Which Turbo Tax Section: Amazon Flex, Doordash, Mercari, Offer Up, and 1099 Job

[subaonyx007]

Hello,

I'm wondering which section on Turbo Tax I file the below information.

In 2021 I earned money via:

• Amazon Flex
• Doordash
• Mercari
• Construction Worker (1099)

1. The company I worked as a construction worker for did not provide a 1099 but I only worked for 3 days and I know the gross amount I made. Which section and how should I report this information?

[DawnC]

Any W-2s you received from those companies is entered as Wages.   You can search for W-2 in the search box to be taken to the entry screens for those.   Use the Jump to W-2 link after searching.   If you have more than one W-2, click on Add another W-2 from the summary screen.  

All of your 1099s get reported in the Self-Employment section, including the construction job.   I'll leave instruction links below.   Your self-employment income gets reported on Schedule C.   If all of your self-employment income was doing the same kind of work, such as driving, you would only need to prepare one Schedule C.   But if your income is coming from different fields of work, you will need multiple Schedule Cs.   Each Schedule C is for a different line of work (a business).   If you have 1099s from different places but they are all for driving, they all go on your driving business Schedule C.   Your construction work would have its own Schedule C and any 1099s (or cash or checks) you received for doing construction work would go on that Schedule C.    

You can report closely related activities together on one Schedule C.   If you have unrelated activities, however, you must report them on separate Schedule Cs.

How do I report income from self-employment?  When setting up your business (or businesses), you can use your name as the business name and your address as the business address.  Do not enter any information about Amazon, Doordash, Mercari or the construction company in your business profile(s).   The only reference to those will be on the 1099 entry (or the general business income entry in the case of the construction work).  

Business expenses reduce your taxable income, lowering your tax bill.  As a self-employed business owner, you become eligible to deduct certain expenses from your self-employment income, which you can't do as a W-2 employee.    Where do I enter my self-employment business expenses?    

Tax Considerations for Gig Economy Workers with Multiple Jobs  This article has a lot of helpful information for taxpayers in your shoes.  

[subaonyx007]

@DawnC 

In the screenshot below which one would I select? There is a possibility I drove under 100 hours as an Amazon Flex driver.

[ZoltanB45]

It sounds like you participated by being the driver and every driver has an 11 hour limit per day, so check off box 2. 

[subaonyx007]

@ZoltanB45 

According to this a delivery driver is not listed. How should I answer that question then?

[DianeW777]

You would select 'None of these apply.'.  You are not subject to the Department of Transportation hours of service limits. As you indicated you are not any of the remaining categories. 

The Federal Motor Carrier Safety Administration (FMCSA) shows hours limits for different types of individuals who drive. This will help you stay within the regulated limits. 

• Summary Of Hours Of Service Regulations

@subaonyx007

[subaonyx007]

@DianeW777 

Thank you. What is the "business code" and "method of accounting" for Amazon Flex Drivers?

[VolvoGirl]

For your self employment the accounting method is usually cash.  You would know if you are using the accrual method for yourself.

Schedule C line B Business Code is a 6 digit number for your activity.  Here are the IRS instructions for Schedule C.  Business codes start on page 17.  

http://www.irs.gov/pub/irs-pdf/i1040sc.pdf

[VolvoGirl]

Here is some more general info.........

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.  Here's a Schedule C  https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version or use any of the Desktop CD/Download programs.

How to enter self employment income

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

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 and if you don't get the 1099NEC.

You use your own records.  You are considered self employed and have to fill out a schedule C for business income.   You use your own name, address and ssn or business name and EIN if you have one.   You should say you use the Cash Accounting Method and all income is At Risk.   

After it asks if you received any 1099Misc or 1099NEC it will ask if you had any income not reported on a 1099Misc. You should be keeping your own records.  Just go through the interview and answer the questions.   Then you will enter your expenses.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  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.  

The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 Schedule 2 line 4 which goes to 1040 line 15.  The SE tax is in addition to your regular income tax on the net profit.

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

[subaonyx007]

@DawnC I have a follow up question:

For Instacart and Doordash (Self-Employed Delivery Driver jobs) I made less than $600 so I did not get a 1099-NEC.

How would I respond to this question from the screenshot below? And would I combine the total amount I received from Instacart and Doordash?

[VolvoGirl]

Yes say Cash and enter the whole total.  In fact you can enter all your self employment income as cash and not need to enter the 1099NECs.  Only the total goes to Schedule C line 1.

[subaonyx007]

@VolvoGirl 

Okay, thank you.

For Delivery Driver Jobs I did Amazon Flex (I received a 1099-NEC), Doordash and Instacart (Earned less than $600).

I entered what I made from Amazon Flex on 1099-NEC.

Now I should combine totals from Doordash and Insta cart on the screenshot below and say cash?

[VolvoGirl]

Yes.  Enter the total for both as Cash.