01/15/2025
My cilent asked me is it worth it to file Doordash, Uber, or other rideshare & deilvery apps they work for on their taxes....YESSSS!!!!!!!!!! I file all the different rideshare & delivery app almost every year for my clients using a Schedule C, BUT YOU MUST PAY YOUR TAXES to get the maximum benefit!!!
If you don’t pay taxes while working as a "rideshare" driver, you may face consequences from the IRS or your local tax authorities. Here’s what could happen:
1). Accrued Penalties and Interest: The IRS charges penalties and interest for unpaid taxes. This can quickly add up, making the amount owed significantly higher.
2). Audits: Failure to report income could trigger an audit. If the IRS audits you, they may request records of your earnings, expenses, and bank statements.
3). Loss of Refunds: If you’re owed a tax refund but have unpaid taxes, the IRS may offset your refund to cover the amount you owe.
4). Legal Action: Consistent failure to pay taxes can lead to more severe actions, such as tax liens, wage garnishment, or legal proceedings.
5). Impact on Credit: Unpaid taxes can lead to tax liens, which could negatively impact your credit score.
❇️Tips for Avoiding Issues✳️:
📌 Track Income: DoorDash will send you a 1099 form if you earn $600 or more in a year, but you are required to report all income, even if it’s under $600.
📌 Deduct Expenses: As an independent contractor, you can deduct business expenses like mileage, phone bills, and vehicle maintenance.
📌 Pay Estimated Taxes: To avoid penalties, pay quarterly estimated taxes if you expect to owe more than $1,000..
🗣Consult with a Tax Professional👩🏾💻(⬅️"me"😁):
I can help you ensure compliance and minimize your tax burden.
W2s and 1099s are dropping!!! Would you like help understanding tax deductions or filing as an independent contractor⁉️
