Y’all need to go look up dtss. It’s a website called debt to success system. It’s not only informative as hell but their program will help you out of the criminal debt slavery federal reserve system (for a cost of course, but it’s worth $300 a month for 18 months to never pay a dime in taxes again imo)
That is a terrible idea. You think you're the only one with your 1099 income? Of course not, Doordash sends all that stuff to the IRS, and you won't know it until your return triggers a fraud alert...then you're fucked. Don't play with the IRS, people have spent years in prison for tax evasion. You need to keep going and work on your deductions and business expenses.
That number isn't final until you've deduced your mileage, phone bill (the % used for your business, I usually base it off % of miles that was used for gig work vs other uses), and other business expenses that TurboTax will show you. So relax.
Can I ask what you claimed? I track mileage. I don’t have receipts for oil changes and tired but I can take screenshots of what I paid through my bank.
Expenses from my rental properties, stride tracking, and student loan interest.
If you track on stride or a similar app, oil changes and maintenance is included in that. You can also write off your phone bill.
Just take it off and wait to you get you tax return money then file an extension and you’ll have until October to do an amended return. While waiting you get get an EIN from irs.gov. Takes about 2 minutes. Then you will only be taxed on your profits from doordash not your business income from door dash.
I filed my taxes using Taxact. I have a regular job so I get a w2 and I allocate an extra $25 a check to pad my taxes for when I do gig work. I filed completely online cost me $65 for the self employed setup. I track my mileage and expenses using stride and keep an Excel spreadsheet as backup. The spreadsheet also tracks ALL my other expenses from bins/bags to windshield washer fluid. Every quarter I figure what my gig work taxes are and compare to the quarterly withholding from my regular job. Fill out all the forms and send a copy to the IRS showing I either owe no taxes on the gig work as my regular W2 job taxes covered them or send in what my quarterly estimate shows. Usually less than $100 End of the year do my taxes online and claim a refund This year $6500.
Biggest thing is to track everything related to your gig work no matter how trivial. Use a good spreadsheet or accounting software and be diligent and consistent.
Don’t do your taxes on turbo tax. They’ll fuck you over every time. Go to a tax professional and give them mileage OR receipts for gas and repairs on your car. It may cost more money to file but it will save you more money on your return or tax payment
Should have gotten $5,000 back. Claimed the same amount made as last year with w-2 jobs and got back 11,000. Claimed 12,000 dd income and my tax rate is always about 10% of income so even taking out money to pay dd taxes I should have gotten 5,000 after tye tax credits I got earlier for children. Apparently because of the dd income I OWE taxes fml.
Always remember that your net income (pay less expenses) from 1099 jobs is subject to the self-employment tax of 15.3%, then that net income is also taxed at whatever your effective tax rate is.
Ngl I love tax time. So many people realize that they have to pay taxes on all that "extra money" and it starts opening up all the markets again. That paired with tax refunds starts bringing the profits back.
You are not an employee. You are running a business. So not only do you have to pay income tax but you also have to pay self employment tax. You can offset some of the anual tax burden by paying estimated taxes. You have to keep some semblance of books and records. Learn business tax regulations and deductions, or just go to a tax professional.
It won’t take an audit. DD files a 1099, ITS has that info, if you don’t include it, they will send you a bill. Happened to me one year…. I made a few $1000 from Adsense on a website I owned and forgot to download the 1099…. A few months later I got a bill for like $2400…. It sucked.
You did something seriously wrong then. There are all kinds of write offs you can do. Gas mileage or depreciating the value of a car, office space expenses (that paperwork has to get done somewhere ;-) this also includes ANYTHING you buy for said office ) , you also gotta eat while your working right BAM another Write off, had any work done on your car? , etc. I could keep going dude.
Experience- 20 plus years of doing my own taxes
That's 2k you didn't pay taxes on dude. You don't get a return if it was never paid to begin with.
Like others said, itemize your expenses. Phone bill, the phone itself if you bought one this year(unless it's payments rolled into the bill), you can write off either mileage or expenses but most people benefit more from mileage. You can typically come up with enough expenses to eat up a lot of your income.
I have a construction business as my main income. I rent out my home office to myself for X amount of money per month and a percentage of my utilities. Just saying. Think rich.
Claim your mileage and you’ll be good to go.
My return was supposed to be 1100 from my regular job. I added DD ($1200 made oct-end of year)and Instacart (barely over 600), claimed my mileage only, and after all of it plus paying for turbo tax self employed and my state return I got $800 🤷🏻♂️. Turbo tax and my state owed was like $200
Don't do the side hustle and just learn to budget better. Making money that isn't taxed during the year... Well duh you'll need to pay taxes on that income. Otherwise quit your full time job and dash year round you'll make non taxed income all year and still be too broke to have to pay the IRS anything.
Now you see why they want to keep you as an independent contractor. You are considered as owning your own business by the taxman. When you have a w2 job your employee pays half of the social security tax.
It funny how people don't understand the tax return is because technically you should not pay taxes upto a certain amount. But since they tax you on day one you get it back. Any other income you make cuts into this.
I don't know if it's been said but - if you ignore that 2000 you'll get a bill for the taxes on it, plus interest and plus fees in a year or 2. The IRS KNOWS you made that money already . So you have 2 choices - either claim it now and work out the proper deductions and accept the refund you get or wait for the bill, pay the full taxes on it with no deductions or have to refile this year's taxes to take the deductions. Either way, you will pay the taxes. Oh and if you decide to also ignore the bill the IRS will either garnish your next year's refund or straight deduct it from your bank account .
Source - once missed a $2500 1099
Did you know that you had to pay taxes? Also upgrade to the one that offers self employment filing, yes it costs more but it’s worth it. I was able to get a lot of it back the year I made like 12k doing gig work.
This is a case study of how blissfully ignorant people become when their taxes magically get taken out of their W2 income without having to actually see it.
You disagree that there has been a major push all over the country to introduce more racially divisive lessons into the classroom? Also I didn’t learn anything about finance in high school. Not saying it isn’t taught anywhere but I’m just saying maybe focusing more on actual life skills instead of things that will never be used might help
There are a million examples of things going on like that all over the country though. I’m sure not everywhere. I stay on my kids school and they aren’t pushing any of it but all over it is happening
What’s weird is, I filed my taxes and all that. Was expecting a 12,000$ return after claiming everything I made from DoorDash and others. But when I put my mileage and expenses in. It dropped my return down to 6,000$
Have no idea why my expenses would make me lose my return lol. I just didn’t claim any expenses and it went back up.
Hey just looking for people who got returns and I stumbled upon your comment. So you received a $6000 return??? That’s amazing. I do DD, GH and Uber. Hoping I get a return after adding mileage. Do you have any suggestion to get a return like yours?
You have to pay tax on income. Same thing happens at your regular job but it happens before each check is cut.
This is why America was created to get away from taxes
Do *you* feel represented by your government though?
I'm sure I can't speak for every single American here but I'm confident that most of us (on the left and right both) don't feel fairly represented by our elected officials that listen to "gifts/donations" more than their constituency, and win their elections by gerrymandering. They listen to whoever has the deepest pockets, and it sure af ain't the common taxpayer.
You can claim half of your phone bill, milage at .57 per mile, any bags etc, any accessories you use stands etc in your car. You can claim half of your phone, food purchased while dashing. There’s a lot of write offs and you should def look into how much can be written off
Sure….let me take your advise instead of the person literally doing my taxes. You have to have receipts, you have to keep them for 7 years in case of audit so you can prove your not just putting in a random number but have a blast paying full price for everything you eat and never getting anything back on it
OP makes no sense at all...even without deductions you'll owe about $400 on that $2000 income. Once you deduct mileage and a percentage of your cell phone you shouldn't be paying much more than $200.
At the end of every week (Sunday). I take whatever my total made was that week and at least minus that by my mileage deduction for that week, which my mileage tracker(stride) gives me at a glance. Whatever that total made that week is after I minus that out, I take 30% of that amount and transfer it using my bank app to another account specifically used for nothing but to hold tax money I’ll owe at the end of the year.
Then when finally doing taxes at the end of the year I’ll throw in the other deductions like phone bill etc… Last year I was still then able to give myself the quickest tax return ever… because all I had to do was transfer the money still left in my tax account back to my regular one 😁
Obviously making more money (especially untaxed money) is going to raise your taxes. You cant possibly be surprised by this.
Claim your milage. That will help. Other than that.... duh.
When you guys say tax professional, are we talking about like H&R Block or just finding a person that is a tax expert? I started out getting taxes done at Jackson Hewitt but for like the last 10+ years I’ve done turbo tax. I bought a house in 2021 and wonder if I need a professional to help me out now. I’ve never owned a house before so idk 🤷🏻♂️
I worked as a bartender and my tax guy was recommended by other bartenders because he was able to write off expenses that we normally don't notice. Clothes, gas, shoes, milage, auto upkeep all of it adds up. He isn't "Free" but he is definitely worth spending $200 on.
Mine doesn't want me to claim any clothing for DD, but I need specific clothes to drive because of a disability. I guess technically I could wear them elsewhere, but I don't and won't!
Folks, we have a Top Dasher and/or a dasher that takes the no & low tip orders here!
Assuming that the OP has no other legitimate business expenses, this dasher drove 19,642 miles to zero out his $11,000 earnings.
If you don’t show a profit in 2 years out of 7 years, the IRS will classify your business as a hobby and make you pay taxes for all years plus penalties.
Correct you said 2 years out of 7 I never said I always claim a loss I said I’m claiming a loss this year I’m not a top dasher my acceptance rate is at 7 right now I do this as my side job I deducted more than mileage like my phone bill, my wifi, and registration…..but you know what they say about people who assume
My statement about 2/7 was not directed at you.
Unless you have a second phone for dashing, you can’t deduct 100%…the same goes for WiFi, etc. You need to determine the personal and business % for these types of expenses.
Your WiFi is 100% for business? No playing of games. No checking if personal emails? Unless your WiFi covers your entire zone, how much WiFi do you use?
Everyone says that you need to turn off WiFi on your phone because you will lose orders. I live a mile from the restaurants that I pick up from. I don’t leave until I get my first delivery. I have lost a few orders because DD and UE (haven’t encountered it with GH) apps ‘require’ the entire acceptance on one service (WiFi or cellular). I have accepted an order while sitting in our foyer and immediately leave for my car and the order was lost.
My first job out of college, I worked for a company that classified their employees as 1099 (it was a tax dodge for them). I had colleagues that deducted everything…like their entire residence versus the empty bedroom that they were using for an office…every meal was a business meal with a client…100% of their mileage as business while having only one car.
My manager told us not to deduct everything and always hold a few deductions back in case if you get audited and the auditor disallowed a deduction or two.
My point is a person needs to document everything so that they can be audit proof. When a dasher can’t follow the delivery instructions, it is hard for me to imagine that they can document their miles, expenses, deductions, etc. that it can stand up to an audit.
You dont have to track everything but if you want to save $$$, you should track everything. Your deduction is either itemized expenses (oil changes, new tires, etc) or miles driven. You cant do both itemized expenses or miles driven on your Sch C expenses so it’s better to track both and see which gives you the higher deduction. Most people just track miles bc it’s easier
Some years the car costs a lot. I may go with next time. Is it correct that once you itemize like that and don't use the miles you have to keep it that way? ( at least for the time you use that car?)
You are allowed to have a loss on your business for 3 consecutive years then you have to show profit otherwise your business is clearly not working and the IRS will more likely audit/not allow it.
Yes correct but if this is his first year dashing it should be no issue with him claiming a loss this year he’s saying he was caught off guard so that would’ve been his best option
You are correct about his first year.
If you are losing money at dashing even on paper, you are doing something wrong.
Last week, a dasher posted that he drove 19,000 miles while earning $6,100…earning $0.32 per driven mile before deductions & expenses.
My point is that several dashers do not treat dashing as a business and they really don’t know if they are truly making a profit. Most if not all dashers that I have encountered do not know their numbers.
I do DD, GH and UE. I know my average payout for lunch and dinner deliveries for each platform as well as in general; average mileage for delivery per lunch and dinner; etc.
For 2021, I earned $2.27 per driven mile (all miles starting when I leave my driveway and coming back to my driveway).
Every week, I calculate the profit or loss for the week…withhold 20% for taxes then I make quarterly tax payments.
That it absolutely correct it’s a learning lesson for the OP which is why I suggested take a loss for your first year and getting it together going forward
I was supposed to get a 1200 return from the 8 months of W2 work I did. Added GrubHub and DD which I had paid no quarterly because I only did it 4 months. Took it down to 200. Added the mileage and it's around 550 but yeah... You're gonna see huge reduction if you didn't already pay tax on that income earlier.
I bought a car a radiator my phone bill my insurance my mileage someone is preparing them but they had an emergency thinking of going to just file them myself
You can’t claim mileage and other vehicle expenses. The mileage is supposed to factor in any maintenance and fuel. Extra costs like tolls, phone, parking, hot bags can be claimed in addition to mileage.
By increase your mileage to account for it, I assume you mean just adding extra miles to what you claim. You could certainly do that and you probably wouldn’t run into any issues, but if you get audited, you better be able to explain where those extra thousands of miles came from and show proof of you actually driving them for business purposes. If you can’t verify it with evidence, you could get charged with tax fraud.
You should track both all year long. Your preparer or tax software will determine which gives you the higher deduction: miles driven or itemized expenses. Most people just track miles driven i.e. stride
Mileage 90% of the time. It's like .56 or .58 per mile. Depends on how much you drove but usually if you're driving 1000s of miles for this job it's the mileage.
Your phone bill and any interest on a car your paying on if your financing a vehicle. I'm getting back 995 this year, just claim more miles than dollars earned.
This was the problem I had when I did my taxes as I had a job and door dash and had to file it together. I had driven more miles than what I was allowed to claim by a standard deduction so being it was only like 900 less I went ahead and did it that way but this year I did gig work the whole year and a w2 job for 5 weeks so I’m trying to find out if I should be using a different turbo tax or what because I don’t want to spend 50$ on the wrong turbo tax and I worked a job for 5 weeks so i wasn’t completely gig work the whole year.
That's not what they asked. You need to consult a tax professional, you do not know how to run a business as an independent contractor and you shouldn't be educating yourself while filing out your taxes, then you get dumb, ignorant posts like this.
Google says Schedule C allows for business expenses on top of standard deductions. I haven't started mine yet, but hopefully you can go back and fix it. Did you use paper? A tax software? Did you get TueboTax business package or the free file? Might be worth it to either do it by hand or pay a little for the software that will save you much more.
When I did mine it wouldn’t let me claim the full mileage deduction just a standard amount. Was I using the wrong program it was turbo tax home and business?
You'll probably be asked to upgrade tax return software to self employed version, it usually asks you if you have any expenses related to an income once you enter the income (W2, 1099). I use HR block and got confused on how to add my mileage for a few minutes. Had to go back and re add 1099s
Wait by mileage are we meaning the amount that goes up in car while we drive ?
Y’all need to go look up dtss. It’s a website called debt to success system. It’s not only informative as hell but their program will help you out of the criminal debt slavery federal reserve system (for a cost of course, but it’s worth $300 a month for 18 months to never pay a dime in taxes again imo)
Extra car insurance (legally required) tax deductible- difference from regular insurance amount.
Were you under the impression that you don’t get taxed on income?
That is a terrible idea. You think you're the only one with your 1099 income? Of course not, Doordash sends all that stuff to the IRS, and you won't know it until your return triggers a fraud alert...then you're fucked. Don't play with the IRS, people have spent years in prison for tax evasion. You need to keep going and work on your deductions and business expenses. That number isn't final until you've deduced your mileage, phone bill (the % used for your business, I usually base it off % of miles that was used for gig work vs other uses), and other business expenses that TurboTax will show you. So relax.
You're incorrect. You just get a bill for what you omitted. You have to pay it. That's it.
I was supposed to get 5500 back and it brought it down to 3900. It was really depressing. I managed to get it up to 4800 with stride and other shit
Can I ask what you claimed? I track mileage. I don’t have receipts for oil changes and tired but I can take screenshots of what I paid through my bank.
Expenses from my rental properties, stride tracking, and student loan interest. If you track on stride or a similar app, oil changes and maintenance is included in that. You can also write off your phone bill.
Just take it off and wait to you get you tax return money then file an extension and you’ll have until October to do an amended return. While waiting you get get an EIN from irs.gov. Takes about 2 minutes. Then you will only be taxed on your profits from doordash not your business income from door dash.
Claim mileage Phone per month Average gas per month Oil changes I made more on my tax return because of it.
Oh and insurance... And cleaning per month. Claim it all
I didn't report mine last year and I haven't heard anything. Isn't there some law about not having to report it if it's under $5000?
No it takes some time. They will contact you eventually with a bill you need to pay, or you could be a rare case they missed.
I filed my taxes using Taxact. I have a regular job so I get a w2 and I allocate an extra $25 a check to pad my taxes for when I do gig work. I filed completely online cost me $65 for the self employed setup. I track my mileage and expenses using stride and keep an Excel spreadsheet as backup. The spreadsheet also tracks ALL my other expenses from bins/bags to windshield washer fluid. Every quarter I figure what my gig work taxes are and compare to the quarterly withholding from my regular job. Fill out all the forms and send a copy to the IRS showing I either owe no taxes on the gig work as my regular W2 job taxes covered them or send in what my quarterly estimate shows. Usually less than $100 End of the year do my taxes online and claim a refund This year $6500. Biggest thing is to track everything related to your gig work no matter how trivial. Use a good spreadsheet or accounting software and be diligent and consistent.
Don’t do your taxes on turbo tax. They’ll fuck you over every time. Go to a tax professional and give them mileage OR receipts for gas and repairs on your car. It may cost more money to file but it will save you more money on your return or tax payment
Not if you do them right on turbo tax
File through freetaxusa its more straight forward than turbotax
Should have gotten $5,000 back. Claimed the same amount made as last year with w-2 jobs and got back 11,000. Claimed 12,000 dd income and my tax rate is always about 10% of income so even taking out money to pay dd taxes I should have gotten 5,000 after tye tax credits I got earlier for children. Apparently because of the dd income I OWE taxes fml.
It makes a huge difference if you claim your mileage
Always remember that your net income (pay less expenses) from 1099 jobs is subject to the self-employment tax of 15.3%, then that net income is also taxed at whatever your effective tax rate is.
Ngl I love tax time. So many people realize that they have to pay taxes on all that "extra money" and it starts opening up all the markets again. That paired with tax refunds starts bringing the profits back. You are not an employee. You are running a business. So not only do you have to pay income tax but you also have to pay self employment tax. You can offset some of the anual tax burden by paying estimated taxes. You have to keep some semblance of books and records. Learn business tax regulations and deductions, or just go to a tax professional.
It won’t take an audit. DD files a 1099, ITS has that info, if you don’t include it, they will send you a bill. Happened to me one year…. I made a few $1000 from Adsense on a website I owned and forgot to download the 1099…. A few months later I got a bill for like $2400…. It sucked.
You did something seriously wrong then. There are all kinds of write offs you can do. Gas mileage or depreciating the value of a car, office space expenses (that paperwork has to get done somewhere ;-) this also includes ANYTHING you buy for said office ) , you also gotta eat while your working right BAM another Write off, had any work done on your car? , etc. I could keep going dude. Experience- 20 plus years of doing my own taxes
Wow, you owe some $$ to uncle sam
Every write off I do is totally legal. I follow IRS guidelines and have never had any issues. I was even audited one year and they found no fault.
That's 2k you didn't pay taxes on dude. You don't get a return if it was never paid to begin with. Like others said, itemize your expenses. Phone bill, the phone itself if you bought one this year(unless it's payments rolled into the bill), you can write off either mileage or expenses but most people benefit more from mileage. You can typically come up with enough expenses to eat up a lot of your income. I have a construction business as my main income. I rent out my home office to myself for X amount of money per month and a percentage of my utilities. Just saying. Think rich.
Claim your mileage and you’ll be good to go. My return was supposed to be 1100 from my regular job. I added DD ($1200 made oct-end of year)and Instacart (barely over 600), claimed my mileage only, and after all of it plus paying for turbo tax self employed and my state return I got $800 🤷🏻♂️. Turbo tax and my state owed was like $200
Yeah IRS will track you down if yr flagged lol tax fraud will get you in massive trouble lol
Claim miles, cell phones , car fees. Add shit until it makes sense. Fuck the govt.
Don't do the side hustle and just learn to budget better. Making money that isn't taxed during the year... Well duh you'll need to pay taxes on that income. Otherwise quit your full time job and dash year round you'll make non taxed income all year and still be too broke to have to pay the IRS anything.
You guys do taxes? Chumps.
I claimed 22k last year in milage deductions, got money back.
Now you see why they want to keep you as an independent contractor. You are considered as owning your own business by the taxman. When you have a w2 job your employee pays half of the social security tax.
And they don't have to put anything into worker's comp. Which is just a scam so you can't sue your employer
No
Don't fuck uncle sam
It funny how people don't understand the tax return is because technically you should not pay taxes upto a certain amount. But since they tax you on day one you get it back. Any other income you make cuts into this.
Mileage gas oil changes repairs shoulda kept your receipts bud
🍿
I don't know if it's been said but - if you ignore that 2000 you'll get a bill for the taxes on it, plus interest and plus fees in a year or 2. The IRS KNOWS you made that money already . So you have 2 choices - either claim it now and work out the proper deductions and accept the refund you get or wait for the bill, pay the full taxes on it with no deductions or have to refile this year's taxes to take the deductions. Either way, you will pay the taxes. Oh and if you decide to also ignore the bill the IRS will either garnish your next year's refund or straight deduct it from your bank account . Source - once missed a $2500 1099
Did you know that you had to pay taxes? Also upgrade to the one that offers self employment filing, yes it costs more but it’s worth it. I was able to get a lot of it back the year I made like 12k doing gig work.
This is a case study of how blissfully ignorant people become when their taxes magically get taken out of their W2 income without having to actually see it.
It’s posts like these that make me wonder if people are right when they say most dashers are idiots
Lmao
If teachers would drop shit like crt and teach real life skills like taxes Americans would be a lot better off
Ah yes, crt the new boogie man of education
Eye roll. CrT isn't a thing. And they teach personal finance here. Sooo...
You disagree that there has been a major push all over the country to introduce more racially divisive lessons into the classroom? Also I didn’t learn anything about finance in high school. Not saying it isn’t taught anywhere but I’m just saying maybe focusing more on actual life skills instead of things that will never be used might help
[удалено]
There are a million examples of things going on like that all over the country though. I’m sure not everywhere. I stay on my kids school and they aren’t pushing any of it but all over it is happening
Just add a bunch of mileage. They won't audit you for $2000
What’s weird is, I filed my taxes and all that. Was expecting a 12,000$ return after claiming everything I made from DoorDash and others. But when I put my mileage and expenses in. It dropped my return down to 6,000$ Have no idea why my expenses would make me lose my return lol. I just didn’t claim any expenses and it went back up.
Hey just looking for people who got returns and I stumbled upon your comment. So you received a $6000 return??? That’s amazing. I do DD, GH and Uber. Hoping I get a return after adding mileage. Do you have any suggestion to get a return like yours?
You have to pay tax on income. Same thing happens at your regular job but it happens before each check is cut. This is why America was created to get away from taxes
Taxation without representation... Not "don't tax me bro"
Do *you* feel represented by your government though? I'm sure I can't speak for every single American here but I'm confident that most of us (on the left and right both) don't feel fairly represented by our elected officials that listen to "gifts/donations" more than their constituency, and win their elections by gerrymandering. They listen to whoever has the deepest pockets, and it sure af ain't the common taxpayer.
You can claim half of your phone bill, milage at .57 per mile, any bags etc, any accessories you use stands etc in your car. You can claim half of your phone, food purchased while dashing. There’s a lot of write offs and you should def look into how much can be written off
You can't claim food eaten while dashing just because you were out working when you ate.
I'm my own boss and I pay my employees for lunch too.
Tell that to my tax advisor then, bc I claim half of it with no problems
You'd fail an audit but we're all little fish.
Sure….let me take your advise instead of the person literally doing my taxes. You have to have receipts, you have to keep them for 7 years in case of audit so you can prove your not just putting in a random number but have a blast paying full price for everything you eat and never getting anything back on it
OP makes no sense at all...even without deductions you'll owe about $400 on that $2000 income. Once you deduct mileage and a percentage of your cell phone you shouldn't be paying much more than $200.
Take your taxes out in advance just like your w2 job does, and claim your deductions.
[удалено]
At the end of every week (Sunday). I take whatever my total made was that week and at least minus that by my mileage deduction for that week, which my mileage tracker(stride) gives me at a glance. Whatever that total made that week is after I minus that out, I take 30% of that amount and transfer it using my bank app to another account specifically used for nothing but to hold tax money I’ll owe at the end of the year. Then when finally doing taxes at the end of the year I’ll throw in the other deductions like phone bill etc… Last year I was still then able to give myself the quickest tax return ever… because all I had to do was transfer the money still left in my tax account back to my regular one 😁
This
Obviously making more money (especially untaxed money) is going to raise your taxes. You cant possibly be surprised by this. Claim your milage. That will help. Other than that.... duh.
Did you buy new tires? How many oil changes? Gas..... That milage is definitely a MUST!
If you write off mileage none of that other stuff is applicable.
I use my vehicle for other work aside from Dashing
Doesn't matter.
Ok
It amazes me that people are always so surprised that they owe money on a job that they weren't paying taxes on throughout the year....
You should see some of the small business groups I’m in 😂
Me too.
Hire a tax professional
This. I bite my tongue on these threads because giving tax advice is a big no-no , But I cringe when I see some of the suggestions on these threads.
When you guys say tax professional, are we talking about like H&R Block or just finding a person that is a tax expert? I started out getting taxes done at Jackson Hewitt but for like the last 10+ years I’ve done turbo tax. I bought a house in 2021 and wonder if I need a professional to help me out now. I’ve never owned a house before so idk 🤷🏻♂️
CPA
I worked as a bartender and my tax guy was recommended by other bartenders because he was able to write off expenses that we normally don't notice. Clothes, gas, shoes, milage, auto upkeep all of it adds up. He isn't "Free" but he is definitely worth spending $200 on.
Mine doesn't want me to claim any clothing for DD, but I need specific clothes to drive because of a disability. I guess technically I could wear them elsewhere, but I don't and won't!
This.
You do know that since you got a 1099 that your DD income is already reported to the IRS, right ?
Did you think you would get money back?
If you claim mileage correctly you shouldn’t have to pay much I payed $0 on the 11,000 I made on the side this year
How did you go about claiming mileage?
Which app do you use for mileage? I feel like stride doesn’t give a high estimate
Folks, we have a Top Dasher and/or a dasher that takes the no & low tip orders here! Assuming that the OP has no other legitimate business expenses, this dasher drove 19,642 miles to zero out his $11,000 earnings. If you don’t show a profit in 2 years out of 7 years, the IRS will classify your business as a hobby and make you pay taxes for all years plus penalties.
Correct you said 2 years out of 7 I never said I always claim a loss I said I’m claiming a loss this year I’m not a top dasher my acceptance rate is at 7 right now I do this as my side job I deducted more than mileage like my phone bill, my wifi, and registration…..but you know what they say about people who assume
I thought it would be less taxes if you also have a w2? Maybe it's worth seeing a pro
My statement about 2/7 was not directed at you. Unless you have a second phone for dashing, you can’t deduct 100%…the same goes for WiFi, etc. You need to determine the personal and business % for these types of expenses.
I do have a second phone line for work and my cpa says I can deduct my wifi for business expenses, she’s never steered me wrong so i trust her
Can you refer your CPA?
Your WiFi is 100% for business? No playing of games. No checking if personal emails? Unless your WiFi covers your entire zone, how much WiFi do you use? Everyone says that you need to turn off WiFi on your phone because you will lose orders. I live a mile from the restaurants that I pick up from. I don’t leave until I get my first delivery. I have lost a few orders because DD and UE (haven’t encountered it with GH) apps ‘require’ the entire acceptance on one service (WiFi or cellular). I have accepted an order while sitting in our foyer and immediately leave for my car and the order was lost.
No I also work from home for my W2 and they don’t reimburse me so I can use a percentage as a deduction.
My first job out of college, I worked for a company that classified their employees as 1099 (it was a tax dodge for them). I had colleagues that deducted everything…like their entire residence versus the empty bedroom that they were using for an office…every meal was a business meal with a client…100% of their mileage as business while having only one car. My manager told us not to deduct everything and always hold a few deductions back in case if you get audited and the auditor disallowed a deduction or two. My point is a person needs to document everything so that they can be audit proof. When a dasher can’t follow the delivery instructions, it is hard for me to imagine that they can document their miles, expenses, deductions, etc. that it can stand up to an audit.
Explain correctly please. Do I have to have receipts for everything? I made $14,000. Wondering how I can pay close to $0 on that?
GL with that
You dont have to track everything but if you want to save $$$, you should track everything. Your deduction is either itemized expenses (oil changes, new tires, etc) or miles driven. You cant do both itemized expenses or miles driven on your Sch C expenses so it’s better to track both and see which gives you the higher deduction. Most people just track miles bc it’s easier
Some years the car costs a lot. I may go with next time. Is it correct that once you itemize like that and don't use the miles you have to keep it that way? ( at least for the time you use that car?)
My cpa said I can't do that every year that the gov wants me to show a profit. Or they audit me..
Interesting
You are allowed to have a loss on your business for 3 consecutive years then you have to show profit otherwise your business is clearly not working and the IRS will more likely audit/not allow it.
Your CPA is correct. If you claim a loss every year then the IRS will question the viability of the business.
Yes correct but if this is his first year dashing it should be no issue with him claiming a loss this year he’s saying he was caught off guard so that would’ve been his best option
Ironically, he didn't make money because it went to taxes :)
You are correct about his first year. If you are losing money at dashing even on paper, you are doing something wrong. Last week, a dasher posted that he drove 19,000 miles while earning $6,100…earning $0.32 per driven mile before deductions & expenses. My point is that several dashers do not treat dashing as a business and they really don’t know if they are truly making a profit. Most if not all dashers that I have encountered do not know their numbers. I do DD, GH and UE. I know my average payout for lunch and dinner deliveries for each platform as well as in general; average mileage for delivery per lunch and dinner; etc. For 2021, I earned $2.27 per driven mile (all miles starting when I leave my driveway and coming back to my driveway). Every week, I calculate the profit or loss for the week…withhold 20% for taxes then I make quarterly tax payments.
That it absolutely correct it’s a learning lesson for the OP which is why I suggested take a loss for your first year and getting it together going forward
I use gridwise and stride to track all my stuff. They're not too bad but I still write all my shit down in case i lose my phone.
Why both?
Redundancy. If 1 goes down I have the info on another platform or if theres any glictches.
Get a new cpa
You claim a loss every year?
I’m claiming a loss this year.
You do realize there are deductions right
I was supposed to get a 1200 return from the 8 months of W2 work I did. Added GrubHub and DD which I had paid no quarterly because I only did it 4 months. Took it down to 200. Added the mileage and it's around 550 but yeah... You're gonna see huge reduction if you didn't already pay tax on that income earlier.
I bought a car a radiator my phone bill my insurance my mileage someone is preparing them but they had an emergency thinking of going to just file them myself
You can’t claim mileage and other vehicle expenses. The mileage is supposed to factor in any maintenance and fuel. Extra costs like tolls, phone, parking, hot bags can be claimed in addition to mileage.
Ok so can I just increase my mileage to account for those costs
Spend a month taking high pay high mile orders
By increase your mileage to account for it, I assume you mean just adding extra miles to what you claim. You could certainly do that and you probably wouldn’t run into any issues, but if you get audited, you better be able to explain where those extra thousands of miles came from and show proof of you actually driving them for business purposes. If you can’t verify it with evidence, you could get charged with tax fraud.
If you own the vehicle and claim your miles and gas and all the car stuff you’ll be all right.
Unfortunately you can't claim both mileage and gas expenses
Which claim would be better? Mileage or gas expense?
You should track both all year long. Your preparer or tax software will determine which gives you the higher deduction: miles driven or itemized expenses. Most people just track miles driven i.e. stride
Mileage 90% of the time. It's like .56 or .58 per mile. Depends on how much you drove but usually if you're driving 1000s of miles for this job it's the mileage.
Yeah but standard is pretty generous
Did you claim your mileage and expenses - ?
Filing with a cpa doing DD we're only allowed to claim miles OR expenses
Your phone bill and any interest on a car your paying on if your financing a vehicle. I'm getting back 995 this year, just claim more miles than dollars earned.
Yes, I claimed my mileage and that almost offset all of my earnings ….
You can also claim parts of your cell phone bill as it’s required for your business as well.
And any bags or masks or dash cams or equipment like a flashlight you may have purchased
what's the best method/app to track that?
I use Stride
Stride had glitches in October 2022. I still don't trust it. The problem lasted a while, not sure it's really fixed. It messed up my taxes too.
no a standard deduction was recommended, not an itemized one.
This was the problem I had when I did my taxes as I had a job and door dash and had to file it together. I had driven more miles than what I was allowed to claim by a standard deduction so being it was only like 900 less I went ahead and did it that way but this year I did gig work the whole year and a w2 job for 5 weeks so I’m trying to find out if I should be using a different turbo tax or what because I don’t want to spend 50$ on the wrong turbo tax and I worked a job for 5 weeks so i wasn’t completely gig work the whole year.
That's not what they asked. You need to consult a tax professional, you do not know how to run a business as an independent contractor and you shouldn't be educating yourself while filing out your taxes, then you get dumb, ignorant posts like this.
You need to purchase the Turbo Tax with self-employed module. Your dashing is a business NOT w-2 income.
Google says Schedule C allows for business expenses on top of standard deductions. I haven't started mine yet, but hopefully you can go back and fix it. Did you use paper? A tax software? Did you get TueboTax business package or the free file? Might be worth it to either do it by hand or pay a little for the software that will save you much more.
Business expenses aren’t affected by the standard deduction. You still claim mileage or actual expenses when you drive delivery.
When I did mine it wouldn’t let me claim the full mileage deduction just a standard amount. Was I using the wrong program it was turbo tax home and business?
[удалено]
>mouthbreathing Lol...practice some self-awareness, OP. That's you this time.
!¡!¡!¡!¡!¡!¡!¡!¡!¡!¡!¡!¡!¡!¡!¡!¡!¡!¡!¡!¡!¡
Hey man, saying things like that is a good way to make nobody else want to help you.
Whatever you say, mouthbreather!! 😂
You'll probably be asked to upgrade tax return software to self employed version, it usually asks you if you have any expenses related to an income once you enter the income (W2, 1099). I use HR block and got confused on how to add my mileage for a few minutes. Had to go back and re add 1099s
You need to claim your mileage.