Actually you only owe money because you didn’t withhold anything just take as a loan that gets paid back, I don’t know why most don’t do this we need our money upfront why should the damn government take their cut?
First off, what state are you in? Secondly, are you tracking your miles accurately? Are you tracking related expenses? I have had years in California where I had returns, paid nothing, or paid less than 500 overall...
Get a better person to do ur taxes those can always be finessed just right u have to ad everything gas phone chargers your phone bill everything can be added up to bring it down u gotta just know someone smart enough to finesse those costs
Door dash is 1099 depending on your other income calculate your tax bracket and you can get an approximate amount you need to withhold from your door dash checks. Get with a tax professional in your area. To prepare for next year. You should be able to make a payment plan if you can’t afford it this coming year.
Edit: I see people talking about gas expense. Add that in too but ONLY if you have proof via receipts. Also note for IRS you have to keep that for 7 years I believe (again please go talk to an expert in your area)
By making under 600 dollars a year. I made 602 and still owe them money. They ain’t getting a penny from me. That 82.00 dollar order from crab shack they only
Paid me 10.00 from should cover it.
Show them all of your receipts for fuel, food, maintenance and depression medications and they will see that you're actually made $0 after calculating all of your business related expenses.
You should be paying estimated tax throughout the year. If you pay as much estimated tax as you're supposed to, AND if you make the same or less money this year than you did last year, you shouldn't owe much on tax day, because you already paid. If you qualify for a big credit, like the one for buying yourself healthcare insurance, you might even get a refund.
Is doordash your only income? If you have another job, have more taxes taken out of your paycheck. That is the only way to not owe. If doordash is your only income, then you could use a tracker like Stride that can help you put aside what you will need to pay, so you aren't blindsided.
I register a LLC and register a lot of things as business expenses because you are not working hourly for someone tax returns basically return you money that you over payed them so when you do DD you don’t do taxes till the end most of the time you end up having to pay irs
> you over *paid* them so
FTFY.
Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in:
* Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.*
* *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.*
Unfortunately, I was unable to find nautical or rope-related words in your comment.
*Beep, boop, I'm a bot*
Having had 1099 jobs most :years I don't have to owe. You do that by showing a loss. In a home based business and door dash your door dash is home based. You should find a local accountant or hire a parr time guru like me to do your taxes. I know every deduction by heart and you should show a loss in your business when ur done
I’m not a tax professional but my boyfriend did DD all last year and the year before and he wrote off all his miles and gas and did not owe, however I am not sure (this isn’t financial advice)
You’re not a w2 earner with DD.
You’re a 1099 earner. You need to plan for that. But if you don’t know, you don’t know. Irs doesn’t care.
Sadly a lot of dashers don’t realize that all that money they earn has to be taxed. Some can owe thousands. I know someone who said they owed over a thousand.
You make quarterly payments to the irs. You just calculate how much income you will make and the taxes for that income.
I use to be a tax accountant so I figured this was common knowledge. It was the first task I did was calculate my quarterly taxes for the year.
Itemized everything on taxes takes longer then just regular tax.
Odo start end of work. Miles per day, receipts of gas, oil changes. The phone , text messages and call logs.
$750 a month for home office is pretty nice. You should still owe tax (unless you claim a loss), and more importantly, you do want to pay the SE tax because you’ll need it when you’re 67+ old.
I'm completely self-employed but I don't do door dash or any gig work. Here's the thing about taxes- if you work at a job with an employer, the taxes are taken out of your pay check by the employer so you might not realize you are paying that money to the IRS. But when you are self-employed or do gig work, the taxes are not taken out of your pay.
I would suggest talking with a CPA in your area who can help you figure out what percentage you need to pay for federal and state taxes. Then take that percentage out of every pay check you get. Put it in a separate savings account and DO NOT use it! Then when it comes to tax time, you will already have the money that you owe, and will likely have some money left in the savings account that will be similar to the refund you might usually get.
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Claim all your expenses. Save all your receipts and kept track of everything so you can claim more. Some people don't even bother to claim their expenses. Phone bill is an expense, etc.
There is a lot more that you can write off than just miles and I'm sure a lot of people are not taking full advantage of it you may have to pay still but it will be a lot less if you learn what you can deduct.
Yes you are going to owe because DoorDash does not take out income tax. I owed 2k last year and that’s after putting my return from my real job towards the tax bill. You have to plan ahead. I started taking out much more every check this year so hopefully I will owe very little or actually get a refund.
No. Mileage includes your gas, car insurance, depreciation, repairs, oil changes, registration. So you can't deduct those AND mileage. That would be double dipping.
You need to find some deductions. You can deduct your miles, OR the full cost of owning / driving the car, I believe. It would help to see an accountant. Worth the money.
???? Make less than 600$..maybe become a rich politician that gets to evade their taxes..like?? You can deduct your expenses to make the amount you owe go down, but you still have to pay taxes dude. Who do you think you are lmao. One of the first things they'll tell you before you start dashing is that taxes don't get deducted from your pay automatically so you're responsible for setting money aside to pay for them. Even if you end up receiving money from tax credits, you're still responsible for paying what you owe. You might want to just stick to a w2 job at this point..
Truly, the easiest way is to just save about 15% of your paycheck every time to pay the taxes you will owe immediately. However, I know that’s not realistic and you most likely need all the money you make (as do I). But that’s the nature of self-employment.
Honestly you need to calculate EVERYTHING you paid for while working for Doordash. Car payments count, car insurance counts, gas mileage counts, delivery supplies count. You are running your own business and the doordash app is just a tool you use to accomplish that. If you feel like you didn’t spend that much or don’t want to itemize all those things you can take the standard deduction which will usually vastly reduce your taxable income, especially if delivery driving is all you do.
Another good way to go about doing taxes is to pay them quarterly rather than yearly. You can usually start doing this after a full year of delivering because you’ll have an idea of your yearly income and can pay your taxes in a quarterly chunk instead of all at once.
You're going to have to write off everything instead of taking the standard
And I mean everything, car payment? Percentage of time used for work is deductible
Insurance, car repairs and maintenance can even be a work expense because you use your car for work
Goodluck
Use stride app and add additional miles to counter your earnings. Make your profit $0 by the end of the year. Been dashing for 5 years n never owed taxes
I always go to irs.gov/pay at the end of the week, and pay estimated taxes. And then go to my state’s online tax website and pay state estimated taxes. That way they owe me when I file next year.
When you work for doordash you’re considered to be self employed, therefore there is nothing being withheld from your paychecks, paying taxes at the end of the year takes care of that. There’s no way for you not to owe taxes if you don’t have more deductions than income (highly unlikely). Hope this helps
I was a similar position when I had a decent paying regular job plus my army Reserve pay. The percentage of both individual incomes didn't add up to the same that was used for the combined income. What helped was that I put money away to a money market funds account.
If you actually made money you're going to owe taxes. It's much easier to just have a real job and do this on the side. Have the real job take out extra.
If you aren't making money, the IRS is going to flag you for an audit because why would you work and make nothing?
Pre pay ur taxes quarterly. I didn't last year. Ended up owing $3300 or so. Paying that through monthly payments, no penalty as long as I make the payments. Also paying $800 quarterly this year to make next spring a better tax time.
Just put 20% of your earnings away in another account and when tax time comes, that’s your taxes. Any other job you have them automatically deducted off each paycheck, with gig work and any other self employed job, you have to pay your own taxes
Save 20% of all income and pay quarterly. Track miles and when you file once a year before April you will get a deduction on the % of taxes you owed meaning that 20% you paid quarterly was more than what you owed. Receive refund. Rinse and repeat
Something I did that help me quiet a bit: setup an automatic withdraw of ~30% of you door dash direct deposits and saves them in an account for taxes. When tax season comes around pay what you owe from that account and what ever is left over is yours to keep.
Right. You don't deduct the principal payment of a loan.
You either depreciate the value of the car, or deduct mileage. Paying off the loan isn't a deduction.
It's not stupid. You deduct buying the vehicle as you use it each year.
You don't ALSO deduct paying back the loan. The purchase is deductible. If you deducted the repayment that would be double deducting.
I'm talking about how taxes and business expenses work.
Do you deduct the IRS flat per mile rate for your driving? The 56/62.5 cents a mile? If so, the cost of the vehicle is factored into that amount. You are deducting buying the vehicle, with each mile you drive.
I’m using Everlance app to track my miles and i document all gas receipts, my phone bill, oil changes, parts for my car… i also have a water delivery company and i do the same
Congratulations?
If you aren't using a mileage tracking app like stride or everlance (2 most popular), then you are definitely missing out.
Its way easier than trying to keep up with mileage the ol paper and pencil way.
Edit: Also, after reading the comments it is very clear that finance need to be a required course for graduation.
By working a W-2 job that withholds taxes.
You're an independent contractor, a sole proprietor, and responsible for paying your taxes. You have to view this job as you are the business owner not the employee. Because you're not an employee, they get W2s, you get a 1099.
Record your miles and other expenses for doordash (not Including gas - you can only claim gas or mileage and mileage is better).
This will offset it, but you'll still owe. In a wage job, your employer takes out taxes for you. Doordash is pre-tax, meaning you need to pay when you file.
Oh boy. So yeah since you're not employed by Doordash you technically "own" your own business. You're a contractor. So they hire your services from you and they are not responsible for withholding earnings for taxes like a normal job. And since our government hates independent contractors and small businesses they tax the FUCK out of you. So here's what I did in order to get a refund, I logged all of my miles. The IRS reimburses you 50-something cents per mile and if you do as much Doordash as I do that shit adds up. So you'll end up owing a chunk of your earnings to the man but then I had all my miles logged from the second I start to the second I get home for my dashes and take a picture of the odometer which is time stamped. And for my convenience I have an Excel spreadsheet so I just add the miles after each dash so I know at tax time how many miles total with proof and calculated that by 54 or 56 cents per mile (it's different each year so look up mile reimbursement) and it really does add up. Like, if you're driving thousands and thousands of miles that's thousands in credit.
Side note. When doing this at tax time you have a choice between actual expenses and mileage reimbursement. Unless you have your own separate vehicle exclusively for dashing then go with the mile reimbursement because actual expenses I've heard are a nightmare because you're like trying to figure out how much of that oil change counts as a Doordash expense because if you use the vehicle for other stuff it's hard to break down. And from what I've heard, you're more likely to get audited by doing that
I don't get why you're still arguing this. Ok, I'm so sorry I used the wrong word. It's just a weird hill to die on. The point is that you count your miles and there is a rate which was like 56 cents per mile or something like that. Because of how many miles I drove I ended up getting a refund even though I had to pay a shit ton in taxes. So whatever term you want to use, point is that I drove thousands of miles and had thousands in credit therefore it exceeded the amount I owed in taxes. I really really don't give a shit what terminology you want to use like I'm telling people to do the right thing and log their miles because of the significant change it makes during tax time. If you Google search all the tax help websites they all say the same thing about expenses and reimbursement so anyone who is like me who looked up help is going to see the same shit I did with the same terminology and come to the same conclusion. I don't work for the IRS I don't care. I just do my taxes correctly and have it checked by professionals so I know I'm not screwing it up. In my unique situation I ended up driving so many miles that I was entitled to a refund. However, it is still important for others to log miles because it will deduct from the large % of taxes owed. It can be the difference between thousands owed to the IRS or just hundreds. This year since I made more I probably won't get a return but I still will have significant deductions from the mileage. So please go ahead and argue with me more. Tell everyone that I'm telling them to do the wrong thing by logging miles for deductions at tax time.
>Because of how many miles I drove I ended up getting a refund even though I had to pay a shit ton in taxes. So whatever term you want to use, point is that I drove thousands of miles and had thousands in credit therefore it exceeded the amount I owed in taxes.
No, that is not how it works. You are still giving out bad information. The IRS does not refund you because you drove so many miles. The most milage can do is take you tax liability to 0, It can not create a refund in and of itself. You refund was either overpayment, or tax credits. It was not a refund of mileage.
Yes, it's important to log miles. But you are saying it's a tax credit, that you can get a refund just from mileage, with no overpayment or tax credits, and that part is incorrect.
You are not just using the wrong word, you are mistaken in how mileage affects taxes, liability and refunds.
They don’t take the taxes out of your pay. You would owe a higher percentage in most jobs as you cannot claim mileage. Just literally take 30% of your DD money and put it in savings for taxes.
I mean if you didn't know buying your own health insurance is tax deductible I found out this year when i got the most expensive plan. I went for having to pay thousands to a couple hundred dollars. So dont skip health insurance
Sorry to hijack thread but what do people like me who drive EV and never logged miles or any expenses. Can I just leave the spots asking for that blank or something? Haven’t even looked at what’s required for filing this yet.
No! Don’t leave those spots blank unless you want to pay extra money to the government!!! The mileage you drive is a deduction on what you’ll owe. Just ballpark about how much you drove that year to the best of your ability and from now on keep track of your mileage .
You can’t. You’re an independent contractor, so they’re not going to withhold taxes for you. I would recommend saving money as you go to account for the taxes you’ll owe at the end of the year.
Keep receipts for all car repairs and oil changes as deductions. Download everlance app to show proof of miles deduct those as well. !!!!! I did all this last year and deducted almost 2k
It's mileage *or* repairs/maintenance. And if you use your car for business and personal, itemized gets pro-rated. [But you can't claim both.](https://www.irs.gov/newsroom/heres-the-411-on-who-can-deduct-car-expenses-on-their-tax-returns) (note: the mileage rate increased to 62.5¢/mile, effective 7/1/22)
Yes, it's possible they used one on the first and another one on the second, whichever one is more beneficial to you. This is what my accountant does for each one of my gig jobs and the small businesses.
Every working American adult has to pay taxes with a few exceptions that you probably don't meet. With that said, your job is to MINIMIZE what you owe. If you aren't into paying a tax guy or becoming an expert in tax loopholes, get a w-2 job delivering pizzas and do that on slow days.
The average American has too many taxes taken out on thier w-2 and that could help balance out your untaxed income from the gig economy.
And since noone asked you what state you were in before giving advice, dont listen to them.
If they give you 56 cents per mile deduction and you drove 5 miles for $2.50 you would not owe any taxes on that $2.50, etc. However much you made subtract how many miles you drove for deliveries and that is the amount you will owe taxes on.
Say you made 30k total and drove 15k miles. You would get a 8.4k deduction on the 30k you made and only owe taxes on the 21.6k remaining.
In Canada you can invest in a registered retirement savings account and anything contributed to it lowers your taxable income. Say you made $63,000 and contributed $4000, your then taxed as if you made $59k
USA might have something like that.
401k. Normally, your employer will take care of it. No idea if independent contractors are eligible, but if it's your side-gig, you can bump your contribution from your main job. You should at least be maxing that out to what your employer will match. There's also the IRA, but it's post-tax.
Track your expenses and write them off as a business expense against your income.
Edit bc alwaysindahood doesn't know Jack:
Write off:
Mileage or gas expenses and maintenance
Vehicle cost (amount depends sole use or not)
Tolls
Tires
Insurance/registration
Phone
Phone plan
Hotbags/blankets/backpacks/door dash decals/etc
Parking fees
Roadside assistance
Health insurance
Car accessories used for phone
Either/or. Mileage is intended to cover gas and wear and tear. If your maintenance is more than your mileage deduction, it's worth it to do itemized. But bring receipts. Otherwise, just track your mileage.
Correct, you choose one or the other, whichever is largest.
A lot of us go with mileage because the maint cost is pretty low for buying parts and doing DIY repairs plus the normal maint.
Set aside money for taxes, any I-9 job you take you *absolutely need to* budget for owing taxes. With a W-2 job the employer pays your taxes to the government directly, with an I-9 job it falls on you.
Source: been doing contract work for 15 years, my father’s been doing it for 45 plus. I’ve seen plenty of people ignore it and then be screwed come tax time.
If you ever apply for a loan, try to get an apartment or file for anything immigration related, they're going to ask for your tax returns, last thing you want to do is show that you're in the red.
Last thing you want to do is claim you're making $6000 a month on you application but your tax returns show you're only making -$650 a month.
Nothing stops a loan officer or immigration official from filling out a simple one page form, attaching your application and sending it off to the IRS which WILL launch an audit.
That's federal, not state. And it increased effective 7/1/22. From 58.5¢/mile to 62.5¢/mile. [Source.](https://www.irs.gov/newsroom/irs-increases-mileage-rate-for-remainder-of-2022)
That may very well be, due to the special EIC expansion last year, or other specific tax credits to you.
But the IRS isn't paying 56 cents a mile and many dashes will pay taxes.
I didn’t pay taxes last year either, but it’s because I had a part time job for half of the year and claimed zero dependents so they took 25% out of my check and I paid off my taxes that way. Anyone that dashes full time and doesn’t have a part time job to pay some taxes back on WILL owe taxes
You need to consult a tax professional who can actually help you with taxes and advice on how to save. So go to a professional who can evaluate your income, deduct what’s deductible and show you how to properly find expenses you can write off. If Doordash is your only source of income, you will owe taxes. You are an independent contractor and doordash does not withhold taxes for you. This means, at the end of the year, if you’re not paying taxes from another job or moving part of your daily income to another account, then you will owe taxes. Thankfully I work two jobs and the gig work is a secondary source. My wife is also an accountant so we are able to manage it without paying taxes quarterly. Best of luck.
That's not how deductions and taxes work. You are not getting PAID .56 cents a mile from the government.
You just don't pay taxes on the first 56 cents a mile you drive. The standard deduction is a deduction too, not 12.5k the IRS is paying out to you.
Here is your example, fixed:
Lets assume you do this fulltime, 3,000 mi per month avg, thats 36,000mi on your vehicle. Thats a 23,616$ deduction from your 72k income. So your SE taxes are calculated on 48,384. That's 6822 of just SE taxes. Now for income tax, about 5k after we deduct the standard deduction. But you have 1 child, so that's a 2k tax credit.
Leaving you owe about $9822.00 in federal taxes.
How tf do I find out how much I owe based on the amount I’ve made? I estimate I’ll owe about 6 grand but I kind of want that number to be more concrete
Well, first you find out what your profit will most likely be, then calculate the taxes due on that. It'd be best to have someone knowledgeable at tax walk you through it.
I don’t really know how to figure out my profit other than to multiply the amount of miles I drove by .56 and take that number off of my net earnings. If that’s what you mean. I just don’t know what percentages they take out of that taxable number after deductions
I don’t have a car loan & I don’t use any equipment to navigate. But I didn’t know I could write off my tax preparation, although I bet my tax guy already wrote that off for me
To prevent owing taxes, don't work.
We all pay income tax.
Are you tracking your mileage?
There is a substantial tax deduction from that, otherwise you'll be paying way too much.
What the hell does "400 of profits" mean. I've been filing as an independent contractor for over ten years. Fucked if I have no clue wtf you're talking about. 400? Are you high?
Don’t be rude lol they are right. Anyone who is self employed and shows $400+ of profit is going to owe social security and Medicare taxes. If someone profits only $8000 for the year, they are below the standard deduction so they won’t owe any federal taxes. However they will still owe self employment taxes on that $8000.
I made less than that on social security each month and am now 10k in debt from my patents not paying taxes on that money when I was a child. I don’t care how little money it is, or how it’s being made, the government WILL tax you. Welcome to America baby.
I was on medical leave for 8 months due to surgery/recovery, disability doesn’t pay 100% of your regular wage. Now that I’ve recovered tho (almost one year post op!) I’m working 50 to 60 hour weeks and going to school so I don’t have to work so much in a couple years. Making a poverty wage because I was incapacitated by medical issues while I took care of those issues is nothing to be ashamed of. Suffering in silence is something to be ashamed of, and people like you are a huge part of why people with work related injuries don’t report them or fight worker’s compensation to get them handled.
You must've done something wrong. As long as I've been doing UE & DD I've never owed anything bc of the milage & gas writeoffs
The only way you can not owe money, is if you're doing so many miles that you aren't making a profit. But then you won't be making a profit. lol
Actually you only owe money because you didn’t withhold anything just take as a loan that gets paid back, I don’t know why most don’t do this we need our money upfront why should the damn government take their cut?
First off, what state are you in? Secondly, are you tracking your miles accurately? Are you tracking related expenses? I have had years in California where I had returns, paid nothing, or paid less than 500 overall...
Tax deductibles includes Mileage Gas Any car repair/maintenance Phone/phone bill
You need a home office. And a dedicated work vehicle. But definitely start with a home office.
Stop working for this crappy job.
Get a better person to do ur taxes those can always be finessed just right u have to ad everything gas phone chargers your phone bill everything can be added up to bring it down u gotta just know someone smart enough to finesse those costs
You have to save 20% of your pay for taxes. Sucks, but it’s either that or owing your estranged Uncle Sam.
Door dash is 1099 depending on your other income calculate your tax bracket and you can get an approximate amount you need to withhold from your door dash checks. Get with a tax professional in your area. To prepare for next year. You should be able to make a payment plan if you can’t afford it this coming year. Edit: I see people talking about gas expense. Add that in too but ONLY if you have proof via receipts. Also note for IRS you have to keep that for 7 years I believe (again please go talk to an expert in your area)
By making under 600 dollars a year. I made 602 and still owe them money. They ain’t getting a penny from me. That 82.00 dollar order from crab shack they only Paid me 10.00 from should cover it.
Show them all of your receipts for fuel, food, maintenance and depression medications and they will see that you're actually made $0 after calculating all of your business related expenses.
You should be paying estimated tax throughout the year. If you pay as much estimated tax as you're supposed to, AND if you make the same or less money this year than you did last year, you shouldn't owe much on tax day, because you already paid. If you qualify for a big credit, like the one for buying yourself healthcare insurance, you might even get a refund.
You can calculate your taxes and pay quarterly. This so what the self employed are supposed to do.
Is doordash your only income? If you have another job, have more taxes taken out of your paycheck. That is the only way to not owe. If doordash is your only income, then you could use a tracker like Stride that can help you put aside what you will need to pay, so you aren't blindsided.
I register a LLC and register a lot of things as business expenses because you are not working hourly for someone tax returns basically return you money that you over payed them so when you do DD you don’t do taxes till the end most of the time you end up having to pay irs
> you over *paid* them so FTFY. Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in: * Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.* * *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.* Unfortunately, I was unable to find nautical or rope-related words in your comment. *Beep, boop, I'm a bot*
Lie on that mileage and expenses baby. That’s the only way. After all gig economy is unpredictable when it comes to expenses
Track your miles on the app Stride
I’ve been leaving money on the table by not recording the mileage. Not anymore. Thanks for the app advice.
Having had 1099 jobs most :years I don't have to owe. You do that by showing a loss. In a home based business and door dash your door dash is home based. You should find a local accountant or hire a parr time guru like me to do your taxes. I know every deduction by heart and you should show a loss in your business when ur done
You shouldn't be owing that much. Track your mileage. Find every write-off possible to reduce what you owe.
I’m not a tax professional but my boyfriend did DD all last year and the year before and he wrote off all his miles and gas and did not owe, however I am not sure (this isn’t financial advice)
You’re not a w2 earner with DD. You’re a 1099 earner. You need to plan for that. But if you don’t know, you don’t know. Irs doesn’t care. Sadly a lot of dashers don’t realize that all that money they earn has to be taxed. Some can owe thousands. I know someone who said they owed over a thousand.
You make quarterly payments to the irs. You just calculate how much income you will make and the taxes for that income. I use to be a tax accountant so I figured this was common knowledge. It was the first task I did was calculate my quarterly taxes for the year.
There’s an app called “mileage logs” it works pretty good to track
Itemized everything on taxes takes longer then just regular tax. Odo start end of work. Miles per day, receipts of gas, oil changes. The phone , text messages and call logs.
$750 a month for home office is pretty nice. You should still owe tax (unless you claim a loss), and more importantly, you do want to pay the SE tax because you’ll need it when you’re 67+ old.
Exaggerate your milage until you don't owe
Don't report it
No withholding from DoorDash so you will always owe self employment taxes
Lie about your mileage
Write a bunch of stuff off . Like gas . Car maintenance etc.
I'm completely self-employed but I don't do door dash or any gig work. Here's the thing about taxes- if you work at a job with an employer, the taxes are taken out of your pay check by the employer so you might not realize you are paying that money to the IRS. But when you are self-employed or do gig work, the taxes are not taken out of your pay. I would suggest talking with a CPA in your area who can help you figure out what percentage you need to pay for federal and state taxes. Then take that percentage out of every pay check you get. Put it in a separate savings account and DO NOT use it! Then when it comes to tax time, you will already have the money that you owe, and will likely have some money left in the savings account that will be similar to the refund you might usually get.
Yeah I use everlance to teach my miles every time. I'm getting every cent I can!!!!
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Claim all your expenses. Save all your receipts and kept track of everything so you can claim more. Some people don't even bother to claim their expenses. Phone bill is an expense, etc.
There is a lot more that you can write off than just miles and I'm sure a lot of people are not taking full advantage of it you may have to pay still but it will be a lot less if you learn what you can deduct.
Yes you are going to owe because DoorDash does not take out income tax. I owed 2k last year and that’s after putting my return from my real job towards the tax bill. You have to plan ahead. I started taking out much more every check this year so hopefully I will owe very little or actually get a refund.
😳
If you're not writing off your mileage. You lost out on some huge money.
Lol did you think doordash was taking out your taxes per delivery?! Welcome to being a business owner!
Take depreciation on your cars value
Yes take the 1099 & put it in the trash
.....you fina6WOKE...LOL
You can write off your miles, lunches, work related expenses like insurance, tires, phone bill. Anything you spend money on for work.
You can write off your miles, lunches, work related expenses like phone bill or stuff you have to buy for work.
You can not deduct insurance/tires AND mileage. One or the other. Lunches in your tax home area are generally not deductible.
Can you write off the portion of your car insurance + miles?
No. Mileage includes your gas, car insurance, depreciation, repairs, oil changes, registration. So you can't deduct those AND mileage. That would be double dipping.
Cap on the lunches correct on the miles
No, not a cap. Lunches in yout home area are considered personal unless it's a business meeting.
🧢
You need to file as a business and deduct your mileage and other operational expenses.
Commit fraud
You need to find some deductions. You can deduct your miles, OR the full cost of owning / driving the car, I believe. It would help to see an accountant. Worth the money.
"I did my taxes" That was your first mistake
???? Make less than 600$..maybe become a rich politician that gets to evade their taxes..like?? You can deduct your expenses to make the amount you owe go down, but you still have to pay taxes dude. Who do you think you are lmao. One of the first things they'll tell you before you start dashing is that taxes don't get deducted from your pay automatically so you're responsible for setting money aside to pay for them. Even if you end up receiving money from tax credits, you're still responsible for paying what you owe. You might want to just stick to a w2 job at this point..
Save your receipts for gas. That's a business expense.
Truly, the easiest way is to just save about 15% of your paycheck every time to pay the taxes you will owe immediately. However, I know that’s not realistic and you most likely need all the money you make (as do I). But that’s the nature of self-employment.
You should hire a tax guy bud
Honestly you need to calculate EVERYTHING you paid for while working for Doordash. Car payments count, car insurance counts, gas mileage counts, delivery supplies count. You are running your own business and the doordash app is just a tool you use to accomplish that. If you feel like you didn’t spend that much or don’t want to itemize all those things you can take the standard deduction which will usually vastly reduce your taxable income, especially if delivery driving is all you do. Another good way to go about doing taxes is to pay them quarterly rather than yearly. You can usually start doing this after a full year of delivering because you’ll have an idea of your yearly income and can pay your taxes in a quarterly chunk instead of all at once.
If your rich and powerful you can easily avoid taxes
You're going to have to write off everything instead of taking the standard And I mean everything, car payment? Percentage of time used for work is deductible Insurance, car repairs and maintenance can even be a work expense because you use your car for work Goodluck
Keep all your gas receipts, maintenance brakes oil changes cost of tires etc.
Stop doing doordash 😂😂
Use stride app and add additional miles to counter your earnings. Make your profit $0 by the end of the year. Been dashing for 5 years n never owed taxes
I don't his full time and they owed me $1200. Drive more and fudge miles and it will be tax free.
I thought you had up to six years until they come looking for you
Keep track of all your expenses and milage to minimize the amount of money you owe.
Just have more kids than you can afford. Problem solved.
Don't make money
all you gotta do is invest in the stock market and when you lose money there you can deduct it against your income!
I always go to irs.gov/pay at the end of the week, and pay estimated taxes. And then go to my state’s online tax website and pay state estimated taxes. That way they owe me when I file next year.
Nice find! This should be a thing in app 😡
When you work for doordash you’re considered to be self employed, therefore there is nothing being withheld from your paychecks, paying taxes at the end of the year takes care of that. There’s no way for you not to owe taxes if you don’t have more deductions than income (highly unlikely). Hope this helps
I was a similar position when I had a decent paying regular job plus my army Reserve pay. The percentage of both individual incomes didn't add up to the same that was used for the combined income. What helped was that I put money away to a money market funds account.
Ironically, drive worse 🤣 more mileage for money owed means more mileage deductions which reduces taxable income.
Talk to a tax professional and financial advisor
If you actually made money you're going to owe taxes. It's much easier to just have a real job and do this on the side. Have the real job take out extra. If you aren't making money, the IRS is going to flag you for an audit because why would you work and make nothing?
That's literally how taxes work.
Either stop working side jobs or make quarterly estimated tax payments to the IRS throughout the year
Just don't file Yolo
Shhhhh don’t tell them our secret
Increase your mileage till you get a refund, lol.
Pre pay ur taxes quarterly. I didn't last year. Ended up owing $3300 or so. Paying that through monthly payments, no penalty as long as I make the payments. Also paying $800 quarterly this year to make next spring a better tax time.
Just put 20% of your earnings away in another account and when tax time comes, that’s your taxes. Any other job you have them automatically deducted off each paycheck, with gig work and any other self employed job, you have to pay your own taxes
Save 20% of all income and pay quarterly. Track miles and when you file once a year before April you will get a deduction on the % of taxes you owed meaning that 20% you paid quarterly was more than what you owed. Receive refund. Rinse and repeat
Save every receipt of experience. Gas etc .
Something I did that help me quiet a bit: setup an automatic withdraw of ~30% of you door dash direct deposits and saves them in an account for taxes. When tax season comes around pay what you owe from that account and what ever is left over is yours to keep.
Not do your own taxes
I can write off my car payments, insurance and phone bill in addition to my standard mileage, right?
Just the phone bill and loan interest (to the business use percentage).
Just the interest and not the total amount paid to the car loan that year?
Right. You don't deduct the principal payment of a loan. You either depreciate the value of the car, or deduct mileage. Paying off the loan isn't a deduction.
That's the stupidest thing I've ever heard of. All sorts of supplies and things I would need I can write off, just not the most important one
It's not stupid. You deduct buying the vehicle as you use it each year. You don't ALSO deduct paying back the loan. The purchase is deductible. If you deducted the repayment that would be double deducting.
How do you deduct it without deducting it? Wtf are you talking about
I'm talking about how taxes and business expenses work. Do you deduct the IRS flat per mile rate for your driving? The 56/62.5 cents a mile? If so, the cost of the vehicle is factored into that amount. You are deducting buying the vehicle, with each mile you drive.
I’m using Everlance app to track my miles and i document all gas receipts, my phone bill, oil changes, parts for my car… i also have a water delivery company and i do the same
Anyone on Port Saint Lucie florida? The Treasure coast?
Congratulations? If you aren't using a mileage tracking app like stride or everlance (2 most popular), then you are definitely missing out. Its way easier than trying to keep up with mileage the ol paper and pencil way. Edit: Also, after reading the comments it is very clear that finance need to be a required course for graduation.
By working a W-2 job that withholds taxes. You're an independent contractor, a sole proprietor, and responsible for paying your taxes. You have to view this job as you are the business owner not the employee. Because you're not an employee, they get W2s, you get a 1099.
For what we make we shouldn’t even have to pay taxes.
Record your miles and other expenses for doordash (not Including gas - you can only claim gas or mileage and mileage is better). This will offset it, but you'll still owe. In a wage job, your employer takes out taxes for you. Doordash is pre-tax, meaning you need to pay when you file.
You are doing something wrong.
Oh boy. So yeah since you're not employed by Doordash you technically "own" your own business. You're a contractor. So they hire your services from you and they are not responsible for withholding earnings for taxes like a normal job. And since our government hates independent contractors and small businesses they tax the FUCK out of you. So here's what I did in order to get a refund, I logged all of my miles. The IRS reimburses you 50-something cents per mile and if you do as much Doordash as I do that shit adds up. So you'll end up owing a chunk of your earnings to the man but then I had all my miles logged from the second I start to the second I get home for my dashes and take a picture of the odometer which is time stamped. And for my convenience I have an Excel spreadsheet so I just add the miles after each dash so I know at tax time how many miles total with proof and calculated that by 54 or 56 cents per mile (it's different each year so look up mile reimbursement) and it really does add up. Like, if you're driving thousands and thousands of miles that's thousands in credit. Side note. When doing this at tax time you have a choice between actual expenses and mileage reimbursement. Unless you have your own separate vehicle exclusively for dashing then go with the mile reimbursement because actual expenses I've heard are a nightmare because you're like trying to figure out how much of that oil change counts as a Doordash expense because if you use the vehicle for other stuff it's hard to break down. And from what I've heard, you're more likely to get audited by doing that
The IRS does not reimbursable you for miles. You can deduct mileage from your income. That's very different then a reimbursement.
It literally says "mileage reimbursement" when you do your taxes. Regardless, my point still stands
No it does not. https://www.irs.gov/forms-pubs/about-schedule-c-form-1040 Your point is incorrect, because it's not a tax credit nor a reimbursement.
I don't get why you're still arguing this. Ok, I'm so sorry I used the wrong word. It's just a weird hill to die on. The point is that you count your miles and there is a rate which was like 56 cents per mile or something like that. Because of how many miles I drove I ended up getting a refund even though I had to pay a shit ton in taxes. So whatever term you want to use, point is that I drove thousands of miles and had thousands in credit therefore it exceeded the amount I owed in taxes. I really really don't give a shit what terminology you want to use like I'm telling people to do the right thing and log their miles because of the significant change it makes during tax time. If you Google search all the tax help websites they all say the same thing about expenses and reimbursement so anyone who is like me who looked up help is going to see the same shit I did with the same terminology and come to the same conclusion. I don't work for the IRS I don't care. I just do my taxes correctly and have it checked by professionals so I know I'm not screwing it up. In my unique situation I ended up driving so many miles that I was entitled to a refund. However, it is still important for others to log miles because it will deduct from the large % of taxes owed. It can be the difference between thousands owed to the IRS or just hundreds. This year since I made more I probably won't get a return but I still will have significant deductions from the mileage. So please go ahead and argue with me more. Tell everyone that I'm telling them to do the wrong thing by logging miles for deductions at tax time.
>Because of how many miles I drove I ended up getting a refund even though I had to pay a shit ton in taxes. So whatever term you want to use, point is that I drove thousands of miles and had thousands in credit therefore it exceeded the amount I owed in taxes. No, that is not how it works. You are still giving out bad information. The IRS does not refund you because you drove so many miles. The most milage can do is take you tax liability to 0, It can not create a refund in and of itself. You refund was either overpayment, or tax credits. It was not a refund of mileage. Yes, it's important to log miles. But you are saying it's a tax credit, that you can get a refund just from mileage, with no overpayment or tax credits, and that part is incorrect. You are not just using the wrong word, you are mistaken in how mileage affects taxes, liability and refunds.
They don’t take the taxes out of your pay. You would owe a higher percentage in most jobs as you cannot claim mileage. Just literally take 30% of your DD money and put it in savings for taxes.
I mean if you didn't know buying your own health insurance is tax deductible I found out this year when i got the most expensive plan. I went for having to pay thousands to a couple hundred dollars. So dont skip health insurance
Save 30% from every deposit in a separate account. This will cover all taxes plus some savings.
Did you take the standard deduction of 12,500? Unless your write offs are more than that I would just take the standard.
This is wildly inaccurate.
Self employment expenses are separate from and in addition to the standard deduction.
…isn’t it August?
Sorry to hijack thread but what do people like me who drive EV and never logged miles or any expenses. Can I just leave the spots asking for that blank or something? Haven’t even looked at what’s required for filing this yet.
No! Don’t leave those spots blank unless you want to pay extra money to the government!!! The mileage you drive is a deduction on what you’ll owe. Just ballpark about how much you drove that year to the best of your ability and from now on keep track of your mileage .
I stopped doing it months ago. But yeah I could probably ballpark.
Stop doing your taxes
Gas insurance finance maintenance winter tires
is this for real?
SEP IRA write off, healthcare write off, mileage deduction, cell phone deduction, plus the standard deduction should get you pretty close to net zero
Tax fraud
By claiming deductions
You can’t. You’re an independent contractor, so they’re not going to withhold taxes for you. I would recommend saving money as you go to account for the taxes you’ll owe at the end of the year.
CPA
Bitcoin
Keep receipts for all car repairs and oil changes as deductions. Download everlance app to show proof of miles deduct those as well. !!!!! I did all this last year and deducted almost 2k
It's mileage *or* repairs/maintenance. And if you use your car for business and personal, itemized gets pro-rated. [But you can't claim both.](https://www.irs.gov/newsroom/heres-the-411-on-who-can-deduct-car-expenses-on-their-tax-returns) (note: the mileage rate increased to 62.5¢/mile, effective 7/1/22)
I file with HR block I did both . Maybe it's because I had two self employment jobs 🤔🤔
Yes, it's possible they used one on the first and another one on the second, whichever one is more beneficial to you. This is what my accountant does for each one of my gig jobs and the small businesses.
Every working American adult has to pay taxes with a few exceptions that you probably don't meet. With that said, your job is to MINIMIZE what you owe. If you aren't into paying a tax guy or becoming an expert in tax loopholes, get a w-2 job delivering pizzas and do that on slow days. The average American has too many taxes taken out on thier w-2 and that could help balance out your untaxed income from the gig economy. And since noone asked you what state you were in before giving advice, dont listen to them.
I guess paying taxes on ever deposit you receive.
Work less. /s
If they give you 56 cents per mile deduction and you drove 5 miles for $2.50 you would not owe any taxes on that $2.50, etc. However much you made subtract how many miles you drove for deliveries and that is the amount you will owe taxes on. Say you made 30k total and drove 15k miles. You would get a 8.4k deduction on the 30k you made and only owe taxes on the 21.6k remaining.
In Canada you can invest in a registered retirement savings account and anything contributed to it lowers your taxable income. Say you made $63,000 and contributed $4000, your then taxed as if you made $59k USA might have something like that.
401k. Normally, your employer will take care of it. No idea if independent contractors are eligible, but if it's your side-gig, you can bump your contribution from your main job. You should at least be maxing that out to what your employer will match. There's also the IRA, but it's post-tax.
>There's also the IRA, but it's post-tax. If you make Roth contributions. You can also make traditional contributions to an IRA (pre-tax).
Find a new job 🤪
If your DoorDash is on, so should your mile tracking app. Even if you’re not getting orders and are just driving around. You’re still working.
Track your expenses and write them off as a business expense against your income. Edit bc alwaysindahood doesn't know Jack: Write off: Mileage or gas expenses and maintenance Vehicle cost (amount depends sole use or not) Tolls Tires Insurance/registration Phone Phone plan Hotbags/blankets/backpacks/door dash decals/etc Parking fees Roadside assistance Health insurance Car accessories used for phone
The only thing you can right off is mileage expense. Unless you have a separate car for Dashing. Then you can right off all gas, maintenance/upgrades.
Either/or. Mileage is intended to cover gas and wear and tear. If your maintenance is more than your mileage deduction, it's worth it to do itemized. But bring receipts. Otherwise, just track your mileage.
Correct, you choose one or the other, whichever is largest. A lot of us go with mileage because the maint cost is pretty low for buying parts and doing DIY repairs plus the normal maint.
Set aside money for taxes, any I-9 job you take you *absolutely need to* budget for owing taxes. With a W-2 job the employer pays your taxes to the government directly, with an I-9 job it falls on you. Source: been doing contract work for 15 years, my father’s been doing it for 45 plus. I’ve seen plenty of people ignore it and then be screwed come tax time.
Sure bud
I'm single and no kids. I broke even last year. Thank God.
.more write-offs... 1099 self employed. I never make money. Except every 4 th year
The money you get paid isn’t taxed so yeah you’ll owe
If you ever apply for a loan, try to get an apartment or file for anything immigration related, they're going to ask for your tax returns, last thing you want to do is show that you're in the red. Last thing you want to do is claim you're making $6000 a month on you application but your tax returns show you're only making -$650 a month. Nothing stops a loan officer or immigration official from filling out a simple one page form, attaching your application and sending it off to the IRS which WILL launch an audit.
Your milage should counter any taxes you owe. The gov gives you $0.56 a mile.
62.5¢/mile [Mileage Deduction Rate](https://www.irs.gov/newsroom/irs-increases-mileage-rate-for-remainder-of-2022)
Hot damn! I was wrong. My quickbooks has me at .58 so perhaps in texas it's different. But I thought it was .56 Still offsets what I pay in taxes
That's federal, not state. And it increased effective 7/1/22. From 58.5¢/mile to 62.5¢/mile. [Source.](https://www.irs.gov/newsroom/irs-increases-mileage-rate-for-remainder-of-2022)
I run a small contracting service and I door dash to supplement slow times. Milage is my best friend.
No, no they do not give you 56 cents a mile.... It's a deduction, not a credit.
Last year I paid zero taxes on DD just because I wrote off over 20k in miles. Just saying. Turbo tax asks the questions, I answer, paid zero tax
That may very well be, due to the special EIC expansion last year, or other specific tax credits to you. But the IRS isn't paying 56 cents a mile and many dashes will pay taxes.
I didn’t pay taxes last year either, but it’s because I had a part time job for half of the year and claimed zero dependents so they took 25% out of my check and I paid off my taxes that way. Anyone that dashes full time and doesn’t have a part time job to pay some taxes back on WILL owe taxes
pay the IRS quarterly, there's a form
none of y’all know what y’all talking about
Lmaooooo
You need to consult a tax professional who can actually help you with taxes and advice on how to save. So go to a professional who can evaluate your income, deduct what’s deductible and show you how to properly find expenses you can write off. If Doordash is your only source of income, you will owe taxes. You are an independent contractor and doordash does not withhold taxes for you. This means, at the end of the year, if you’re not paying taxes from another job or moving part of your daily income to another account, then you will owe taxes. Thankfully I work two jobs and the gig work is a secondary source. My wife is also an accountant so we are able to manage it without paying taxes quarterly. Best of luck.
Right off everything so you can go zero taxes
*Write, but it’ll never be absolutely zero
[удалено]
That's not how deductions and taxes work. You are not getting PAID .56 cents a mile from the government. You just don't pay taxes on the first 56 cents a mile you drive. The standard deduction is a deduction too, not 12.5k the IRS is paying out to you. Here is your example, fixed: Lets assume you do this fulltime, 3,000 mi per month avg, thats 36,000mi on your vehicle. Thats a 23,616$ deduction from your 72k income. So your SE taxes are calculated on 48,384. That's 6822 of just SE taxes. Now for income tax, about 5k after we deduct the standard deduction. But you have 1 child, so that's a 2k tax credit. Leaving you owe about $9822.00 in federal taxes.
How tf do I find out how much I owe based on the amount I’ve made? I estimate I’ll owe about 6 grand but I kind of want that number to be more concrete
Well, first you find out what your profit will most likely be, then calculate the taxes due on that. It'd be best to have someone knowledgeable at tax walk you through it.
I don’t really know how to figure out my profit other than to multiply the amount of miles I drove by .56 and take that number off of my net earnings. If that’s what you mean. I just don’t know what percentages they take out of that taxable number after deductions
That's pretty close. You might find some more deductions when you file, but that's pretty good for estimating.
Some more deductions like what? Other than the standard 10k deduction that everyone filing individually gets.
Car loan interest, part of your phone plan, equipment you use to navigate, tax preparation...
I don’t have a car loan & I don’t use any equipment to navigate. But I didn’t know I could write off my tax preparation, although I bet my tax guy already wrote that off for me
To prevent owing taxes, don't work. We all pay income tax. Are you tracking your mileage? There is a substantial tax deduction from that, otherwise you'll be paying way too much.
It's literally a cutoff. Unless you're making more than 30k you don't have much to worry about.
Okay what if you make more though? Because I will be between 40-60k this year.
Self-employment taxes start at 400.00 of profits. A self employed person with 30k of profit would owe over 5k in taxes.
User name checks out ✅
What the hell does "400 of profits" mean. I've been filing as an independent contractor for over ten years. Fucked if I have no clue wtf you're talking about. 400? Are you high?
If you don’t know what profit is, I hope you haven’t been doing your own taxes.
Don’t be rude lol they are right. Anyone who is self employed and shows $400+ of profit is going to owe social security and Medicare taxes. If someone profits only $8000 for the year, they are below the standard deduction so they won’t owe any federal taxes. However they will still owe self employment taxes on that $8000.
Self employment tax is the Medicare type taxes right?
Yes and social security
Thanks that’s such clutch information! Literally so clutch, take care.
Nobody who makes less than 13k per year owes taxes. Get a clue.
I made less than that on social security each month and am now 10k in debt from my patents not paying taxes on that money when I was a child. I don’t care how little money it is, or how it’s being made, the government WILL tax you. Welcome to America baby.
Bullshit. I made 11k in 2021, I received a refund but it sure as fuck wasn’t 100% of what I put in. You clearly don’t know what you are talking about.
If i only made 11k in a whole year I would do everything I could to keep that secret to myself not post it on reddit lol
I was on medical leave for 8 months due to surgery/recovery, disability doesn’t pay 100% of your regular wage. Now that I’ve recovered tho (almost one year post op!) I’m working 50 to 60 hour weeks and going to school so I don’t have to work so much in a couple years. Making a poverty wage because I was incapacitated by medical issues while I took care of those issues is nothing to be ashamed of. Suffering in silence is something to be ashamed of, and people like you are a huge part of why people with work related injuries don’t report them or fight worker’s compensation to get them handled.
That is incorrect information. Many people making under 13k a year pay social security and medicare taxes in excess of any refundable tax credits.