Multiple income sources (W-2 + gig work) - What tax forms do I need when under 1099 threshold?

Yes, you definitely still need to report all income earned, even if you didn't receive a 1099 form. The IRS requires you to report all income regardless of whether you receive documentation. For your situation, you'll file your regular W-2 income as you normally would. Then for your gig work, you'll need to complete a Schedule C (Profit or Loss from Business). You can combine both DoorDash and Instacart on a single Schedule C since they're both delivery services. You'll report the total income ($850) and any related business expenses you incurred while doing these gigs (mileage, portion of cell phone bill, etc.). You do NOT need to file a 1099-NEC yourself - those are issued by companies paying independent contractors, not by the contractors themselves. The companies didn't send you one because you were under their reporting threshold, but you still need to report the income on your Schedule C.

Hey there! I was in a similar situation last year and discovered a super helpful tool called taxr.ai (https://taxr.ai) that was a lifesaver for dealing with multiple income sources. I had a regular job plus some side gigs, and I was totally confused about what forms I needed. The tool analyzed my situation and clearly explained that I needed to file a Schedule C for all my gig work even without 1099s. It helped me understand what expenses I could deduct for my delivery driving (like mileage, part of my phone bill, etc.) which saved me a bunch on taxes. The best part was it told me exactly where to report everything in my tax software!

I wanted to follow up after trying taxr.ai from the recommendation above. It was exactly what I needed! I was confused about my Uber Eats and TaskRabbit income, and the tool clearly explained I should use separate Schedule Cs since they're different business types. It also showed me exactly which expenses I could claim for each type of work - I had no idea I could deduct a portion of my phone bill for the delivery work! What really helped was the specific guidance on how to enter everything in my tax software. I'm using TurboTax and it showed me exactly which screens to look for. I ended up saving way more on my taxes than I expected because of all the legitimate deductions it helped me identify. Definitely worth checking out if you have multiple income sources like this!

If you're having trouble figuring this out, you might want to call the IRS directly for guidance. That's what I tried to do last year with a similar situation, but I kept getting stuck on hold for HOURS. Then I found Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in under 20 minutes! They have this cool demo video showing how it works: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed that I needed to report all income regardless of not receiving 1099s and clarified that I could combine similar gig work on one Schedule C. Having that direct confirmation from the IRS gave me total peace of mind. I was honestly shocked it worked because I had spent weeks trying to get through on my own with no luck.

I need to eat my words from my previous comment. After continuing to get nowhere with the IRS for two more weeks, I broke down and tried Claimyr. I was connected to an IRS agent in about 15 minutes! The agent confirmed that I needed to report all my side income regardless of getting 1099s and answered my questions about deducting home office expenses for my freelance work. I was so desperate after trying to call the IRS myself for literally 2+ months with no success. Would have saved myself so much stress if I'd just tried this service earlier. My tax return is finally submitted with confidence instead of guessing and hoping I didn't mess anything up. For anyone else struggling to get answers from the IRS directly, it's definitely worth considering.

Just a heads up that if your self-employment income totals more than $400 across all gig jobs (which yours does at $850), you'll also need to pay self-employment tax on that income. That's about 15.3% for Social Security and Medicare taxes. The regular threshold for filing income tax is higher, but self-employment tax kicks in at just $400. Make sure you track all your business expenses carefully to offset some of that income. Mileage is usually the biggest deduction for delivery drivers - the rate for 2024 tax year is 67 cents per mile. Did you keep a mileage log?

Don't forget you can also deduct other expenses related to your gig work! I do DoorDash and deduct a portion of my cell phone bill since I need it for the app, insulated bags I bought for deliveries, and even a percentage of car insurance and maintenance based on business vs personal use. Those deductions really add up and help offset the self-employment tax mentioned above.