You may be eligible for more tax write-offs than you expect. Keep reading to learn who can claim the self-employment tax credit […]

Blog Thumbnail_Self-Employment Tax Credit_1200x630_2 (1).jpg

Self-Employment Tax Credit: What It Is + Can You Claim It?

Working for yourself can be exhilarating. You’re your own boss, and you can work wherever and whenever you want. The downside to your independence? Self-employed, freelance tax rules. Unlike employees who earn a paycheck, freelancers must calculate and pay quarterly taxes, among other business responsibilities.The income tax filing process differs for self-employed individuals from that of traditional employees. Freelancers must follow complicated rules and often file additional forms. This article explains what you should know about preparing and filing your freelance taxes for 2026.<h2>Freelancer Tax Key Takeaways</h2><ul><li>Learn about the tax thresholds for filing income tax as a freelancer</li><li>Identify additional taxes freelancers and independent contractors must file</li><li>Understand when your freelance taxes are due&nbsp;</li></ul><h2>Learn about Freelance Tax Laws</h2>As a freelancer or independent contractor, you should have a solid grasp of the tax rules and laws that impact your operations. We’ll cover some basics in this article. You can find numerous resources via the Internal Revenue Service (IRS)<a href="https://www.irs.gov/businesses/small-businesses-self-employed">&nbsp;small business and self-employed tax center</a>, which provides information for all business types.&nbsp;<h2>Understand Your Business Structure</h2>The tax forms and rates you'll need depend on your business entity type. When you operate as a freelancer, your business defaults to a sole proprietorship unless you establish a legal entity for your freelance work. Other common legal entity types include the following:<ul><li>Limited Liability Company (LLC):<ul><li>Single-member LLCs owned by individuals default to sole proprietorships.&nbsp;</li><li>LLCs can elect to be treated as partnerships or C corporations for income tax purposes.</li></ul></li><li>C corporation</li><li>S corporation</li><li>Partnership</li></ul>Selecting the optimal business structure will impact your tax liability. Each business structure should comply with the relevant tax rules. We recommend<a href="https://1800accountant.com/services/industry/freelancer-self-employed">&nbsp;consulting tax professionals</a>&nbsp;to determine the right entity type for your freelance business.<h2>Gather Your Business Information and Documents</h2>You will receive income from multiple sources due to your freelance and independent contract work –&nbsp;<a href="https://1800accountant.com/blog/types-of-1099-tax-forms">bank account transfers, electronic payments, or paper checks – all of which require diligent</a><a href="http://tracking.us">&nbsp;tracking. US</a><a href="https://1800accountant.com/blog/1040-vs-1099">&nbsp;businesses must submit</a>&nbsp;IRS Form 1099-NEC, Nonemployee Compensation, to report payments of $600 or more to freelancers and independent contractors. You should receive a Form 1099-NEC from US corporations and partnerships no later than January 31 of the following year. However, businesses that paid you less than $600, private individuals, and non-US businesses might not send you documentation. You should keep track of all payment sources and methods during the year, regardless of source, as the IRS expects you to pay taxes on eligible income. To determine your business income and expenses, gather the following records:&nbsp;<ul><li><a href="https://1800accountant.com/blog/how-much-to-set-aside-for-1099-taxes">IRS Forms 1099-NEC</a>&nbsp;(you can receive multiple forms from different sources)</li><li>Bank statements and savings account records</li><li>Online payment accounts, such as PayPal</li></ul>Keeping accurate, up-to-date records of freelance income while tracking other important metrics can be challenging and time-consuming. Save time using full-service<a href="https://1800accountant.com/services/bookkeeping">&nbsp;outsourced bookkeeping from 1-800Accountant</a>&nbsp;to maintain your freelance business records.<h2>How Do You Report Freelance Income? Find Your Tax Forms</h2><h3>IRS Form 1040 Schedule C</h3>Sole proprietors and single-member LLCs should report their business income and tax deductions on&nbsp;<a href="https://1800accountant.com/blog/understanding-the-schedule-c-tax-form">Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship)</a>. Review the<a href="https://www.irs.gov/instructions/i1040sc">&nbsp;Schedule C instructions</a>&nbsp;to prepare the form. Enter your business information, then report your earnings and expenses on the relevant lines. Total your income and subtract deductions to compute your net&nbsp;<a href="https://www.irs.gov/pub/irs-pdf/i1040c.pdf">profit or loss from your freelance business</a>.&nbsp;<a href="https://1800accountant.com/blog/how-to-fill-out-form-1040">Report the total profit or loss on</a>&nbsp;IRS Form 1040, U.S. Individual Income Tax Return. If your net profit is at least $400, you should also complete Schedule SE (Form 1040), Self-Employment Tax.<h3>IRS Form 1040 Schedule SE</h3>Schedule SE calculates the tax you owe on your self-employment income. Freelancers with at least $400 net profit on Schedule C should complete Schedule SE. Report your self-employment tax on Form 1040.<h3>IRS Forms 1120, 1120-S, and 1065</h3><a href="https://1800accountant.com/blog/what-is-form-1065">Corporate and partnership</a>&nbsp;freelance businesses&nbsp;<a href="https://1800accountant.com/blog/1120-tax-form">should report their income on&nbsp;</a>their business tax returns rather than on Form 1040 Schedule C. We recommend partnering with<a href="https://1800accountant.com/services/industry/freelancer-self-employed">&nbsp;self-employment tax professionals</a>&nbsp;to calculate and file your freelance business taxes, especially as they become more complex.&nbsp;<h2>When Do Freelancers Pay Taxes? Deadlines for Returns and Quarterly Estimates</h2>Refer to the following due dates and note the filing deadlines for returns and estimates. Block some time on your calendar to gather information and file it timely. 2026 tax return filing deadlines:<ul><li>March 16: IRS Form 1120-S, U.S. Income Tax Return for an S Corporation, and IRS Form 1065, U.S. Return of Partnership Income&nbsp;</li><li>April 15: IRS Form 1040 and IRS Form 1120, U.S. Corporation Income Tax Return&nbsp;</li></ul>Do you need more time to file your return? You can submit a six-month extension. Be sure to pay what you think you’ll owe, or you could face penalties for failure to pay by the deadline. If you follow a fiscal tax year, different dates may apply. Check with a tax professional to find the right due dates for your business. The IRS also expects businesses to pay estimated taxes as they earn income. Since full-time freelancers and independent contractors do not receive paychecks and do not have taxes withheld each pay cycle, they should make quarterly tax payments. The IRS imposes penalties and interest for failure to pay your taxes on time. We recommend monitoring your receipts and expenses throughout the year to avoid surprises. Quarterly payments are due by the 15th day of&nbsp;<ul><li>April</li><li>June</li><li>September</li><li>January&nbsp;</li></ul><h2>How Much Do Freelancers Pay in Taxes? Calculate Your Taxes</h2>Freelancers and independent contractors must pay both income tax and self-employment tax.&nbsp;<a href="https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill">The IRS updates individual income tax brackets annually</a>. Refer to the following table for 2026 income tax rates.<table><colgroup data-width='500'><col style="width:17.5896%"/><col style="width:82.4104%"/></colgroup><tbody><tr><td>2026 Tax Rate</td><td>Income</td></tr><tr><td>37%</td><td>For incomes greater than $640,600 ($768,700 for married couples filing jointly)</td></tr><tr><td>35%</td><td>For incomes over $256,225 ($512,450 for married couples filing jointly)</td></tr><tr><td>32%</td><td>For incomes over $201,775 ($403,550 for married couples filing jointly)</td></tr><tr><td>24%</td><td>For incomes over $105,700 ($211,400 for married couples filing jointly)</td></tr><tr><td>22%</td><td>For incomes over $50,400 ($100,800 for married couples filing jointly)</td></tr><tr><td>12%</td><td>For incomes over $12,400 ($24,800 for married couples filing jointly)</td></tr><tr><td>10%</td><td>For incomes of $12,400 or less ($24,800 for married couples filing jointly)</td></tr></tbody></table>Remember, many states and cities impose income taxes. Check your local tax rules to stay compliant.<h3>What is the self-employment tax?</h3>In addition to income tax, freelancers pay self-employment tax of 15.3% (regardless of their income tax bracket). Self-employment tax represents 12.4% of Social Security and 2.9% of Medicare taxes.&nbsp;<a href="https://1800accountant.com/blog/self-employment-tax-2">Why do freelancers pay self-employment tax</a>? Consider a traditional employee who receives a bi-weekly paycheck: The employer withholds Social Security (6.2%) and Medicare (1.45%) taxes from the employee each pay cycle. The employer pays an equal portion. The employee and employer split the 15.3% of Social Security and Medicare taxes on the employee’s wages. In contrast, self-employed individuals must pay both the employer’s and the employee’s share of Medicare and Social Security taxes. Fortunately, freelancers can take business expense deductions, which helps reduce taxable self-employment income.<h3>Claim your freelancer tax deductions</h3>Think through your business-related spending. Many of your freelance business expenses qualify as tax deductions, which reduce your taxable income and overall tax bill. How do you know if you can deduct an expense? Qualified business tax deductions are ordinary (i.e., not excessive) and necessary for running the business. You must retain supporting documentation associated with each deduction you intend to claim. Common business tax deductions you should consider taking include the following:<ul><li>Advertising</li><li>Business equipment and supplies</li><li>Depreciation</li><li>Home office deduction</li><li>Legal fees</li><li>Training and education</li><li>Travel and business meals</li></ul>Track your spending throughout the year by monitoring your bank statements and credit card bills. Effortlessly keep your financial materials organized and up to date with<a href="https://1800accountant.com/services/bookkeeping">&nbsp;full-service bookkeeping from 1-800Accountant</a>.&nbsp;<h2>Understand State and Local Tax Rules</h2>The business structure you select to be taxed as and other factors will dictate whether you'll be responsible for paying state and local business taxes. Review the following information to determine whether state and local taxes apply to your freelance operations. If you still have questions, consult with a CPA regarding paying taxes to state and local authorities on your net earnings or annual income, among other helpful taxpayer insights to maximize your tax refund.<h4>State income taxes</h4>Whether your business is taxed as a corporation, LLC, or sole proprietorship, you may have to pay state taxes depending on the region. Employment and income taxes are among the most common state and local taxes business owners must pay. Employment taxes include:<ul><li>Temporary disability insurance</li><li>Unemployment insurance taxes</li><li>Workers' compensation insurance</li></ul><h4>Property taxes</h4>If you own your offices or the property on which you conduct business, you must pay property taxes to local tax officials. In some cases, only the real estate in which your business operates is taxed. In other cases, the real estate and property used by your business are taxed. This is usually in the city or county where you conduct business. The tax itself is based on assessed value. You will receive information about the assessed value of your property annually. If you disagree with the assessed value, many localities will allow you to submit an appeal. &nbsp;<h4>Sales tax</h4>Typically, small business owners must pay and report state sales taxes to businesses they work with that operate in states with state income taxes. In most states, business owners collect sales tax and pay it to the state Department of Revenue. Online business owners may also be responsible for paying sales tax for certain types of sellers.<h2>File Your Freelancer Taxes</h2>LLCs that are pass-through entities have no separate federal tax filing requirements, so the IRS does not recognize them as a business category that must file taxes. This means every freelance LLC can effectively choose which federal income tax approach to follow.&nbsp;<a href="https://1800accountant.com/blog/tax-strategies-self-employed-v-small-business-owners">LLCs can use IRS Form 8832, Entity Classification Election</a>, to elect to be classified as a sole proprietorship, partnership, S corporation, or C corporation (this entity lacks pass-through taxation and is taxed twice). Regardless of entity type, you can submit your tax forms electronically and file your annual tax return via<a href="https://www.irs.gov/filing/irs-free-file-do-your-taxes-for-free">&nbsp;IRS Free File</a>&nbsp;or<a href="https://www.irs.gov/filing/where-to-file-paper-tax-returns-with-or-without-a-payment">&nbsp;traditional mail</a>.<h2>Simplify Your Freelance Tax Preparation</h2>Taxes are complex. We understand self-employment taxes can feel like the least of your concerns when you have a business to run. That's where 1-800Accountant, America's leading virtual accounting firm, and our team of tax professionals can support all your self-employment and income tax needs. We’ll help you monitor your income and maximize your deductions year-round.Don’t risk forgetting to file. Schedule a free consultation for assistance with<a href="https://1800accountant.com/services/industry/freelancer-self-employed">&nbsp;tax preparation for freelancers &amp; self-employed entrepreneurs</a>.

Working for yourself feels exhilarating. You’re your boss. You can work wherever (and whenever) you want. The downside to your independence? Freelance taxes.&nbsp; Freelancers and independent contractors enjoy autonomy and the added responsibility of self-employment tax rules. Unlike employees who earn a paycheck, freelancers must calculate and pay quarterly taxes. The income tax filing process [&hellip;]

Blog Thumbnail_What Freelancers Need To Know_1200x630_1.jpg

Taxes for Freelancers: What the Self-Employed Need to Know

If you handle your business's financial work, you must know the forms you'll be responsible for preparing and filing. Whether you're experienced or new to the process, avoiding mistakes and filing on time is imperative […]

Blog Thumbnail_Documents and Forms_1200x630_2.jpg

LLC Tax Filing: What Documents and IRS Forms Do You Need

Use this simple, easy-to-understand guide to learn the fundamentals regarding your ongoing real estate tax responsibilities […]

Blog Thumbnail_A Simple Guide To Real Estate Accounting_1200x630_2.jpg

Real Estate Accounting: A Simple Guide for Your Complex Business

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 […]

selfemploment-rectangle.png

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

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 […]

Uber3-landscape.png

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

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

Doordash-rectangle.png

Do You Have to File Taxes for DoorDash?

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. […]

Walmartspark-landscape.png

Walmart Spark Driver Taxes: Calculations, Deductions & Filing

Uber, a ride-hailing business, rose to prominence by offering an affordable and more convenient transportation alternative. Since its launch, Uber has become a household name and instrumental in creating the modern gig economy. As a result, workers have embraced the entrepreneurial spirit by becoming their own bosses. In the wake of Uber's ride-hailing success, they eventually created Uber Eats, a streamlined way for customers to order food for delivery. Like Uber, Uber Eats has been embraced by the public worldwide.Navigating taxes related to your Uber Eats work can be tricky, as the Internal Revenue Service (IRS) does not make allowances for workers who do not know what they'll owe. However, there are tax write-offs that&nbsp;<a href="https://1800accountant.com/blog/self-employment-tax-2">independent contractors and self-employed individuals</a>, a large part of Uber Eats workers, are eligible for, so there is certainty about tax-saving opportunities. Key Takeaways include:&nbsp;<ul><li>Determining whether your Uber Eats work qualifies for taxes</li><li>Discovering which tax forms to use if you owe</li><li>Learning when and how to file taxes</li><li>Browsing helpful deductions to lower your tax liability</li></ul><h2>Uber Eats Taxes: Do I Have to File Taxes for Uber Eats Income?</h2>You're considered a&nbsp;<a href="https://1800accountant.com/blog/how-to-file-taxes-independent-contractor">self-employed independent contractor</a>&nbsp;if you deliver for Uber Eats. This applies to gig workers delivering for GrubHub, DoorDash, and other modern delivery services.&nbsp;<a href="https://1800accountant.com/blog/1099-vs-w2">Unlike W-2 employees, whose employers handle tax withholdings for them</a>, gig workers are responsible for handling their own taxes.If you make $600 or more in a year working with Uber Eats, you will be responsible for filing taxes to report your income.&nbsp;<h2>Which Forms Do Self-Employed Uber Eats Drivers Need?</h2><a href="https://1800accountant.com/blog/freelancing-and-form-1099-nec-everything-you-need-to-know">Uber Eats will prepare IRS Form 1099-NEC</a>&nbsp;and IRS Form 1099-K if you're eligible.&nbsp;You will use IRS Form 1099-NEC if you make $600 or more in non-Uber Eats payments, including trip supplements, referrals, and promotions. You'd use IRS Form 1099-K if you made $5,000 or more in a year making deliveries for Uber Eats.&nbsp;<a href="https://help.uber.com/en/driving-and-delivering/article/how-do-taxes-work-as-a-delivery-partner-with-uber-eats-what-if-im-a-delivery-partner-with-uber-eats-and-a-ridesharing-driver-partner?nodeId=dd247b9d-329d-4df7-8193-0ed70e97c3be" target="_blank">Uber Eats will send an email</a>&nbsp;notifying you when your tax documents are ready on their website, &nbsp;<a href="http://drivers.uber.com" target="_blank">drivers.uber.com</a>, and in the Driver mobile application. Your tax forms should be available no later than January 31.Schedule a call with the experts at 1-800Accountant if you're having difficulty preparing and filing your taxes.&nbsp;<h2>When Do Uber Eats Drivers Owe Income Tax?</h2><a href="https://1800accountant.com/blog/proscons-entity-formation-independent-contractors">Unlike W-2 employees, independent contractors</a>&nbsp;such as those who work with Uber Eats must estimate and pay quarterly estimated taxes four times per year. Quarterly estimated tax payment due dates for the 2025 calendar year include the following:&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&nbsp;<a href="https://1800accountant.com/services/quarterly-estimated-taxes">full-service quarterly estimated tax solution can help</a>.&nbsp;<h2>How to File Taxes for Uber Eats Earnings</h2>You will use&nbsp;<a href="https://1800accountant.com/blog/types-of-1099-tax-forms">IRS Form 1099-NEC and/or IRS Form 1099-K</a>&nbsp;as supporting documents for your tax return. Forms you may use to file your taxes and claim tax deductions include:&nbsp;<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 business income from Uber Eats 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 report your freelance income 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>Uber offers&nbsp;<a href="https://www.uber.com/us/en/drive/tax-information/" target="_blank">a guide to tax season</a>&nbsp;with helpful insights for Uber Eats deliverers who handle their own tax preparation and filing responsibilities.&nbsp;&nbsp;<div type="entry" class="embedded-entry redactor-component block-entry" data-sys-entry-uid="blt79207efd7bb01d06" data-sys-entry-locale="en-us" data-sys-content-type-uid="rte_ad" sys-style-type="block"></div><h2>What Tax Deductions Are Uber Eats Workers Eligible For?</h2><a href="https://1800accountant.com/blog/tax-deductions-food-delivery-drivers">Tax deductions related to your Uber Eats work</a>&nbsp;can lower your taxable income. Consider the following deductions and make sure to keep detailed records supporting each deduction you take.<ul><li>Business Expenses. You can deduct the cost of business assets, such as a car or bicycle you use with Uber Eats, over time via depreciation. You must follow IRS depreciation rules if the business assets you're writing off exceed $2,500.&nbsp;</li><li>Vehicle Deductions. Vehicle deductions can be made using the standard mileage deduction or the actual expense method.&nbsp;<ul><li>The 2025 standard mileage rate is 70 cents per business mile. It's important to follow restrictions on depreciation expense deductions and car payments.</li><li>If your vehicle operating expenses exceed the standard mileage deduction, you can opt for the actual expense method. Instead of deducting your business mileage, determine your expenses for business-related travel, including insurance, gas, and maintenance costs. The actual expense method typically allows for larger depreciation expense deductions.&nbsp;</li><li>While mileage deductions only apply to motor vehicles, you can deduct the costs of using a bicycle for deliveries. You can write off the business-use portion of your biking helmet, chain lock, and repair expenses.&nbsp;</li></ul></li><li>Tools and Equipment. It's common to use temperature-controlled packaging to keep items hot or cold and other tools and equipment that can be written off. Examples of tools and equipment that can be written off include hot bags and insulated packaging, coolers and ice packs, helmet, biking gloves, and other delivery-related clothing, and backpacks to transport deliveries to customers.</li><li>Fees. You can write off fees related to professional services you rely on to complete deliveries and manage your independent contractor business. Eligible fees include mileage tracking software, navigation app subscriptions, bookkeeping and expense management software, and virtual accounting costs.</li><li>Tolls and Parking. You can deduct tolls and parking fees you paid while delivering for Uber Eats. Keep your receipts from parking lots, garages, and tolls related to your deliveries.&nbsp;</li></ul><h2>Don’t Let Tax Season Eat Up Your Income: Get Expert Support</h2>Handling IRS compliance and&nbsp;<a href="https://1800accountant.com/blog/delivery-driver-tax-return">preparing tax materials</a>&nbsp;is a complex, time-consuming challenge. If you make a mistake or miss a deadline, you could be inviting penalties and&nbsp;<a href="https://1800accountant.com/blog/5-tax-issues-that-cause-irs-trouble-for-1099-workers">additional scrutiny from the IRS</a>. That's why many gig workers trust 1-800Accountant, America’s leading virtual accounting firm, for their financial needs.Whether you need <a href="https://1800accountant.com/services/small-business-taxes" target="_self">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 business remains compliant. Schedule a quick consultation–usually 30 minutes or less—to learn more.

Unlike W-2 employees, whose employers handle tax withholdings for them, gig workers are responsible for handling their own taxes […]

Group 10997 (1).png

Do I Owe Taxes on Uber Eats Income: What to Pay & How to File

Excepteur sint occaecat cupidatat

JOIN NOW!

Your small business resource for accounting, bookkeeping, and taxes from our experts.

Accounting, Bookkeeping, & Tax Blog

Screenshot_2023-08-14_at_1.36_1.png

CLP_JoinUs_Testimonial_WomanBlueBackground_3.png

Huong T
“Excellent first call, very informative. This is my third business … this time  I will ease the burden and use 1-800Accountant [for accounting]”

By clicking "Confirm My Appointment" you agree to our <a href="https://1800accountant.com/terms-of-services" target="_blank">Terms of Service</a>. This includes permission to communicate with you about your appointments via phone, email, or SMS. If you prefer to opt-out of SMS communications you may uncheck this box