Didn't file my Doordash and Uber back taxes for 2022 - now I'm panicking!

I made around $41,500 doing Doordash and Uber back in 2022, but I never got around to filing taxes for that year. Big mistake, I know. I just went on a tax filing website to see how much I'd owe for those back taxes and it showed I'd have to pay $7,850! Then I checked a back tax calculator that includes penalties and interest, and it's saying I'll owe almost $10,400! That seems insanely high to me. Did I mess something up when I was entering the information? Or is this actually what I should expect to pay? I seriously don't have that kind of money sitting around right now. What's the best way to handle this situation? Can I negotiate with the IRS or set up some kind of payment plan? I'm freaking out a bit because I know I need to deal with this but that amount seems impossible.

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18 comments

Paolo Bianchi

•8M

Hey there! First, take a deep breath - this is fixable. The amount sounds about right for self-employment taxes on $41,500 from 2022. When you work for gig companies like Doordash and Uber, you're classified as an independent contractor, which means you're responsible for both the employer and employee portions of Social Security and Medicare taxes (about 15.3% total), plus regular income tax. The good news is the IRS offers payment plans for situations exactly like yours. You can apply for a long-term payment arrangement that spreads out your payments over up to 72 months. The interest and penalties will continue to accrue but at least you'll be in compliance. File Form 9465 with your tax return to request an installment agreement. Also, make sure you're accounting for all your deductible business expenses on Schedule C - mileage (58.5¢ per mile for 2022), portion of phone bill, insulated bags, etc. These deductions can significantly reduce your taxable income.

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Paolo Bianchi

•8M

Yes, the IRS does offer penalty relief in certain situations. First-time penalty abatement (FTA) is exactly what you're thinking of, and it could apply here since this appears to be your first compliance issue. To request it, you can call the IRS directly after you file and pay or set up a payment plan. Explain that you've had a clean compliance history before this incident. The FTA waiver typically applies to failure-to-file and failure-to-pay penalties, but not interest charges. Even with partial penalty removal, you'll still be responsible for the actual tax amount plus some interest, but it could potentially save you thousands. Just make sure you're current with all other required returns and payments before requesting FTA.

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Olivia Clark

•8M

After struggling with almost the exact same situation last year (didn't file my 2021 gig work), I found this service called taxr.ai (https://taxr.ai) that helped me figure out my actual tax liability. I was estimating way too high because I wasn't tracking my expenses properly. They analyzed my bank statements and driving patterns to identify legitimate business deductions I had no idea I could claim. They have this special tool for gig workers that pulls your actual mileage data from location history (with your permission) and builds a proper Schedule C with all applicable deductions. Might be worth checking out since it sounds like you're in the same boat I was in.

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Olivia Clark

•8M

I saved around $4,200 compared to what I initially calculated myself. The biggest difference was that I hadn't been tracking mileage properly, and they were able to reconstruct my delivery routes using data I authorized them to access, which made a huge difference on my Schedule C deductions. They do provide guidance on setting up payment plans with the IRS, including helping you complete Form 9465. They actually offered support for prior years as well - I originally went to them just for 2021 but ended up having them review my 2020 return too since I realized I hadn't maximized deductions that year either. Their system can help reconstruct prior year expenses and mileage as long as you still have access to bank statements and any location history.

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Natasha Petrov

•8M

Just wanted to follow up and say I tried taxr.ai after seeing the recommendation here. Holy crap what a difference! My initial calculation for my 2022 Doordash taxes was around $8,300 (including penalties), but after they helped me properly document all my mileage and other business expenses, my actual owed amount dropped to $4,570. The mileage deduction alone was huge - I had no idea I drove almost 15,000 business miles that year! They also helped me deduct a portion of my phone bill, insurance, and even some maintenance costs. Now I'm on a manageable payment plan with the IRS. Such a relief compared to the panic I was feeling before.

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•8M

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•8M

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•8M

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Hiroshi Nakamura

•8M

You need to specifically request a payment plan - it's not automatic. You can do this when you file by submitting Form 9465 (Installment Agreement Request) with your tax return. Alternatively, you can file first and then apply online for a payment plan through the IRS website if you owe less than $50,000. For amounts under $50,000, the online application is pretty straightforward and you can choose your monthly payment amount (as long as it would pay off the balance within 72 months). There's a setup fee that varies based on how you apply and pay - it's cheapest if you apply online and set up direct debit ($31 setup fee vs. $149 for applying by mail/phone with other payment methods).

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