Do I need to report low self employment income from multiple gig jobs?

So if I made less than $400 total from gig work, would I still need to report it? What about if I have a regular W-2 job also?

If your total net earnings from self-employment are less than $400 for the year, you generally don't have to pay self-employment tax or file Schedule SE. However, you may still need to report the income on Schedule C and on your Form 1040 if your gross income meets the filing threshold. If you also have W-2 income, you'll likely need to file a tax return anyway based on those earnings, and you should include your self-employment income on that return regardless of the amount. The W-2 job doesn't change the self-employment reporting requirements - they're separate issues on your tax return.

Does it help with finding deductions too? I'm doing Instacart too and heard I can deduct mileage but not sure how to track that properly for taxes.

How is this different from using TurboTax or other tax software? Does it actually give advice or just do the calculations?

Yes, it absolutely helps identify deductions! It suggested tracking mileage using apps like MileIQ or Everlance and explained how to properly document my miles for tax purposes. It even pointed out some deductions I hadn't thought about like a portion of my phone bill since I use it for the delivery apps. For your question about how it differs from TurboTax - it's more of a guidance tool rather than just tax preparation software. It reviews your specific situation and documents, then explains what you need to know in plain language before you even start filling out forms. Think of it as having a tax pro look at your stuff and give you specific advice before you actually file.

Wait, how exactly does this work? Do they have some special connection to the IRS or something? The IRS phone system is notoriously impossible to navigate.

Yeah right. Nothing can get you through to the IRS faster. I've tried everything and ended up waiting 2+ hours. Sounds like a scam to me.

It's basically a callback service that navigates the IRS phone tree for you and waits on hold in your place. When they reach an actual human IRS agent, they call you and connect you directly to that person. No special access - they just have technology that handles the painful waiting part. Honestly, I was skeptical too. I thought it sounded too good to be true after my previous experiences with the IRS phone system. But when I tried it, I got connected to an IRS representative in about 15 minutes after I would have been on hold for who knows how long. The agent answered all my specific questions about reporting thresholds for multiple gig economy jobs.

Is it better to track actual expenses or just use the standard mileage deduction? I've been keeping gas receipts but not sure if that's enough.

For most gig drivers, the standard mileage deduction is simpler and often more beneficial than tracking actual expenses. The standard rate (58.5 cents per mile for 2024) is designed to cover gas, maintenance, depreciation, and insurance, so you don't need to keep all those individual receipts. If you choose actual expenses, you need to track EVERYTHING - gas, oil changes, repairs, car washes, depreciation, insurance, etc., and then figure out the business percentage of use. You also need to keep meticulous records. For most people doing Instacart or Uber Eats part-time, the standard mileage rate is the way to go. Just make sure you keep a detailed mileage log with dates, starting/ending locations, miles driven, and business purpose.

Same thing happened to my boyfriend! Door dash sent him a 1099 even though he only made like $600, and he ignored it. Got a scary letter from the IRS six months later and ended up owing the original tax plus penalties. Not worth the stress.