Do I need to pay taxes for my DoorDash/UberEats food delivery side hustle?

As someone who's been doing food delivery gigs for a few years, I can definitely help with this! When you work as a food delivery driver, you're considered an independent contractor (self-employed), which means no taxes are withheld from your earnings. You'll receive a 1099-NEC form instead of a W-2 if you earn $600+ from any platform in a year. For quarterly taxes: The IRS generally expects you to pay taxes throughout the year as you earn income. The rule is that you should make quarterly estimated tax payments if you expect to owe $1,000+ in taxes for the year. At $200-250/week, you'll make roughly $10,000-13,000 annually, and after the standard mileage deduction (65.5 cents per mile in 2023), you might not hit that $1,000 threshold. However, it's always better to be safe. I'd suggest setting aside 15-20% of your earnings in a separate savings account for taxes. This covers both self-employment tax (15.3% for Social Security and Medicare) and potential income tax.

I used to be so confused about my delivery gig taxes until I found taxr.ai. It seriously saved me so much stress last tax season! I was tracking my miles with a paper notebook (lol) and trying to figure out deductions myself, but this tool organized everything and explained what I could actually write off. I uploaded my delivery app earnings statements to https://taxr.ai and it automatically identified all my potential deductions - not just mileage but also portions of my phone bill, hot bags I bought, etc. It explained what would lower my self-employment taxes and gave me a real estimate of what I'd owe. The quarterly tax calculator was a game changer for me since I was also doing about $250/week and wasn't sure if I needed to pay quarterly or not.

Just wanted to update that I finally tried taxr.ai after my skeptical questions earlier. I'm honestly shocked at how much better it is than the general tax software I was using before. It caught several deductions specific to delivery driving that I had totally missed last year! The best part was how it showed me I probably don't need to do quarterly payments yet with my current income level, which was a huge relief. It generated a personalized tax strategy based on my specific numbers, not just generic advice. It also explained the self-employment tax calculation in a way that finally made sense to me. The peace of mind was totally worth it.

If you're gonna do food delivery, you should absolutely get ahead of the tax situation now. I learned this the hard way! I ended up owing way more than expected and couldn't get through to the IRS for months to set up a payment plan. I finally used Claimyr (https://claimyr.com) to get through to the IRS after sitting on hold for literally hours across multiple days. They have this system that holds your place in line and calls you when an agent picks up. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c It saved me from some serious penalties since I was able to get a payment plan set up before things got worse. Their system called me back within 30 mins when I'd been trying for days on my own.

I have to publicly eat my words here. After my skeptical comment yesterday, I was still desperate about my tax situation so I tried Claimyr anyway. I'm honestly shocked that it actually worked exactly as advertised. I'd been trying for THREE WEEKS to get through to the IRS about a delivery gig tax issue where I missed a 1099 filing. Used Claimyr yesterday, and they called me back in about 45 minutes with an actual IRS agent on the line. Got my issue sorted in one call. I can't believe I wasted so many hours trying to do this myself. If you need to actually talk to someone at the IRS, this is apparently the way to do it now.

Small tip from someone who's been doing food delivery for 2+ years: Get a dedicated credit card JUST for your delivery expenses. This makes tracking your business expenses so much easier when tax time comes. Also, don't forget that you can deduct a portion of your phone bill since you need it for the app! And invest in a good mileage tracking app from day one. I lost out on so many deductions my first year because I didn't track properly.

I'm 19 and have been doing UberEats for about 8 months now. The BIGGEST thing nobody warned me about was how much to set aside!!! I only saved like 10% of my earnings thinking that would cover it, and I ended up scrambling to find extra money at tax time. My advice - set aside at least 20-25% of everything you earn in a separate savings account you DON'T touch. Even after deductions, the self-employment tax hits hard.

Something nobody mentioned yet - if you're a student, check if you qualify for the American Opportunity Credit or Lifetime Learning Credit for your community college expenses! This could offset some of your tax liability from the delivery work. Also, depending on your total income for the year, you might qualify for the Earned Income Tax Credit which could make a big difference. Most tax software will check this automatically but it's good to be aware of.

Just wanted to add something that really helped me when I started delivery driving - consider opening a business checking account even though you're not technically a "business." Many banks offer free accounts for sole proprietors, and it makes separating your delivery income and expenses SO much cleaner for tax purposes. I use it for all my delivery-related transactions: gas purchases during work hours, car maintenance that's work-related, and I deposit all my delivery earnings there. Then I transfer my "salary" to my personal account after setting aside the tax portion. When tax time comes, you just look at that one account instead of trying to sort through months of mixed personal/work transactions. Also, since you mentioned your car isn't great on gas - definitely track BOTH your actual vehicle expenses (gas, oil changes, repairs) AND calculate the standard mileage deduction, then use whichever gives you a bigger deduction. You can't use both methods in the same year, but you can choose the better option. Sometimes with gas-guzzling cars, the actual expense method works out better than the standard mileage rate!

Great advice from everyone here! As someone who just started delivery driving myself a few months ago, I want to echo what others have said about setting aside money consistently. One thing that helped me was automating it - I set up my bank account to automatically transfer 22% of every deposit to a separate "tax savings" account. That way I never even see that money as "spendable" and I don't have to remember to manually set it aside each week. Also, don't forget about potential deductions beyond just mileage! I've been able to deduct part of my car insurance, phone bill, and even the insulated delivery bags I bought. Keep receipts for everything remotely work-related. For mileage tracking, I started using a simple voice memo on my phone at the start and end of each shift to record my odometer readings. Takes 5 seconds and gives me a backup if my tracking app ever glitches. The key is finding a system you'll actually stick with consistently! Good luck with your delivery hustle - the flexibility is amazing for college students!

Hey CosmicVoyager! Welcome to the gig economy - it's great that you're thinking about taxes upfront rather than scrambling later like so many of us did! Based on your expected earnings of $200-250/week, you'll likely make around $10,000-13,000 annually. Here's my take after doing delivery work for over a year: **Quarterly Taxes:** With proper mileage tracking, you probably won't hit the $1,000 threshold that requires quarterly payments in your first year. However, I'd still recommend setting aside 20-25% of your gross earnings in a separate account - this covers both self-employment tax (15.3%) and potential income tax. **Essential tracking from day one:** - Mileage (every single mile while the app is on) - All car-related expenses during work hours - Phone bill percentage (you need it for the apps) - Any delivery supplies you purchase **Pro tip:** Download a mileage tracking app before your first delivery and never rely on just one method. I use both an app AND keep a small notebook in my car as backup. Since you mentioned your car isn't great on gas, definitely calculate both the standard mileage deduction AND actual vehicle expenses when tax time comes - you can use whichever method gives you the bigger deduction! The fact that you're asking these questions now puts you way ahead of where most of us started. You've got this!