self employed makes less than $400

[Asta]

Hello everyone. 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? If that true, when i file my tax next year(2021), you don't to pick self employed version, right? i just have to pick the free version to file my tax. can anyone here shed me some lights. thank you!!

[Texas Roger]

You are not required to pay self employment tax on income of less than $400. However, if you must file a tax return due to receiving other income, you must enter the self employment income on your tax return regardless of how small the amount is because all income from all sources must be entered on your tax return and you must pay federal income tax on it. 

You will not be able to use the Free Edition to enter the self employment income. If you had no expenses associated with the income, you can upgrade to Deluxe and enter the income. If you had expenses, you must upgrade to Self Employed.

There is another free product from the IRS Free File Program what you might be able to use. Here are the limitations for using it this year. They will probably be similar for 2020 tax returns.

You qualify if you had $36,000 or less AGI or $69,000 or less military family AGI or qualify for EITC. Click on See if you qualify then Yes (if you do) then Start Now button, then choose Create an Account.
https://ttlc.intuit.com/questions/2026912-how-do-i-switch-to-turbotax-free-file-program

[Asta]

Would you mind giving more examples? 

In my current case, i am making 30k per year from my regular job(8-5 job) and doing doordash as a side job. As you know from my previous post, i have been doing doordash for a few days and so far made $103. I ran the math and figured out that i am losing net. My mileage  is 166 which is .58 x 166 = 96.28$ + 10.5$ phone service(15%) = 106.78. 

Can i deduct the loss net from my regular income. which this is what i think it should look like 30k - 3.78. = i make 29996.22 this year instead of 30k. i know that this is really small amount and i shouldn't even think of reporting it but this will be for education purpose. Would you please shed some light? Thank you! 

[Texas Roger]

When you enter everything on your tax return including the small amount of income and expenses from the doordash income on Schedule C, then the loss will be deducted from your other income on your tax return. You will need the TurboTax Self Employed version to make the income and expense entries from the Doordash income and expenses. 

Doordash is not required to issue a 1099-MISC to you showing the income since your income is less than $600. I don't know what the policy is at Doordash regarding the issuance of 1099-MISC for amounts under $600. 

There is another free product from the Free File Program that you could use and not have to upgrade to Self Employed.

You qualify if you had $36,000 or less AGI or $69,000 or less military family AGI or qualify for EITC. Click on See if you qualify then Yes (if you do) then Start Now button, then choose Create an Account.
https://ttlc.intuit.com/questions/2026912-how-do-i-switch-to-turbotax-free-file-program