For rideshare drivers, tax time used to be a time of trepidation and fear as they realized no one had stashed away money for them, with each paycheck, to pay for the inevitable tax bill. However, two factors have combined that should take away most of the stress from drivers when it comes to taxes.
In the past, independent contractors were not only responsible for putting away enough money to pay their taxes, but on certain taxes they had to pay double what their employed counterparts paid. But a lot of things have changed in recent years for independent-contractor rideshare drivers and taxes.
Why many rideshare drivers won’t pay any tax
Two factors have come together at just about the same time that have taken most of the anxiety out of tax time for rideshare drivers. The two factors are: