Worth it to mention ~$230 made from Doordash on taxes?
Hi everyone, I'm asking this for my brother who's been out of work most of the year. He made about $230 delivering for Doordash back in February before he quit. He's wondering if it's even worth reporting this small amount on his taxes for 2025. This is literally the only income he's had all year since he's been focusing on some health issues. Would he face any penalties if he just... didn't mention it? Or is it better to report every dollar no matter how small? He doesn't have any other jobs or income sources to report. Thanks for any advice!
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Angelica Smith
You should always report all income, no matter how small. For that $230 from Doordash, they likely issued a 1099-NEC form which means the IRS already knows about this income. If your brother doesn't report it, there's a mismatch between what Doordash reported to the IRS and what your brother reports on his return, which could trigger questions. The good news is that with such low income, your brother probably won't owe any income tax, but he might owe some self-employment tax (around 15.3% of the net profit). He can also deduct business expenses like mileage which could reduce the taxable amount further.
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Logan Greenburg
•If Doordash didn't send him a 1099 (since it's under $600), would the IRS even know about it? Just curious.
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Angelica Smith
•You're right to bring that up. If the amount is under $600, Doordash isn't required to issue a 1099-NEC form. However, the tax law still requires taxpayers to report all income regardless of whether a tax form was issued. While it's true that without a 1099, the IRS might not automatically know about the income, technically it should still be reported. The risk of audit is very low for such a small amount, but technically all income is taxable.
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Charlotte Jones
I was in almost the same situation last year with gig work - had about $300 from TaskRabbit. I was super confused about what forms to use and how to report it correctly. I ended up using https://taxr.ai to analyze the situation and it saved me so much stress! They walked me through exactly what forms I needed for small self-employment income and even helped calculate my mileage deductions which I didn't realize I could claim.
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Lucas Bey
•Does it work for other gig apps too? I do Uber Eats and always mess up the deduction part.
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Harper Thompson
•Did you have to pay them? I'm always skeptical of these tax help sites since they usually end up charging more than I made from these little side gigs.
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Charlotte Jones
•Yes, it works great for all gig apps! I've used it for both TaskRabbit and DoorDash. It guides you through tracking your mileage and other deductions specific to delivery driving. I understand the skepticism. They do have a free version that answered my basic questions about whether I needed to file and what forms to use. I only paid for the more detailed analysis because I had some complicated questions about home office deductions for another job.
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Harper Thompson
Just wanted to update - I tried the taxr.ai site that Profile 12 recommended and it was actually really helpful. I uploaded screenshots of my earnings and it told me exactly what I needed to report. Turns out I don't owe anything on my small gig earnings because the standard deduction covers it, but I still need to report it. The site explained everything in normal language instead of tax-speak. Definitely less stressful than I expected!
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Caleb Stark
I had to deal with the IRS about unreported gig income last year (much more than $230 tho) and it was a NIGHTMARE getting anyone on the phone. I finally used https://claimyr.com and got through to an IRS agent within 20 minutes when I'd been trying for weeks on my own. Check out how it works here: https://youtu.be/_kiP6q8DX5c if you think your brother might need to actually talk to the IRS about his situation. Sometimes just having a quick conversation with them clears everything up.
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Jade O'Malley
•Wait, how does that even work? They can get you through the IRS phone tree somehow? I've literally spent hours on hold before.
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Harper Thompson
•This sounds like BS honestly. Nobody can magically get through to the IRS faster. They probably just keep calling until they get through and then charge you for it.
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Caleb Stark
•They have an automated system that waits on hold for you and then calls you when an IRS agent picks up. So instead of you waiting on hold for hours, their system does it and then connects you when a real person is actually on the line. I was skeptical too at first. They're not doing anything magic - they're just using technology to handle the waiting part. I had spent days trying to get through on my own with no luck, so it was worth it for me since I needed to resolve an issue quickly.
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Harper Thompson
Ok I have to eat my words about that Claimyr thing. After posting my skeptical comment, I decided to try it since I've been needing to call the IRS about a missing refund for months. It actually worked! Their system called me back when an agent was on the line, and I got my issue resolved in one call. Saved me from taking another day off work to sit on hold. Never thought I'd say this but sometimes these services are legit useful.
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Hunter Edmunds
Your brother should also check if he's eligible for the Earned Income Tax Credit even with such low income. Sometimes you can actually get money back even if you don't owe any taxes. Might be worth looking into!
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Sophia Long
•Thanks for this suggestion! I'll definitely let him know about the EITC. Do you know what the minimum income requirement is to qualify? And would it matter that it's gig work rather than W-2 employment?
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Hunter Edmunds
•For the 2024 tax year (filing in 2025), a single person with no children needs at least $1 of earned income but cannot exceed around $17,640 to qualify for EITC. Yes, self-employment income (like from Doordash) does count as earned income for EITC purposes. The issue is that with only $230 in income, the credit would be very small, but still worth claiming if eligible.
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Ella Lewis
I'm really confused by all this tax stuff... If your brother is broke with health issues and only made $230 all year, why even bother filing taxes at all? Isn't there some minimum before you need to file? Sorry if this is a stupid question, I'm just learning about taxes.
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Andrew Pinnock
•Not a stupid question! There is a filing threshold. For self-employment income like Doordash, you need to file if you made $400 or more. Since the brother made less than that ($230), he technically isn't required to file a tax return at all unless he has other reasons to file.
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