It seems like now the IRS will be able to know what we make after all since they installed the new meters in the taxis. I got a printout from the fleet showing the amounts for the 2008 period. Gross receipts, Total lease amount, Money spent on gas at the fleet, How many shifts worked.

This is the same as getting a 28 percent pay cut. sheeeesh!

In order to report taxes from a garage you have them issue you your summary from the year. Use that for your gross and file your 1040 with a schedule C as self-employed. Make sure you input your expenses for the lease rentals, gas, tolls and don't forget the 5% interest we lose for all credit card transactions. Same goes with the State/City taxes.  The forms you use in addition depends on your situation i.e. child care, EIC etc... You can do them for free online if you want.

Do you pay all the taxes at the end of the year or do you make quarterly payments. How do you know how much money to put aside for the tax bill at the end of the year?

Thanks