When it comes to being your own boss in the rideshare and taxi industries, every dollar counts. As an Uber, Lyft, or taxi driver, you’re not just providing transportation; you’re running a business. Managing expenses, keeping up with maintenance, outfitting your vehicle with sanitizing equipment and plastic sheeting to keep yourself and your passengers safe, spending extra time cleaning your vehicle between riders, and balancing personal and professional responsibilities can be overwhelming. But what if there was a way to ease your financial burden significantly? Enter the Self-Employment Tax Credits (SETC), a powerful tool that can benefit self-employed individuals like you. With up to $32,220 in available tax credits for Tax Year 2021, this could be a game-changer for your business.
Understanding the SETC
The Self-Employment Tax Credits (SETC) are the Emergency Paid Sick Leave Act (EPSLA) and Expanded Family Medical Leave Act (Expanded FMLA) tax credits authorized under the American Rescue Plan (ARP). These self-employment tax credits are designed to provide self-employed individuals with the relief they would have been entitled to, had they worked for a qualified W2 employer, for enduring disruptions in their work due to the pandemic. This credit can be highly beneficial for those who had to care for children or dependents, leading to lost work time and income. Drivers have to deal with a lot of expenses and uncertainty under the best conditions. These credits are especially beneficial for those in the rideshare and taxi industry, where expenses can quickly add up.
Why the SETC are Perfect for Uber, Rideshare, and Taxi Drivers
- High Operating Expenses: As a driver, you incurred numerous additional expenses during the pandemic in 2020 and 2021, from lost time behind the wheel to extensive sanitation upgrade requirements for your vehicle. SETC credits can help offset your lost earnings from this period, allowing you to use the funds you’re entitled to for covering these expenses.
- Demand-Based Income: Uber drivers often have fluctuating incomes that are heavily reliant on their ability to work. That was never truer than during the COVID-19 pandemic. The SETC was written to offset your lost wages due to COVID-related absences by reducing your previous tax burden from 2020 and/or 2021, giving you peace of mind.
- Work-Life Improvement: Once you reduce your tax liability from 2020 and/or 2021, if you are entitled to a refund, the SETC may provide you with funds that can be used to improve your work-life balance. That could mean taking much-needed time off, investing in better equipment, or investing in recovering your health.
Why Partner with Pinnacle Minds
Navigating the intricacies of the SETC can be challenging, but you don’t have to do it alone. Pinnacle Minds, a premier tax and business consulting firm, is here to help. Our team of experienced former IRS Auditors understands the unique needs of self-employed individuals in the rideshare and taxi industry. We can guide you through the application process, ensuring you claim the maximum amount of available credits.
Don’t Miss Out on Up to $32,220!
The opportunity to claim up to $32,220 in tax credits for tax year 2021 is too significant to ignore. Whether you’re an Uber driver, a rideshare operator, or a taxi driver, the SETC can provide the financial relief you need to grow your business and achieve greater financial stability. Ready to take the next step? Contact Pinnacle Minds today and discover how we can help you maximize your SETC benefits!
