7 tax deductions rideshare drivers in Melbourne often miss
Working as a rideshare taxi driver, you can earn income as an independent contractor. However, you should pay taxes on income earned and must report it to the Australian Taxation Office. Well, the tax arena for independent contractors is complex due to the involvement of deductions, credits, and calculations. That’s why most Uber and rideshare drivers miss out on important deductions. So, they seek guidance from Taxi Driver Tax Accountant Wollert to file returns and claim deductions. Here are 7 tax deductions that you could miss out on due to self-tax filing as an Uber driver.
- Vehicle Depreciation
You may be familiar with claiming the expenses of fuel and maintenance of the vehicle on your tax return. But it may not bring your focus towards the depreciation of your asset, which is a car. It is used for work, and ATO allows immediate deduction for a car costing less than 20k AUD. You can claim this deduction under the asset write-off scheme to save more.
- Claim Home-office Expense
Professional Rideshare Driver Accountants Wollert guide you explicitly to claim home-office expenses. If you manage bookings, track expenses, and do paperwork at home, you may be entitled to deductions. You can claim a portion of expenses like mobile internet and electricity consumed for that work. This might be one of the underrated claims you can miss while filing your Uber tax return.
- Cost for Specific Cleaning
Generally, a percentage of the logbook is applied to claim the cost of standard car washing and cleaning. But, if the taxi is cleaned due to specific reasons, e.g., a sick passenger, 100% the cost is deductible. You can also include the cost of interior cleaning, and protective seat covers are also counted.
- Taxi Platform Commission
If you have registered your taxi service with Uber and other platforms, you need to pay a sum as commission. These service commissions are also deductible as per ATO taxation regulations for cab drivers. While filing your return, your Accountant for Taxi Drivers Wollert mentions deductibles in the income tax return.
- Music Subscriptions
You can even claim deductions if you provide entertainment to your passengers through music subscriptions. You can claim the business-use percentage of the subscription fee as a deduction. But if you use the subscription for personal entertainment, you can’t claim it as a deduction.
- Banking & Accounting Fee
If you have paid a fee for opening a business bank account, never miss this deduction during tax season. Fee paid for services of Wollert Taxi Driver Tax Accountant is also deductible. These are deductible expenses you should take into account while computing total tax liability.
- Expense of Driver Registration
Claim deduction for the expenses you have incurred during registration as a taxi driver with any platform. It covers the cost of health checkups and police verification, and checks. But you can claim these costs once your official application for a taxi driver has commenced. Expenses incurred before the application are non-deductible.
You can consult the Kirpa Tax Accounting firm to know about valid deductions. They are trusted Wollert Rideshare Driver Accountants offering tailored solutions to rideshare and Uber cab operators.
FAQ’s
What expenses am I entitled to claim as an Uber taxi driver?
You can claim vehicle maintenance, repair, toll, parking charges, and rideshare fees during tax filing. Consult your Taxi Driver Tax Accountant Wollert Kirpa Tax, today.
How can I compute expenses for my vehicles used as a taxi?
You can use a logbook to calculate the expenses of your vehicle used as a taxi service. Also, you can consider the cents per kilometer practice for computing the expenses for deductions.
Is it possible to claim my music subscription as a taxi driver?
You can claim a deduction for expenses incurred due to a music subscription used for the entertainment of passengers. Get the right advice on these deductibles from Rideshare Driver Accountants Wollert.
Do I need to keep receipts for all expenses made?
You must keep receipts of all expenses as records for claiming applicable tax deductions. Kirpa Tax Accounting firm has enclosed all records for tax filing as per ATO regulatory requirements.
Can I claim GST credits during tax filing to the ATO?
You can claim GST credits on expenses incurred as mentioned in your BAS. Get your BAS from your Accountant for Taxi Drivers Wollert for GST credits.
Can I claim expenses for my taxi license and Uber fees?
Yes, you can claim these as applicable deductions for taxi drivers. Consult your accountant to mention these deductibles in your tax return filing.
Why should I choose Kirpa Tax to handle my taxi-related accounts?
We are familiar with the working process of the tax system regulated by ATO for taxi drivers. We put you at ease about maintaining your accounts for tax and deductibles.