Uber's tech could make taxes easier for drivers
With tax deadlines fast approaching, Uber is using its technology to partner with providers of tax tools for contractors. Via Uber's application program interface (API), a software tool that lets outside developers plug into Uber's system, Intuit, H&R Block, Stride and Credit Karma can more easily help drivers calculate and file their taxes.
Pain point: In a recent survey of "gig economy" workers, Intuit found that nearly one in five (18%) said their top challenge with on-demand work was "understanding tax and legal obligations," the company told Axios.
Tax help: At the same time, tracking expenses can help independent contractors save a lot of money. Since releasing an app that helps ride-hailing drivers track their mileage and other expenses in late August, the startup says drivers have logged more than $60 million in deductions. What's more, the company says that tracking those deductions has translated into an effective tax rate of 8.7% for drivers—much lower than the 30% that's recommended for contractors to set aside for taxes.