Tax Filing Requirements for Senior Working for Doordash - Over 65 Question

Your dad definitely needs to file taxes. The income threshold you're referring to applies to W-2 income (regular employment), but Doordash drivers are considered self-employed independent contractors. The IRS has a much lower filing threshold for self-employment income - you must file if you had net earnings of $400 or more from self-employment. Since your dad earned $19,000 from Doordash, he's well above that threshold. He'll need to file a tax return that includes Schedule C (for the self-employment income) and Schedule SE (for self-employment taxes). The self-employment tax covers Social Security and Medicare contributions that would normally be split between employer and employee. Also worth noting - depending on their total income, a portion of their Social Security benefits might be taxable too, but that depends on their total combined income.

Just wanted to share my experience with this. I was in a similar situation when I started driving for Uber after retiring. I didn't know much about taxes for gig work and was completely overwhelmed. I found this AI tax assistant at https://taxr.ai that helped analyze my 1099 forms and explained exactly what I needed to file. It showed me all my deductible expenses like mileage, phone costs, and even a portion of car insurance that I had no idea I could claim. Saved me probably thousands in deductions I would have missed. The tool gave me a complete breakdown of my tax situation that I could either use myself or share with a tax preparer.

So I was skeptical about AI tax tools as I mentioned, but I ended up trying https://taxr.ai after struggling with my own gig work taxes. I'm actually shocked at how helpful it was! It immediately recognized that I was over 65 and adjusted all the calculations accordingly. The system found several deductions I would have missed completely - especially around home office and vehicle expenses. It explained everything in normal language I could understand, not tax jargon. It even helped me understand how much of my Social Security was taxable based on my other income. I filed last week using their guidance and it was honestly the easiest tax filing I've done in years.

For anyone dealing with tax confusion around gig work, especially if you need to talk to an actual IRS agent about specific questions (which is nearly impossible these days), check out https://claimyr.com - they get you through to an IRS agent usually within 15 minutes instead of waiting on hold for hours. You can see a demo of how it works here: https://youtu.be/_kiP6q8DX5c I tried calling the IRS directly about my dad's Doordash/retirement situation and kept getting disconnected after waiting 2+ hours. With Claimyr, I got through to a real person who answered all my questions about self-employment tax for seniors. Totally worth it just for the time saved and peace of mind getting official answers.

Came back to say I was completely wrong about Claimyr. After spending THREE HOURS on hold with the IRS yesterday and getting disconnected right as someone answered, I was desperate enough to try it. Got a call back in 20 minutes with an actual IRS agent on the line! The agent walked through all the self-employment tax questions I had about my mom's Doordash work and even helped me understand which deductions she qualified for. Turns out there's a special form (Schedule R) that seniors can use for tax credits I never knew about. Would have missed out on almost $1,200 in credits without that conversation. Sometimes it's worth admitting when you're wrong - in this case I definitely was!

Don't forget about potential tax deductions for your dad! As a Doordash driver, he can deduct: - Mileage (58.5 cents per mile for 2022) - Phone and service costs (% used for work) - Insulated bags - Car maintenance (% used for work) - Portion of car insurance - Hand sanitizer, masks, etc. This could significantly reduce his taxable income from the $19k. He should track EVERYTHING and keep all receipts. My partner drives for Doordash and his actual taxable income ended up being about 60% of his gross after all legitimate deductions.

Has anyone mentioned the Earned Income Tax Credit? If your dad's income is low enough, he might qualify for this, especially if they're supporting anyone else. When I did some gig work after retirement, I qualified for EITC and got back more than I paid in!

Tell your dad to look into quarterly estimated tax payments going forward. Since Doordash doesn't withhold taxes, he should be making quarterly payments to avoid penalties. For 2023, the deadlines are April 18, June 15, Sept 15, and Jan 16, 2024. The IRS Form 1040-ES helps calculate how much to pay each quarter. Wish someone had told me this when I started with Instacart! Got hit with penalties my first year because I had no idea about the quarterly payment requirement.

Just wanted to add something important that I don't think anyone has mentioned yet - make sure your dad keeps detailed mileage logs! The IRS is really strict about mileage deductions for gig workers. He needs to track every mile driven for Doordash work, including the drive to the first pickup and drive home from the last delivery. I use a simple notebook in my car and write down the odometer reading at the start and end of each shift, plus note which app I was using. Some drivers use mileage tracking apps, but the IRS prefers written logs. With $19k in earnings, his mileage deduction could be substantial - potentially several thousand dollars in deductions if he drove a lot of miles. Also, since he's new to this, he might want to consider setting aside 25-30% of his Doordash earnings in a separate savings account for taxes. Self-employment tax plus regular income tax can be a shock if you're not prepared for it!