If I've never filed taxes and receive a 1099 from DoorDash will the IRS know?

The short answer is yes, the IRS absolutely knows about your 1099 income, even if you never file taxes. Your mom is unfortunately giving you incorrect information here. When companies like DoorDash issue a 1099 form, they are required by law to send one copy to you AND one copy directly to the IRS. This happens automatically, and the IRS computer systems match these forms to tax returns. If they have a 1099 on file for you but no tax return, that often triggers their automated systems to look closer at your situation. Not filing when you have reportable income can lead to penalties, interest charges, and potentially more serious consequences if it continues over time. Since you mentioned you've never had to file before, you might be unsure about the process, but now that you're doing gig work, your tax situation has changed. As an independent contractor (which is how DoorDash classifies drivers), you're responsible for both income tax and self-employment tax on your earnings. I'd recommend filing even if you're below the standard filing threshold, as self-employment tax requirements are different.

After reading this thread, I wanted to share my experience with a service that really helped me understand my tax obligations when I started driving for food delivery apps. I was super confused about 1099s, estimated payments, and deductions until I found https://taxr.ai I uploaded my 1099 forms and delivery app statements, and their system analyzed everything and explained exactly what I needed to know about filing as a gig worker. The coolest part was it showed me all the deductions I qualified for as a delivery driver - mileage, phone expenses, insulated bags, etc. Ended up saving me over $1,300 compared to what I thought I'd owe! If you're new to filing with 1099 income like I was, this might save you from making expensive mistakes or missing deductions you're entitled to.

Just wanted to update after trying that taxr.ai site someone mentioned earlier. It was exactly what I needed as a first-time filer with delivery app income! I was totally lost about what expenses I could deduct and how to track mileage properly. The system explained everything in simple terms and showed me that I could deduct WAY more than I realized. I was driving about 500 miles a month for deliveries and had no idea that would add up to such a big deduction. It also explained how to handle my app payments that were under the $600 threshold (which I still needed to report even without a 1099). Already recommended it to three other drivers in my area who were equally confused about their taxes. Seriously, if you're new to this whole 1099 thing, check it out!

For those struggling to get answers directly from the IRS about their 1099 reporting obligations - I was in that boat last year and spent DAYS trying to get through on the phone. Literally called 30+ times, always got the "high call volume" message. Finally found https://claimyr.com which got me through to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c They basically hold your place in the IRS phone queue and call you when an agent is about to answer. I was able to confirm exactly what my obligations were as a new 1099 worker and got clarity on some deductions I wasn't sure about. The agent even helped me understand how to set up quarterly estimated payments so I wouldn't face penalties. Definitely recommend if you need specific answers about your situation that Google can't provide.

Just wanted to follow up after trying that Claimyr service I was so skeptical about. I'm honestly shocked it actually worked. After trying to reach the IRS for weeks about my 1099 situation, I gave up and decided to try this as a last resort. Got a call back in about 35 minutes, and suddenly I was talking to a real IRS representative! The agent confirmed that yes, DoorDash reports all 1099s to the IRS automatically, and explained my options since I missed filing last year. They even helped me set up a payment plan that won't break the bank. For anyone in a similar situation - it's definitely better to address tax issues head-on rather than hoping the IRS won't notice. And if you need to actually talk to someone at the IRS, this service is legitimately worth it. Consider me converted from complete skeptic to satisfied customer.

Jumping in to add some practical advice as someone who's been doing gig work for 3 years. The 1099 threshold for 2024 tax year (filing in 2025) is $600, but you should track EVERYTHING from dollar one. I use a free app to track mileage automatically and keep a simple spreadsheet for other expenses (hot bags, phone mount, percentage of phone bill, etc). Set aside 25-30% of what you make for taxes from the beginning. You can also make quarterly estimated tax payments if you're earning a decent amount, which helps avoid a big bill at tax time AND prevents underpayment penalties. Form 1040-ES is what you need for that. Also worth knowing - DoorDash and similar apps often don't withhold ANY taxes, so everything falls on you to pay. Don't get caught by surprise!

Important note: if you made under $12,950 TOTAL for the year (standard deduction for single filers in 2024), you might not owe income tax, BUT you'll still owe self-employment tax on any net profits over $400 from your 1099 work! Self-employment tax is currently 15.3% and applies even if you don't owe income tax. This is something a lot of first-time gig workers miss.

This is such valuable information! As someone who just started with Uber Eats last month, I had no idea about the self-employment tax kicking in at just $400. I've been assuming I'd be fine since I'm nowhere near the regular filing threshold. Quick question for the group - when you say "set aside 25-30%" for taxes, is that from gross earnings or after deducting expenses like mileage? I've been tracking my miles but wasn't sure if I should calculate my tax savings based on total earnings or what's left after the mileage deduction. Also, does anyone know if there's a grace period for first-time 1099 filers? Like, will the IRS be more lenient with penalties if you legitimately didn't know about the self-employment tax requirement?

Just wanted to add something that might help other newcomers like myself - the IRS also has a "First Time Penalty Abatement" (FTA) policy that can waive failure-to-file and failure-to-pay penalties for taxpayers who have been compliant in prior years OR have no prior filing history. Since you mentioned you've never filed before, you might qualify for this if you end up with penalties. You'd need to call the IRS (or use that Claimyr service others mentioned) to request it after you file your return. Also, don't forget that as a delivery driver, you can deduct more than just mileage - things like your phone data plan percentage used for work, insulated delivery bags, car maintenance related to delivery work, and even parking fees during deliveries can add up to significant savings. The key is keeping good records from the start. I wish someone had told me this when I began - it would have saved me a lot of stress and money!