Supplemental Income from a Gig Economy

I drive for Uber and Lyft. I also drive for Texas To Go and GrubHub. These provide my supplemental income.

My goal is to achieve $600 a month in supplemental income from these sources. Since these companies don’t pay for gas and expenses related to the job, such as food and auto repairs and maintenance, I have to take the total income and subtract whatever I pay for expenses while I’m out driving.

I have to do this in 10 to 12 days a month depending on how many days I’m available to drive. To achieve this, I set my daily driving goal to be $50 profit after expenses. I can easily generate this kind of money since I seem to make over a hundred dollars a day, then take my wife out to dinner for about $30 and maybe $10 for gas.

Another factor to be concerned about when doing these gig jobs is how much to set aside for taxes. Drivers in most states, including mine, are considered independent contractors, not employees of these companies. As such, the companies do not provide a W2 tax form at the end of the year, and they do not take anything out for your taxes. Instead, you must pay your own taxes. As a rule, I’ve been setting aside about $100 a month for the tax man, so that amount must be deducted from my profits and considered part of my expenses.

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