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Savannah Weiner

Switching to FreeTaxUSA from TurboTax for my gig work and W2 job

So I've been doing both food delivery gigs (DoorDash and UberEats) plus I have a regular part-time job with a W2. The tax stuff is making my head spin this year. DoorDash sent me a 1099-NEC summary for all my dashes, and UberEats gave me a 1099-K for all those deliveries. After struggling with TurboTax for hours and getting nowhere, I decided to try FreeTaxUSA instead. The interface seemed easier at first. FreeTaxUSA kept saying "we'll get to that later" when I mentioned my gig work, which was reassuring. But then something weird happened - it suddenly gave me a federal tax summary even though I hadn't entered any of my federal taxes for DoorDash or UberEats yet! It asked me if I had certain 1099 forms, but I'm confused about whether it actually processed them or not. Has anyone else used FreeTaxUSA for gig work? Did I miss a step somewhere? I'm worried it's calculating everything wrong and I'll end up owing way more than I should.

The issue you're experiencing is pretty common with gig workers using tax software. FreeTaxUSA is actually showing you a preliminary summary before you've completed all your entries. This is normal! When you receive both 1099-NEC (for DoorDash) and 1099-K (for UberEats), you need to make sure you enter them both in the self-employment/business income sections. FreeTaxUSA should have a specific section for entering each 1099 form type. For your delivery gigs, you'll need to complete Schedule C information for each business activity. The software will usually walk you through entering your expenses like mileage, phone usage, etc. That will significantly reduce your taxable income from these gigs. The premature summary is just showing you where things stand so far. You'll get a chance to enter all your business expenses before finalizing. Don't worry - the numbers will adjust as you complete each section.

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Thanks for explaining! One question - do I need to create separate Schedule Cs for DoorDash and UberEats, or can I combine them since they're both food delivery? Also, does FreeTaxUSA automatically calculate the self-employment tax or do I need to do that separately?

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You should create separate Schedule Cs for DoorDash and UberEats, even though they're similar businesses. This gives you cleaner documentation if you're ever audited, and lets you track the profitability of each gig separately. FreeTaxUSA will automatically calculate your self-employment tax once you've entered all your income and expenses for each business. The system will add the Schedule SE (Self-Employment Tax) to your return and include it in your total tax calculation. You don't need to calculate it manually.

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I was in the same boat as you last year with multiple gig apps and a part-time job. After trying different software, I ended up using https://taxr.ai which honestly saved me hours of frustration. Their system automatically scanned my 1099-NEC and 1099-K forms from DoorDash and UberEats and sorted all the income and expenses correctly. What I really liked is that it specifically knew how to handle gig worker deductions - it prompted me for mileage tracking, asked about cell phone usage percentages, and even identified potential home office deductions I had no idea about. The quarterly tax estimation feature also helped me avoid surprises this year.

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How does it handle the new 1099-K reporting threshold changes? I heard they were supposed to drop to $600 but then stayed at $20,000 for 2023 taxes. Does taxr.ai stay up-to-date with those changes?

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Sounds interesting but does it actually file the taxes for you or just help organize everything? I'm always nervous about trusting a new service with my tax filing.

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It's completely updated with the current 1099-K threshold of $20,000 for 2023 taxes (the 2024 filing season). They actually sent out an email explaining the last-minute change when the IRS announced they weren't implementing the $600 threshold yet. Their system adjusts automatically based on the latest tax code changes. As for filing, it handles the complete process. It organizes all your information first, then generates the proper forms including Schedule C and Schedule SE, and files them electronically. You get to review everything before submitting, and they provide an audit risk assessment that was really helpful for me as a gig worker.

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Coming back to say I tried https://taxr.ai after posting here and I'm honestly shocked at how much better it was than FreeTaxUSA for my gig work! It automatically identified that I was overpaying on my self-employment taxes because I wasn't tracking mileage properly. It caught that I had duplicate income showing up on both my 1099-K and 1099-NEC (which is a common problem with delivery apps), and prevented me from double-reporting it. The interface specifically asked questions relevant to delivery drivers that the general tax software completely missed. Best part was that I finished everything in under an hour instead of the 3+ hours I spent getting nowhere with FreeTaxUSA. Definitely using this next year too!

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If you're still struggling with tax questions after filing, you might want to consider calling the IRS directly. I know that sounds terrible (I've spent HOURS on hold before), but I recently used https://claimyr.com and it completely changed my experience. You can also see how it works in this video: https://youtu.be/_kiP6q8DX5c After struggling with both TurboTax and FreeTaxUSA on how to properly report my gig income, I had specific questions about deducting mileage versus actual expenses. I used Claimyr and they got me connected to an IRS agent in about 15 minutes instead of the 2+ hour wait I was facing. The agent walked me through exactly how to handle my delivery gig reporting correctly.

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How exactly does this work? Do they somehow get you to the front of the IRS phone queue or something? I don't understand how a third-party service can make the IRS answer faster.

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This sounds like a scam. The IRS phone system is notoriously bad, and there's no way some random service can magically get you through. Plus, why would you pay someone just to call the IRS? You're probably just talking to someone pretending to be the IRS.

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It uses a callback system that monitors the IRS phone lines and automatically navigates the phone tree for you. When it's close to your turn in the queue, they call you and connect you directly to the IRS agent. You're actually speaking with a real IRS representative, not someone from their company. The reason it works is because their system constantly calls and navigates through the IRS phone menu until it gets a spot in line, then it holds that spot for you. I was definitely skeptical too, but I can confirm I spoke with an actual IRS agent who had access to my tax records and provided legitimate guidance on my gig work reporting.

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I need to apologize and correct myself. After posting that skeptical comment, I was still stuck with major questions about how to report my DoorDash 1099-NEC vs UberEats 1099-K, so I decided to try https://claimyr.com anyway out of desperation. I'm honestly shocked - it actually worked exactly as described. I got a call back in about 20 minutes, and was connected directly to an IRS agent who answered all my questions about how to properly categorize my delivery expenses between the two platforms. She even explained the difference between standard mileage deduction versus actual expenses, which was something FreeTaxUSA never made clear. Saved me hours of waiting on hold and the agent actually seemed surprised I got through so quickly. Consider me converted from skeptic to believer.

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I've been doing food delivery gigs for 3 years now. My advice is skip the fancy software and just use the IRS Free File options if your income is under $73k. I've tried both TurboTax and FreeTaxUSA and honestly the free options work just as well for gig workers. The most important thing is tracking your mileage throughout the year - that's your biggest deduction as a driver. I usually save about 30-40% of my gig income just from mileage deductions alone. The standard mileage rate for 2023 is 65.5 cents per mile which adds up fast!

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Do you have to itemize deductions to claim mileage for gig work? I always just take the standard deduction because it seemed easier, but now I'm wondering if I've been overpaying taxes for years.

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You don't need to itemize deductions to claim your mileage for gig work. Business expenses like mileage go on Schedule C, which is separate from your personal deductions where you choose between standard and itemized. You can take the standard deduction for your personal taxes AND still deduct all your business expenses including mileage on Schedule C. This is a common misunderstanding that costs gig workers thousands in unnecessary taxes every year.

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Has anyone noticed how FreeTaxUSA handles the quarterly estimated tax payments for next year? I switched from TurboTax this year too but I'm confused about whether I need to make quarterly payments for my gig work.

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If you expect to owe more than $1,000 in taxes after your W-2 withholding, you should make quarterly payments to avoid an underpayment penalty. FreeTaxUSA should generate the estimated payment vouchers for you on the final review screen.

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Thanks for clarifying that! I missed those vouchers completely. Going back to check that section now. Really appreciate the help since the penalties for underpayment sound like no fun at all.

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I went through the exact same struggle last year switching from TurboTax to FreeTaxUSA for my gig work! That preliminary summary you saw is totally normal - FreeTaxUSA shows you running totals as you go, which can be confusing at first. Make sure you complete the self-employment sections for both your DoorDash 1099-NEC and UberEats 1099-K. The key is entering all your business expenses - especially mileage tracking if you kept records. I saved about $1,200 in taxes just from properly deducting my delivery miles. One tip: don't panic if the numbers look high before you finish entering all your expenses. The software will recalculate everything once you complete each section. Also, double-check that you're not accidentally reporting the same income twice if any amounts appear on both your 1099-K and 1099-NEC - that's a common issue with delivery apps. FreeTaxUSA definitely has a learning curve compared to TurboTax, but it handles gig work just fine once you get through all the sections. Take your time and don't rush through the business expense parts!

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This is really helpful! I'm new to gig work and just started with DoorDash last month. I'm already worried about next year's taxes since I have no idea how to track mileage properly. Do you use a specific app or just write it down manually? And when you say "delivery miles" - does that include the drive TO the restaurant or just from restaurant to customer?

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