2299872
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Khardman
New Member

Do I need to pay self employment tax when doing a part time job delivering or picking up cars for a car dealer? I am paid by the mile for picking up vehicles.

I am not on the dealers payroll. Paid by check after each trip.
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

Do I need to pay self employment tax when doing a part time job delivering or picking up cars for a car dealer? I am paid by the mile for picking up vehicles.

Then you are self-employed and must pay the self-employment tax on any income more then $400.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
Hal_Al
Level 15

Do I need to pay self employment tax when doing a part time job delivering or picking up cars for a car dealer? I am paid by the mile for picking up vehicles.

Confirming the other answer, what you are doing constitutes self employment. 

Although it may be news to you that you “have a business” (and most of the other people who get their first 1099); The IRS considers anything on a form 1099-NEC (1099-MISC in previous years) to be self employment income. Enter the 1099 income, at Other Common income / income from a 1099-NEC . TurboTax (TT) will complete Schedule C  for you and allow you to deduct any expenses associated with this income. You'll also have to pay self employment tax (social security & Medicare) on any profits greater than $432. These types of payments are frequently done this way. Your "employer" is not the only one.

The IRS also considers undocumented cash income (no W-2 or 1099), for work performed, to be self employment income.

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question