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Pictures of Money / Flickr Creative Commons
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.