@Asta wrote:
Hello. i tried out doordash few days ago just to see what it is like to work with doordash. Now that i know about tax, i don't think i will continue. So far, i made 103.21, am i required to report this income or pay tax on it. i looked up information online and found that if you make less than 400 per year, you dont have to pay tax on it, is it true? can anyone here shed me some lights. thank you!!
No, that is not true. It is still subject to income tax. Business income that is under $400 is not subject to Self-Employment Tax (Social Security and Medicare taxes), but it is still reportable as income.
But keep in mind you keep doing DoorDash (as your own business), you get to claim your mileage deduction. So hypothetically, let's say you drove 100 miles to get that income. Using the Standard Mileage Rate, you would get a deduction of $57.50. So rather than paying tax on $103, you would pay tax on $56.
But on the other hand, keep in mind Self-Employment tax. That is 15.3% of your profit, PLUS there is your 'regular' income tax.
