There may be help forUber/Lyft Drivers with Tax Debt

Do you earn money from what many consider a side gig?

57 million Americans do. From Uber, Lyft or GrubHub drivers to freelance graphic designers, web developers, or freelance writers, many self-employed Americans could be facing a higher-than-expected tax bill this year.

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What you need to know about Paying Taxes as an Independent Contractor

If you are an independent contractor or a freelancer, you should receive a 1099 form every January. This paperwork is similar to a W-2 form sent by employers – it shows how much money you made in the tax year. Unlike W-2s employees, though, 1099 contractors do not get any taxes take out. No social security. No unemployment. No federal taxes. But you still have to pay into these funds through something called Self-employment tax. And that means if you’re a driver for Uber or Lyft – or any other type of 1099 contractor – you might owe the IRS more than you expected.
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No Savings to Pay your Taxes? Don’t Panic.

It’s not unusual for independent contractors like Uber and Lyft drivers to owe thousands in tax debt on April 15th. And most workers in the gig economy don’t have savings stashed away to pay their taxes. In fact, 46% of Americans live paycheck-to-paycheck. So, if you didn’t set aside 30% of your pay from every gig, it’s understandable. You needed that money to live. But now you’re faced with un unexpected tax bill.

Fortunately, self-employed individuals may have multiple tax deductions they didn’t know about. A professional tax firm can help you find those deductions to reduce what you owe in taxes. Working with a professional tax firm to file your 1099 taxes can help you reduce your tax debt with appropriate, legal tax deductions that won’t raise red flags with the IRS.You can reduce the amount you own without worrying about an audit. Take action quickly, because you may realize your situation isn’t as bad as you first thought.

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There’s Help for Uber/Lyft Drivers with Tax Debt. Still can’t pay?

There are options for 1099 Contractors facing tax debt. Tax experts can buy you more time. Tax professionals can help you file the paperwork for an offer-in-compromise, a partial pay installment agreement, or even an extension. Any of these actions can help you avoid additional late fees and penalties and help prevent levies or liens on your property. Don’t let your debt pile up. Let 1099 Tax Help assist you to find a tax expert that can alleviate your tax challenges in the gig economy.
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