New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Essential Year-End Tax Strategies for Uber Technologies Employees: What You Need to Know Before 2023

Healthcare Provider Update: Healthcare Provider for Uber Technologies Uber Technologies utilizes a diverse range of health benefits and partnerships for its employees. For driver-partners, especially in Massachusetts, they offer access to the Massachusetts Driver Portable Health Fund, which provides a health care stipend. Additionally, Uber empowers organizations through Uber Health, assisting in managing healthcare services and reducing costs. Potential Healthcare Cost Increases in 2026 As we approach 2026, Uber Technologies employees must prepare for significant healthcare cost increases. Health insurance premiums on the Affordable Care Act (ACA) marketplace are projected to rise sharply, with some states anticipating hikes of over 60%. This dramatic surge is driven by the potential expiration of enhanced federal premium subsidies, alongside persisting medical cost inflation. As employers like Uber adapt by reallocating healthcare costs toward employees, it is crucial for individuals to proactively assess their plans, optimize contributions to health savings accounts, and familiarize themselves with incoming changes to navigate the impending financial impact effectively. Click here to learn more

Here are some things for Uber Technologies employees and retirees to consider as they weigh potential tax moves between now and the end of the year.

1. Defer income to next year
Uber Technologies employees must consider opportunities to defer income to 2023, particularly if you think you may be in a lower tax bracket then. For example, you may be able to defer a year-end bonus or delay the collection of business debts, rent, and payments for services. As a Uber Technologies employee, doing so may enable you to postpone payment of tax on the income until next year.

2. Accelerate deductions
Uber Technologies employees and retirees should also look for opportunities to accelerate deductions into the current tax year. If you itemize deductions, making payments for deductible expenses such as medical expenses, qualifying interest, and state taxes before the end of the year (instead of paying them in early 2023) could make a difference on your 2022 return.

3. Make deductible charitable contributions
As a Uber Technologies employee, if you itemize deductions on your federal income tax return, you can generally deduct charitable contributions, but the deduction is limited to 50% (currently increased to 60% for cash contributions to public charities), 30%, or 20% of your adjusted gross income (AGI), depending on the type of property you give and the type of organization to which you contribute. (Excess amounts can be carried over for up to five years.)

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4. Bump up withholding to cover a tax shortfall
As a Uber Technologies employee, if it looks as though you will owe federal income tax for the year, consider increasing your withholding on Form W-4 for the remainder of the year to cover the shortfall. Time may be limited for Uber Technologies employees to request a Form W-4 change and for their employers from Uber Technologies to implement it in time for 2022. The biggest advantage in doing so is that withholding is considered as having been paid evenly throughout the year instead of when the dollars are actually taken from your paycheck. This strategy can be implemented by Uber Technologies employees to make up for low or missing quarterly estimated tax payments.

5. Save more for retirement
Deductible contributions to a traditional IRA and pre-tax contributions to a Uber Technologies-sponsored retirement plan such as a 401(k) can reduce your 2022 taxable income. As a fortune 500 employee, if you haven't already contributed up to the maximum amount allowed, consider doing so. For 2022, Uber Technologies employees can contribute up to $20,500 to a 401(k) plan ($27,000 if you're age 50 or older) and up to $6,000 to traditional and Roth IRAs combined ($7,000 if you're age 50 or older).* The window to make 2022 contributions to a Uber Technologies-sponsored plan generally closes at the end of the year, while you have until April 18, 2023, to make 2022 IRA contributions.

*Roth contributions are not deductible, but Roth-qualified distributions are not taxable.

6. Take the required minimum distributions
If you are a Uber Technologies employee age 72 or older, you generally must take required minimum distributions (RMDs) from traditional IRAs and Uber Technologies-sponsored retirement plans (special rules apply if you're still working and participating in Uber Technologies's retirement plan). You have to make the withdrawals by the date required — the end of the year for most individuals. The penalty for failing to do so is substantial: 50% of the amount that wasn't distributed on time. As a fortune 500 employee, making these distributions in a timely manner is essential as to avoid the late penalty.

7. Weigh year-end investment moves
Uber Technologies employees and retirees shouldn't let tax considerations drive investment decisions. However, it's worth considering the tax implications of any year-end investment moves that you make. For example, if you have realized net capital gains from selling securities at a profit, you might avoid being taxed on some or all of those gains by selling losing positions. As a Uber Technologies employee, any losses over and above the number of your gains can be used to offset up to $3,000 of ordinary income ($1,500 if your filing status is married filing separately) or carried forward to reduce your taxes in future years.

Tags: Financial Planning , Tax , Retirement , 2022

What type of retirement savings plan does Uber Technologies offer?

Uber Technologies offers a 401(k) retirement savings plan to help employees save for their future.

Does Uber Technologies provide a company match for 401(k) contributions?

Yes, Uber Technologies provides a company match for employee contributions to the 401(k) plan, subject to certain limits.

What is the eligibility requirement for Uber Technologies’ 401(k) plan?

Employees of Uber Technologies are generally eligible to participate in the 401(k) plan after completing a specified period of employment.

Can employees of Uber Technologies choose how much to contribute to their 401(k)?

Yes, employees of Uber Technologies can choose to contribute a percentage of their salary to their 401(k) account, within IRS limits.

What investment options are available in Uber Technologies' 401(k) plan?

Uber Technologies offers a variety of investment options in its 401(k) plan, including mutual funds, target-date funds, and other investment vehicles.

How can employees of Uber Technologies access their 401(k) account information?

Employees of Uber Technologies can access their 401(k) account information online through the plan’s dedicated portal.

Is there a vesting schedule for the company match in Uber Technologies' 401(k) plan?

Yes, Uber Technologies has a vesting schedule for the company match, meaning employees must work for a certain period to fully own the matched funds.

Can Uber Technologies employees take loans against their 401(k) savings?

Yes, Uber Technologies allows employees to take loans against their 401(k) savings, subject to the plan’s terms and conditions.

What happens to my 401(k) if I leave Uber Technologies?

If you leave Uber Technologies, you can choose to roll over your 401(k) balance to another retirement account, cash it out, or leave it in the Uber Technologies plan if eligible.

Are there any fees associated with Uber Technologies’ 401(k) plan?

Yes, there may be fees associated with managing the 401(k) plan at Uber Technologies, which are disclosed in the plan documents.