2265538
You'll need to sign in or create an account to connect with an expert.
Yes, his income from Postmates is considered "business income" (i.e. self-employment) and is subject to self-employment tax, even if he didn't earn enough to owe any income tax.
He can reduce his self-employment income tax by deducting the costs he incurred to generate that income. The most significant cost would be the mileage he put on his vehicle while making deliveries.
TurboTax Self-employed (or Home & Business) has the interviews and forms needed to identify and report those costs.
if his schedule C net income is over $400., he will owe self-employment tax of about 15% on the net.
Thanks, this helps a lot!
Thanks, this helps a lot!
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
RMenschel
Level 3
blueflower
Level 1
debbiezaratee
New Member
vennamaneni
New Member
ostragoth
Returning Member