Federal withholding tax

[vseals]

I have a client that wants taxes withheld from his earning. He is a Uber and Lift driver, what should he do? Should he pay quarterly taxes
or can they the company (Uber & Lift) deduct it?...thank you for your help.

[FEDUKE404]

Rather simple answer

I have a client that wants taxes withheld from his earning. He is a Uber and Lift driver, what should he do? Should he pay quarterly taxes
or can they the company (Uber & Lift) deduct it?...thank you for your help.

Has your client considered first asking the Uber and Lift folks this question?

If they respond negatively, then estimated tax payments likely should be (have been) considered.

FE

[MDEA]

federal withholding

They will not withhold. Had client ask both refused.

[JohnH]

Client could set up a personal EFTPS account. Then he can make estimated tax payments as often as he wishes - weekly, monthly, quarterly, whatever. That would mimic withholding from the payments he receives from the company.

[TAXNJ]

I have a client that wants taxes withheld from his earning. He is a Uber and Lift driver, what should he do? Should he pay quarterly taxes
or can they the company (Uber & Lift) deduct it?...thank you for your help.

Is there more info that you did not share?

What was your response to the "client" when you were asked that question?

[FEDUKE404]

Another suggestion

I would look at prior year (2016?) tax return, do a little number-crunching for Exception 1 underpayment scenarios (federal and state) and set up 2017 estimated payments. The client can tell you how "close" he wants to be in April of 2018.

While the EFTPS system is out there, that might be a bit of overkill due to the amount of estimated funds that may be relevant. Also, the EFTPS does not address state income tax issues.

I've found IRS Direct Pay ( https://www.irs.gov/payments/direct-pay ) to be a useful and not-overly complicated system to use. Most states have something similar for making online state tax payments.

Of course, the guy can always find his check book and then send a piece of paper, along with a payment coupon, to a distant location.

FE

[vseals]

simple question

Has your client considered first asking the Uber and Lift folks this question?

If they respond negatively, then estimated tax payments likely should be (have been) considered.

FE

the reason I asked was that they told her to reguest withholding from an app.....with no details as to how to move forward

[vseals]

Uber & Lift Driver

Thank you very much for your reply..I was thinking along those lines...but was not sure.

[vseals]

Uber & Lift Driver

thank you for the useful information.Next time I'll get more details. This is her year with Uber & Lift

[Lion]

Did she try requesting withholding from the Uber &/or Lyft apps as they instructed her to do?

[TAXNJ]

Missing information - is the client an employee or independent contractor? Why? The Original Poster states "the reason I asked was that they told her to reguest withholding from an app.....with no details as to how to move forward"

What does "an app" mean? All reply posters can keep guessing but are "they" suggesting to use an "app" to figure out withholding as an independent contractor? Or did client fill out a W-4?

There is much missing information in this post as to - - is the client classified as an employee or independent contractor?

[MDEA]

Federal withholding tax.

UBER & LYFT will not do any withholding. The drivers are independent contractors. They can switch from one app to the other several times a day.

[TAXNJ]

UBER & LYFT will not do any withholding. The drivers are independent contractors. They can switch from one app to the other several times a day.

So the car service is referred to as an app, thought that app was only icons for technology. Yes, estimated payments responsibility of client not the app(s).

[taxea]

I have a client that wants taxes withheld from his earning. He is a Uber and Lift driver, what should he do? Should he pay quarterly taxes
or can they the company (Uber & Lift) deduct it?...thank you for your help.

He is not an employee. Some companies may for the convenience of the IC but most won't because it is extra work for them and because they are not required by law to withhold taxes.