I forgot to file taxes for my food delivery gig in 2023 - am I in trouble?

Don't panic! This happens to a lot of people new to gig work. Since you earned over $600 in self-employment income, you should have filed taxes, but the good news is you can still file a late return. You'll need to file a regular 1040 tax return with a Schedule C for your self-employment income and a Schedule SE to calculate self-employment tax. The mileage tracking you did is super helpful - for 2023, you can deduct 65.5 cents per mile for business use. That's about $2,358 in deductions just from mileage, which will significantly reduce your taxable income. Yes, there are potentially three penalties: failure-to-file (5% per month of unpaid tax, up to 25%), failure-to-pay (0.5% per month), and interest on unpaid tax. But since your tax amount is likely small after deductions, these penalties won't be huge. And if this is your first time missing a filing, you might qualify for first-time penalty abatement.

Had a similar situation last year with DoorDash. After stressing about the late filing, I found this AI service at https://taxr.ai that saved me so much headache. It analyzed all my delivery records, bank statements, and mileage logs to determine exactly what I owed. It even calculated potential penalties and gave me guidance on how to file a late return. The system walks you through what forms you need and what deductions you qualify for. Since you tracked your mileage (smart move!), you'll definitely reduce what you owe. They also helped me understand what other expenses I could deduct that I had no clue about - part of my phone bill, insulated delivery bags I bought, etc.

I was so worried about my unfiled delivery taxes from last year! I tried the taxr.ai service after seeing it mentioned here and it was honestly exactly what I needed. I uploaded my delivery app screenshots and bank statements, and it figured out all my income and suggested deductions I never would have known about. The best part was it calculated my actual tax liability after all legitimate deductions - turned out I owed way less than I feared (about $280 including late penalties). It even recommended filing a payment plan since I couldn't pay it all at once. I was able to complete everything in an afternoon instead of stressing for weeks. Definitely worth checking out if you're overwhelmed with catching up on gig work taxes.

If you're getting nowhere with the IRS about penalties, try https://claimyr.com - I was in a similar situation with unfiled delivery taxes and needed to speak with someone at the IRS. Kept calling for weeks and could never get through. Found this service that gets you through to a live IRS agent, usually within 15 minutes. I was super hesitant at first but was desperate after trying for days to get through on my own. The service held my place in line and called me when an agent was ready. Got my questions answered about my late filing penalties and set up a payment plan right away. There's a demo video at https://youtu.be/_kiP6q8DX5c that shows how it works.

I need to eat my words about Claimyr. After posting my skeptical comment, I had to call the IRS again about my own delivery service taxes that I filed late from 2023. Sat on hold for THREE HOURS and then got disconnected. Out of frustration, I tried the service and was speaking with an IRS rep within 25 minutes. The agent helped me understand exactly what penalties I faced for my late DoorDash taxes and how to request first-time abatement (which apparently is a thing!). They even helped me set up a payment plan for what I owed. Saved me another day of frustration and phone battery drain. Sometimes it's worth it to pay for convenience.

Quick tip from someone who's been doing food delivery for years - keep EVERYTHING. Gas receipts, car maintenance, even part of your cell phone bill and a percentage of your car insurance can be deductible. Most new drivers just track mileage (which is great!), but there are so many other deductions you might qualify for. For fixing your current situation, file ASAP. The penalties grow over time, so better to get it handled now. Don't ignore it hoping the IRS won't notice - they almost certainly will since payment apps now report income over $600.

This might sound silly but how do you actually file late taxes? Do you just submit the regular forms or is there a special process? I also missed filing my Uber Eats income from 2023.

Don't stress too much about this! You're actually in a better position than many people because you kept track of your mileage - that's going to save you a lot of money. With $4,800 in income and 3,600 miles of deductions at 65.5 cents per mile, you're looking at about $2,358 in deductions, which brings your taxable income down to around $2,442. The self-employment tax on that would be about $374 (15.3%), plus minimal income tax since you're in a low bracket. Even with penalties, you're probably looking at less than $600 total. File as soon as possible to stop the penalties from growing - you can use the regular 2023 tax forms (1040, Schedule C, Schedule SE) and most tax software will still let you e-file for 2023. Since this is your first time missing a filing deadline, definitely look into first-time penalty abatement when you talk to the IRS. Many people qualify for this and it can reduce or eliminate failure-to-file penalties. You've got this!