for new drivers in July 2023.

17 June

Lyft vs Uber For New Drivers

friends excited about going to work












Lyft vs Uber: Which Rideshare App Is the Best For New Drivers?

If you're looking for a way to get around town without driving your own car, you probably have two apps on your phone: Lyft and Uber. Lyft and Uber are the best rideshare companies for new drivers. These two companies are leaders in the rideshare industry, offering a convenient and cheap alternative to taxis and public transit. But which one is the best choice for you? In this article, we'll compare and contrast the pros and cons of each app, and help you decide which one is right for you.

Lyft or Uber: Where Can You Use Them?

One of the biggest differences between Lyft and Uber is their availability. Uber is a global company, operating in 58 countries and over 300 cities around the world. Lyft, on the other hand, is only available in the U.S. (46 states) and Canada. This means that Uber has a much larger market and can serve more customers and drivers worldwide. However, Lyft is growing fast and may expand to more countries in the future. Low key, I always felt like Lyft was better for drivers because years ago when I started they allowed tips before Uber did.

Lyft vs Uber: How Much Do They Cost?

Another important factor to consider is the cost of each app. Both Lyft and Uber charge similar rates for basic rides, which depend on factors like distance, time, demand, and location. However, both apps also use dynamic pricing models that increase the fares during peak times or high demand. Uber calls this Surge Pricing, while Lyft calls it Prime Time.

The way they calculate these price surges is different, though. Uber uses a multiplier model, which means that the fare is multiplied by a certain number depending on the demand. For example, if the surge is 2x, you pay twice as much as the normal fare. Lyft uses a percentage-based formula, which means that a certain percentage is added to the normal fare. For example, if the prime time is 50%, you pay 50% more than the normal fare.

This means that the same ride could cost very differently on each app during peak times. The best way to compare prices is to check both apps before booking a ride, and see which one offers a better deal.

Lyft vs Uber: What Kind of Rides Can You Get?

Another major difference between Lyft and Uber is the variety of ride options they offer. Both apps allow you to choose from different types of vehicles, such as economy, luxury, or eco-friendly. However, Uber has more options than Lyft, giving you more flexibility and choice.

Uber offers nine different ride options: UberX, UberXL, UberPool, Uber Comfort, Uber Green, Uber Black, Uber Black SUV, Uber Premier, and Uber Taxi. Each option has different features, such as number of seats, vehicle quality, price range, and carbon footprint.

Lyft offers five different ride options: Lyft, Lyft XL, Lyft Lux, Lyft Lux Black, and Lyft Lux Black XL. Each option has similar features as Uber's counterparts, but with fewer choices.

In addition to ride options, Uber also offers more services than Lyft, such as Uber Eats (food delivery), Uber Freight (truck delivery), Uber Health (non-emergency medical transportation), and Uber Pet (pet-friendly rides). Lyft only offers one additional service: Lyft Rentals (car rental).

Lyft vs Uber: How Do They Treat Their Drivers?

If you're thinking of becoming a rideshare driver, you may wonder which app is better for you. Both Lyft and Uber have similar requirements for drivers and vehicles, such as age, license, insurance, background check, etc. However, there are some differences in how they treat their drivers.

According to some reports, drivers earn slightly more with Lyft than with Uber. This is because Lyft charges lower commissions than Uber, and also allows drivers to keep 100% of their tips. Uber also allows drivers to keep their tips, but charges higher commissions on fares .

Another difference is the driver culture. Lyft is known for being more friendly and community-oriented than Uber. Lyft encourages drivers and riders to interact with each other, such as by using stickers, fist bumps, or conversation starters. Uber is more professional and business-like than Lyft. Uber focuses on providing efficient and reliable service to customers, rather than creating social connections.

Conclusion

So, which rideshare company is better for new drivers: Lyft or Uber? The answer depends on your personal needs and preferences. Both apps have their advantages and disadvantages, and both offer convenient and affordable transportation options. The best way to decide is to try both apps yourself, and see which one suits you better. I hope this article was imformative and helps you on your rideshare journey! Good luck!

Razones Para ser Conductor

guy rideshare driving
















¿Te gustaría ganar dinero extra conduciendo tu propio coche? ¿Te gustaría tener tu propio horario y elegir los días y las horas que trabajas? ¿Te gustaría conocer gente nueva y explorar tu ciudad? Si has respondido sí a alguna de estas preguntas, entonces deberías considerar convertirte en un conductor de viajes compartidos.

Los viajes compartidos son una forma de transporte en la que los conductores usan sus propios vehículos para llevar a los pasajeros a sus destinos a cambio de una tarifa. Los conductores se conectan con los pasajeros a través de aplicaciones móviles como Uber o Lyft, que les muestran la demanda y el precio de los viajes en tiempo real. Los conductores pueden aceptar o rechazar los viajes según su conveniencia y disponibilidad.

Ser un conductor de viajes compartidos tiene muchos beneficios, tanto personales como económicos. Veamos algunos de ellos: - Ganar dinero extra: Esta es quizás la razón más obvia y atractiva para ser un conductor de viajes compartidos. Puedes ganar dinero extra cada mes, dependiendo de cuánto conduzcas y de la demanda de viajes en tu zona. Además, puedes aprovechar las tarifas dinámicas, que aumentan cuando hay más demanda, como en las horas punta o durante eventos especiales. También puedes recibir propinas de los pasajeros satisfechos, que pueden suponer un ingreso adicional significativo. Y no olvides los beneficios fiscales: puedes deducir muchos gastos relacionados con tu actividad como conductor, como el combustible, el mantenimiento, el seguro o las cuotas de las aplicaciones.

- Tener flexibilidad: Ser un conductor de viajes compartidos te permite tener un control total sobre tu horario y tu ritmo de trabajo. Puedes conducir cuando quieras y durante el tiempo que quieras, sin tener que rendir cuentas a nadie. Puedes adaptar tu actividad a tus necesidades personales y profesionales, y equilibrar mejor tu vida laboral y familiar. Por ejemplo, puedes conducir por las mañanas antes de ir a tu trabajo principal, o por las noches después de cenar. O puedes conducir solo los fines de semana, o cuando tengas algún gasto extra que cubrir. Tú decides.

- Conocer gente nueva: Ser un conductor de viajes compartidos te permite interactuar con personas de diferentes orígenes, edades y profesiones. Puedes tener conversaciones interesantes, divertidas o inspiradoras con tus pasajeros, y aprender cosas nuevas cada día. También puedes hacer amigos, contactos profesionales o incluso encontrar el amor. Nunca se sabe quién puede subir a tu coche.

- Explorar tu ciudad: Ser un conductor de viajes compartidos te permite descubrir nuevos lugares y rutas en tu ciudad. Puedes visitar barrios que no conocías, encontrar restaurantes o tiendas que te llamen la atención, o disfrutar de las vistas y los sonidos de tu entorno. También puedes aprovechar para hacer turismo cuando no tengas pasajeros, o para hacer recados personales entre viaje y viaje..

Como ves, ser un conductor de viajes compartidos tiene muchos beneficios que pueden mejorar tu calidad de vida. Así que no lo dudes más y únete a esta comunidad de conductores que disfrutan de su trabajo y ganan dinero extra al mismo tiempo. Solo necesitas tener un coche en buen estado, una licencia de conducir válida, un seguro adecuado y una buena actitud. ¿A qué esperas? ¡Regístrate hoy mismo y empieza a conducir!

31 May

Why Should I Drive For Lyft?

male driving for lyft at sunset














Why Being Your Own Boss Is The Best Thing Ever

Have you ever dreamed of quitting your 9-to-5 job and becoming your own boss? If so, you're not alone. According to a recent survey, 62% of Americans want to start their own business someday. But what are the benefits of being your own boss? And how can you make it happen? Here are some reasons why being your own boss is the best thing ever.

You have more freedom and flexibility

One of the biggest perks of being your own boss is that you have more freedom and flexibility to manage your time, work style, and location. You can set your own schedule, work from home or anywhere else, and choose the projects that interest you. You can also take breaks whenever you need them, without worrying about someone else's approval. This can improve your productivity, creativity, and well-being.

You can pursue your passion and purpose

Another benefit of being your own boss is that you can pursue your passion and purpose in life. You can create something that you're proud of, that reflects your values and vision, and that makes a positive impact on the world. You can also learn new skills, challenge yourself, and grow as a professional. You can enjoy the satisfaction of seeing your hard work pay off and your goals come true.

You can earn more money and save more money

Being your own boss also means that you can earn more money and save more money. You can also take advantage of tax deductions for business expenses, such as equipment, travel. You can reinvest your earnings into your business or use them for other purposes.

How to become your own boss with driving

If you're ready to become your own boss, here are some steps to follow: Read about reasons to become a rideshare driver.

-Download the Lyft driver App and get stsrted.

- Do some market research. Where are your potential customers? What are their needs? How can you solve their problems or add value to their lives?

- Create a business plan. How will you structure your day?? What are your best areas and trips? How will you maintain your vehicle to display a professional image?

- Launch your business. Get started giving trips and learn how to stay busy.

Being your own boss is not easy, but it's definitely rewarding. If you're looking for more freedom, flexibility, passion, purpose, and money, then being your own boss is the way to go. Years ago Uber didn't have a tip feature built into the app. Lyft allowing driver tipping way before Uber in my mind makes Lyft a good choice. They are looking out for their drivers.

18 April

Reasons To Be A Rideshare Driver For Lyft or Uber

woman happy in drivers seat












Ridesharing has become an increasingly popular way for people to get around in recent years. With the rise of companies like Uber and Lyft, it's easier than ever to find a ride when you need one. But while many people use these services as passengers, there are also plenty of people who choose to be rideshare drivers themselves. In this article, we'll explore some of the reasons why someone might want to become a rideshare driver.

Flexibility

One of the most appealing aspects of being a rideshare driver is the flexibility it offers. As a driver, you get to set your own hours and work as much or as little as you want. This can be a great option for people who need a side gig to supplement their income or who have other commitments, such as family or school, that require a very flexible schedule. There isn't a boss to nag you to come in on short notice. It's great! I made a transition from another job to Uber and Lyft driving and it was a refreshing change!

Extra income

Speaking of income, another reason someone might want to be a rideshare driver is to make some quick money. When I drive I often get good tips. Sometimes even big cash tips! Depending on the area you live in and the demand for rides, it's possible to earn a decent amount as a driver. Of course, this will depend on a number of factors, such as the number of hours you're willing to work, the type of car you have, and the rates in your area. With a little bit of planning it is easy to maximize ones income.

Meeting new people

If you're someone who enjoys meeting new people, being a rideshare driver can be a great way to do so. As a driver, you'll interact with all kinds of people from all walks of life. Some drivers even say they've made lasting friendships with passengers they've given rides for.

Exploring your city

Another benefit of being a rideshare driver and driving for Lyft is the opportunity to explore your city. Whether you're driving tourists around or just picking up locals, you'll likely end up in areas of your city you wouldn't normally visit. This can be a great way to get to know your city better and discover new places and things you might enjoy doing yourself. I remember one time I gave a nice ride for a couple going to the baseball game downtown. I had never been to the new stadium and it was nice to see what it was all about. It was exciting!

No boss

As a rideshare driver, you're essentially your own boss. While you'll need to follow the rules and guidelines set forth by the rideshare company you're working for, you won't have a manager or supervisor breathing down your neck. This can be a refreshing change for people who are tired of working in traditional jobs with strict hierarchies.

Sense of Freedom

Finally, there's something to be said for the sense of freedom that comes with being a rideshare driver. You're not tied to a specific location or schedule, and you have the ability to work as much or as little as you want. For some people, this kind of flexibility and independence is invaluable.

If you are wondering how to become a rideshare driver in any city like New York, LA, Miami, Chicago, it is as easy as just applying on your phone. You feel me? Of course, there are also some downsides to being a rideshare driver. You'll need to have a reliable car and keep up with maintenance costs, for example. You'll also need to deal with the occasional difficult or rude passenger. But for many people, the benefits outweigh the drawbacks.

If you're thinking about becoming a Lyft rideshare driver, it is important to do your research. Take the time to learn about the rideshare companies in your area, the rates they pay, and the requirements for becoming a driver. Talk to other drivers if you know any to get a sense of what it's really like on the job. They can give great tips to maximize your experience. Make sure you're comfortable with the idea of driving strangers around before you sign up. If you do decide to become a driver, as a driver myself I believe you will find that it's a rewarding and enjoyable way to earn steady money.