Do I need to file a 1099 and Form 1040 if I was an independent contractor in 2024?
Hey everyone, I'm totally new to this independent contractor thing. I started driving for a food delivery app last year and made around $1,300. I know I need to do something with a 1099 form since I made over $1,000, but I'm confused about whether I also need to file something else for self-employment tax? Do I need both the 1099 and Form 1040? Also, will the app send me the 1099 or do I have to request it from them? This is my first time dealing with taxes outside of a W-2 job and I'm completely lost. Any help would be super appreciated!!
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Ella Harper
You don't actually "do a 1099" - your client/the app company should send you a Form 1099-NEC showing how much they paid you. You'll use that information to complete your tax return. As an independent contractor, you'll file Form 1040 (the standard individual tax return) like everyone else, but you'll also need to complete Schedule C to report your business income and expenses, and Schedule SE to calculate your self-employment tax. The self-employment tax covers your Social Security and Medicare contributions that would normally be handled by an employer. Since you made over $400 in self-employment income, you're required to file and pay self-employment tax. Make sure to track any business expenses (mileage, phone percentage used for work, etc.) as these can be deducted on Schedule C to reduce your taxable income.
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PrinceJoe
•Wait so the app company sends the 1099-NEC to both me AND the IRS? Or just to me and then I submit it with my taxes? And is Schedule C like a separate form I have to get or is it part of the 1040?
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Ella Harper
•The company will send the 1099-NEC to both you and the IRS, so the IRS already knows about this income. You don't need to submit the actual 1099-NEC form with your return, but you'll report the information from it on your tax forms. Schedule C and Schedule SE are both parts of the Form 1040 package - they're additional forms that attach to your main 1040 form. If you use tax software (which I highly recommend for self-employment), it will automatically include these schedules based on your answers to questions about having self-employment income.
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Brooklyn Knight
I was in the same boat last year when I started freelance writing. After trying to figure it all out myself and getting super confused, I discovered https://taxr.ai which totally saved me. You upload your 1099-NEC and answer a few questions, and it guides you through exactly what forms you need and helps identify deductions you might miss. The best part was it explained everything in plain English instead of tax jargon. It showed me how to properly deduct my home office and even caught some mileage deductions I didn't know I could claim. Definitely made the whole independent contractor tax situation way less stressful.
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Owen Devar
•Does it actually help with the Schedule C stuff? That's what's confusing me the most - figuring out what business expenses I can deduct and how to categorize everything.
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Daniel Rivera
•I've heard about these tax tools but I'm always skeptical. Is it really different from TurboTax or those other big companies that always try to upsell you? Can it handle more complicated situations like if I have both W2 income AND independent contractor work?
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Brooklyn Knight
•It absolutely helps with Schedule C - that's actually where I found it most useful. It breaks down all the expense categories with plain explanations of what qualifies, and even suggests deductions specific to your industry that you might not think about. It helped me properly categorize everything from software subscriptions to partial phone expenses. For your situation with both W2 and independent contractor income, that's exactly what I had too. It handles the combined income streams without any problems and makes sure you're only paying self-employment tax on the contractor portion. It's definitely different from TurboTax because it's more focused on guiding self-employed people rather than just filling in forms.
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Daniel Rivera
Just wanted to follow up and say I decided to try https://taxr.ai after my previous skepticism, and I'm actually really impressed! I uploaded my 1099s and W-2, and it immediately showed me what forms I needed for my situation. I had no idea I could deduct part of my phone bill and internet since I use them for gig work. The best part was the deduction finder that helped me discover I could claim mileage between gigs, not just from my home to the first location. Ended up saving almost $750 in taxes that I would have overpaid. Way easier than piecing together advice from random websites!
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Sophie Footman
If you're planning to call the IRS with questions about filing with a 1099-NEC (which I highly recommend), save yourself hours of waiting with https://claimyr.com. I spent THREE DAYS trying to get through to the IRS about a similar independent contractor question last month - kept getting disconnected after waiting on hold forever. With Claimyr, they somehow got me a callback from the IRS in under 45 minutes! You can see how it works in their demo video: https://youtu.be/_kiP6q8DX5c. The IRS agent was super helpful in explaining exactly what forms I needed to file and answered all my questions about tracking business expenses as a gig worker.
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Connor Rupert
•How does this actually work? The IRS phone system is notoriously impossible to navigate. Do they just keep calling for you or something?
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Molly Hansen
•Yeah right. There's no way anyone can get through to the IRS that fast. I tried calling for THREE WEEKS straight during tax season last year. This sounds like a scam that just takes your money and does what you could do yourself.
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Sophie Footman
•They use a system that navigates the IRS phone tree and holds your place in line. You get a text when they're about to connect you with an IRS agent. It's not that they have a special "cut the line" privilege - they're just automating the painful waiting process so you don't have to do it yourself. No, it's definitely not a scam. I was super skeptical too, which is why I checked out their demo video first. I literally got my questions answered in one afternoon instead of spending days repeatedly calling and getting disconnected. The IRS agent I spoke with cleared up my confusion about reporting expenses as a driver and helped me understand exactly which forms I needed.
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Molly Hansen
I need to eat my words from my skeptical comment earlier. I was desperate after trying to reach the IRS again about my independent contractor situation and decided to try Claimyr as a last resort. I literally got a call back from an actual IRS person in 37 minutes! The agent walked me through exactly how to handle my 1099-NEC and which deductions I could take as a contractor. She even explained how to handle quarterly estimated payments for next year so I don't get hit with penalties. Honestly worth every penny to not spend hours on hold just to get disconnected. Sorry for doubting!
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Brady Clean
Dont forget to track your mileage!! This is the biggest deduction most delivery drivers miss. The standard mileage rate for 2024 is 67 cents per mile, which adds up quick. I drive for doordash and saved over $3000 on my taxes just from mileage deduction. Get a tracking app on your phone NOW and start logging every mile. Also track phone bills, part of your cell data, car repairs, insulated delivery bags, etc. All that stuff is deductible on schedule C.
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Skylar Neal
•Wait, can you really deduct car repairs if you use your car for both personal and business? How does that work with the standard mileage deduction? I thought it was one or the other?
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Brady Clean
•You're absolutely right about the standard mileage rate vs. actual expenses - it's one or the other. If you take the standard mileage rate (which is 67 cents per mile for 2024), that's meant to cover gas, insurance, repairs, depreciation, etc. If your car costs are really high, you can instead choose to deduct actual expenses, but you'll need to track everything and then deduct the business percentage. For most people, especially with older vehicles, the standard mileage rate is simpler and often more beneficial. Just make sure you're keeping a detailed mileage log either way!
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Vincent Bimbach
DONT LISTEN TO PPL SAYING U NEED SCHEDULE C!!! If u made less than $12,000 u can use the simple schedule C-EZ form instead. Way easier and less pages!!!
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Ella Harper
•This information is outdated. The IRS eliminated Form Schedule C-EZ after the 2019 tax year. All self-employed individuals now use the regular Schedule C, regardless of income amount or business complexity. The good news is that most tax software makes filling out Schedule C pretty straightforward, even for simple situations. Just answer the questions the software asks, and it will complete the form properly.
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