Hello Jcoop1,
Thank you for reaching out to us with your tax question.
Congratulations on having two 1099 jobs.
Being a 1099 worker, you are considered a contractor by the company you are working for. By being a contractor, you can actually receive more tax deductions such as business mileage, meal deductions, home office expenses, work phone, internet costs. These deductions can be used to reduce your taxable income such that you may owe less taxes when you file your tax return. For example, if you use your personal cell phone to communicate with customers for your Doordash job, then you can deduct a portion of your cell phone bill as a business expense. The same applies to your vehicle mileage, internet costs, etc.
Going forward for the 2022 tax year, the key is to keep good business records such as your receipts, utility bills, cell phone bills, etc. You can start by using an Excel spreadsheet to record your expenses. Once your business progresses, you can use a business and financial tool such as QuickBooks to record your income and expenses. You can then generate a financial report in QuickBooks that will provide you with financial information on how your business is doing.
Keep in mind though that since you are self-employed, you will have to pay one-half of self-employed taxes. Additionally, since you do not have an employer who withholds your Social Security and Medicare taxes, you would need to pay quarterly estimated taxes to the IRS if you expect to owe tax of $1,000 or higher when you file your tax return in 2022.
Please let me know if you have additional questions. Have a great day! Thank you!
Regards,
Shirleyh88
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