So I am looking into working for doordash or something and become an independent contractor. I am currently 20 and have not had a job that made 10k or more a year. (therefore have not filed for taxes ever) so, when I do start working as a delivery driver, would I still be able to write off taxes for gas? I know I would be making less than 10k when I start since I am not planning on working a lot. it's more of an extra income. Since I have not filed for taxes, I am wondering in the next year of April, do I file taxes and if so how would I? how do I even calculate how much money I spent on gas during the orders? sorry it's so many questions, i am a bit confused. thank you to anyone that can help
So, in short these are my questions:
Would I still be able to write off taxes for gas? (someone who makes less than 10k a year)
Do I even file for taxes and if so, how would I?
How do I even calculate how much money I spent on gas for each delivery?
Also, I did have two jobs in the past but they both lasted like a month due to complications, that was during this year so I have not filed for taxes. I also made less than 1k during the two jobs. But- do I file for working there? I think I put exempt for both jobs when it asked the taxes questions, but I think I still got some money taken away, will I see that in the future if I do file??? This is all so confusing.
Let me know! thanks
Answers & Comments
You would be able to write off the cost of operating your car. You will have to pay self-employment tax (both halves of Social Security) on your profit even if you make less than $10,000 per year. I predict you will wish you hadn't started
If you make more than $400 is self employment income, you must file a tax return. The higher limit for non-filers doesn't apply. You need to keep track of your mileage for your doordash runs. Since you will probably be using your vehicle less than 50% for business, you must take the standard mileage deduction, not actual expenses.You will report your doordash income and expenses on Schedule C. The net income from that will also be subject to self employment taxes. Plan on setting aside at least 15 - 20% for taxes. You must report your other earnings on the tax return as well.
No, you keep a log of mileage and deduct that.
Exempt only exempts you from income taxes, not FICA, etc. You cannot get that money back.
Door dash is conractor work, so you have to file if you make over $400 for the year, and yes, you also have to file all the other income from the other two jobs.
You do not calculate how much you spent for gas for each delivery.
The easiest way is to use the standard mileage rate, which is a fixed number of cents per mile, so it doesn't matter what you spent.
If you are going to calculate actual expenses, then you must calculate the total that you spent for gas for the entire year and what fraction of your miles for the year were for the independent contractor work and multiply those two numbers.
If you made $400 or more working as an independent contractor, then you must file for the year.
If you file for the year, then you must include every job, whether as an employer or as an independent contractor or otherwise. If you file, then you have to file for everywhere that you worked that year.
Yes, you can write off your expenses. That doesn't mean you get reimbursed for them, though, just that you don't pay tax on that much of the money you take in. You'll keep a log of ALL of your miles on your vehicle, broken down by business/commuting/personal. You can deduct a flat amount per mile for your business miles.
You are supposed to file taxes every year that you have a job.
If you didn't earn $10000, then you may be due a refund / maybe not.
Everyone working in the USA pays FICA taxes. This is not refundable.
When you work as a gig driver, you need to track your mileage that you drive for the job. Then you get a per mile rate for what you drive. This rate covers gas, maintenance, repairs, insurance, etc.
- you are required to keep a log to do this. There are a lot of log apps that you can use.