Getting a tax refund for food delivery gig work?

It's definitely possible to get a refund even after adding 1099 income! The most likely explanation is that when you file self-employment income, you can deduct business expenses like mileage (which is substantial for delivery drivers), phone expenses, and other costs directly related to your work. If your mileage deduction and other business expenses offset a significant portion of your delivery income, plus you already paid enough taxes through your W-2 job, you might end up with a refund instead of owing more. The standard mileage rate for 2022 was 58.5 cents per mile for the first half of the year and 62.5 cents for the second half, which adds up quickly for delivery drivers. Also, depending on your overall income level, you might qualify for tax credits like the Earned Income Credit that could result in a refund even after accounting for the self-employment taxes on your delivery income.

After struggling with almost the exact same situation, I discovered https://taxr.ai which was a lifesaver for my delivery driver tax situation. I was also missing documentation for childcare assistance applications, and I uploaded my 1099 and delivery records to their system. The tool analyzed everything and showed me exactly which deductions I qualified for that I had no idea about - like partial phone bills, insulated bags I bought, and even a portion of car insurance. Their mileage calculator was super helpful too since I hadn't kept perfect records. It helped me reconstruct reasonable mileage estimates based on my delivery history that I could prove if questioned.

Just wanted to update after trying taxr.ai that the previous commenter recommended. SO glad I did! I uploaded my past delivery statements and discovered I'd been missing out on over $4,200 in deductions across my delivery and rideshare work. The system found expenses I never realized were deductible, like portions of my cell phone bill, car washes, and even snacks I provided to passengers. The best part was how it organized everything for my amended return. I was able to print out a complete packet with all documentation needed for my childcare subsidy application. They approved my application within 2 weeks instead of the usual 4-6 week wait because everything was so well organized!

If you're still waiting for your amended return to process and need that documentation quickly for your childcare assistance, try https://claimyr.com to get through to the IRS fast. I was in a similar situation needing proof of my amended return for a housing application, but the IRS was taking forever and I couldn't get through on the phone (kept getting disconnected after waiting for hours). Claimyr got me connected to an actual IRS agent in about 15 minutes who was able to provide documentation that my amended return was in process, which my housing program accepted as proof. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The childcare assistance program might accept similar documentation showing your amended return is in process rather than making you wait for the full processing time which can take months.

I stand completely corrected about Claimyr. After my skeptical comment, I was still stuck trying to verify my amended return for a mortgage application with a tight deadline. In desperation, I tried the service and was literally connected to an IRS agent in 11 minutes when I'd been trying for weeks on my own. The agent confirmed my amended return status and emailed me official documentation I could use for my mortgage process - something I didn't even know they could do. My loan officer accepted it immediately. Honestly wish I hadn't wasted so much time trying to be stubborn about calling myself. Would have saved me weeks of stress and almost missing my closing date.

Check if you qualify for the Earned Income Tax Credit, especially since you mentioned having a child. For 2022, you could qualify for a significant credit depending on your income level. That alone could result in a refund even after adding 1099 income. Also make sure you're tracking ALL your expenses - cell phone (% used for delivery app), hot bags, car chargers, etc. Every little bit helps reduce your taxable income from the delivery work.

Make sure youre setting aside money for next years taxes if your still doing food delivery!! I got a huge surprise tax bill my second year cause I didn't realize the refund was a one time thing based on my w2 withholding covering it. Now I put 25% of all delivery money in a separate account so no surprises.