Last year we had to pay back 4000 cad. We are family of 4 with 2 kids. We had a lot to claim from uber. I think we need a smarter accountant really! Any recommendations?
Uber Driver, had to pay back large sum last year, recommend better accountant...
- Thread starter Kindness101
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What do you mean by "we had a lot to claim from uber"? It sounds like you underpaid taxes during the year and this is why you owed at the end of the year.
Hey thank you for your reply! Truly appreciate it. Claim as in, I dont know the right term but like deductables from tax such as gas, maintenance, food. We also paid GST 3600.
You can consider doing your taxes yourself. Lists of deductibles are available online in places such as here: https://commercialdriverhq.com/deductions-expense-uber-driver/
FYI - You can't claim food/meals as a deductible.
As well, the GST/HST should always be set aside and put in a separate account when received from UBER. It is trust funds, held in trust until it is remitted to the Federal Government. As well the funds you receive from UBER do not have any taxes taken off. You file the T2125 with the gross amount, and then you deduct all the allowable expenses off that amount, you then end up with the NET amount, which you then transfer to your T1 form. Funds received, not supported by a T slip. You are then taxed off that amount . It maybe not be that you had to pay it back, you may well just have not paid the amount owing to the government in the first place. Everyone else is taxed at source when they are employees, when you are driving for UBER you are self employed, you pay it when you file your income taxes. That is why it is a very good idea to use a online calculator, like PDOC on the governments website to calculate on a ongoing basis to see how much taxes you would have to owe off an amount received, then set that aside, or submit it as a prepayment for next years taxes . Where people run into issues is where they spend the funds meant for the Federal Government, and then when it comes to tax time, they have spent those funds. From the information you provided, you were over the $3000 amount, you might have to now owe installment taxes based on last years amount owing for the upcoming tax year. Check your NOA, if you are required to owe installment taxes there may be a notation there
As well on your GST/HST account, do you file quarterly or annually? If you file annually and the total amount of GST/HST was over $3000, you had mentioned it was, you are now required to file installment payments based upon your total gst/hst paid on a quarterly basis. The quarters based upon the calendar year. Once again, failure can result in interest
It can get very complicated when claiming automobile expenses,especially if you are also using your vehicle for personal use and business use, such as UBER. I would advise you to call the CRA, the Business line and speak with an agent. 1-800-959-5525 9am-6pm
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/making-payments-individuals/paying-your-income-tax-instalments.html
As well on your GST/HST account, do you file quarterly or annually? If you file annually and the total amount of GST/HST was over $3000, you had mentioned it was, you are now required to file installment payments based upon your total gst/hst paid on a quarterly basis. The quarters based upon the calendar year. Once again, failure can result in interest
It can get very complicated when claiming automobile expenses,especially if you are also using your vehicle for personal use and business use, such as UBER. I would advise you to call the CRA, the Business line and speak with an agent. 1-800-959-5525 9am-6pm
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/making-payments-individuals/paying-your-income-tax-instalments.html
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omg! i will need a day to understand what you have shared here. my mind just went into university student mode lol... Thank you though, i am grateful. I shall survive with flying colors.
No problem, I am aware it can get very confusing/over whelming, the key is keeping accurate records, claiming all allowable expenses you are allowed, and setting aside the funds held in trust