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How To Get W2 From Doordash

You may be part of the army of new Dashers that began delivering for Doordash and maybe others this past year. Or maybe you've been at this for awhile but just wondered.

As Doordash sends out their 1099's you may be one of many who have one of these frequently asked questions (FAQ's) about taxes, income, and how all this impacts what you may owe or have to file.

This is a first of a series of FAQ posts about taxes and Doordash. I didn't want to make this too long – I have a way of doing that. I'll list the questions here and then you can scroll down or skip to the question you want answers to.

Calculator and pen on paper with Doordash letterhead, blocks spelling Tax FAQ

Doordash Taxes: 1099's and Income FAQ Frequently Asked Questions

I tried to stick to brief general answers. I'll link to articles and pages that go more into depth where possible.

For more in depth information on taxes for Doordash and other gig delivery companies, you can check out our Tax Guide for delivery contractors. It's a series of articles that digs into many aspects of the gig economy.

  • Do I have to pay tax on money I made from Doordash?
  • Will I receive a W-2 from Doordash?
  • When and how will I get my 1099 from Doordash?
  • Do I have to pay taxes if I made less than $600 with Doordash?
  • Do I have to pay taxes if I made less than $400 with Doordash?
  • What's the difference between gross earnings and net profits?
  • What do I do if my Doordash 1099 is wrong?
  • Why is Doordash sending a 1099-NEC instead of a 1099-MISC?
  • Is my 1099 from Doordash the same thing as a W-2?
  • Does Doordash take out taxes for me?
  • Is my pay from Doordash what determines my taxes?
  • I only received one copy of my 1099 – Do I have to mail that in with my taxes?
  • Where do I put my 1099 and Doordash income on my taxes?

Answers to the FAQ/Frequently Asked Quesions on Doordash Taxes, 1099's and Income:

Before you go further, understand: Information here is for information and educational purposes only. Do not take any of this as personal advice for your taxes. This is my best effort to provide useful information that I've been able to research and compile, and to put it in a way that makes sense especially in relationship to delivery for Doordash as an independent contractor.

I'm not a tax professional nor am I a tax advisor. This is not tax advice. You should seek your own professional assistance to help with your unique tax and financial situation and needs.

Do I have to pay tax on money I made from Doordash?

Yes. Any income is taxable. As an independent contractor, money is not withheld for you. However, you are still responsible for reporting and tracking your income. Bear in mind that your taxes are based on your profits (what's left over after expenses) rather than the gross amount of money you received from Doordash.

Will I receive a W-2 from Doordash?

No. Doordash couriers are independent contractors and not employees. W-2 forms are sent to employees. As an independent contractor you agreed to deliver for Doordash as a business and not an employee. You may receive a 1099-NEC depending on how much you received for your work for Doordash.

When and how will I get my 1099 from Doordash?

Usually contractors receive their 1099 near the end of January or the first few days of February. Doordash may not sent out a 1099 for you if you received less than $600 from them. Companies are required to have sent out their 1099-NEC forms by mail or electronically by January 31st of each year (or February 1st if the 31st is on a Sunday such as in 2021 )

Doordash sent out an email to Dashers earlier in January, 2021 to encourage them to confirm delivery information. This confused a number of people who thought they'd get their 1099. This was only to make sure Doordash has all the information up to date with Payable so they can deliver 1099's at the end of the month.

In past years the main way to access the 1099 was through Payable's website. They seem to indicate that 1099's will be distributed differently this year. More than likely they'll be delivered by email, if not, then by mail. If sent by mail, it could be a week to ten days into February by the time they arrive.

In the past couple years, I've personally received my 1099 from Doordash on or around January 27th. Understand, that doesn't mean everyone receives theirs then.

Do I have to pay taxes if I made less than $600 with Doordash?

Yes. You are required to report and pay taxes on any income you receive. The $600 threshold is not related to whether you have to pay taxes. It's only that Doordash isn't required to send you a 1099 form if you made less than $600.

Some confuse this with meaning they don't need to report that income on their taxes. Some will take the position that if the IRS doesn't know you made the money, you don't need to report it. I would urge caution around this. Doordash not submitting a 1099 does not necessarily mean the IRS will not or can not know about those earnings.

Do I have to pay taxes if I made less than $400 with Doordash?

Yes, you do have to report and pay taxes on any income you receive. However, if your self employment earnings from your schedule C are less than $400, you will not be required to file a Schedule SE which calculates your Self Employment taxes.

This is based on your profits being less than $400. In other words, based on your expenses, your gross earnings may be substantially higher. Keep in mind that if you worked for other platforms such as Grubhub, Uber Eats, Postmates etc., the $400 threshold is based on your combined earnings. In other words, you may earn less on Doordash but still have to pay self employment taxes due to the fact that your combined independent contractor profits are higher than $400.

What's the difference between gross earnings and net profits?

Gross earnings refers to the money you've received from Doordash for your independent contractor work including fees and fares, bonuses and incentives, referral fees and tips. Gross refers to the total money coming in. This is in reference to gig delivery work. It gets a bit more complicated for businesses that buy and resell or manufacture items, as cost of goods sold is a factor as well.

Your taxable income as an independent contractor is your net profit. This is the amount that's left over after you deduct your business expenses. Your gross income minus your expenses is your net profit. That net profit is what you record as part of your overall income on your tax form.

What do I do if my Doordash 1099 is wrong?

Doordash unfortunately has been known to report the wrong information on 1099 forms. A significant portion of those instances appears to be reporting too much money earned. Do not take this lightly or ignore it if it happens. When that happens, Doordash is telling the IRS you made more than you did. That leaves you either having to pay more than you should in taxes or leaves you open to the IRS coming after you for under-reporting taxes.

If you get the wrong information, start with double checking your numbers. Go through all your bank records and add up all deposits. If it is wrong, you need to contact Doordash and request they issue a corrected 1099. You can read more in detail on steps you can take if your 1099 is wrong.

Why is Doordash sending a 1099-NEC instead of a 1099-MISC?

The IRS has changed the reporting procedure for independent contractor earnings. They now require companies to report earnings on the 1099-NEC forms. This is not a Doordash decision, this was a change in procedure with the IRS.

Is my 1099 from Doordash the same thing as a W-2?

Not really. An employee's W2 reports earnings, withholdings and other adjustments and it provides a single number that you add into your taxes. A copy of any W2's is then included with the tax return.

You will fill out a Schedule C, and that form is more like what your W-2 would be. Earnings from your 1099 are added up with other self employment earnings (if any) and recorded on the income side of your Schedule C. You then list your expense totals on the expense side to come up with your net profit on Line 31. It is that net profit that gets moved to your tax form.

Does Doordash take out taxes for me?

No. Doordash does not withhold taxes for contractors. As an independent contractor it is your responsibility to set aside enough money to cover your taxes. Your version of withholding would be to make quarterly estimated payments to the IRS.

Is my pay from Doordash what determines my taxes?

No, you pay taxes on your net profit as an independent contractor. Your funds from Doordash are added in with any other self employment earnings such as from Grubhub, Uber Eats, etc. and recorded on your Schedule C. You then deduct your expenses (including mileage if you use the standard mileage allowance). Your net profit (what's left after expenses) is the basis for what you pay in taxes.

I only received one copy of my 1099 – Do I have to mail that in with my taxes?

No. You keep that with your records. Many businesses receive multiple 1099 forms and sending all those in could be cumbersome. Keep in mind that the IRS will have a record of your 1099.

Where do I put my 1099 and Doordash income on my taxes?

You do not list your 1099 income on your 1040 form. Instead you will add it in with any other self employment or gig income to the income total on your Schedule C. Your true income (that you are taxed on) is your net profit, the total amount left over after deducting expenses from your income, as shown on your Schedule C. That profit amount is what you add to other income on your 1040 form.

For more questions about Doordash Taxes

This was one of five FAQ articles in this series. You can scroll down to see links for the overview and the other FAQ articles.

We also put together a series of articles that was written from more of an instructional approach, that covers several different parts of the tax process for independent contractors in the gig economy. You can visit our Delivery Driver's Tax Guide for more in depth information.

How Doordash Taxes work in plain English. Understanding income, Deductions, and refunds for Dashers and independent contractors in the gig economy. Income and Self Employment tax explained, how to use miles and expenses to reduce taxes.

There are all sorts of conflicting ideas out there about what expenses you can claim as a Dasher or delivery driver on your taxes. We researched answers to 20 frequently asked questions about deductible business expenses to help you better understand what you can claim on your Doordash taxes.

Dashers: Tracking your miles, understanding how to write off car expenses makes hundreds or thousands of dollars difference in your taxes. We discuss what miles you can track, how mileage vs actual expense works, and several other frequently asked questions.

Everyone treats tax filing as this big mystery. Is it really that hard to figure out how we file taxes as Dashers? We wade through common questions people have about Doordash, taxes, and how the whole filing process works.

How do we fill out a business form for taxes? What is Schedule C and how does it work for Dashers and delivery drivers? We answer several common questions about Schedule C and Doordash taxes.

How will your business income add to your tax bill? We talk about the tax process and how to estimate the tax impact, and then provide a calculator that will give you a picture of the additional taxes that come from your delivery work.

How To Get W2 From Doordash

Source: https://entrecourier.com/delivery/doordash-taxes-1099s-income-faq-frequently-asked-questions/

Posted by: hendersonplat1974.blogspot.com

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