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Navigating the world of taxes as a gig driver can be overwhelming, but taking advantage of deductible business expenses can significantly reduce your taxable income. Why ATBS? About Get Started! Helpful Resources Tax Deductible Expenses for Rideshare Drivers and Food Couriers Navigating the world of taxes as a gig driver can be overwhelming, but taking advantage of deductible business expenses can significantly reduce your taxable income. When it comes to common deductible expenses, keep in mind that almost any ordinary and necessary cost for the operation of your gig business can potentially save you money come tax time. Companies will report to the IRS the gross (total) income or revenue paid to you. The IRS will expect you to pay taxes on that amount, unless you track and document expenses you're allowed to deduct and are considered reasonable for operating your business. For gig drivers looking to maximize deductions and minimize taxes, understanding what is deductible and maintaining good documentation are the keys to success. Staying vigilant about tracking these expenses is fundamental for streamlining the tax filing process and substantiating your claims on a tax return. Expenses, Fees and Taxes Your company will likely report a gross revenue amount for the total ride, then deduct amounts they charge to provide their service to you. These deductions are often detailed under expenses, fees, and taxes. These deductions can all be deducted from your Gross Pay as expenses to get to your Net Payout. Vehicle Expenses For gig drivers, vehicle expenses often represent the largest share of deductible business costs. You have two options for claiming vehicle expense deductions: tracking actual vehicle expenses or using the standard mileage rate provided by the IRS. The actual expenses method includes all costs associated with operating your vehicle for business purposes, such as gas, maintenance, repairs, vehicle insurance, and loan payments (taken as depreciation and interest) or lease payments. You must keep detailed records and receipts for all these expenses to claim them on your tax return. This method can be complicated but advantageous if the actual expenses outweigh the amount you'd claim using the standard mileage rate. On the other hand, the standard mileage rate simplifies record-keeping. In 2025, the IRS has increased this rate from 67 cents per mile to 70 cents per mile for every business mile driven. This rate is designed to account for the costs mentioned above without the need for detailed logs. However, you must still document the dates of business trips, mileage, and purpose of the travel to use this method. Deduction Method Requirements Notes Standard Mileage Tracking total business miles driven Cannot claim actual car expenses Actual Expenses Detailed records of all car-related expenses All vehicle miles Total business miles driven To arrive at your deductible expense, multiply your total expenses by your percentage used for business miles Other Business Expenses Outside of vehicle expenses, there are still numerous opportunities to lower your taxable income through other business deductions. A variety of business-related expenses are deductible, such as parking fees, tolls, and supplies provided to passengers, like water bottles and candies or snacks. Items needed for your day-to-day operations, such as a quality mobile phone plan, can also be deductible Don't forget, if you've opted for a roadside assistance plan for those just-in-case scenarios, this too can be deductible. However, not every expense can be written off. Clothes, meals, and entertainment are not considered ordinary and necessary business expenses and must be handled separately. Similarly, while health insurance is a crucial expense, it may not fall under business expenses for tax purposes, unless it is a plan specifically for your business. In keeping with IRS requirements, maintaining comprehensive logs and receipts for both vehicle-related and other business expenses is paramount for successful deductions. It's recommended to use a mileage tracking app or a well-organized spreadsheet to make sure nothing slips through the cracks and to ease the burden during tax season. Summary of Common Deductions Standard mileage deduction (currently 70 cents per mile in 2025) Vehicle Expenses (If you aren’t using the standard mileage deduction) Platform Fees Phone & Internet (When used for your business) Supplies Provided to Passengers Washing & Cleaning Parking Tolls Subscriptions Satellite Radio ATBS Services Gig drivers have unique tax obligations that need to be understood and managed effectively. ATBS Ride was designed to eliminate the headache of numbers and paperwork, allowing you to focus on your gig instead of taxes bookkeeping. Want to learn more? Click here to simplify your life . info@atbs.com (888) 640-4829 600 12th St. #200 Golden, CO 80401 © 2024 COPYRIGHT ATBS BACK TO TOP PRIVACY POLICY

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Why ATBS? About Get Started! Helpful Resources The Complete Guide to Amazon Flex Driver Taxes Download Now! Navigating taxes as an Amazon Flex driver can be complex. That’s because Amazon Flex drivers operating as independent contractors face unique tax responsibilities that don't apply to regular employees. That’s why we came up with this comprehensive guide to understanding and managing taxes as an Amazon Flex driver, covering everything from self-employment taxes to maximizing deductions and adhering to important deadlines.

We've put together a list of the most frequent questions we receive. These questions are specifically about our tax, accounting, and bookkeeping services. Frequently Asked Questions We've put together a list of the most frequent questions we receive. These questions are specifically about our tax, accounting, and bookkeeping services. What services do you provide? We provide tax, accounting, bookkeeping, and consulting services to owner-operator truck drivers. We offer three levels of service - Rumblestrip Professional, Rumblestrip Essentials, and Rumblestrip Enterprise. Rumblestrip Professional (most popular) is designed for owner-operators who want bookkeeping, accounting, tax, and consulting services. Rumblestrip Essentials is for owner-operators who have been in business for a while but want efficient and convenient back-office solutions. RumbleStrip Enterprise is for those owner-operators who are ready to take the next big steps in growing their trucking fleet and need a complete back-office solution to support it. What if I just want my taxes filed? We offer a stand alone tax preparation service where we will complete and file current or prior year State and Federal tax returns on your behalf. Can ATBS file my taxes and my spouse's taxes? As a married taxpayer, you have two choices, Married Filing Jointly and Married Filing Separately. Generally, Married Filing Jointly will work out better for a taxpayer, but not always. ATBS can prepare the return both ways, and then provide you with them both to indicate the best tax outcome for you. I want to incorporate my business, can you help with that? Yes, we can set up an entity for you at a one-time fee. There are several variables that are important to consider when setting up a business entity. Give us a call so we can determine your current setup and future goals so we can use our trucking industry expertise to help set up the right entity for you! To learn more about incorporation, download the ATBS Incorporation ebook. What type of drivers do you work with? Our services are designed specifically for independent contractors. It doesn’t matter if you drive through a lease-purchase program, are running as an owner-operator on your own authority, running as a sub-contractor, or are growing a small trucking fleet of your own, we will work with you. What do I have to do as an ATBS client? All you have to do as an ATBS client is scan and send us your receipts, settlements, financial statements, and tax documents. ATBS will do the rest. With this information, ATBS will be able to provide you with monthly profit & loss statements, quarterly tax estimates, a completed Federal & State tax return, and advice on how to better run your business. How do I send in my receipts and financial documents? Please send in receipts for all business expenses you pay out of pocket. DO NOT include meal and drink receipts as you will want to take the per diem deduction . You can send in your receipts and financial documents with our ATBS Mobile App (preferred), an email, fax, or by mail. How do I access my profit & loss statements and quarterly tax estimates? You may access your Profit and Loss statements, Quarterly tax Estimates, and commonly used documents on the Secure Client Portal of the ATBS website. You’ll have access to this portal 24/7. What carrier do you work for? We don’t work for any one carrier. We partner with multiple truck carriers to provide their drivers with discounts on our services. We don’t care who you pull for, we work for you, not the carrier. Does ATBS have a Referral Program? Yes, you will be eligible to receive a $50 Amazon Gift Card for every new client that enrolls with us for at least 90 days. Learn more about the ATBS Referral Program . Can I cancel the services at any time? Yes, you can cancel our services at any time. Services are rendered on a month-to-month basis. We don’t believe in long-term contracts that force you to continue using our services. We want you to stay with ATBS because you want to, not because you’re forced to. Why should I choose ATBS over a regular tax company or another truck tax accounting firm? Owner-operators choose to work with ATBS over other tax and accounting companies for many reasons. We’ve been in the industry for over 20 years and have worked with tens of thousands of owner-operators. We study the tax code each year with owner-operator truck drivers in mind to make sure we are filing their taxes correctly and taking advantage of every legal tax deduction they are entitled to. In addition to just filing taxes and doing the bookkeeping, we offer business consulting services to make sure our clients are running their business as efficiently and profitably as possible. On top of this, the ATBS Mobile App makes it so that all our clients have to do is use the app to take pictures of their receipts and financial documents which get automatically sent to us. No other company provides the services we provide, at the cost we provide them, with the ease it takes to work with us! Do you have a question that we didn't answer? CONTACT US

About Us - American Truck Business Services history, where we are today, our mission, purpose, vision & more! OUR HISTORY Our founders grew up in trucking...literally. At the age of 12, they worked during the summers in maintenance, dock work, and office tasks for their family truck line, Trans-Western Express. As adults, they ran the fleet and worked to convert their 350 drivers to become owner-operators. It was during this time that they saw a need to help great drivers become great business owners, as there were few, if any, resources available to these drivers. When they sold their trucking business in the late 90’s, they took their passion for owner-operators and started American Truck Business Services, now known as ATBS. It started simple...in the back of a garage, helping truck drivers with their taxes. ABOUT US Learn more about our history, where we are today, our mission, purpose, and vision, and more! ATBS TODAY Since 1998, we’ve helped over 150,000 truck drivers with their business, and we can’t wait for the opportunity to help you! We think you’ll become a more complete driver if you can more easily balance your career with the precious amount of free time you have with your family, or the personal passions you love. As the largest tax and accounting firm for owner-operator truck drivers, we take the complexity out of your lives. We handle the 'business of driving'. This means that our clients are doing what they love to do - drive, while they have less stress, make more money, and have more fulfilling personal lives. WHY RUMBLESTRIP? At ATBS, we keep your business 'between the lines'. That notion was what led us to create and optimize the ATBS ‘RumbleStrip’ service packages. Just like rumble strips on the interstate help you course-correct and keep you safe, we help course-correct your business. Often it’s a small nudge due to inattention, or perhaps a more fundamental shift in trajectory. Either way, your well-being, both financial and personal, is our primary concern! MISSION What We Do Everyday We provide accounting, tax, and business consulting services that help our clients prosper and live a richer life. PURPOSE Why We Exist We positively influence all who come into contact with ATBS and help them achieve their full potential. VISION Our Legacy To utilize our God-given time, talent, and treasure to love and impact people for eternity.

Here is our collection of truck photos that have been sent to us over the years. Are you proud of your truck? Send us a photo and be featured in our gallery! TRUCK GALLERY Here is our collection of truck photos that have been sent to us over the years. Are you proud of your truck? Send us a photo and be featured in our gallery! Clifton Fowler Mike Rust Jessica Tucker Douglas Huffman Gabriel Strasser Ron Arguin Kevin Kocmich Shannon Farris Barry & Melissa Graddick Show More

Meet the members of our leadership team. These individuals help guide the direction of our company to make sure we're continuously providing exceptional service. OUR LEADERSHIP TEAM

Love using ATBS? Earn $50 by helping other drivers succeed! Referring your friends to ATBS is simple. Just follow these three easy steps. ATBS NAVIGATOR: JIMMY NEVAREZ Did Jimmy Refer You to ATBS? Let us know! Get to Know Jimmy! 1. Where are you from? Southern California born, raised, and currently residing. 2. What kind of loads do you haul? General dry van freight consisting primarily of both alcoholic & non-alcoholic beverages, appliances, and foodstuffs. 3. What kind of truck do you drive? I have a fleet consisting of several manufacturers, but my go-to is the Freightliner Cascadia. 4. Where do you usually haul to? Primary lanes take our trucks to the Southwestern 3 (CA, AZ, NV), but you may see our trucks from time to time on irregular trips anywhere in the Western half of the US. 5. How long have you been a driver? 22 years 6. What carrier do you drive with? I'm no longer a “driver” so to speak as of about 2 years ago, though I still maintain my CDL and medical. I am instead the Owner and President of Angus Transportation, Inc. and sole handler of all business aspects day-to-day. 7. Why would you recommend that owner-operators use ATBS? In an industry where there seems to be a new deadline or regulation each and every day, utilizing someone to handle the bookkeeping and financial aspects of a business gives you one less thing to worry about. 8. What do you listen to on the radio? 90’s Ska, Country, Celtic rock, 90’s Alternative 9. What are you most passionate about in trucking? Helping others learn to be successful. Sharing knowledge from my slips and stumbles along the way, in an effort to keep others from doing the same. “Leading the horses to water” and hoping the occasional one along the way “takes a drink”! 10. Do you still use a CB radio? When I drove I still “had my ears on” every day! Though it seemed to be a lesser used form of commutation in this day and age, it still offered a way to help pass the miles and keep a heads up ahead of the journey for any unexpected hazards. Follow Jimmy on social media: https://www.facebook.com/Angus-Transportation-Inc-677743072255678/ CHECK OUT JIMMY'S MOST RECENT VIDEOS BY CLICKING BELOW! WATCH NOW

Amazon Flex drivers have unique tax obligations that need to be understood and managed effectively. That’s why we came up with this comprehensive guide to help. Why ATBS? About Get Started! Helpful Resources The Complete Guide to Amazon Flex Driver Taxes Navigating taxes as an Amazon Flex driver can be complex. That’s because Amazon Flex drivers operating as independent contractors face unique tax responsibilities that don't apply to regular employees. That’s why we came up with this comprehensive guide to understanding and managing taxes as an Amazon Flex driver, covering everything from self-employment taxes to maximizing deductions and adhering to important deadlines. Types of Taxes for Amazon Flex Drivers Amazon Flex drivers operate as independent contractors, which means they manage their own business finances, including taxes. The primary taxes that impact Amazon Flex drivers are self-employment taxes, federal income taxes, and state income taxes. Unlike traditional employees, these drivers must independently track and pay these taxes directly to the IRS and their state's Department of Revenue. Self-Employment Taxes Self-employment taxes consist primarily of Social Security and Medicare taxes that total 15.3% of an Amazon Flex driver's income. This percentage is split into 12.4% for Social Security and 2.9% for Medicare. There's one big difference between self-employment tax and the payroll taxes people who work for an employer pay. Typically, employees and their employers split the Social Security tax and Medicare tax (i.e., you pay 7.65% and your employer pays 7.65%); while self-employed people pay all of it. Amazon Flex drivers are required to pay self-employment taxes if their net earnings exceed $400. Drivers should fill out a Schedule SE, to accompany their personal tax return if they have earned this threshold amount in annual earnings from delivery work. It is paramount to know that self-employment tax is not the entirety of the tax obligation but is rather an additional tax on top of regular income taxes. Federal Income Taxes Federal income taxes are determined by applying the appropriate tax rates to the Amazon Flex driver's taxable income—which includes all self-employment income after deductions and exemptions. Since Amazon Flex drivers are independent contractors, they need to set aside funds for federal and possibly state and local income taxes. A strategic practice for drivers is to set aside approximately 25% of their net income to ensure they have enough money saved to cover the amount of tax owed. This covers both federal income and self-employment taxes. Click here to view the federal income tax rates and brackets State and Local Income Taxes State and local income taxes are another financial responsibility Amazon Flex drivers must manage. Tax rates vary dramatically across the U.S., with some states having higher rates and other states forgoing income tax altogether. Amazon Flex drivers need to understand and adhere to the tax requirements of their state of residence. Unlike federal income taxes, which have uniform rates across the country, state taxes are not standardized. Drivers should consult with a tax professional or use reliable tax software to ensure they remain compliant with both federal and state tax codes. Tax advice is always beneficial, especially for drivers new to the delivery business, to navigate the complexities of various tax deductions, income thresholds, and payment schedules. Deductible Expenses for Amazon Flex Drivers Navigating the world of taxes as an Amazon Flex driver can be overwhelming, but taking advantage of deductible business expenses can significantly reduce your taxable income. When it comes to common deductible expenses, keep in mind that almost any ordinary and necessary cost for the operation of your Amazon Flex business can potentially save you money come tax time. Amazon Flex will report to the IRS the gross (total) income or revenue paid to you. The IRS will expect you to pay taxes on that amount, unless you track and document expenses you're allowed to deduct and are considered reasonable for operating your business. For Amazon Flex drivers looking to maximize deductions and minimize taxes, understanding what is deductible and maintaining good documentation are the keys to success. Staying vigilant about tracking these expenses is fundamental for streamlining the tax filing process and substantiating your claims on a tax return. Expenses, Fees and Taxes Amazon Flex will likely report a gross revenue amount for the total ride, then deduct amounts they charge to provide their service to you. These deductions are often detailed under expenses, fees, and taxes. These deductions can all be deducted from your Gross Pay as expenses to get to your Net Payout. Vehicle Expenses For Amazon Flex drivers, vehicle expenses often represent the largest share of deductible business costs. You have two options for claiming vehicle expense deductions: tracking actual vehicle expenses or using the standard mileage rate provided by the IRS. The actual expenses method includes all costs associated with operating your vehicle for business purposes, such as gas, maintenance, repairs, vehicle insurance, and loan payments (taken as depreciation and interest) or lease payments. You must keep detailed records and receipts for all these expenses to claim them on your tax return. This method can be complicated but advantageous if the actual expenses outweigh the amount you'd claim using the standard mileage rate. On the other hand, the standard mileage rate simplifies record-keeping. In 2025, the IRS has set this rate at 70 cents per mile for every business mile driven. This rate is designed to account for the costs mentioned above without the need for detailed logs. However, you must still document the dates of business trips, mileage, and purpose of the travel to use this method. Deduction Method Requirements Notes Standard Mileage Tracking total business miles driven Cannot claim actual car expenses Actual Expenses Detailed records of all car-related expenses All vehicle miles Total business miles driven To arrive at your deductible expense, multiply your total expenses by your percentage used for business miles Other Business Expenses Outside of vehicle expenses, there are still numerous opportunities to lower your taxable income through other business deductions. A variety of business-related expenses are deductible, such as parking fees, tolls, and items needed for your day-to-day operations, such as a quality mobile phone plan. Don't forget, if you've opted for a roadside assistance plan for those just-in-case scenarios, this too can be deductible. However, not every expense can be written off. Clothes, meals, and entertainment are not considered ordinary and necessary business expenses and must be handled separately. Similarly, while health insurance is a crucial expense, it may not fall under business expenses for tax purposes, unless it is a plan specifically for your business. In keeping with IRS requirements, maintaining comprehensive logs and receipts for both vehicle-related and other business expenses is paramount for successful deductions. It's recommended to use a mileage tracking app or a well-organized spreadsheet to make sure nothing slips through the cracks and to ease the burden during tax season. Summary of Common Deductions Standard mileage deduction (currently 67 cents per mile in 2024) Vehicle Expenses (If you aren’t using the standard mileage deduction) Platform Fees Phone & Internet (When used for your business) Washing & Cleaning Parking Tolls Subscriptions Satellite Radio ATBS Services Record-Keeping Tips for Amazon Flex Drivers Detailed records serve as an irreplaceable component of the tax return filing process for Amazon Flex drivers. When you keep a precise tally of income and costs, you're better prepared to capture all eligible tax deductions, including the smaller, often-forgotten expenditures such as car washes and phone bills. This diligent tracking isn't just for the IRS; it enables you to understand and grow your business by giving you an accurate measure of your expenses and net earnings. Key to effective record-keeping for Amazon Flex drivers is the use of reliable tools and systems to organize data throughout the year. This includes a dedicated space or digital solution for storing receipts, an accurate and up-to-date log for tracking business miles versus personal miles, and a comprehensive overview of all business-related expenses. Mileage Tracking For Amazon Flex drivers, mileage tracking is not a mere suggestion—it's a necessity. By distinguishing between business and personal miles, you're able to capitalize on the generous mileage deduction offered by the IRS. Business miles include the distance traveled while conducting business for tasks such as driving to pick up items, moving with items on board, and completing delivery drop-offs. This may include excess business miles between paying trips, and driving to places related to your business (picking up supplies, driving to a car wash or shop for maintenance). Many Amazon Flex drivers work directly with customers outside of the app. Because these rides aren’t tracked in any app, it’s important you keep track of the miles yourself in order to maximize your tax deduction. The ATBS Hub makes tracking these off-the-books miles easy. To ensure compliance and ease during tax time, employ a dedicated mileage tracker app or a simple, well-maintained mileage log. The former typically automates the process, distinguishing between personal and business mileage and providing easily generated reports. Remember, accurate mileage tracking aids in claiming either the IRS standard mileage rate or actual vehicle expenses. Many apps provide mileage tracking on their statements while operating under that app. The challenge is if you work for more than one delivery company, you will likely not have accurate mileage tracking. Additionally, the mileage tracked by delivery apps can be off by 10% or more, costing you valuable deductible miles. Keeping Receipts and Documentation Keeping detailed receipts and proper documentation is like guarding the keys to your financial kingdom. Embrace technological solutions like apps or cloud-based software to categorize and store your receipts digitally, ensuring a lasting, accessible record should the IRS request evidence of expenses. Alongside the digitized proof, maintain a physical copy when possible for added security against potential data loss. The ATBS Hub allows you to capture your receipts and documents instantly and will serve as your digital storage box allowing you to store your documents forever. Couple your mileage logs with receipts for every deductible expense. This includes keeping tabs on your car insurance, oil changes, and any repairs. For the IRS, the correlation between your receipts and mileage log illustrates the integrity of your claims. Don't tempt fate by attempting to double-deduct; it's vital to steer clear of claiming both mileage and actual car expenses. Lastly, keep your tax documents, such as 1099-K and 1099-NEC forms, orderly and readily available for a streamlined and accurate reporting experience. By following these record-keeping tips, you, as an Amazon Flex driver, can navigate the complexities of self-employment taxes with confidence, ensuring that you maximize your deductions and minimize any potential audits or penalties. Tax Filing Process for Amazon Flex Drivers Navigating the tax season comes with a unique set of challenges for Amazon Flex drivers, who operate as self-employed independent contractors. Rather than having taxes withheld from a paycheck like traditional employees, Amazon Flex drivers must be proactive about setting aside a portion of their earnings to meet these obligations. While this offers flexibility in managing finances, it requires a comprehensive understanding of what is owed and when—prompting many drivers to turn to reliable tax filing software or professional financial advisors to ensure accuracy and compliance. Reporting Earnings from Delivery Services (Form 1099-MISC, 1099-K) Amazon Flex drivers primarily receive earnings documentation via Form 1099-MISC and Form 1099-K, ensuring a record of their income is reported to both them and the IRS. These forms from Amazon Flex detail the income earned, including passenger charges, fees, and tolls, which not only reflect earnings but also provide information on deductible business expenses. For reporting purposes of sole proprietors, Amazon Flex drivers will utilize IRS Schedule C to report their business profits, which is used alongside Schedule SE (for self-employment tax), should their net profit exceed $400. It is critical for drivers to include their annual earnings as well as expenses on Schedule C to calculate the profit or loss from their delivery business operations. Even for drivers who pay quarterly estimated taxes, filing an official tax return by the April 15 deadline, or the extension deadline of October 15, is mandatory. The process requires organization and readiness, with key tax documents including 1099-K, and 1099-NEC forms, detailed receipts, mileage logs, and proof of any estimated taxes paid to be kept on hand. Furthermore, access to essential personal information, such as Social Security numbers, is imperative for filing. Understanding when you will receive a 1099-K form is important for Amazon Flex drivers, as this tax document is tied to certain earning thresholds and will guide your reporting. For 2024, the IRS mandates that a 1099-K is issued to those who have made over $5,000 in customer payments and provided at least 200 rides or deliveries in the past year. However, some states set this threshold lower, meaning you might receive a 1099-K even if you haven't hit the $5,000 mark. This includes being paid for rides directly with the client without going through a ride-share platform. Key points regarding 1099-K and tax reporting include: Receiving a 1099-K will depend on your annual earnings and the number of transactions you've completed, with some states imposing lower thresholds. In addition to 1099-K forms, you may receive a Form 1099-NEC if you've earned $600 or more through promotions, referrals, or other miscellaneous payments. As an Amazon Flex driver, staying informed of these reporting thresholds is crucial. Make sure to be aware of the specific 1099-K rules in your state as they could differ from federal requirements, thereby impacting the documentation you receive and need to report. How to file Amazon Flex driver taxes without a 1099? All income generated as a ride-share driver is reportable to the IRS. If you don’t receive a 1099 you should manually add the revenue earned to your Schedule C. You will need your yearly summary from your delivery company and any personal records you have of revenue and deductible expenses. Your best bet is to report all your revenue and expenses because the IRS will find out about it. Filing Schedule C for Business Income and Expenses Schedule C is the tax form used by Amazon Flex drivers to report the income and expenses related to their business. On this form, earnings reported on 1099 forms are entered, and the business expenses are meticulously listed to calculate the net profit or loss from their delivery driving. The tax summary provided by Amazon Flex delineates between incomes reported under 1099-K (for payment transactions) and 1099-NEC (for non-employee compensation) facilitating the correct reporting on Schedule C. Filing a Schedule C is essential as it not only determines taxable business income for income taxes but also lays the groundwork for self-employment tax calculations on Schedule SE. If fully utilized, the ATBS Hub will create a Schedule C by combining your miles and the documents you sent, thus simplifying your tax filing process. Calculating Self-Employment Taxes (Schedule SE) Self-employment taxes, which encompass Social Security and Medicare, are a significant tax consideration for Amazon Flex drivers. To compute these, drivers must fill out Schedule SE, which calculates the tax based on net earnings from self-employment. This form ensures that those who work independently are contributing to their Social Security and Medicare similar to traditional employees. Crucially, Amazon Flex drivers can deduct half of the self-employment tax they owe as an adjustment to income on their tax return. This deduction mitigates the overall tax impact and lowers their taxable income. To assist with these calculations, which can often become complex, tax preparation software, or the expertise of a tax professional, can be very helpful and valuable. Quarterly Estimated Tax Payments for Self-Employment Taxes For Amazon Flex drivers who have transitioned to being their own business owners, understanding the process of quarterly estimated tax payments is imperative. This system is designed to allow self-employed individuals, including Amazon Flex drivers, to pay portions of their expected annual income taxes throughout the year. These are the key facts you need to know: Self-employed individuals with an income over $75,000—or $150,000 for those filing jointly—are expected to pay 110% of the previous year's taxes. Quarterly estimated tax payments have specific due dates throughout the year, generally falling in the middle of April, June, September, and the following January. You are required to make estimated tax payments if you anticipate owing more than $1,000 in taxes for the year. Payments can be made either by mail or online through the Electronic Federal Tax Payment System. For those who are new to self-employment, such as Amazon Flex drivers, estimating annual earnings from weekly earnings can aid in determining how much should be sent in quarterly estimated tax payments. Proactive tax payments can help avoid underpayment penalties and ensure smooth financial planning. Wrapping up Amazon Flex drivers have unique tax obligations that need to be understood and managed effectively. Making quarterly estimated tax payments and staying informed about the reporting thresholds for forms like 1099-K and 1099-NEC are crucial steps in fulfilling these obligations. By proactively addressing their accounting and tax responsibilities, Amazon Flex drivers can avoid penalties, ensure accurate reporting, and maintain financial stability. It is important to consult with a tax professional or use reputable tax software to navigate these complexities and maximize tax deductions. With the right knowledge and preparation, Amazon Flex drivers can confidently handle their tax obligations. The ATBS Hub was designed to eliminate the headache of numbers and paperwork, allowing you to focus on your work instead of bookkeeping. Want to learn more? Click here to simplify your life . info@atbs.com (888) 640-4829 600 12th St. #200 Golden, CO 80401 © 2024 COPYRIGHT ATBS BACK TO TOP PRIVACY POLICY

90 Days Free + Your Special Discounted Rate We value your past business with ATBS, and to show our appreciation, we're offering you an exclusive opportunity during our ATBS Sales Event: 90 days of FREE Tax and Bookkeeping services! Get back to hassle-free tax preparation, expert support, and powerful tools to get your trucking business running at peak performance. This special offer is only available until July 15th, 2025 , so don't miss out! Fill out the form to claim your FREE 90 days! CLAIM OFFER Fill out the form below and we'll give you a call to get set up or answer any questions you might have. Offer limited to returning clients only. Offer ends July 15th, 2025. The free 90-day period applies solely to completion fees associated with tax and bookkeeping services for returning clients who commence services during the calendar year 2025. This offer is subject to change or termination without notice. Additional terms and conditions may apply. PHONE Current Clients: 888-640-4829 Enrollment: 866-920-2827 EMAIL General Inquiries: info@atbs.com Submit Receipts: fleet1@atbs.com MAIL 600 12th Street, Suite 200 Golden, CO 80401

Rideshare drivers have unique tax obligations that need to be understood and managed effectively. That’s why we came up with this comprehensive guide to help. Why ATBS? About Get Started! Helpful Resources The Complete Guide to Rideshare Driver Taxes (Uber & Lyft) Navigating taxes as a rideshare driver can be complex. That’s because rideshare drivers, operating as independent contractors for companies like Uber and Lyft, face unique tax responsibilities that don't apply to regular employees. That’s why we came up with this comprehensive guide to understanding and managing taxes as a rideshare driver, covering everything from self-employment taxes to maximizing deductions and adhering to important deadlines. Types of Taxes for Rideshare Drivers Rideshare drivers operate as independent contractors, which means they manage their own business finances, including taxes. The primary taxes that impact rideshare drivers are self-employment taxes, federal income taxes, and state income taxes. Unlike traditional employees, these drivers must independently track and pay these taxes directly to the IRS and their state's Department of Revenue. Self-Employment Taxes Self-employment taxes consist primarily of Social Security and Medicare taxes that total 15.3% of a rideshare driver's income. This percentage is split into 12.4% for Social Security and 2.9% for Medicare. There's one big difference between self-employment tax and the payroll taxes people who work for an employer pay. Typically, employees and their employers split the Social Security tax and Medicare tax (i.e., you pay 7.65% and your employer pays 7.65%); while self-employed people pay all of it. Rideshare drivers are required to pay self-employment taxes if their net earnings exceed $400. Drivers should fill out a Schedule SE, to accompany their personal tax return if they have earned this threshold amount in annual earnings from rideshare work. It is paramount to know that self-employment tax is not the entirety of the tax obligation but is rather an additional tax on top of regular income taxes. Federal Income Taxes Federal income taxes are determined by applying the appropriate tax rates to the rideshare driver's taxable income—which includes all self-employment income after deductions and exemptions. Since rideshare drivers are independent contractors, they need to set aside funds for federal and possibly state and local income taxes. A strategic practice for drivers is to set aside approximately 25% of their net income to ensure they have enough money saved to cover the amount of tax owed. This covers both federal income and self-employment taxes. Click here to view the federal income tax rates and brackets State and Local Income Taxes State and local income taxes are another financial responsibility rideshare drivers must manage. Tax rates vary dramatically across the U.S., with some states having higher rates and other states forgoing income tax altogether. Rideshare drivers need to understand and adhere to the tax requirements of their state of residence. Unlike federal income taxes, which have uniform rates across the country, state taxes are not standardized. Drivers should consult with a tax professional or use reliable tax software to ensure they remain compliant with both federal and state tax codes. Tax advice is always beneficial, especially for drivers new to the rideshare business, to navigate the complexities of various tax deductions, income thresholds, and payment schedules. Deductible Expenses for Rideshare Drivers Navigating the world of taxes as a rideshare driver can be overwhelming, but taking advantage of deductible business expenses can significantly reduce your taxable income. When it comes to common deductible expenses, keep in mind that almost any ordinary and necessary cost for the operation of your rideshare business can potentially save you money come tax time. Rideshare companies will report to the IRS the gross (total) income or revenue paid to you. The IRS will expect you to pay taxes on that amount, unless you track and document expenses you're allowed to deduct and are considered reasonable for operating your business. For rideshare drivers looking to maximize deductions and minimize taxes, understanding what is deductible and maintaining good documentation are the keys to success. Staying vigilant about tracking these expenses is fundamental for streamlining the tax filing process and substantiating your claims on a tax return. Expenses, Fees and Taxes Your rideshare company will likely report a gross revenue amount for the total ride, then deduct amounts they charge to provide their service to you. These deductions are often detailed under expenses, fees, and taxes. These deductions can all be deducted from your Gross Pay as expenses to get to your Net Payout. Vehicle Expenses For rideshare drivers, vehicle expenses often represent the largest share of deductible business costs. You have two options for claiming vehicle expense deductions: tracking actual vehicle expenses or using the standard mileage rate provided by the IRS. The actual expenses method includes all costs associated with operating your vehicle for business purposes, such as gas, maintenance, repairs, vehicle insurance, and loan payments (taken as depreciation and interest) or lease payments. You must keep detailed records and receipts for all these expenses to claim them on your tax return. This method can be complicated but advantageous if the actual expenses outweigh the amount you'd claim using the standard mileage rate. On the other hand, the standard mileage rate simplifies record-keeping. In 2025, the IRS has set this rate at 70 cents per mile for every business mile driven. This rate is designed to account for the costs mentioned above without the need for detailed logs. However, you must still document the dates of business trips, mileage, and purpose of the travel to use this method. Deduction Method Requirements Notes Standard Mileage Tracking total business miles driven Cannot claim actual car expenses Actual Expenses Detailed records of all car-related expenses All vehicle miles Total business miles driven To arrive at your deductible expense, multiply your total expenses by your percentage used for business miles Other Business Expenses Outside of vehicle expenses, there are still numerous opportunities to lower your taxable income through other business deductions. A variety of business-related expenses are deductible, such as parking fees, tolls, and supplies provided to passengers, like water bottles and candies or snacks. Items needed for your day-to-day operations, such as a quality mobile phone plan, can also be deductible Don't forget, if you've opted for a roadside assistance plan for those just-in-case scenarios, this too can be deductible. However, not every expense can be written off. Clothes, meals, and entertainment are not considered ordinary and necessary business expenses and must be handled separately. Similarly, while health insurance is a crucial expense, it may not fall under business expenses for tax purposes, unless it is a plan specifically for your business. In keeping with IRS requirements, maintaining comprehensive logs and receipts for both vehicle-related and other business expenses is paramount for successful deductions. It's recommended to use a mileage tracking app or a well-organized spreadsheet to make sure nothing slips through the cracks and to ease the burden during tax season. Summary of Common Deductions Standard mileage deduction (currently 67 cents per mile in 2024) Vehicle Expenses (If you aren’t using the standard mileage deduction) Platform Fees Phone & Internet (When used for your business) Supplies Provided to Passengers Washing & Cleaning Parking Tolls Subscriptions Satellite Radio ATBS Services Record-Keeping Tips for Rideshare Drivers Detailed records serve as an irreplaceable component of the tax return filing process for rideshare drivers. When you keep a precise tally of income and costs, you're better prepared to capture all eligible tax deductions, including the smaller, often-forgotten expenditures such as car washes and phone bills. This diligent tracking isn't just for the IRS; it enables you to understand and grow your business by giving you an accurate measure of your expenses and net earnings. Key to effective record-keeping for rideshare drivers is the use of reliable tools and systems to organize data throughout the year. This includes a dedicated space or digital solution for storing receipts, an accurate and up-to-date log for tracking business miles versus personal miles, and a comprehensive overview of all business-related expenses. Mileage Tracking For rideshare drivers, mileage tracking is not a mere suggestion—it's a necessity. By distinguishing between business and personal miles, you're able to capitalize on the generous mileage deduction offered by the IRS. Business miles include the distance traveled while conducting business for tasks such as driving to pick up passengers, moving with passengers on board, and completing delivery drop-offs. This may include excess business miles between paying trips, and driving to places related to your business (picking up supplies, driving to a car wash or shop for maintenance). Many rideshare drivers work directly with customers outside of the rideshare apps. Because these rides aren’t tracked in any app, it’s important you keep track of the miles yourself in order to maximize your tax deduction. The ATBS Hub makes tracking these off-the-books miles easy. To ensure compliance and ease during tax time, employ a dedicated mileage tracker app or a simple, well-maintained mileage log. The former typically automates the process, distinguishing between personal and business mileage and providing easily generated reports. Remember, accurate mileage tracking aids in claiming either the IRS standard mileage rate or actual vehicle expenses. Many rideshare apps provide mileage tracking on their statements while operating under that app. The challenge is if you work for more than one rideshare company, you will likely not have accurate mileage tracking. Additionally, the mileage tracked by rideshare apps can be off by 10% or more, costing you valuable deductible miles. Keeping Receipts and Documentation Keeping detailed receipts and proper documentation is like guarding the keys to your financial kingdom. Embrace technological solutions like apps or cloud-based software to categorize and store your receipts digitally, ensuring a lasting, accessible record should the IRS request evidence of expenses. Alongside the digitized proof, maintain a physical copy when possible for added security against potential data loss. The ATBS Hub allows you to capture your receipts and documents instantly and will serve as your digital storage box allowing you to store your documents forever. Couple your mileage logs with receipts for every deductible expense. This includes keeping tabs on your car insurance, oil changes, and any repairs. For the IRS, the correlation between your receipts and mileage log illustrates the integrity of your claims. Don't tempt fate by attempting to double-deduct; it's vital to steer clear of claiming both mileage and actual car expenses. Lastly, keep your tax documents, such as 1099-K and 1099-NEC forms, orderly and readily available for a streamlined and accurate reporting experience. By following these record-keeping tips, you, as a rideshare driver, can navigate the complexities of self-employment taxes with confidence, ensuring that you maximize your deductions and minimize any potential audits or penalties. Tax Filing Process for Rideshare Drivers Navigating the tax season comes with a unique set of challenges for rideshare drivers, who operate as self-employed independent contractors. Rather than having taxes withheld from a paycheck like traditional employees, rideshare operators must be proactive about setting aside a portion of their earnings to meet these obligations. While this offers flexibility in managing finances, it requires a comprehensive understanding of what is owed and when—prompting many drivers to turn to reliable tax filing software or professional financial advisors to ensure accuracy and compliance. Reporting Earnings from Rideshare Services (Form 1099-MISC, 1099-K) Rideshare drivers primarily receive earnings documentation via Form 1099-MISC and Form 1099-K, ensuring a record of their income is reported to both them and the IRS. These forms from Uber, Lyft, and other similar platforms detail the income earned, including passenger charges, fees, and tolls, which not only reflect earnings but also provide information on deductible business expenses. For reporting purposes of sole proprietors, rideshare drivers will utilize IRS Schedule C to report their business profits, which is used alongside Schedule SE (for self-employment tax), should their net profit exceed $400. It is critical for drivers to include their annual earnings as well as expenses on Schedule C to calculate the profit or loss from their rideshare business operations. Even for drivers who pay quarterly estimated taxes, filing an official tax return by the April 15 deadline, or the extension deadline of October 15, is mandatory. The process requires organization and readiness, with key tax documents including 1099-K, and 1099-NEC forms, detailed receipts, mileage logs, and proof of any estimated taxes paid to be kept on hand. Furthermore, access to essential personal information, such as Social Security numbers, is imperative for filing. Understanding when you will receive a 1099-K form is important for rideshare drivers, as this tax document is tied to certain earning thresholds and will guide your reporting. For 2024, the IRS mandates that a 1099-K is issued to those who have made over $5,000 in customer payments and provided at least 200 rides or deliveries in the past year. However, some states set this threshold lower, meaning you might receive a 1099-K even if you haven't hit the $5,000 mark. This includes being paid for rides directly with the client without going through a ride-share platform. Key points regarding 1099-K and tax reporting include: Receiving a 1099-K will depend on your annual earnings and the number of transactions you've completed, with some states imposing lower thresholds. In addition to 1099-K forms, you may receive a Form 1099-NEC if you've earned $600 or more through promotions, referrals, or other miscellaneous payments. As a rideshare driver, staying informed of these reporting thresholds is crucial. Make sure to be aware of the specific 1099-K rules in your state as they could differ from federal requirements, thereby impacting the documentation you receive and need to report. How to file gig driver taxes without a 1099? All income generated as a ride-share driver is reportable to the IRS. If you don’t receive a 1099 you should manually add the revenue earned to your Schedule C. You will need your yearly summary from your rideshare company and any personal records you have of revenue and deductible expenses that may have occurred off the books outside of a rideshare app. Your best bet is to report all your revenue and expenses because the IRS will find out about it. Filing Schedule C for Business Income and Expenses Schedule C is the tax form used by rideshare drivers to report the income and expenses related to their business. On this form, earnings reported on 1099 forms are entered, and the business expenses are meticulously listed to calculate the net profit or loss from their rideshare driving. The tax summary provided by platforms like Uber delineates between incomes reported under 1099-K (for payment transactions) and 1099-NEC (for non-employee compensation) facilitating the correct reporting on Schedule C. Filing a Schedule C is essential as it not only determines taxable business income for income taxes but also lays the groundwork for self-employment tax calculations on Schedule SE. If fully utilized, the ATBS Hub will create a Schedule C by combining your miles and the documents you sent, thus simplifying your tax filing process. Calculating Self-Employment Taxes (Schedule SE) Self-employment taxes, which encompass Social Security and Medicare, are a significant tax consideration for rideshare drivers. To compute these, drivers must fill out Schedule SE, which calculates the tax based on net earnings from self-employment. This form ensures that those who work independently are contributing to their Social Security and Medicare similar to traditional employees. Crucially, rideshare drivers can deduct half of the self-employment tax they owe as an adjustment to income on their tax return. This deduction mitigates the overall tax impact and lowers their taxable income. To assist with these calculations, which can often become complex, tax preparation software, or the expertise of a tax professional, can be very helpful and valuable. Quarterly Estimated Tax Payments for Self-Employment Taxes For rideshare drivers who have transitioned to being their own business owners, understanding the process of quarterly estimated tax payments is imperative. This system is designed to allow self-employed individuals, including rideshare drivers, to pay portions of their expected annual income taxes throughout the year. These are the key facts you need to know: Self-employed individuals with an income over $75,000—or $150,000 for those filing jointly—are expected to pay 110% of the previous year's taxes. Quarterly estimated tax payments have specific due dates throughout the year, generally falling in the middle of April, June, September, and the following January. You are required to make estimated tax payments if you anticipate owing more than $1,000 in taxes for the year. Payments can be made either by mail or online through the Electronic Federal Tax Payment System. For those who are new to self-employment, such as rideshare drivers, estimating annual earnings from weekly earnings can aid in determining how much should be sent in quarterly estimated tax payments. Proactive tax payments can help avoid underpayment penalties and ensure smooth financial planning. Wrapping up Rideshare drivers have unique tax obligations that need to be understood and managed effectively. Making quarterly estimated tax payments and staying informed about the reporting thresholds for forms like 1099-K and 1099-NEC are crucial steps in fulfilling these obligations. By proactively addressing their accounting and tax responsibilities, rideshare drivers can avoid penalties, ensure accurate reporting, and maintain financial stability. It is important to consult with a tax professional or use reputable tax software to navigate these complexities and maximize tax deductions. With the right knowledge and preparation, rideshare drivers can confidently handle their tax obligations. The ATBS Hub was designed to eliminate the headache of numbers and paperwork, allowing you to focus on your gig instead of bookkeeping. Want to learn more? Click here to simplify your life . info@atbs.com (888) 640-4829 600 12th St. #200 Golden, CO 80401 © 2024 COPYRIGHT ATBS BACK TO TOP PRIVACY POLICY

Gig delivery drivers have unique tax obligations that need to be understood and managed effectively. That’s why we came up with this comprehensive guide to help. Why ATBS? About Get Started! Helpful Resources The Complete Guide to Gig Delivery Driver Taxes (Uber Eats, Grubhub, DoorDash & Postmates) Navigating taxes as a gig delivery driver can be complex. That’s because gig delivery drivers, operating as independent contractors for companies like Uber Eats, Grubhub, DoorDash, and Postmates, face unique tax responsibilities that don't apply to regular employees. That’s why we came up with this comprehensive guide to understanding and managing taxes as a gig delivery driver, covering everything from self-employment taxes to maximizing deductions and adhering to important deadlines. Types of Taxes for Gig Delivery Drivers Gig delivery drivers operate as independent contractors, which means they manage their own business finances, including taxes. The primary taxes that impact gig delivery drivers are self-employment taxes, federal income taxes, and state income taxes. Unlike traditional employees, these drivers must independently track and pay these taxes directly to the IRS and their state's Department of Revenue. Self-Employment Taxes Self-employment taxes consist primarily of Social Security and Medicare taxes that total 15.3% of a gig delivery driver's income. This percentage is split into 12.4% for Social Security and 2.9% for Medicare. There's one big difference between self-employment tax and the payroll taxes people who work for an employer pay. Typically, employees and their employers split the Social Security tax and Medicare tax (i.e., you pay 7.65% and your employer pays 7.65%); while self-employed people pay all of it. Gig delivery drivers are required to pay self-employment taxes if their net earnings exceed $400. Drivers should fill out a Schedule SE, to accompany their personal tax return if they have earned this threshold amount in annual earnings from delivery work. It is paramount to know that self-employment tax is not the entirety of the tax obligation but is rather an additional tax on top of regular income taxes. Federal Income Taxes Federal income taxes are determined by applying the appropriate tax rates to the gig delivery driver's taxable income—which includes all self-employment income after deductions and exemptions. Since gig delivery drivers are independent contractors, they need to set aside funds for federal and possibly state and local income taxes. A strategic practice for drivers is to set aside approximately 25% of their net income to ensure they have enough money saved to cover the amount of tax owed. This covers both federal income and self-employment taxes. Click here to view the federal income tax rates and brackets State and Local Income Taxes State and local income taxes are another financial responsibility gig delivery drivers must manage. Tax rates vary dramatically across the U.S., with some states having higher rates and other states forgoing income tax altogether. Gig delivery drivers need to understand and adhere to the tax requirements of their state of residence. Unlike federal income taxes, which have uniform rates across the country, state taxes are not standardized. Drivers should consult with a tax professional or use reliable tax software to ensure they remain compliant with both federal and state tax codes. Tax advice is always beneficial, especially for drivers new to the delivery business, to navigate the complexities of various tax deductions, income thresholds, and payment schedules. Deductible Expenses for Gig Delivery Drivers Navigating the world of taxes as a gig delivery driver can be overwhelming, but taking advantage of deductible business expenses can significantly reduce your taxable income. When it comes to common deductible expenses, keep in mind that almost any ordinary and necessary cost for the operation of your gig delivery business can potentially save you money come tax time. Gig delivery companies will report to the IRS the gross (total) income or revenue paid to you. The IRS will expect you to pay taxes on that amount, unless you track and document expenses you're allowed to deduct and are considered reasonable for operating your business. For gig delivery drivers looking to maximize deductions and minimize taxes, understanding what is deductible and maintaining good documentation are the keys to success. Staying vigilant about tracking these expenses is fundamental for streamlining the tax filing process and substantiating your claims on a tax return. Expenses, Fees and Taxes Your gig delivery company will likely report a gross revenue amount for the total ride, then deduct amounts they charge to provide their service to you. These deductions are often detailed under expenses, fees, and taxes. These deductions can all be deducted from your Gross Pay as expenses to get to your Net Payout. Vehicle Expenses For gig delivery drivers, vehicle expenses often represent the largest share of deductible business costs. You have two options for claiming vehicle expense deductions: tracking actual vehicle expenses or using the standard mileage rate provided by the IRS. The actual expenses method includes all costs associated with operating your vehicle for business purposes, such as gas, maintenance, repairs, vehicle insurance, and loan payments (taken as depreciation and interest) or lease payments. You must keep detailed records and receipts for all these expenses to claim them on your tax return. This method can be complicated but advantageous if the actual expenses outweigh the amount you'd claim using the standard mileage rate. On the other hand, the standard mileage rate simplifies record-keeping. In 2025, the IRS has set this rate at 70 cents per mile for every business mile driven. This rate is designed to account for the costs mentioned above without the need for detailed logs. However, you must still document the dates of business trips, mileage, and purpose of the travel to use this method. Deduction Method Requirements Notes Standard Mileage Tracking total business miles driven Cannot claim actual car expenses Actual Expenses Detailed records of all car-related expenses All vehicle miles Total business miles driven To arrive at your deductible expense, multiply your total expenses by your percentage used for business miles Other Business Expenses Outside of vehicle expenses, there are still numerous opportunities to lower your taxable income through other business deductions. A variety of business-related expenses are deductible, such as parking fees, tolls, and items needed for your day-to-day operations, such as a quality mobile phone plan. Don't forget, if you've opted for a roadside assistance plan for those just-in-case scenarios, this too can be deductible. However, not every expense can be written off. Clothes, meals, and entertainment are not considered ordinary and necessary business expenses and must be handled separately. Similarly, while health insurance is a crucial expense, it may not fall under business expenses for tax purposes, unless it is a plan specifically for your business. In keeping with IRS requirements, maintaining comprehensive logs and receipts for both vehicle-related and other business expenses is paramount for successful deductions. It's recommended to use a mileage tracking app or a well-organized spreadsheet to make sure nothing slips through the cracks and to ease the burden during tax season. Summary of Common Deductions Standard mileage deduction (currently 67 cents per mile in 2024) Vehicle Expenses (If you aren’t using the standard mileage deduction) Platform Fees Phone & Internet (When used for your business) Washing & Cleaning Parking Tolls Subscriptions Satellite Radio ATBS Services Record-Keeping Tips for Gig Delivery Drivers Detailed records serve as an irreplaceable component of the tax return filing process for gig delivery drivers. When you keep a precise tally of income and costs, you're better prepared to capture all eligible tax deductions, including the smaller, often-forgotten expenditures such as car washes and phone bills. This diligent tracking isn't just for the IRS; it enables you to understand and grow your business by giving you an accurate measure of your expenses and net earnings. Key to effective record-keeping for gig delivery drivers is the use of reliable tools and systems to organize data throughout the year. This includes a dedicated space or digital solution for storing receipts, an accurate and up-to-date log for tracking business miles versus personal miles, and a comprehensive overview of all business-related expenses. Mileage Tracking For gig delivery drivers, mileage tracking is not a mere suggestion—it's a necessity. By distinguishing between business and personal miles, you're able to capitalize on the generous mileage deduction offered by the IRS. Business miles include the distance traveled while conducting business for tasks such as driving to pick up items, moving with items on board, and completing delivery drop-offs. This may include excess business miles between paying trips, and driving to places related to your business (picking up supplies, driving to a car wash or shop for maintenance). Many gig delivery drivers work directly with customers outside of the app. Because these rides aren’t tracked in any app, it’s important you keep track of the miles yourself in order to maximize your tax deduction. The ATBS Hub makes tracking these off-the-books miles easy. To ensure compliance and ease during tax time, employ a dedicated mileage tracker app or a simple, well-maintained mileage log. The former typically automates the process, distinguishing between personal and business mileage and providing easily generated reports. Remember, accurate mileage tracking aids in claiming either the IRS standard mileage rate or actual vehicle expenses. Many apps provide mileage tracking on their statements while operating under that app. The challenge is if you work for more than one delivery company, you will likely not have accurate mileage tracking. Additionally, the mileage tracked by delivery apps can be off by 10% or more, costing you valuable deductible miles. Keeping Receipts and Documentation Keeping detailed receipts and proper documentation is like guarding the keys to your financial kingdom. Embrace technological solutions like apps or cloud-based software to categorize and store your receipts digitally, ensuring a lasting, accessible record should the IRS request evidence of expenses. Alongside the digitized proof, maintain a physical copy when possible for added security against potential data loss. The ATBS Hub allows you to capture your receipts and documents instantly and will serve as your digital storage box allowing you to store your documents forever. Couple your mileage logs with receipts for every deductible expense. This includes keeping tabs on your car insurance, oil changes, and any repairs. For the IRS, the correlation between your receipts and mileage log illustrates the integrity of your claims. Don't tempt fate by attempting to double-deduct; it's vital to steer clear of claiming both mileage and actual car expenses. Lastly, keep your tax documents, such as 1099-K and 1099-NEC forms, orderly and readily available for a streamlined and accurate reporting experience. By following these record-keeping tips, you, as a gig delivery driver, can navigate the complexities of self-employment taxes with confidence, ensuring that you maximize your deductions and minimize any potential audits or penalties. Tax Filing Process for Gig Delivery Drivers Navigating the tax season comes with a unique set of challenges for gig delivery drivers, who operate as self-employed independent contractors. Rather than having taxes withheld from a paycheck like traditional employees, gig delivery operators must be proactive about setting aside a portion of their earnings to meet these obligations. While this offers flexibility in managing finances, it requires a comprehensive understanding of what is owed and when—prompting many drivers to turn to reliable tax filing software or professional financial advisors to ensure accuracy and compliance. Reporting Earnings from Delivery Services (Form 1099-MISC, 1099-K) Gig delivery drivers primarily receive earnings documentation via Form 1099-MISC and Form 1099-K, ensuring a record of their income is reported to both them and the IRS. These forms from Uber Eats, Grubhub, DoorDash, and Postmates, and other similar platforms detail the income earned, including passenger charges, fees, and tolls, which not only reflect earnings but also provide information on deductible business expenses. For reporting purposes of sole proprietors, gig delivery drivers will utilize IRS Schedule C to report their business profits, which is used alongside Schedule SE (for self-employment tax), should their net profit exceed $400. It is critical for drivers to include their annual earnings as well as expenses on Schedule C to calculate the profit or loss from their delivery business operations. Even for drivers who pay quarterly estimated taxes, filing an official tax return by the April 15 deadline, or the extension deadline of October 15, is mandatory. The process requires organization and readiness, with key tax documents including 1099-K, and 1099-NEC forms, detailed receipts, mileage logs, and proof of any estimated taxes paid to be kept on hand. Furthermore, access to essential personal information, such as Social Security numbers, is imperative for filing. Understanding when you will receive a 1099-K form is important for gig delivery drivers, as this tax document is tied to certain earning thresholds and will guide your reporting. For 2024, the IRS mandates that a 1099-K is issued to those who have made over $5,000 in customer payments and provided at least 200 rides or deliveries in the past year. However, some states set this threshold lower, meaning you might receive a 1099-K even if you haven't hit the $5,000 mark. This includes being paid for rides directly with the client without going through a ride-share platform. Key points regarding 1099-K and tax reporting include: Receiving a 1099-K will depend on your annual earnings and the number of transactions you've completed, with some states imposing lower thresholds. In addition to 1099-K forms, you may receive a Form 1099-NEC if you've earned $600 or more through promotions, referrals, or other miscellaneous payments. As a gig delivery driver, staying informed of these reporting thresholds is crucial. Make sure to be aware of the specific 1099-K rules in your state as they could differ from federal requirements, thereby impacting the documentation you receive and need to report. How to file gig driver taxes without a 1099? All income generated as a ride-share driver is reportable to the IRS. If you don’t receive a 1099 you should manually add the revenue earned to your Schedule C. You will need your yearly summary from your delivery company and any personal records you have of revenue and deductible expenses. Your best bet is to report all your revenue and expenses because the IRS will find out about it. Filing Schedule C for Business Income and Expenses Schedule C is the tax form used by gig delivery drivers to report the income and expenses related to their business. On this form, earnings reported on 1099 forms are entered, and the business expenses are meticulously listed to calculate the net profit or loss from their delivery driving. The tax summary provided by platforms like Uber Eats, Grubhub, DoorDash, and Postmates delineates between incomes reported under 1099-K (for payment transactions) and 1099-NEC (for non-employee compensation) facilitating the correct reporting on Schedule C. Filing a Schedule C is essential as it not only determines taxable business income for income taxes but also lays the groundwork for self-employment tax calculations on Schedule SE. If fully utilized, the ATBS Hub will create a Schedule C by combining your miles and the documents you sent, thus simplifying your tax filing process. Calculating Self-Employment Taxes (Schedule SE) Self-employment taxes, which encompass Social Security and Medicare, are a significant tax consideration for gig delivery drivers. To compute these, drivers must fill out Schedule SE, which calculates the tax based on net earnings from self-employment. This form ensures that those who work independently are contributing to their Social Security and Medicare similar to traditional employees. Crucially, gig delivery drivers can deduct half of the self-employment tax they owe as an adjustment to income on their tax return. This deduction mitigates the overall tax impact and lowers their taxable income. To assist with these calculations, which can often become complex, tax preparation software, or the expertise of a tax professional, can be very helpful and valuable. Quarterly Estimated Tax Payments for Self-Employment Taxes For gig delivery drivers who have transitioned to being their own business owners, understanding the process of quarterly estimated tax payments is imperative. This system is designed to allow self-employed individuals, including gig delivery drivers, to pay portions of their expected annual income taxes throughout the year. These are the key facts you need to know: Self-employed individuals with an income over $75,000—or $150,000 for those filing jointly—are expected to pay 110% of the previous year's taxes. Quarterly estimated tax payments have specific due dates throughout the year, generally falling in the middle of April, June, September, and the following January. You are required to make estimated tax payments if you anticipate owing more than $1,000 in taxes for the year. Payments can be made either by mail or online through the Electronic Federal Tax Payment System. For those who are new to self-employment, such as gig delivery drivers, estimating annual earnings from weekly earnings can aid in determining how much should be sent in quarterly estimated tax payments. Proactive tax payments can help avoid underpayment penalties and ensure smooth financial planning. Wrapping up Gig delivery drivers have unique tax obligations that need to be understood and managed effectively. Making quarterly estimated tax payments and staying informed about the reporting thresholds for forms like 1099-K and 1099-NEC are crucial steps in fulfilling these obligations. By proactively addressing their accounting and tax responsibilities, gig delivery drivers can avoid penalties, ensure accurate reporting, and maintain financial stability. It is important to consult with a tax professional or use reputable tax software to navigate these complexities and maximize tax deductions. With the right knowledge and preparation, gig delivery drivers can confidently handle their tax obligations. The ATBS Hub was designed to eliminate the headache of numbers and paperwork, allowing you to focus on your gig instead of bookkeeping. Want to learn more? Click here to simplify your life . info@atbs.com (888) 640-4829 600 12th St. #200 Golden, CO 80401 © 2024 COPYRIGHT ATBS BACK TO TOP PRIVACY POLICY