alt Hacker NewsIn the states if you are a contractor there are tons of things that you can deduct from your taxable income. So “figuring out how much you should be taxed” is after those deductions.
If uber paid you $15123 but you:
Just bought a new bike bc your other was stolen
You paid $1200 for insurance
You bought a helmet and cold weather clothes etc etc.
Those things reduce your taxable income.
Replies
a_bonobo • last Sunday at 11:56 PM
Yes, same in Australia. Keep receipts and add the cost to the web form.
They have simplified it nicely, though: if you work from home you can claim a per-hour deduction so you don't have to do the math of wear-and-tear, electricity, internet etc. I think it was $0.6 per hour?
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I think that's common in most places. What's different in the US is that the IRS forces you to proactively provide a lot more information about it, though. I have a rental property and need to enter the same information about the same income and expenses on three different forms, breaking it down in different ways. It's tedious and error-prone, and I guess the philosophy is that it's easier to spot fraud if the numbers on all the different forms don't add up to a coherent story.
Other countries presumably rely on other fraud signals. They might have more visibility into your day-to-day financial transactions, or there might be more of a culture of leaving an anonymous tip if you suspect your neighbor isn't paying a fair share.