Rideshare Taxes Made Simple — Quarterly Payments, Records, and Audit Red Flags
If you drive Uber/Lyft, taxes aren’t just “once a year.” Many drivers need to pay quarterly estimated taxes, and penalties can apply if you don’t.
Quarterly estimated tax deadlines
April 15
June 15
September 15
January 15
Self-employment tax (the surprise bill)
Self-employment tax is typically 15.3% total (12.4% Social Security + 2.9% Medicare). That’s why many rideshare drivers are shocked at tax time.
Safe harbor rule (avoid underpayment penalties)
To reduce the risk of underpayment penalties, a standard guideline is to pay either:
100% of your prior year tax, or
90% of the current year tax
Record-keeping habits that protect you
Save receipts, invoices, mileage logs, and bank statements
Separate business and personal accounts
Track digitally using apps/software (QuickBooks, Expensify, Keeper Tax, etc.)
Keep records for 3–7 years
Common red flags
Deductions far higher than income
Claiming 100% business use without support
Personal expenses listed as business
Missing documentation
CTA: Get your rideshare taxes handled the right way
Want your deductions maximized and your records clean? We’ll help you set up a system that works all year.
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Link: parksprojectsnj.com
Talk/Text: 848-292-9537 • Email: info@parksprojectsnj.com
