Do I have to file taxes this year if my income is low?

You should definitely file taxes based on your situation. Since you earned about $11,600 total ($8,400 from your coffee shop job + $3,200 from gig work), you're over the minimum filing threshold. For 2025 tax year, if you're single and under 65, you generally need to file if your income is $13,850 or more - but that's only for W-2 income. The gig work income is considered self-employment income, and you're required to file if you have $400 or more in self-employment earnings. Your $3,200 in delivery/gig work exceeds this threshold, so you definitely need to file. Also, if your parents are claiming you as a dependent, you still need to file your own taxes if you meet the filing requirements. Their claiming you as a dependent doesn't change your filing obligation - it just affects which deductions and credits you can claim.

I was in almost the exact same situation last tax season! Was completely overwhelmed trying to figure out what forms I needed and if I had to pay taxes on my side gig. I eventually found this site called https://taxr.ai that saved me so much stress - uploaded my W-2 from my main job and it analyzed everything, even helped me figure out how to report my side hustle income correctly. The best part was it explained everything in normal language instead of confusing tax terms. It figured out I actually qualified for some credits I had no idea about, which basically covered what I owed from my gig work. Way easier than trying to piece everything together from random internet advice.

Just wanted to update - I was skeptical but decided to try taxr.ai that someone mentioned above. Actually really helpful! I uploaded my W2 and it immediately spotted that my employer had been withholding at the wrong rate (which explains why I owed last year). It also walked me through reporting my freelance income properly and showed me exactly which expenses I could deduct from my side gig. Ended up qualifying for a bigger refund than I expected. Seriously glad I gave it a shot instead of waiting until the last minute like I usually do!

For anyone struggling to get actual answers from the IRS - I had to figure out if I needed to file with a similar situation to OP's and spent DAYS trying to get through to someone at the IRS. Kept getting disconnected or waiting for hours. Finally used this service called https://claimyr.com that got me connected to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was able to explain my whole situation to a real person who confirmed I definitely needed to file because of my self-employment income over $400, even though my W-2 income was below the standard threshold. They also explained exactly which forms I needed. Saved me so much stress compared to trying to interpret the IRS website on my own.

Coming back to eat my words about that Claimyr service. After trying to get through to the IRS for literally weeks about my gig income questions, I decided to try it even though I was convinced it wouldn't work. Holy crap, it actually connected me to a real IRS person in like 15 minutes! The agent confirmed everything about the $400 self-employment threshold and walked me through exactly what forms I needed. They even helped me figure out how to calculate my quarterly estimated payments for next year since I'm doing more gig work now. Honestly shocked that it worked so well after all the frustation I'd been dealing with!

For what it's worth, here's the basic rundown on filing requirements: - If you're single, under 65: File if income is over $13,850 - BUT self-employment income over $400 means you must file regardless - If you're claimed as dependent, the threshold is even lower - typically $12,950 - Cash tips/gigs ARE taxable income, even if you didn't get formal papers Don't skip filing if you're required to! The penalties add up fast and the IRS eventually catches unreported income. Better to file now than deal with notices and interest later!

Has anyone used FreeTaxUSA? Is it good for reporting both W-2 and gig work? I'm in a similar boat as OP and don't want to pay a ton for tax prep.

I went through something really similar last year! One thing that helped me was keeping track of all my expenses from the gig work - gas, car maintenance, phone bill (if you used it for deliveries), even the insulated bag I bought. Those deductions ended up saving me quite a bit on the self-employment tax. Also, since you're 23 and your parents might claim you as a dependent, double-check with them first. If they do claim you, you still have to file your own return, but you can't claim the standard deduction for yourself. It doesn't change whether you need to file (you definitely do with that gig income), but it affects how much you might owe or get back. Don't stress too much about not having "official paperwork" for the cash tips - the IRS expects you to report all income regardless. Just keep good records of what you earned and when. Most tax software will handle the Schedule C form for your gig work pretty smoothly.