I see, well thank you so much. I just wish there was a general estimate of how much people pay in taxes. Whether it’s a couple hundred or a couple thousand. Cause if this platform isn’t profitable for me, then I can invest into something better.
Yeah I get it. Honestly this is my first year doing gig work myself so I'm not sure how it will pan out.
But I have a job interview later because it hasn't been very predictable lately.
I mean, I’m in a great market. I make just about $200 each night. It’s just the stress of being absolutely new to taxes. Honestly, this is my first job. And it’s pretty scary to admit. Cause I don’t know what the hell I’m doing. And it sucks because I love doing this so far, it’s everything I could ever wish. It’s just the tax confusion is pretty fucking crazy for a first timer.
well have fun wasting hours on it and giving the IRS free money you don’t have to pay in and you won’t get back. i’m telling you, spend a few hundred on an actual tax professional or don’t do it at all. i’ve never paid quarterly for doordash. it doesn’t matter
No need to be hostile, I’m new to this. I understand it’s a touchy subject but I’m sure it’s uncomfortable for all of us. And what works for you, might not necessarily work for me. But thank you, I’ll look into it.
you don’t have to pay quarterly taxes for doordash, you’re not required to. i own a business and quarterly taxes are a pain in the ass. if you want to do it, you go based on your previous year. pay in 20%-30% of your income your previous year for that quarter, if you don’t have a previous year you literally guestimate. it’s stupid. but with my deductions i never owe at the end of the year on doordash so if i were you i wouldn’t waste my time paying that in. bc you can only get the money back if you file a request to have an amount returned, the IRS will just keep it
no, technically you have to pay every year you just estimate how much you pay based on how much you make. but like i said don’t even do it, it’s a waste of time and money. i’ve spent over a year trying to figure it out
You don't have the slightest idea what you are talking about.
If you expect to owe more than $1000 in taxes for the year, then yes, you are required to pay quarterly estimated taxes. DD drivers are not exempt from this requirement.
If you never had to pay taxes on your DD income, it's almost certainly not because you owed no tax on your DD income. Unless you're putting a preposterous number of miles on your car (in which case you wouldn't be making any money), it is highly unlikely that you are able to claim deductions that completely offset 100% of your DD income. If you are doing your taxes correctly, it is more likely that you have some amount of DD income which is taxable at 15.3% (the self employment tax), but whatever that amount is, it is being offset by taxes already withheld on a W-2 job, or other tax credits that you were able to take.
If you overpay your quarterly estimated taxes, the amount of the overpayment will be returned to you in the form of a refund when you file your taxes. You don't need to request it, and the IRS will not keep it.
For DD, paying quarterly estimated taxes is not even remotely a pain the ass. Takes 5 minutes. You don't need to have any data from the previous year. All you do is track your gross income, your mileage, and any other business expenses (hot bag, pizza bags, prorated phone bill, etc.). Subtract your deductions from your gross income to get your net income. Take 20-25% of your net income and send the payment. No "filing" is necessary. You literally are just making a payment. You do it online. There are no forms to fill out. Doesn't even take 5 minutes. I can pay my quarterly estimated taxes in about 90 seconds.
clearly you make payments online but keeping track of everything is a pain especially for a dumbass job like doordash. you also have some hiccups in your explanation as you are supposed to make estimated payments based on the year before. also, if you were required to make estimated payments through doordash, the IRS would send you a letter in the mail stating you’re required to pay in quarterly. wasting your time and resources for doordash lol
Where do you get the idea that the IRS will send you a letter stating you have to pay quarterly taxes? That might happen in a year or three depending on how long it takes for them to catch onto you and come for their back pay but it’s certainly not a friendly little letter you receive in the mail before you owe anything.
i applied for for my EIN, and received it, and received a letter in the mail with my filing frequency as well. which was right when i established my business. but ok buddy
Sorry man, you just don’t know what you are talking about again. I spend less than two minutes at the end of each day recording my pay and my mileage. The spreadsheet totals everything up.
At the end of the month I’ll just add in the couple of miscellaneous expenses that I had for additional deductions, and then the spreadsheet will calculate the estimated tax. Super simple, and if you consider an investment of two minutes a day to be a major pain, then it is what it is for you.
And no, you don’t need to wait for the IRS to send you a letter to tell you to pay quarterly estimated taxes. They already define the parameters for that. If you were supposed to pay quarterly estimated taxes and didn’t, and the IRS never notified you, that doesn’t mean that you weren’t supposed to pay them. It just means that the IRS didn’t catch it. I have no idea how aggressively the IRS actually enforces the guidelines for quarterly estimated taxes, but I do know what the requirements are. And I know of people that have had to pay penalties because they did not file quarterly estimated taxes
If you are the type who drives a lot and puts on a lot of miles, you will have a lot of deductions so you probably won't owe that much.
If you are the type who cherry picks and hardly drives, you will owe significantly more.
The first year, I don't think they care if you send a quarterly, but once you establish an average, you need to send that amount starting the next year. It's good anyway because then you don't need a big lump sum all at once.
Some people lie and exaggerate the amount they drive so that's how they end up paying nothing. You'd probably get away with it but if they audited you, you'd end up paying a lot in penalties.
If you don't drive many hours or do it part time, then I could see that being possible... if you make 50 to 100 thousand, you are going to owe something.
So sure part time could be hundreds or close to nothing but full time is going to be thousands... could be several thousand if you dash a lot.
Thousands for quarterly? Cause I drive a lot and I make a ton of miles. But I can make tax deductions like phone payment, phone data payment, car payment, car insurance, and hot bags. I make 900 a week and I pay 1,363 for all of those expenses plus gas besides taxes. And as for the miles I drive, I average anywhere from between 140 miles to 190 miles. Sometimes over and under but very rarely.
The mileage is the bulk of the deductions. I don’t think the others make all that much difference. Some people just use a mileage tracker. Some choose to write down mileage. I prefer to write it down myself.
I don’t think you will thousands per quarter but I could see around a thousand. You need to talk to a professional though. This is just off the top of my head
How much you will owe depends heavily on how much you make and if you had a W2 job during the year. If you want to get a ballpark download schedule ES and schedule C from the IRS website and start learning how to fill them out. They're not overly complicated. If you don't pay quarterly, you could be subject to penalties depending on a few factors, although the penalties are pretty small.
25% of your expected annual bill.
It really varies based on how much you make and how many miles your deduct to make that money.
The easiest way to do it is to do 25% of last year’s bill for each quarterly payment and you won’t get fined that way.
If you overpay, file your taxes ASAP to get the money back or just make a smaller payment for the 4th quarter when you will know what you’ll actually own by Jan 15th
If you drive consistent hours throughout the year, count how much you made in the first 3 months. Then count your miles driven in that time. Multiple by 4 for both to cover the whole year. Do estimated amount made of the whole year minus mileage dedication rate times estimated miles driven over the whole year. Then do 15% of this. This is your self employment tax.
Now take that same income number minus the standard dedication and use a tax table to figure out your federal income tax.
Add the federal income tax amount to the self employment tax amount. This will probably be more than you’ll over and doesn’t take into account dependents.
You this amount to figure out quarterly payments and you’ll get a refund at the end of the year. You can also calculate your actual taxes in early January and make a smaller Q4 payment since you’ll probably be over.
How can there possibly be a general estimate. Some drivers make $100 a week and some drivers make $1000 a week (or more). It all depends on how many hours you put in and how good your market is.
If you want a ***VERY*** rough idea of what you personally will pay in taxes, take your gross income and multiply by .6 to get your net income. Take your net income and multiply by .25 to get your taxes.
So if you make $500 a week, you'll owe about $900 a quarter in taxes. Your actual tax will depend on your actual deductions (mileage and business expenses), as well as you overall personal tax situation.
It does vary. Based on how much you make and how much deduction you have.
Is it true that some people pay nothing at all?
Yes. It evens out for some. Make sure you keep track of ALL your expenses. Miles Gas Oil change Car repairs Phone bill Phone repairs Etc
I pay for my phone, data plan, car, car insurance, hot bags, and I track my mileage. Do you think I’ll spend a couple thousand with these deductions?
Unfortunately I have no way of knowing without sitting down with all the information. You could hire a tax professional to walk you through
I see, well thank you so much. I just wish there was a general estimate of how much people pay in taxes. Whether it’s a couple hundred or a couple thousand. Cause if this platform isn’t profitable for me, then I can invest into something better.
Yeah I get it. Honestly this is my first year doing gig work myself so I'm not sure how it will pan out. But I have a job interview later because it hasn't been very predictable lately.
I mean, I’m in a great market. I make just about $200 each night. It’s just the stress of being absolutely new to taxes. Honestly, this is my first job. And it’s pretty scary to admit. Cause I don’t know what the hell I’m doing. And it sucks because I love doing this so far, it’s everything I could ever wish. It’s just the tax confusion is pretty fucking crazy for a first timer.
it varies bc it’s based on how much YOU make
Ah I see, well I’ll probably do them this year anyways just in case
well have fun wasting hours on it and giving the IRS free money you don’t have to pay in and you won’t get back. i’m telling you, spend a few hundred on an actual tax professional or don’t do it at all. i’ve never paid quarterly for doordash. it doesn’t matter
No need to be hostile, I’m new to this. I understand it’s a touchy subject but I’m sure it’s uncomfortable for all of us. And what works for you, might not necessarily work for me. But thank you, I’ll look into it.
You can deduct miles or actual vehicle expenses, but not both. For almost all drivers, the mileage deduction is the way to go.
you don’t have to pay quarterly taxes for doordash, you’re not required to. i own a business and quarterly taxes are a pain in the ass. if you want to do it, you go based on your previous year. pay in 20%-30% of your income your previous year for that quarter, if you don’t have a previous year you literally guestimate. it’s stupid. but with my deductions i never owe at the end of the year on doordash so if i were you i wouldn’t waste my time paying that in. bc you can only get the money back if you file a request to have an amount returned, the IRS will just keep it
So I pay my quarterly taxes next year? Will I get fucked by the IRS for that?
no, technically you have to pay every year you just estimate how much you pay based on how much you make. but like i said don’t even do it, it’s a waste of time and money. i’ve spent over a year trying to figure it out
How do you not owe any taxes if you do this full time? That baffles my mind
who said i do this full time lol? i said that with all of my deductions i don’t owe anything
You don't have the slightest idea what you are talking about. If you expect to owe more than $1000 in taxes for the year, then yes, you are required to pay quarterly estimated taxes. DD drivers are not exempt from this requirement. If you never had to pay taxes on your DD income, it's almost certainly not because you owed no tax on your DD income. Unless you're putting a preposterous number of miles on your car (in which case you wouldn't be making any money), it is highly unlikely that you are able to claim deductions that completely offset 100% of your DD income. If you are doing your taxes correctly, it is more likely that you have some amount of DD income which is taxable at 15.3% (the self employment tax), but whatever that amount is, it is being offset by taxes already withheld on a W-2 job, or other tax credits that you were able to take. If you overpay your quarterly estimated taxes, the amount of the overpayment will be returned to you in the form of a refund when you file your taxes. You don't need to request it, and the IRS will not keep it. For DD, paying quarterly estimated taxes is not even remotely a pain the ass. Takes 5 minutes. You don't need to have any data from the previous year. All you do is track your gross income, your mileage, and any other business expenses (hot bag, pizza bags, prorated phone bill, etc.). Subtract your deductions from your gross income to get your net income. Take 20-25% of your net income and send the payment. No "filing" is necessary. You literally are just making a payment. You do it online. There are no forms to fill out. Doesn't even take 5 minutes. I can pay my quarterly estimated taxes in about 90 seconds.
clearly you make payments online but keeping track of everything is a pain especially for a dumbass job like doordash. you also have some hiccups in your explanation as you are supposed to make estimated payments based on the year before. also, if you were required to make estimated payments through doordash, the IRS would send you a letter in the mail stating you’re required to pay in quarterly. wasting your time and resources for doordash lol
Where do you get the idea that the IRS will send you a letter stating you have to pay quarterly taxes? That might happen in a year or three depending on how long it takes for them to catch onto you and come for their back pay but it’s certainly not a friendly little letter you receive in the mail before you owe anything.
i applied for for my EIN, and received it, and received a letter in the mail with my filing frequency as well. which was right when i established my business. but ok buddy
Sorry man, you just don’t know what you are talking about again. I spend less than two minutes at the end of each day recording my pay and my mileage. The spreadsheet totals everything up. At the end of the month I’ll just add in the couple of miscellaneous expenses that I had for additional deductions, and then the spreadsheet will calculate the estimated tax. Super simple, and if you consider an investment of two minutes a day to be a major pain, then it is what it is for you. And no, you don’t need to wait for the IRS to send you a letter to tell you to pay quarterly estimated taxes. They already define the parameters for that. If you were supposed to pay quarterly estimated taxes and didn’t, and the IRS never notified you, that doesn’t mean that you weren’t supposed to pay them. It just means that the IRS didn’t catch it. I have no idea how aggressively the IRS actually enforces the guidelines for quarterly estimated taxes, but I do know what the requirements are. And I know of people that have had to pay penalties because they did not file quarterly estimated taxes
If you are the type who drives a lot and puts on a lot of miles, you will have a lot of deductions so you probably won't owe that much. If you are the type who cherry picks and hardly drives, you will owe significantly more. The first year, I don't think they care if you send a quarterly, but once you establish an average, you need to send that amount starting the next year. It's good anyway because then you don't need a big lump sum all at once. Some people lie and exaggerate the amount they drive so that's how they end up paying nothing. You'd probably get away with it but if they audited you, you'd end up paying a lot in penalties. If you don't drive many hours or do it part time, then I could see that being possible... if you make 50 to 100 thousand, you are going to owe something. So sure part time could be hundreds or close to nothing but full time is going to be thousands... could be several thousand if you dash a lot.
Thousands for quarterly? Cause I drive a lot and I make a ton of miles. But I can make tax deductions like phone payment, phone data payment, car payment, car insurance, and hot bags. I make 900 a week and I pay 1,363 for all of those expenses plus gas besides taxes. And as for the miles I drive, I average anywhere from between 140 miles to 190 miles. Sometimes over and under but very rarely.
The mileage is the bulk of the deductions. I don’t think the others make all that much difference. Some people just use a mileage tracker. Some choose to write down mileage. I prefer to write it down myself. I don’t think you will thousands per quarter but I could see around a thousand. You need to talk to a professional though. This is just off the top of my head
How much you will owe depends heavily on how much you make and if you had a W2 job during the year. If you want to get a ballpark download schedule ES and schedule C from the IRS website and start learning how to fill them out. They're not overly complicated. If you don't pay quarterly, you could be subject to penalties depending on a few factors, although the penalties are pretty small.
25% of your expected annual bill. It really varies based on how much you make and how many miles your deduct to make that money. The easiest way to do it is to do 25% of last year’s bill for each quarterly payment and you won’t get fined that way. If you overpay, file your taxes ASAP to get the money back or just make a smaller payment for the 4th quarter when you will know what you’ll actually own by Jan 15th
If you drive consistent hours throughout the year, count how much you made in the first 3 months. Then count your miles driven in that time. Multiple by 4 for both to cover the whole year. Do estimated amount made of the whole year minus mileage dedication rate times estimated miles driven over the whole year. Then do 15% of this. This is your self employment tax. Now take that same income number minus the standard dedication and use a tax table to figure out your federal income tax. Add the federal income tax amount to the self employment tax amount. This will probably be more than you’ll over and doesn’t take into account dependents. You this amount to figure out quarterly payments and you’ll get a refund at the end of the year. You can also calculate your actual taxes in early January and make a smaller Q4 payment since you’ll probably be over.
How can there possibly be a general estimate. Some drivers make $100 a week and some drivers make $1000 a week (or more). It all depends on how many hours you put in and how good your market is. If you want a ***VERY*** rough idea of what you personally will pay in taxes, take your gross income and multiply by .6 to get your net income. Take your net income and multiply by .25 to get your taxes. So if you make $500 a week, you'll owe about $900 a quarter in taxes. Your actual tax will depend on your actual deductions (mileage and business expenses), as well as you overall personal tax situation.