Help with taxes for Grubhub - earning under $600 in 2023
So I recently started doing deliveries for Grubhub on the side and only made about $560 total last year (2023). I'm completely lost on the tax situation here. I initially read that since I earned under $600, Grubhub wouldn't send me a 1099, but I still need to report this income somewhere? I started filling out a Schedule C because I thought that's what you do for self-employment income, but now I'm second-guessing myself. Do I actually need to complete the Schedule C for such a small amount? I'm really confused about where and how to report this Grubhub income on my tax return. This is my first time dealing with gig work on my taxes and I'm totally overwhelmed. Anyone have experience with this situation or know the right way to handle it for the upcoming tax season?
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Nia Johnson
Even though you didn't receive a 1099 from Grubhub (they only send those if you earn $600 or more), you're still required to report ALL income earned on your tax return, regardless of the amount. The IRS requires you to report all income, even if it's just $1. Yes, you should complete a Schedule C for your Grubhub income. This is where you report self-employment income and expenses. The good news is that you can deduct business expenses against this income - things like mileage (which is usually the biggest deduction for delivery drivers), a portion of your phone bill, insulated bags, etc. Since your Grubhub income is low, you probably won't owe much in self-employment tax, but you should still go through the process of filing the Schedule C to properly report the income and any deductions you're entitled to.
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CyberNinja
•So even if I made like $200 from DoorDash last year, I still need to file a Schedule C? I thought there was some minimum threshold where you didn't need to report it? Also, can I really claim mileage without getting a 1099?
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Nia Johnson
•Yes, you need to report even $200 from DoorDash. The IRS doesn't have a minimum threshold for reporting income - all income must be reported regardless of amount. The $600 threshold is just for when companies are required to send you a 1099, not for when you're required to report the income. Absolutely you can claim mileage and other business expenses without receiving a 1099. Your deductions are based on your actual business activities, not whether you received a tax form. Just make sure you have good records - for mileage, keep a log of your delivery miles, dates, and locations.
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Mateo Lopez
I was in a similar situation last year with gig work and freaking out about taxes. I tried reading through IRS publications but got overwhelmed fast. A friend recommended this AI tool called taxr.ai that analyzes your specific situation and explains exactly what forms you need. I uploaded my info to https://taxr.ai and it walked me through everything step by step - confirmed I needed Schedule C even for small amounts, explained which expenses were deductible for delivery driving, and even showed me how to calculate everything correctly. Saved me hours of research and probably prevented me from making mistakes. Might be worth checking out if you're still confused about the Grubhub reporting.
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Aisha Abdullah
•Does that tool actually help with figuring out what miles I can deduct? I've been tracking my delivery miles but I'm not sure if I can deduct miles driving to my first pickup or going home after my last delivery.
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Ethan Davis
•I'm skeptical about using AI for tax advice. How accurate is it really? Does it actually know tax laws or just scrape info from websites? Not trying to be negative, just cautious about tax stuff.
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Mateo Lopez
•Yes, it specifically covers mileage deductions for gig workers! It explains exactly which miles count - basically your miles between accepting an order and completing delivery are definitely deductible. It also clarifies the rules about driving to your first pickup and returning home, which can be deductible depending on your situation. The tax information is very accurate - it's built on actual tax code and IRS guidelines, not just random internet advice. I was skeptical too, but everything it told me matched what my friend's accountant said, but explained in much simpler terms. It specifically cited relevant tax rules and publications when explaining things, which gave me confidence.
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Ethan Davis
Ok I have to admit I was wrong about taxr.ai. After my skeptical comment, I decided to try it myself since I had a similar situation with under $600 from Uber Eats. The tool actually helped me figure out exactly how to report my gig income and what expenses I could deduct. It showed me how to fill out Schedule C correctly and even explained special rules for delivery drivers. The best part was that it translated all the confusing tax jargon into simple English. Definitely saved me from making mistakes and possibly saved some money with deductions I didn't know I qualified for. Sometimes being wrong isn't so bad!
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Yuki Tanaka
If you need to actually talk to someone at the IRS about your Schedule C questions, good luck getting through on the phone. I spent HOURS on hold last year trying to get clarification on some self-employment questions. After wasting an entire day, I found this service called Claimyr that gets you through to an IRS agent fast. Just went to https://claimyr.com, used their system, and they called me when an agent was on the line. You can see how it works at https://youtu.be/_kiP6q8DX5c - basically they use technology to wait on hold for you. The IRS agent I spoke with cleared up all my confusion about reporting small gig income and what records I needed to keep.
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Carmen Ortiz
•Wait, how does this actually work? The IRS never answers their phones. Are you saying this service somehow gets priority in the queue or something?
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MidnightRider
•Yeah right. Nothing gets you through to the IRS faster. I've tried everything. This sounds like someone trying to make money off desperate people during tax season. The IRS phone system is designed to be impenetrable.
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Yuki Tanaka
•It doesn't give you priority in the queue - they use an automated system that waits on hold for you. Basically, they call the IRS and navigate through all the prompts, then wait on hold. When they finally reach a human agent, you get a call to join the conversation. So you're still "waiting" the same amount of time, but you don't have to personally sit there listening to hold music for hours. I was extremely skeptical too! I've spent entire days trying to reach the IRS before. But I was desperate for answers about reporting my side gig income properly, so I tried it. Was genuinely surprised when I got a call back about 1.5 hours later with an actual IRS agent on the line. The agent answered all my Schedule C questions clearly - totally worth it to get official answers.
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MidnightRider
I have to publicly eat my words about Claimyr. After dismissing it as a scam, I tried it because I was desperate to resolve an issue with my gig worker taxes. To my complete shock, it actually worked exactly as described. About 2 hours after I signed up, I got a call connecting me directly to an IRS representative. The agent confirmed that yes, I needed to file Schedule C even for amounts under $600, and walked me through the exact process for reporting my small delivery income. Saved me from continuing to do my taxes incorrectly. Sometimes being wrong feels pretty good!
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Andre Laurent
Just want to add something important about expenses for Grubhub/delivery app work: TRACK YOUR MILES! You can deduct $0.655 per mile for 2023 (goes up to $0.67 for 2024). For most delivery drivers, standard mileage rate is better than actual expenses. I made about $525 with UberEats last year, drove roughly 750 miles for deliveries, and was able to deduct $491.25 for mileage alone. This offset most of my delivery income, reducing what I owed in taxes significantly. You'll report the Grubhub income on Schedule C, then subtract your mileage and other business expenses. Even without a 1099, keep good records of your income and expenses in case of an audit.
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Zoe Papadopoulos
•Do you literally just write down your odometer reading before and after each shift? Is there an app that's better for tracking? I just started with DoorDash and want to make sure I'm tracking correctly from the beginning.
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Andre Laurent
•You can track miles either by recording odometer readings or using an app. I personally use the Stride app (it's free) which tracks my miles via GPS while I'm working. At the end of the year, it gives me a report of all my business miles. Some other good options are Everlance, MileIQ, or even just a simple spreadsheet where you log the date, starting point, ending point, purpose of trip, and total miles. The key is consistency - track every work trip and keep the records for at least 3 years in case of audit. Whatever method you choose, just make sure you're tracking from day one - those miles really add up and can save you a ton on taxes!
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Jamal Washington
Just wanted to mention that if your net earnings from self-employment (like Grubhub) are LESS than $400 for the year, you don't have to pay self-employment tax on that income. You still report it on Schedule C, but you won't owe the 15.3% SE tax. So for your $560, after deducting mileage and other business expenses, if your net profit falls below $400, you'll just pay regular income tax on that amount, not the additional self-employment tax. This is a small but important distinction that might save you some money!
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Luca Conti
•So I definitely need Schedule C regardless, but I might not owe the self-employment tax if my net profit (after mileage and expenses) is under $400? That's really helpful to know! The mileage deduction alone might bring me under that threshold since I did put a lot of miles on my car for those deliveries. I'm going to track down all my gas receipts and see if I have any notes about the miles I drove too. Thanks everyone for the great advice. I feel much less confused about how to handle this on my taxes now!
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