topic I just started doordash in Get your taxes done using TurboTax

I just started doordash

Acgreatmemories — Thu, 30 Sep 2021 20:59:26 GMT

Hello I just started doordash and I have this app that tracks my expenses and mileage. I need help with what else do I need to be keeping track of. My husband scared that they're going to take my whole refund, I have one child. I have a full-time job and I do doordash on the side and I only want to make about $300 a week which last week I made $400 this week I'm only making $200. So I just need to know what I need to do before the end of the year and I have to pay out a lot of money. I am putting back 10 to 20% out of my door dashing money to help with taxes is that good enough? How do I configure Medicare and local taxes? Do I put in Lorain City taxes? I know you'll say yes to this answer but should I hire a tax professional when I do my taxes?

Re: I just started doordash

OpeA1 — Thu, 30 Sep 2021 21:21:19 GMT

Hello Acgreatmemories!

You are doing a great job using an app to track all your expenses and mileage. You need to keep track of any and everything you sue to run your business, for instance if you provide water bottles to your passengers, then that is also an expense to you.

Here is a Turbo tax resource to help you with what may be taken as an expense: https://turbotax.intuit.com/tax-tips/self-employment-taxes/filing-taxes-for-on-demand-food-delivery-drivers/L7dIkSK6I

If you would like to pay your estimated taxes now, here are a few resources to help you :

https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

https://www.irs.gov/payments/eftps-the-electronic-federal-tax-payment-system

Finally, using our tax Caster tool will help you determine/estimate how much tax you owe https://turbotax.intuit.com/tax-tools/

I am sorry, but I do not know where Lorain City is and therefore, I am unable to look that up for you, but call them and ask them what they require of you regarding your taxes.

I hope you find this helpful!

Re: I just started doordash

Acgreatmemories — Sat, 02 Oct 2021 01:34:12 GMT

Thank you so much. I will look into the information that you provided. I will continue to keep track of my expenses.

Re: I just started doordash

VolvoGirl — Sat, 02 Oct 2021 01:58:34 GMT

Some general info on self employment...........

You will need to keep good records. You may get a 1099NEC at the end of the year if someone pays you more than $600 but you need to report all your income no matter how small. You might want to use Quicken or QuickBooks to keep track of your income and expenses.

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed return....

http://quickbooks.intuit.com/self-employed

When you are self employed you are in business for yourself and the person or company that pays you is your customer or client.

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax. You will need to use the Online Self Employed version or any Desktop program but the Desktop Home & Business version will have the most help.

Here is some IRS reading material……

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 334, Tax Guide for Small Business

http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses

http://www.irs.gov/pub/irs-pdf/p535.pdf

You pay Self Employment tax on $400 or more of net profit from self-employment in addition to any regular income tax. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.

PAYING ESTIMATES

You may need to send in quarterly estimated payments to cover any self employment tax and increase in income.

You must make quarterly estimated tax payments for the current tax year if both of the following apply:

- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.

- 2. You expect your withholding and credits to be less than the smaller of:

90% of the tax to be shown on your current year’s tax return, or

100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months).

Turbo Tax will calculate the 1040ES estimated payments

https://ttlc.intuit.com/community/tax-payments/help/can-turbotax-calculate-next-year-s-federal-estimated-taxes/00/26437

How to make the Estimated payments

https://ttlc.intuit.com/community/tax-payments/help/how-do-i-make-estimated-tax-payments/00/25875

Here are the blank Estimates and instructions…..

http://www.irs.gov/pub/irs-pdf/f1040es.pdf

To prepare estimates for next year you start with your current return, but be careful not to change anything. For Online returns, if you can't get back into your return, Click on Add a State to let you back into your retun.

You can just type W4 in the search box at the top of your return , click on Find. Then Click on Jump To and it will take you to the estimated tax payments section. Say no to changing your W-4 and the next screen will start the estimated taxes section.

Or Go to….

Federal Taxes or Personal (Desktop H&B)

Other Tax Situations

Other Tax Forms

Form W-4 and Estimated Taxes - Click the Start or Update button

To just estimate the remaining quarters put in that you paid $1 for the missed quarters so it will only calculate the remaining quarters.

The 1040ES quarterly estimates are due April 15, 2021, June 15, Sept 15 and Jan 18, 2022. Your state will also have their own estimate forms.

Or you can pay directly on the IRS website https://www.irs.gov/payments

Be sure to pick the right kind of payment and year.....2021 Estimate