I ubered after my graduation, will my payments go up for next year?

[Silverino]

I am registered under PAYE. And persuing pslf.
My pgy1 salary is 54k.
Before starting residency I made 20k from ubering for 4 months.
I am currently paying 0$ the first year.
I filed married filing separately.

What's my situation looking like next year?

[Peds]

20K + 27k.

[MochaDoc]

In the future, decrease your 1099 AGI by throwing some of that money at a solo 401k.

[wa2106]

Are you currently filing taxes for your PGY1 year?  If so, and you have tuition or fees for last semester of medical school these can be deducted from your 2017 income which will decrease your AGI.  If you had moving expenses for residency they can be deducted.  $2500 of student loan interest payments can be deducted.  Plus whatever business expenses you incurred for your Ubering (mileage, insurance, etc).  All of those will decrease your PAYE payment.

[Donnie]

I’m not too familiar with PAYE, but it is really hard to believe that you netted $20k in 4 months after expenses driving for Uber. If gross counts against you for PAYE, that’s pretty lame.

[White.Beard.Doc]

Uber is schedule C income, no? So you should be deducting the ************************ out of that income with expenses, like car washes, insurance, tolls, accessories for your passengers to plug in their cell phones, and more.

My son was driving for Lyft in between classes and he has some kind of app that monitors mileage and expenses. He was able to take so many deductions that he “got rid of” most of the income.

Then he sold stocks for no capital gains and reset his cost basis.  There are lots of good tricks to use before your income starts going up too much, but most folks with low but rapidly rising income don’t pay attention or learn about this stuff until after the income goes way up.

[Silverino]

Yes, I am fully aware of the tax deductions and kept records of mileage and expenses. I didn't know tax deductions also deduct how much I owe with PAYE! Are you guys sure?

[cgossage]

PAYE is calculated using your AGI. Deductions on Schedule A don’t reduce your AGI, but as others mentioned, deductions on Schedule C and student loan interest deductions do lower your AGI and lower your monthly student loan payments in an income-driven plan such as PAYE.

[adventure]

Silverino wrote:

Yes, I am fully aware of the tax deductions and kept records of mileage and expenses. I didn’t know tax deductions also deduct how much I owe with PAYE! Are you guys sure?

Click to expand...

Yes.