For independent contractors, also considered “on-demand” workers, Tax Day can be a real burden.
Aside from having to sort out how much one makes for tax purposes independently, these workers must also go through and calculate how much of their money was spent on business-related expenses, as well as separating out base revenue from other financial metrics. As a result, it is difficult to ascertain “real income” from other taxable expenses. Traditionally, this is easier for employees on a payroll, who get taxes taken out of their paychecks at certain intervals throughout the year and can more easily keep track of their finances.
For Uber drivers, as part of a partnership with Intuit announced on Jan. 28, they will have access to a special version of QuickBooks Online Self-Employed Software, free of charge, that makes tax sorting significantly easier for the independent Uber drivers. Expenses can be categorized as “business” expenses with a simple mouse click, and the data can be seamlessly sent to TurboTax Online for processing.
Uber drivers, according to the release, often find paying taxes a unique burden due to the various costs involved with the ride-sharing business. Uber drivers must calculate their gross fares and mileage, as well as money spent on tolls, gas, and other business expenses that aren’t automatically deducted compared to some other professions.
“By partnering with Uber, we’re able to offer a tailor-made solution that simplifies tax time, and provides clear visibility into their income throughout the year,” said Alex Chriss, vice president and general manager of Self-Employed Solutions at Intuit.
Other features of the software will include the ability of users to connect bank and credit card accounts on the site, as well as the ability to track deductions year-round and calculate quarterly or year-end tax liabilities, depending on reporting schedules. To protect consumer financial data, QuickBooks will have its bank-grade encryption software online to protect vital information from being hacked.