Three questions/1099 Doordash/Ubereats

[corbina49]

Hello,

#1. I am an independent contractor for Uber Eats and Doordash. It is my sole income temporarily.  I do not earn much. Can I  pay my taxes in April of 2025 when I file for 2024? I will only get one form. They do not send one for quarterly taxes, or at least I haven't gotten one. Maybe because I earn a low amount.  

#2. If I am required to pay quarterly taxes, what should I do if I don't have the amount I need to pay? How will that work out?

#3. How would I find out what I owe, considering I only get one 1099 per year?

Thank you

[TeriH]

Great questions,

You have to file an income tax return if your net earnings from self-employment were $400 or more.  If it is,over, then you do have a filing requirement, and you are expected to pay taxes quarterly.  We have a TaxCaster tax calculator that can help you estimate your tax obligation.   

Also, as an independent contractor you can take expenses.  For example if you make $20,000 in income, you can deduct valid expenses.  So, if you had expenses of $5,000, your taxable income would be $15,000.  This TurboTax article explains what is allowed for uber.   And here's another article for Food Delivery.  

If you don't have the money to pay, the IRS will assess a penalty for underpayment.  They expect to be paid timely, ie as it is earned.   That will happen when your file your 2024 taxes.  This TurboTax article explains about paying quarterly taxes.

You should be able to log into your Uber and doordash accounts to get the year to date earnings.  Then use the tax calculator to estimate how much you will owe in taxes.

[corbina49]

I am 50, married filing separately because my spouse and I no longer live together and do not plan on doing so again. So far, for 2024 on both platforms combined, I have earned $5,728.91.   My expected income for this type of employment is going to be $12,000 or under. This is because I do not plan on doing this permanently. I have a new job I will be starting in 3 weeks that will have taxes automatically deducted, therefore I will not be doing the independent contractor work anymore.  It takes double the time to earn what someone at a traditional type of employment would earn, and isn't worth continuing doing for the long run.   That said, what would you advise for this particular situation?  I will be a couple thousand under the threshold.

Thank you

[TeriH]

You have to file an income tax return if your net earnings from self-employment were $400 or more.

I suggest you use the TurboTax TaxCalculator to estimate your tax obligations.  You'll need to add your estimated w2 income plus your self employment income.  Remember you can deduct valid expenses from the self employment.  

Here are the resources you should use to get a good handle on your obligations.

Taxcaster 

Self Employed Expenses 
Self Employed expense monitor 

How To Estimate Federal Withholding