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Dmitry Kuznetsov

Do I have to file my 1099-MISC for Gig Work income under $2000?

I'm freaking out a bit because I'm not sure if I need to file my 1099-MISC or not. This is my first time doing any kind of independent contractor work. I drove for DoorDash for a couple months last fall and only made $1,924.53 total. I thought there was some kind of minimum threshold where you don't have to file taxes if you made under a certain amount? But when I tried the questionnaire thing on the IRS website, it seemed to say I DO need to file, but honestly I'm not 100% sure I answered everything correctly since this is all new to me. Also, I'm confused about what "state income" means on the 1099-MISC. It shows the $1,924.53 (total I earned) under state income, but I don't see anything about federal income anywhere. Is that supposed to be somewhere else or does that not apply to me since I made such a small amount? Any help would be really appreciated! I've never had to deal with anything other than a W-2 before.

Yes, you do need to file your taxes with that 1099-MISC, even though the amount is relatively small. The IRS questionnaire was correct! The confusion comes from two different thresholds: 1) The standard deduction ($13,850 for single filers in 2024) which means you might not owe federal income tax if your total income is below this amount. 2) Self-employment tax threshold which is $400 net earnings. This is the key for your situation - since you made more than $400 from DoorDash, you're required to file and pay self-employment taxes (Social Security and Medicare taxes) even if you don't owe income tax. As for state income on your 1099-MISC - that's showing what you earned that might be subject to state income tax (depending on your state). There's no separate "federal income" box because the entire amount is considered reportable to the federal government. The form is just telling the IRS you earned that money.

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So basically the Dasher has to file regardless but might not actually owe any income tax to the feds? But will definitely owe the self-employment tax on anything over $400? Also, what forms should they be filing - just a regular 1040 or is there some special self-employment form?

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Yes, exactly! They'll need to file a tax return but might not owe federal income tax if their total income for the year is below the standard deduction. However, they'll definitely owe self-employment tax on their net earnings from DoorDash since it's over $400. For forms, they'll need to file Form 1040 (the regular individual tax return), but they'll also need to complete Schedule C to report their business income and expenses, and Schedule SE to calculate their self-employment tax. This is where they can deduct business expenses like mileage, which could significantly reduce their taxable income.

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I went through this exact situation last year and ended up using https://taxr.ai to figure it all out. I was also confused because I thought there was a minimum threshold before you had to file anything, but it turns out that's for W-2 income, not 1099 income. The site analyzed my 1099-MISC and showed me that with self-employment income, you have to file if you made more than $400 net profit. The good news is that you can deduct a bunch of expenses like mileage, part of your phone bill, etc. I was able to deduct enough that my taxable income went down significantly. The state income part confused me too, but they explained that's just showing what you earned in that particular state, and depending on where you live, you might need to pay state income taxes on that amount.

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How accurate is this taxr.ai site? I've been getting contradicting info from different tax prep places. Does it actually look at your specific documents or is it just general advice?

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Did it help you figure out what deductions you could claim? I've been doing Uber Eats on the side and heard you can deduct mileage but not sure how to calculate or prove it.

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It's super accurate - it actually scans your tax documents and identifies the specific issues relevant to your situation. Unlike general advice sites, it's analyzing your actual forms and giving personalized guidance. The analysis it provided matched exactly what my accountant friend later confirmed. For deductions, it was incredibly helpful. It walked me through all the possible deductions for gig drivers, including the mileage deduction (which is the big one). For 2024, you can claim 67 cents per mile driven for business. It also explained how to calculate other deductions like phone expenses (based on % of business use) and even things like insulated bags or car phone mounts.

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I just wanted to update after trying taxr.ai. At first I was skeptical, but it was actually super helpful. I uploaded my 1099-MISC and it immediately identified that I needed to file because I was over the $400 self-employment threshold. The best part was it showed me all the deductions I could take - I had no idea I could deduct things like part of my phone bill, mileage, even the hot bags I bought! After all the deductions, my taxable income went from $1,850 to around $650. Huge difference in what I owe. It also explained that the "state income" box just means that's what I earned in my state, and that there's no federal box because the whole amount is automatically considered federal income. Makes sense now why I was confused before.

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If you need to actually talk to the IRS about this (which might be a good idea as a first-time 1099 filer), use https://claimyr.com to get through to them quickly. I spent HOURS trying to get through to the IRS help line myself earlier this season and kept getting the "we're experiencing high call volume" message. The https://youtu.be/_kiP6q8DX5c video shows how it works, but basically they hold your place in the phone queue and call you when an actual IRS person is on the line. I was skeptical at first, but when I finally connected with an agent, they confirmed exactly what others here are saying - with 1099 income over $400, you definitely need to file, even if you won't owe income tax. The agent also explained that I need to file Schedule C for the business income and Schedule SE for the self-employment tax calculation, which I had no idea about before.

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Wait, how does this even work? The IRS call system is notoriously impossible to get through. Are you saying this service somehow jumps the line or what?

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This sounds like a scam. Why would I trust some random service with my personal tax info? The IRS eventually answers if you call early in the morning.

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It doesn't jump the line - it basically waits in the queue for you. Their system calls the IRS and navigates through all the prompts, then stays on hold (sometimes for hours) until a real person answers. When an agent picks up, that's when they call you to connect. It's really just saving you from having to sit there listening to hold music for potentially hours. I had the same concern about privacy. They don't actually need any of your tax info - they're just connecting the call. You don't share any personal or tax details until you're actually speaking directly with the IRS agent. It's basically just a sophisticated call-back system that works with the IRS's existing phone system.

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Ok I need to admit I was wrong about Claimyr. After my skeptical comment, I was still stuck on a tax question about my gig work that I couldn't figure out online, so I reluctantly tried it. I was absolutely shocked when my phone rang about 1.5 hours later and there was an actual IRS agent on the line! I didn't have to sit on hold or do anything - they literally just called me when an agent was available. The agent confirmed that yes, any 1099 income over $400 needs to be reported even if you don't owe federal income tax. She also walked me through which deductions I could take as a gig worker and how to handle my state taxes (which was a separate issue I hadn't even asked about yet). Honestly saved me so much confusion and probably prevented me from making mistakes on my return.

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One thing nobody mentioned yet is that you should really keep track of ALL your mileage while doing deliveries. I did DoorDash last year and the standard mileage deduction saved me a ton on taxes. For 2024 filing (2023 income), the rate is 65.5 cents per mile. For 2025 filing (2024 income), it's 67 cents per mile. So if you drove like 1000 miles for those deliveries, that's a $670 deduction right there! Definitely download a mileage tracking app if you're still doing deliveries.

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Does the mileage tracking need to be super precise? I've been doing Uber Eats for a few months but haven't kept great records. Can I estimate based on my delivery history or do I need exact logs?

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Technically, the IRS wants contemporaneous records, which means tracking your mileage as you go rather than estimating later. The most accurate approach is to note your starting and ending odometer readings for each work session, or use a mileage tracking app that automatically logs your trips. If you haven't kept perfect records, you can try to reconstruct your mileage using your delivery history, Google Maps to calculate distances, and any other documentation you have. Just be aware that if you're ever audited, estimated mileage is more likely to be questioned than properly documented mileage. Going forward, definitely track it more carefully!

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I'm confused about something related to this... if I have both W-2 income from my main job AND 1099 income from side gigs, do I combine them or file separately? My 1099 is only like $900 but my W-2 job pays over $45k.

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You'll file just one tax return that includes both income sources. Your W-2 income goes on one part of Form 1040, while your 1099 income gets reported on Schedule C (where you'll also list your business expenses). You'll then complete Schedule SE to calculate self-employment tax on your net 1099 earnings. The combined income determines your income tax bracket, but only the 1099 net profit is subject to self-employment tax. Since your 1099 income is relatively small compared to your W-2 income, it won't drastically change your tax situation, but you'll still need to pay self-employment tax on the net profit from your side gig.

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Thanks so much for explaining! That makes way more sense now. I was worried I'd have to file completely separate returns or something complicated. Appreciate the quick and clear explanation about Schedule C and Schedule SE too - I hadn't heard of those before.

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Just to add one more important point that might help you feel less overwhelmed - even though you need to file, the good news is that with only $1,924 in DoorDash income, your actual tax burden will likely be pretty small after deductions. Don't forget you can deduct business expenses like: - Mileage (probably your biggest deduction - 67¢ per business mile for 2024) - Phone bill percentage (if you use it for deliveries) - Insulated delivery bags - Car phone mounts or other equipment - Even parking fees or tolls during deliveries Many gig workers find that after legitimate business deductions, their net profit drops significantly, which reduces both their income tax and self-employment tax. The self-employment tax on your net earnings will be around 15.3%, but you also get to deduct half of that self-employment tax when calculating your income tax. Since this is your first time with 1099 income, consider using tax software that handles Schedule C and Schedule SE, or consult with a tax professional to make sure you're claiming all eligible deductions.

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This is really helpful! I'm new to gig work too and had no idea about all these deductions. Quick question - for the phone bill percentage, how do you calculate what portion you can deduct? Is it based on hours spent doing deliveries vs total phone usage, or is there a standard percentage people use? Also, do you need to keep receipts for everything like the delivery bags and car mounts, or is it okay to just track the expenses in a spreadsheet?

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