Taxes With Doordash – Currently, there are many online food delivery applications that you can use to make your life easier. The innovation was made in order people don’t have to go to a restaurant and just stay at home. Now we will share about taxes with Doordash, one of the bigger players in the food delivery business in the US.
Doordash is one of the startup companies that serve food delivery. The has a food ordering application that has many users. This application was created and developed by Evan Moore, Stanley Tang, Tony Xu, and Andy Fang in 2013.
The application then developed rapidly and later became a startup company in the field of food delivery. Doordash is headquartered in San Francisco, California, and has nearly 8,000 employees. Doordash has served online food ordering in many cities in the United States, Canada, and Australia.
The number of cities served by Doordash reaches 700 cities in these 3 countries. However, Doordash has the largest operational area only in the United States and Canada.
Understanding Taxes with Doordash
Doordash has some services in process of delivering food to consumers, one of them is delivery to the public space. Doordash has innovation in which consumers who order food while in public spaces will be delivered directly to these consumers.
That means Doordash not only does food delivery to homes or offices but also accepts delivery to public spaces.
Additionally, Doordash has a charity program linked to the Feeding America charity donation program. This company also has taxes with Doordash policy for its employees.
However, food delivery in Doordash has a different tax payment policy with employees. Under the policy, those who work as food deliverymen will receive a 1099-K form.
The form is used to report their finances earned not from their main salary. It can come from payment card transactions where you have to pay each year.
Therefore, there are a number of things that you should pay attention to regarding paying taxes as food delivery.
Filling in Form 1099-K
At the taxes with Doordash policy, food deliverers will get this form regarding the payment of taxes. The fields on the 1099-K form are quite confusing where you have to fill incorrectly.
The form contains payment card transactions and you must ensure your payment card receipt record. If you make a mistake filling out the form, you will get problems regarding paying taxes.
We recommend that you consult with a tax expert about this matter.
Taxes With Doordash: Calculating Income
The next thing to pay attention to is to calculate your income while being a food delivery. You must be careful in calculating your income, so later there will be no fatal mistakes when making tax payments.
You can create graphs that make it easier for you to calculate your weekly and hourly earnings. You also have to include all your sources of income, both tips, and bonuses that you get from Doordash.
Each dasher has a different income depending on the city the dasher is in.
Taxes With Doordash: Calculating Expenses
The next thing to pay attention to when dealing with taxes with Doordash is to calculate your expenses.
You must know how much tax you have to pay, then you set aside your income to pay the tax. That way, when you have to pay taxes, you already have money devoted to paying your taxes.
And you don’t have to borrow money to pay your taxes because it can be very detrimental to you.
Taxes aren’t the only expense you have to count. You must also calculate the cost of the vehicle, and the cost of fuel.
In addition, the cost of maintaining your smartphone when you have a problem must also be taken into account.
You must also calculate other expenses such as rent for housing, food costs so that there are no mistakes. It also aims to let you know how much you have to set aside to pay taxes and your expenses.
This information are ideas that are known to me regarding the taxes with Doordash policy. The best thing you can do if you want to take care of taxes is you go to a tax preparer to consult on this matter.