I used TurboTax to estimate my taxes, and I feel like something isn’t adding up. I earned $36,000 from my W2 job and about $15,500 from driving Lyft. I didn’t pay any taxes on the Lyft income. My W2 taxes are pretty much even—I’d owe $7 if it weren’t for the Lyft gig.
TurboTax says I owe over $4,000 combined for federal and state taxes. Does that sound right?
I haven’t gotten a tax summary or 1099 from Lyft yet since I made less than $20,000. I just added the $15,500 as “other self-employed income.” Not sure if that’s affecting things. I plan to see a tax professional, but I’d love to hear your thoughts first.
If the $15,500 from Lyft is your profit, the self-employment tax alone would be about $2,190. You’d also owe income tax on top of that. When you started driving, did you look into how taxes for self-employment work?
As a self-employed worker, you’re responsible for both halves of Social Security and Medicare taxes. When you have a W2 job, your employer pays half, but as self-employed, you cover it all. This can really add up.
Make sure to deduct your mileage and the fees Lyft takes out. Your 1099 might show more than $15,500. Wait for the official statement before stressing too much.
If you’re filing as single and don’t have state income tax, your self-employment tax and income tax could total about $4,185. So yeah, it seems accurate.