How is my very low income from DoorDash ($30) taxed? First-time tax filer confused

Thanks for explaining! So just to make sure I understand - I still need to report the $38 even though DoorDash won't send me any forms? And how exactly do I report it as "other income"? Do I need to download special forms or use tax software?

You should report it as "other income" on Schedule 1, line 8z of Form 1040. You'll need to write a brief description like "food delivery income" next to the amount. Most free tax software will walk you through reporting this type of miscellaneous income - they'll ask if you had any income not reported on a tax form, and you can enter it there. If your overall income for the year is low enough, you should qualify for free filing options. The IRS has a Free File program on their website that can help you find free options based on your situation.

Does it actually connect to DoorDash somehow to pull your earning info? Or do you have to manually enter everything?

I'm skeptical about these tax tools for gig workers. Do they actually understand the mileage deductions and other write-offs? My buddy got audited because some free tool messed up his delivery deductions.

It doesn't connect directly to DoorDash - you upload any tax documents you have (or in your case, you'd just enter the amount manually). It's super simple for small amounts like yours. For mileage and deductions, that's actually where it really shines! It asks specific questions about your gig work (like how many miles you drove, if you purchased any supplies, etc.) and tells you exactly what you can legally deduct. It even explains why certain things qualify and others don't. My friend used it after getting confused with TurboTax and discovered he'd been missing several legitimate deductions.

Wait, how does this actually work? Do they have some special IRS hotline or something? I've legit waited on hold for 3+ hours before giving up.

Yeah right. No way they can get through to the IRS that fast when everyone else is stuck on hold for hours. Sounds like a scam to me.

They use technology that constantly redials and navigates the IRS phone tree until it gets through, then it calls you when it has an agent on the line. It's completely legit - they don't have a special line, they just automate the painful part of waiting and navigating the phone system. I know it sounds too good to be true, but that's exactly why I tried it - I was desperate after wasting hours on hold. When it actually worked and got me through to an agent in under 20 minutes, I was blown away. The agent answered my gig work tax question in like 5 minutes, which saved me hours of research and worry.

How do you prove mileage if you get audited? I've been taking pics of my odometer before and after shifts... is that enough?

A mileage log is your best bet. You don't need to take pics of your odometer (though it doesn't hurt), but you should record the date, starting location, ending location, purpose of the trip, and total miles driven. There are free apps that can help track this automatically. The IRS mostly wants to see that you have a consistent record-keeping system, not just estimates after the fact. Even a simple spreadsheet or notebook works as long as you update it regularly. If you claim a ton of miles with zero documentation, that's when audit flags can pop up.

While technically all income should be reported, the practical reality is that the IRS is not going to come after you for a few dollars in tax on $38. DoorDash won't issue any tax documents for this amount. That said, it's generally best to develop good tax habits from the start. If this is your only income, you likely wouldn't even need to file. If you have other income requiring you to file anyway, including the $38 is the right thing to do, but realistically, the impact on your tax bill will be minimal and the chances of issues arising from omitting it are extremely low.