Can I donate my entire 1099 Uber Eats/food delivery income to charity to avoid taxes?

Wait, so does that mean the self-employment tax is unavoidable no matter what? Also, if the standard deduction is like $13k or something, wouldn't I need to have a LOT more in itemized deductions for the charitable donation to even matter?

That's correct - self-employment tax (which covers Social Security and Medicare) is unavoidable on your 1099 earnings regardless of charitable donations. It's currently 15.3% of your net self-employment income. You've hit on a key point about the standard deduction. For 2024, the standard deduction is $13,900 for single filers and $27,800 for married filing jointly. Unless your total itemized deductions (including charitable contributions, mortgage interest, state/local taxes up to $10,000, etc.) exceed your standard deduction amount, itemizing won't benefit you tax-wise. Many taxpayers find that the standard deduction is higher than their potential itemized deductions, which means charitable donations might not provide additional tax benefits in that situation.

How long does the analysis take? I'm doing Uber Eats and Instacart and have terrible record keeping. Would they be able to help even if I haven't tracked much?

I'm skeptical - these services always seem to tell you the same stuff any tax software would. What specifically did they tell you that was different from what the person above already explained about self-employment tax being unavoidable?

The analysis took about 30 minutes from upload to getting detailed recommendations. They handle the heavy lifting - I just uploaded my 1099s and answered a few questions. Yes, they absolutely help with poor record keeping! They provided a simple tracking template I could fill out retroactively based on my memory and bank/credit card statements. They also showed how to establish reasonable estimates for expenses where I had no documentation. They didn't say anything contradictory about self-employment taxes being required - that's correct information. Where they added value was identifying specific expense categories relevant to food delivery that I hadn't considered. For example, they calculated a portion of my phone bill, suggested a home office deduction since I manage all my gigs from home, and provided a specific method for calculating bike depreciation. They also showed me exactly which records I needed to keep in case of audit, which gave me peace of mind.

Wait, you actually got through to a real IRS person? How much did that service cost? The IRS never answers when I call.

This sounds like BS honestly. I've tried everything to reach the IRS and it's impossible. No way some service magically gets you through the phone tree.

Yes, I spoke with an actual IRS representative who specialized in self-employment tax issues. The service just helps you navigate the IRS phone system and holds your place in line so you don't have to stay on the phone yourself - they call you back when an agent is available. I didn't focus on the cost because the tax savings and peace of mind were worth it for me. They only charge if they successfully connect you with an IRS agent, and you can always check their current rates on their website. I understand your skepticism! I felt the same way initially. The service works by using technology to navigate the IRS phone system and hold times. They don't have special "VIP access" - they just handle the frustrating part of waiting on hold so you don't have to. What impressed me was getting matched with an agent who actually specialized in gig worker taxation rather than a general representative.

Doesn't setting up an LLC cost money though? Is it worth it for just $1000 of income? I'm curious because I do some DoorDash on weekends.

For only $1,050 in annual income, an LLC probably isn't worth the setup costs and annual fees. LLC formation fees vary by state - some are as low as $50 while others are $500+, plus many states have annual fees or reports. The tax benefits of an LLC only really make sense once you're earning more substantial income or have liability concerns. A single-member LLC is still taxed as a sole proprietor by default anyway, so you'd face the same self-employment tax situation unless you elect S-Corp taxation, which adds even more complexity and costs (separate payroll, etc.). Generally, S-Corp treatment doesn't make financial sense until you're earning at least $30,000-40,000 from your business after expenses.

Does the bike mileage deduction apply to e-bikes too? Or would those count under the car rate since they're motorized?

Great question! E-bikes are actually treated as regular bicycles for tax purposes, so you'd use the $0.22/mile rate for non-motorized vehicles. The IRS classifies e-bikes as bicycles since they still require pedaling and have speed/power limitations. The motorized vehicle rate ($0.67/mile) is specifically for cars, trucks, motorcycles, and similar vehicles that don't require human power to operate. Just make sure to keep good records of your delivery miles - a simple mileage log with date, starting/ending locations, and business purpose is all you need. Many delivery drivers use apps like MileIQ or Stride to track this automatically.