Forgot to include Doordash income on tax filing - how to fix this?

If I'm in the same situation but made less than $400 from a side gig (like $320), do I still need to file an amended return? And will the penalties keep adding up the longer I wait to amend?

If you made less than $400 from self-employment, you generally don't need to file Schedule SE or pay self-employment tax. However, you still need to report the income on your tax return if your total income requires you to file. The $400 threshold is specifically for self-employment tax, not for reporting the income itself. Regarding penalties, yes - they do generally increase the longer you wait. Penalties and interest accrue over time, so it's always better to file amendments sooner. The IRS typically charges a failure-to-pay penalty of 0.5% per month on unpaid taxes (up to 25%) plus interest on the unpaid amount.

Does it actually walk you through filling out the 1040-X form? That's the part that confuses me the most with amendments. Like which columns to use and what goes where.

I'm kinda skeptical of these tax AI things. How do you know it's giving you accurate info? Did you double check with a tax pro or anything?

It does walk you through the 1040-X completely. It shows you exactly what to put in each column - the original amounts from your first filing, the new corrected amounts, and the difference between them. I found that part super helpful since the form is confusing. As for accuracy, I was skeptical too at first. I actually had a friend who's an accountant look over what it generated for me, and he said it was spot on. The service uses actual tax professionals who review the AI-generated guidance, so it's not just an algorithm making guesses.

Wait, there's actually a service that gets you through to the IRS? How does that even work? I thought it was literally impossible to get a human on the phone there.

Sounds fishy. Why would I pay someone else to call the IRS for me? And even if you get through, how do you know the agent is giving you the right info? I've heard horror stories about getting different answers from different agents.

It's not a service where someone else calls for you - it's a system that navigates the IRS phone tree and waits on hold for you. When an actual agent picks up, your phone rings and you're connected directly to them. Saved me literally hours of hold time. You're right that different agents can sometimes give different answers, but in my experience, having any guidance directly from the IRS is better than guessing. I took notes during my call, got the agent's ID number, and asked for clarification on anything I wasn't sure about. Having documentation of what they told you to do can also help if there are any questions later.

Thank you! I had no idea you could file amendments electronically now. Will it work for adding self-employment income that wasn't originally reported? And do you know if I need special software to do this?

Yes, it will definitely work for adding self-employment income that wasn't originally reported! That's a common reason for amendments. Most major tax software options now support electronic filing of Form 1040-X. If you used software like TurboTax, H&R Block, or TaxAct for your original return, you can typically log back in and create an amendment through the same platform. They'll usually have a specific section for "Amend my return" or something similar. The software will guide you through entering the new information about your Doordash income.

This is terrible advice. The IRS doesn't care about the amount - they care about compliance. They absolutely go after small amounts all the time, especially since their systems automatically match 1099s against tax returns. Don't listen to this person.

So true! I used to deliver for these gig apps and tracking mileage saved me so much on taxes. The standard mileage deduction for 2023 was 65.5 cents per mile. So if you drove 500 miles for Doordash, that's a $327.50 deduction right there!

This is super helpful! I wasn't even thinking about deductions. I definitely kept track of my mileage for gas reimbursement purposes, so I should have those records. About how much of my phone bill could I reasonably deduct? I used my phone for the app but obviously for personal stuff too.

For phone expenses, you'd typically calculate the percentage of time you used your phone for business vs personal use. If you delivered for Doordash maybe 10-15 hours a week and used your phone normally the rest of the time, you might be able to deduct around 10-20% of your monthly phone bill. Keep it reasonable and be able to justify it if asked. You can also deduct things like car washes if you washed your car specifically for delivery work, parking fees, tolls, and even a portion of your car insurance if you can show increased usage. Just make sure to keep good records of everything!

This is exactly the kind of comprehensive breakdown I was hoping for! Thank you so much for laying it all out step by step. I'm feeling much less panicked now that I have a clear action plan. One quick question - when you mention tracking down records for deductions, how detailed do those records need to be? Like for mileage, is it enough to have a rough estimate based on my delivery history, or do I need exact odometer readings for each trip? I definitely drove quite a bit for Doordash but wasn't keeping super detailed logs at the time.