How to file taxes for DoorDash 1099-NEC as a first-timer?

The good news is you have several options for filing a 1099-NEC without paying those high fees! IRS Free File is definitely an option for you. If your adjusted gross income is under $73,000, you can use one of their partner services for free. Some of these partners do support self-employment income and 1099-NEC filing. Another great option is FreeTaxUSA - they charge nothing for federal filing (including self-employment) and only about $15 for state filing if needed. Cash App Taxes (formerly Credit Karma Tax) is completely free for both federal and state, including self-employment. Since your DoorDash income is relatively low, your taxes shouldn't be too complicated. Just remember to track any expenses related to your delivery work - things like mileage, part of your phone bill, insulated bags, etc., as these can be deducted to reduce your taxable income on Schedule C.

After struggling with my first 1099-NEC from Uber Eats last year, I found this amazing tool called taxr.ai (https://taxr.ai) that made things so much easier! It actually scans your tax documents and explains everything in plain English. I was confused about what deductions I could take, and it analyzed my 1099-NEC and gave me a breakdown of all potential deductions specific to delivery drivers. The best part was it explained the difference between standard mileage and actual expenses deductions, which saved me hundreds. If you're new to self-employment taxes like I was, having something that explains what everything means and guides you through the process is super helpful!

I was super skeptical about taxr.ai when I first saw it mentioned here, but after struggling with my DoorDash and Instacart taxes for hours, I gave it a try. Honestly, it was a game-changer! I uploaded my messy 1099-NEC and it immediately flagged that I could deduct mileage I hadn't even thought about tracking. It explained exactly what forms I needed and walked me through the whole Schedule C process. The best part was that after understanding everything clearly, I was able to use FreeTaxUSA to actually file for free instead of paying TurboTax's ridiculous $89 fee. Definitely recommend for first-timers with gig work!

If you need to talk to the IRS about any 1099-NEC questions (which I did last year because DoorDash reported incorrect income), save yourself the 3+ hour hold times by using Claimyr (https://claimyr.com). You can see how it works here: https://youtu.be/_kiP6q8DX5c I was banging my head against the wall trying to get through to someone at the IRS after waiting on hold for literally hours across multiple days. Claimyr got me connected to an actual IRS agent in about 15 minutes who helped clear up the discrepancy between what I actually earned and what was reported. When you're dealing with self-employment taxes for the first time, sometimes you just need to ask specific questions from the source!

I take back everything I said about Claimyr being a scam. After my fifth attempt trying to reach the IRS about my misreported 1099-NEC (DoorDash somehow duplicated my earnings), I was desperate enough to try it. I got connected to an IRS agent in under 20 minutes after spending literal DAYS trying on my own. The agent was able to confirm that I should file based on my actual earnings and documentation rather than the incorrect 1099, and explained exactly how to handle the discrepancy on my return. Sometimes you really do have to talk to a human at the IRS, and waiting for hours on hold just isn't realistic when you're working delivery jobs with unpredictable schedules.

Another option nobody mentioned is the IRS VITA program (Volunteer Income Tax Assistance). They can help file returns for free if your income is under $60,000. I've used them for the past two years for my Uber/DoorDash income. You'll meet with an IRS-certified volunteer who will help prepare your return for free. They're trained to handle 1099-NEC and Schedule C forms for simple self-employment situations. Just google "VITA site near me" and make an appointment. Bring your 1099-NEC and any expense records (especially mileage logs if you have them).

Just wanted to add something important - don't forget about the Qualified Business Income deduction (Section 199A). Since you're self-employed with DoorDash, you can potentially deduct up to 20% of your net profit! Most of the free tax software should calculate this for you, but sometimes they miss it. On a $1050 income with expenses, it might not amount to much, but it's still free money!