![]() It's based on what's left over after your expenses. This is because profit is what you should be taxed on, not the money that is paid to you by Uber Eats or Grubhub or any other apps that use you as an independent contractor. That's what goes into the income part of the form, right?Īs independent contractors we think maybe we need to put our 1099 information in that area.īut here's the thing: If you're just moving your 1099 information from Doordash or Uber Eats or Instacart over to your tax form, you're doing it wrong. Most of us are used to putting our W2 information down on our tax forms. Okay, taxes are confusing sometimes, but there's a method to the IRS's madness. I know, this part probably doesn't make sense, but when you do your taxes you actually claim your expenses in the INCOME section of your taxes. As an independent contractor, standard or itemized deductions have nothing to do with claiming your expenses. Or any other that you receive, at least without confirming it with reputable sites or experts. That one common mistake can cost you thousands of dollars in extra tax money. They'll tell you the standard deduction is better. I can't get over how many people will tell you not to bother with your expenses. ![]() I guarantee, you will be besieged with bad advice. Let me tell you right now: DO NOT, I repeat DO NOT ask for or listen to tax advice on Facebook or Reddit or any other forums. ![]() Understand how expenses work on your taxes Even though this person didn't spell “Standard” properly, it doesn't matter if you itemize or take the standard deduction as an independent contractor for Doordash, Uber Eats, Instacart, Grubhub and others. Your business expenses as an independent contractor work differently than your personal tax deductions. Track your expenses because it doesn't matter if you itemize or use the standard deduction. Is it better to itemize or to use the standard deduction when you deliver as an independent contractor with Doordash, Instacart, Uber Eats, Grubhub or other platforms? What if your expenses don't add up to the $12,000 Standard Deduction? I can now continue with my tax submission on your platform.Įxcellent, let me know you have any further problems.Īnd tagged Salary / IRP5, Independent Contractor, Deductions, Commission, Depreciation / Wear and Tear, Travel Allowance.You hear people talk a lot about tracking your miles and your expenses when you deliver as an independent contractor for third party delivery platforms.īut what if you don't deliver that much? What if this is a part time gig. we ask all these questions under the Tax Deductions section on our process. Your travel costs can also be claimed, if you traveled less than 8000km, then you can claim the SARS rate per km x the business travel you did. Yes you can, you would include the costs expended under the Other Section of the Tax Deductions section on TaxTim. What I want to know is can I claim, under the allowable expenses, for things such as vehicle depreciation/KMs traveled/vehicle service costs etc?Īlmost all my work related travels are from home to the client site and back, which I have kept a log book for. I don't get any allowance, and my company pays income tax every month. Hi, I'm an independent contractor and my income is indicated under code 3616.
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