While many self-employed workers enjoy the flexibility of Amazon Flex, there are increased tax responsibilities associated with being your own boss […]

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Amazon Flex Taxes 101: Deductions + How to Calculate & File

If you're wondering how much to set aside for your 1099 taxes, use this article to get the insights you need to estimate accurately […]

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Independent Contractor Taxes: How Much to Set Aside for 1099

Now that you're self-employed, you'll have to pay your taxes directly to the Internal Revenue Service (IRS) and make quarterly tax payments four times annually. Read on to understand self-employment taxes, how to calculate them, and when to pay them […]

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Self-Employment Tax: What Is It, How to Calculate It, and When to Pay

This article will explain the purpose of each type of 1099 tax form. You’ll learn about common 1099 tax forms that could be relevant to your business […]

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Types of 1099 Tax Forms: Each Form Explained

As an Uber driver, you must file a personal income tax return if you earn at least $400 in self-employment income. This article offers a step-by-step guide to filing your Uber income tax return in 2025 […]

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The Uber Rideshare Driver's Guide to Filing Taxes [2025]

Amazon is one of the most trafficked e-commerce marketplaces on the Internet. Selling there can increase your bottom line, which can also increase your tax responsibilities.Using Amazon to sell goods or services means routing many of your platforms and transactions through Amazon itself, especially with Fulfillment by Amazon (FBA). This introduces complex variables into the accounting process, which can affect your taxes in ways you might not have anticipated.Use this article to learn:&nbsp;<ul><li>How Amazon sellers are classified by the Internal Revenue Service (IRS)</li><li>What type of taxes Amazon sellers need to pay</li><li>When should Amazon sellers pay taxes</li></ul><h2>You’ll Need a 1099-K</h2>If your Amazon e-commerce business received $5,000 or more in total payments in 2024, Amazon will issue you IRS Form 1099-K, Payment Card and Third Party Network Transactions. View gross sales information in your Amazon sales tax report.The payment threshold to file will continue to decline.<a href="https://www.irs.gov/newsroom/irs-provides-transition-relief-for-third-party-settlement-organizations-form-1099-k-threshold-is-5000-for-calendar-year-2024" target="_blank"> If you receive $2,500 or more in 2025 and $600 or more in 2026</a>, Amazon will issue 1099-K forms for those tax years.&nbsp;&nbsp;<h3>What is a 1099-K?</h3>IRS Form 1099-K reports transactions made through third-party payment networks like Amazon.When you have a seller account on the platform, Amazon receives and processes customer payments through payment systems like PayPal, a debit card, or any other means. Once processed, Amazon distributes the proper share of that payment to you. Amazon functions in this way as a third-party payment network between you and your customer, and they report the money they’ve processed through the 1099-K.<h3>Who Does Amazon Send the 1099-K to?</h3>Amazon will generate and send IRS Form 1099-K directly to your business by the end of January. You can receive this form electronically or in the mail.If you don't receive your tax forms from Amazon by the end of January, you can download the paperwork and other pertinent documentation directly from your account.<h3>What do I do if my 1099-K is Inaccurate?</h3>The information on IRS Form 1099-K is used to prepare your business tax return. This information must be an accurate reflection of your sales performance on Amazon. Inaccurate tax payments and missed deadlines can lead to penalties and increased IRS scrutiny.If you notice an error on IRS Form 1099-K, log in to Amazon Seller Central in your Amazon account or contact Amazon support immediately and work with them on corrections and updates. View this hub as a central account for your Amazon selling operations.<h2>File Schedule C as a Small Business</h2>When preparing your annual income tax return, most Amazon sellers/FBA sellers must also file a Schedule C, Profit or Loss from Business, attached to Form 1040, the standard personal tax return.&nbsp;Even if selling goods on Amazon is only a side gig, the money you earn counts as income you receive as a small business owner, whether or not you have a registered business or license. Filling out Schedule C allows you to file that self-employment income easily.If you have not made an entity election for your business,<a href="https://www.irs.gov/faqs/small-business-self-employed-other-business/entities/entities-3#:~:text=Only%20one%20owner%2C%20the%20IRS,it%20treated%20as%20a%20corporation." target="_blank"> the IRS will treat it as a sole proprietorship</a> if you're the sole owner and a partnership if two or more people own your business.&nbsp;&nbsp;<h2>Maximize Your Tax Deductions</h2>Filing Schedule C allows you to report that income as a business and provides opportunities to reduce your taxable income. As an independent small business, you can keep track of all the money you spend to keep your Amazon business going, and then you can claim those expenses as self-employment tax deductions.&nbsp;Tax deductions work by subtracting business expenses directly from your taxable income. This will lower the taxes you owe and potentially even bring you down to a lower tax bracket. Here are just a few of the business expenses you can claim as deductions to offset your revenue:<ul><li>Amazon seller fees</li><li>Packaging and shipping costs/shipping fees</li><li>Advertising on Amazon</li><li>Home office supplies&nbsp;</li><li>Mileage tracking subscriptions&nbsp;</li><li>Employee salaries</li><li>Office rent and maintenance</li><li>Healthcare premiums&nbsp;</li><li>Retirement savings contributions&nbsp;</li><li>Professional service fees&nbsp;</li></ul><h2>Does Amazon Collect Sales Tax for Sellers?</h2>Most states, including California and New York, have a Marketplace Facilitator or Marketplace Fairness law that ensures marketplaces like Amazon and eBay are responsible for collecting and remitting sales on behalf of sellers. Delaware, Alaska, and New Hampshire are some of the states that lack these laws. Check with local authorities to ensure your state has sales tax collection Marketplace Facilitator laws in place.While it's Amazon's responsibility to collect sales tax on your behalf, you must inform the platform where and how to apply sales tax in different areas for different customers. Your specific sales tax requirements in each jurisdiction will depend on having a sales tax nexus in that state. This is determined differently for Amazon FBA sellers.If sales on Amazon meet eligibility requirements, you will receive IRS Form 1099-K from the platform detailing Amazon marketplace tax collection.<h2>An Accountant is Your Best Tool to Lower Your Tax Bill</h2>As your online business grows, so too will your tax responsibilities. If you don't take every tax deduction your Amazon business is entitled to, among other necessary steps to manage your business taxes, you might be paying more money to the IRS and other authorities than you have to.Fortunately, with<a href="https://1800accountant.com/services/industry/amazon-sellers"> 1-800Accountant's CPA services for Amazon business finances</a>, you don’t have to figure out your economic nexus, sales tax rate, and the latest tax laws, tax information, and tax obligations yourself. When you work with 1-800Accountant, our tax professionals handle all Amazon seller tax requirements, including withholding the correct amount of tax for your Amazon products sales tax return and guidance on obtaining sales tax permits before you file taxes. Schedule a quick consultation–usually 30 minutes or less—to learn more.

Amazon is one of the most trafficked e-commerce marketplaces on the Internet. Selling there can increase your bottom line, which can also increase your tax responsibilities […]

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5 Things You Need to Know About Taxes for Amazon Sellers

Dashers must understand whether and how to report their DoorDash earnings, when to file taxes, and how much to pay […]

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Do You Have to File Taxes for DoorDash?

It's a critical practice to take advantage of every deduction you're entitled to in pursuit of a minimal tax burden. Deductions are available if you drive for a living or use your vehicle to support your small business. But what if you don't own the vehicle you operate— <a href="https://www.nerdwallet.com/article/taxes/self-employment-tax-deductions" target="_blank">are self-employed individuals and other entrepreneurs</a> able to write off expenses associated with operating a leased car?Use this blog to learn whether <a href="https://1800accountant.com/blog/car-small-business-tax-deduction">leased vehicles qualify for tax deductions</a> and other critical information every small business owner and entrepreneur should consider.&nbsp;&nbsp;<h2>Can You Write Off a Leased Car?</h2>There are write-offs that self-employed individuals and entrepreneurs who use a leased vehicle for their businesses can take advantage of. Typically, qualifications set by the IRS must be met to claim a write-off successfully. It's a best practice to retain paperwork and other documentation that supports the write-offs you'll claim, such as a mileage log.Unlike small business owners, <a href="https://1800accountant.com/blog/why-small-businesses-often-need-more-than-one-insurance-policy">W-2 employees cannot write off car expenses</a> related to a vehicle they lease. However, employers will sometimes reimburse employees who use personal vehicles for business tasks, such as picking up supplies.&nbsp;<h2>Taxes, Tax Write-Offs and Car Leases</h2>While self-employed individuals and entrepreneurs can take advantage of <a href="https://1800accountant.com/blog/rideshare-driver-tax-deductions">write-offs related to their leased vehicles</a>, there are limits. For example, write-offs don't apply to vehicles when used for personal purposes. If the vehicle is used personally and professionally, you can write off expenses related to that business use. Retaining records, receipts, and other supporting documentation is essential when writing off costs associated with this type of dual operation.You can also write off expenses for a vehicle used exclusively for business purposes.&nbsp;<h3>Leasing an Electric Vehicle</h3>While the Inflation Reduction Act created a path to claim a $7,500 tax credit for leased electric vehicles, <a href="https://www.cnbc.com/2024/07/18/loophole-may-get-you-a-7500-tax-credit-for-leasing-an-ev.html" target="_blank">business owners and entrepreneurs don't typically benefit</a>. The credit for leased electric vehicles applies to the entity leasing it to your business.While the $7,500 tax credit for electric vehicle purchases may go away, it's still available in early 2025 if you meet stringent criteria, including pricing standards and battery sourcing requirements. The vehicle must also be made in North America. Certain states – California in particular – have additional standards for electric vehicle ownership. To qualify for California's electric vehicle tax credit, you must plan to own the vehicle for at least 30 months.<h3>Standard Lease vs. Lease to Own</h3>If you lease a vehicle for your business, you can deduct monthly lease payments via the actual expense method. The amount you can deduct depends on the percentage the vehicle is used for business activities. You are unable to deduct lease payments if you've entered into a lease-to-own contract.<h4>Deduction Methods</h4><ul><li><a href="https://1800accountant.com/blog/tax-deductions-food-delivery-drivers">The standard deduction allows</a> business owners to lower their taxable income instead of having to tally up their actual expenses, which is also known as itemizing deductions. Formally, the standard deduction is the portion of income that is not subject to tax.</li><li>Most low- to middle-income earners will claim the standard deduction, as it equals more than their expenses if itemized. Higher-income earners tend to have more expenses and are likelier to itemize and deduct their individual expenses. This is the method you will use to write off your lease payments.&nbsp;</li></ul><h2>Leasing a Car vs. Buying: Tax Implications</h2>There are <a href="https://1800accountant.com/blog/trucker-taxes-excise-tax">tax implications to leasing or buying a vehicle</a> and other matters self-employed individuals and small business owners should consider. For instance, owning a business vehicle entitles you to more substantial tax benefits, while lower costs can be associated with leasing.<h3>Sales Tax</h3>If you purchase and operate a vehicle for business use, you can deduct the sales tax you paid at the time of sale. This deduction may only be taken once if you purchase a vehicle. If you lease a car for business, you can deduct the <a href="https://1800accountant.com/blog/rideshare-drivers-taxes">sales tax that is applied to your monthly payments</a>.<h3>Tax Deductions</h3>Writing off <a href="https://1800accountant.com/blog/engineer-tax-deductions">monthly lease payments is a deduction exclusively available</a> to businesses that lease. Deductions are also available to businesses that purchase vehicles to support their operations, including:&nbsp;<ul><li>Depreciation. The depreciation deduction allows you to write off a portion of your business vehicle's cost over time. You have a choice of how you'd like to take this deduction for your new car. The Modified Accelerated Cost Recovery System, or MACRS, is a calculation method that favors large deductions early on, followed by smaller deductions. The straight line calculation method allows you to take deductions evenly.&nbsp;&nbsp;</li><li>Vehicle loan. If you've taken out a loan to purchase your business vehicle, you can write off the interest you pay associated with the loan. If you use the vehicle partially for personal use, you can only deduct the portion you use for business. For example, if you drive your work vehicle half the time for personal use, you can deduct 50% of the car loan interest that you drove for work.&nbsp;</li></ul>You can take advantage of other deductions whether you lease or purchase a vehicle for business use. These deductions include:<ul><li>Mileage. You can deduct the number of business miles you've driven while operating your vehicle for business use via the mileage deduction. The standard mileage rate for 2024 is 67 cents per mile, increasing to 70 cents in 2025. While recording accurate mileage was a chore, smartphone applications, such as 1-800Accountant's mobile app, allow for easy and accurate mileage recording.</li><li>Operating expenses. You can deduct business expenses for operating and maintaining your vehicle, including fuel, oil changes, and repairs.&nbsp;</li></ul><h2>Talk to Experts About How to Write Off a Leased Car</h2>We understand if leasing your business vehicle from a tax perspective drives you up a wall.Leasing a vehicle can be a significant expense, which is why many small business owners and entrepreneurs trust 1-800Accountant, America's leading virtual accounting firm, <a href="https://1800accountant.com/blog/rideshare-driver-tax-guide">for financial guidance</a>.Whether you need <a href="https://1800accountant.com/services/small-business-taxes">business tax preparation</a>, <a href="https://1800accountant.com/services/business-tax-advisory">tax advisory</a>, or any of our professional accounting services, we have the affordable solutions you need to ensure your business remains compliant with a minimal tax liability. Schedule a quick consultation–usually 30 minutes or less—to learn more.

Use this blog to learn whether leased vehicles qualify for tax deductions and other critical information every small business owner and entrepreneur should consider […]

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Can You Write off a Leased Car? Your Tax Questions Answered

The rise of the gig economy has opened up numerous opportunities for motivated individuals who prefer to work outside the confines of more traditional W-2 employment. Large companies like Uber, Lyft, and DoorDash are synonymous with gig work, but other well-known businesses are making an impact.If you've placed an order for delivery with Walmart, chances are it was delivered to your residence <a href="https://1800accountant.com/blog/how-to-file-taxes-independent-contractor">by an independent contractor on the Spark Driver platform</a>. Launched in 2018, the Spark Driver platform has worked with hundreds of thousands of independent contractors to fulfill orders from customers in urban, suburban, and rural locations. Over time, the Spark Driver platform has become Walmart's largest local delivery provider.&nbsp;While many individuals enjoy the flexibility of gig work, there are increased tax responsibilities associated with being your own boss. Key takeaways for Spark drivers include:<ul><li>Learn about the taxes you'll have to pay in connection with this work</li><li>How to keep proper records in support of your finances</li><li>Discover the top expense deductions for Spark drivers</li><li>Determine the forms and information required to file your taxes&nbsp;</li></ul>Some of this guidance applies to other gig work you might perform outside of the Spark Driver platform.&nbsp;&nbsp;<h2>What Taxes Do Walmart Spark Driver Drivers Pay?</h2><a href="https://www.nerdwallet.com/article/finance/what-gig-workers-need-to-know-about-taxes" target="_blank">Whether full-time or part-time, gig workers</a> must file a tax return if their net earnings are $400 or more annually.<h3>Self-Employment Taxes</h3>Gig workers will be responsible for <a href="https://1800accountant.com/blog/self-employment-tax-2">paying a self-employment tax</a>, which funds Medicare and Social Security. The IRS set the self-employment tax rate at 15.3%, which is the sum of two parts: a 12.4% Social Security tax rate and a 2.9% Medicare tax rate.&nbsp;Employers usually pay Medicare and Social Security taxes through <a href="https://1800accountant.com/blog/1099-vs-w2">FICA on behalf of their W-2 employees</a>. They withhold wages to pay half of the tax and are obligated to pay the other half themselves.&nbsp;<h3>Federal Income Tax</h3>You will be responsible for paying federal income tax, which is done via your Schedule C form to report profits and losses. Schedule C consists of five parts:&nbsp;<ul><li>Income. List all business income, including gross receipts or sales, returns and allowances, and federal and state fuel tax credits. This calculates your gross profit and gross income.</li><li>Expenses. Report business expenses such as cost of travel, utilities, insurance, and advertising. Subtract your total expenses from your gross income to find your net profit or loss. Report this result on IRS Form 1040.</li><li>Cost of Goods Sold. If your business doesn't require you to purchase inventory or sell products, this section doesn't apply to you.</li><li>Vehicle Expenses. If claiming deductions for car or truck expenses, complete this section. Keep detailed records of your mileage and vehicle expenses during the tax year.</li><li>Other Expenses. Report any expenses that weren't listed above in the second part. Some of these expenses might include education or costs related to your industry.</li></ul>You will attach your completed Schedule C to IRS Form 1040 and file your taxes.&nbsp;<h3>State and Local Income Tax</h3>The state and local income taxes Spark drivers may be responsible for can vary by location. Because Spark drivers are independent contractors, they'll make quarterly estimated tax payments four times per year. Many states that require quarterly tax payments adhere to the same schedule as federal estimated tax payments.If you have questions, contact state and local authorities or seek the advice of a qualified tax professional for expert guidance on your Spark Driver taxes.&nbsp;<h2>What Expenses Can I Deduct From My Walmart Spark Driver Income?</h2>There are numerous deductions that drivers who work with Spark and other platforms can take advantage of. <a href="https://www.gobankingrates.com/money/side-gigs/how-much-do-walmart-spark-delivery-drivers-make/" target="_blank">Some of the top Walmart Spark Driver platform</a> deductions include:&nbsp;<ul><li>Depreciation Expense. You can deduct the cost of business assets, including the vehicle you use as a Spark driver, over time via depreciation. You must follow IRS depreciation rules if the business assets you're writing off exceed $2,500 in value. Numerous factors dictate the amount and duration of your depreciation expense, including the depreciation method you apply.&nbsp;</li><li>Fees. You can write off the fees related to professional services you rely on to complete deliveries for the Spark Driver platform and manage your independent contractor business. Fees that qualify include mileage tracking software, navigation app subscriptions, bookkeeping software, and virtual accounting costs.&nbsp;</li><li>Tolls and Parking. You can deduct the tolls and parking fees you paid while delivering for the Spark Driver platform. Keep receipts from parking lots, garages, and tolls related to your deliveries.</li><li>Phone and Internet. You need your phone to access the Spark Drive mobile application to access deliveries and navigate to your destination. You can deduct part of your bill since your phone service and data costs represent necessary business expenses. Track the portion of your cell phone and data usage related to your deliveries so you can deduct the business-related cost on your tax return.</li><li>Fuel and Maintenance. You can deduct fuel and maintenance costs for your delivery vehicle. As with virtually every deduction, keeping receipts and other supporting documentation is essential.&nbsp;</li></ul><h3>How to Keep Records of Your Walmart Spark Driver Expenses</h3>It is critical to retain supporting documents and records to prepare your tax return and defend your interests during a possible audit. Whether your records are digital, physical, or a combination of the two, they must be kept in a safe and secure location.Keep the following documents to support your Walmart Spark Driver platform expenses:<ul><li><a href="https://1800accountant.com/blog/types-of-1099-tax-forms">IRS Form 1099-NEC</a></li><li>Receipts for business purchases</li><li>Mileage log, including business vs. personal travel</li><li>Vehicle purchase paperwork</li><li>Repairs and maintenance receipts</li><li>Phone usage reports</li><li>Bookkeeping records</li><li>Business license paperwork</li></ul>We recommend reviewing <a href="https://www.irs.gov/businesses/small-businesses-self-employed/recordkeeping" target="_blank">IRS guidance regarding record retention</a>.&nbsp;<h2>How to File Taxes for Your Walmart Spark Driver Earnings</h2>Review the following forms, processes, and deadlines you'll need to be familiar with to file your taxes as part of the Walmart Spark Driver platform.&nbsp;<h3>Required Forms</h3>If you've made $600 or more on the Spark Driver platform in a year, <a href="https://1800accountant.com/blog/freelancing-and-form-1099-nec-everything-you-need-to-know">Walmart will send you&nbsp;</a><a href="https://1800accountant.com/blog/freelancing-and-form-1099-nec-everything-you-need-to-know">IRS Form 1099-NEC, Nonemployee Compensation</a>. This form summarizes earned Spark Driver wages and is essential to filing taxes. Contact the Walmart Spark Driver directly if you do not receive this form by the end of January.You may perform other <a href="https://1800accountant.com/blog/proscons-entity-formation-independent-contractors">work as an independent contractor</a> outside of the Spark Driver platform or are a W-2 employee with Spark deliveries serving as a part-time side gig. In this scenario, you may also receive <a href="https://1800accountant.com/blog/5-tax-issues-that-cause-irs-trouble-for-1099-workers">IRS Form 1099-K</a>, Payment Card and Third Party Network Transactions, and IRS Form W-2, Wage and Income Statement.<h3>Claiming Your Tax Deductions</h3>Use IRS Form 1099-NEC as a supporting document for your tax return. Forms you may use to file your taxes and claim tax deductions include:<ul><li>IRS Form 1040. File Form 1040, U.S. Individual Income Tax Return, to report taxable income and calculate your tax liability for the year.</li><li>IRS Schedule C (Form 1040). Report your income from the Spark Driver platform on IRS Form 1040, Schedule C, Profit or Loss from Business. Schedule C reports your self-employment income and business tax deductions.&nbsp;</li><li>IRS Schedule SE (Form 1040). Form 1040, Schedule SE, Self-Employment Tax, should be used to <a href="https://1800accountant.com/blog/accountant-for-freelancers">report your freelance income</a> and calculate the self-employment tax liability. You’ll also need to pay income taxes, but you can deduct half of your self-employment tax.&nbsp;</li></ul><div class="embedded-entry redactor-component block-entry" type="entry" data-sys-entry-uid="blt79207efd7bb01d06" data-sys-entry-locale="en-us" data-sys-content-type-uid="rte_ad" sys-style-type="block"></div><h3>When to Pay Your Taxes</h3>Self-employed individuals must estimate and pay quarterly estimated taxes throughout the year. Quarterly estimated tax payment due dates for 2025 include:&nbsp;<ul><li>April 15, 2025</li><li>June 16, 2025</li><li>September 15, 2025</li><li>January 15, 2026</li></ul>Use IRS Form 1040-ES, Estimated Taxes for Individuals, to calculate and pay your quarterly estimated taxes. The form includes payment vouchers and instructions for filing online.If you struggle to make accurate calculations by each deadline, our <a href="https://1800accountant.com/services/quarterly-estimated-taxes">full-service quarterly estimated tax solution can help</a>.<h2>Let Our Experts Spark Your Path to Tax Savings</h2>Juggling your tax responsibilities while delivering for Walmart's Spark Driver platform can be challenging. As your delivery business matures and grows, avoiding costly tax mistakes that invite penalties and unwanted scrutiny from the IRS is essential. That's why many drivers and gig workers trust 1-800Accountant, America’s leading virtual accounting firm, <a href="https://1800accountant.com/blog/delivery-driver-tax-return">to deliver maximum tax savings</a>.&nbsp;Whether you need <a href="https://1800accountant.com/services/small-business-taxes">business tax preparation</a>, <a href="https://1800accountant.com/services/business-tax-advisory">tax advisory</a>, or any of our professional accounting services, we have the affordable solutions you need to ensure your self-employed delivery business doesn't spin its wheels. Schedule a quick consultation–usually 30 minutes or less—to learn more.

While many individuals enjoy the flexibility of gig work, there are increased tax responsibilities associated with being your own boss. […]

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Walmart Spark Driver Taxes: Calculations, Deductions & Filing

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