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Everything You Need to Know About Grubhub and Taxes

The pandemic has changed the food scene as we know it. Now more than ever, people are opting for delivery services like Instacart, Doordash, Postmates, Uber Eats and Grubhub to get their groceries and take-out food. Working as a delivery driver has some great perks, too, like setting your own hours and deciding which deliveries you want to make. You’re your own boss and in charge of your own schedule. But the title of boss comes with responsibilities. It’s now up to you to report any income you earn and pay taxes on that income. Rest assured, there are answers to all your questions about Grubhub taxes.

Table of contents

Do you have to pay taxes working for Grubhub?...Read more

Does Grubhub withhold my taxes?...Read more

Important Grubhub tax forms...Read more

How to get 1099 from Grubhub...Read more

How much do Grubhub drivers make?...Read more

Grubhub tax deductions...Read more

Do you have to pay taxes working for Grubhub?

You’re not considered an actual employee when you work as a delivery driver for Grubhub. The IRS classifies you as an independent contractor and you’re responsible for filing your own taxes. In addition to paying federal and state taxes, you will also have to pay self-employment tax too.

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Does Grubhub withhold my taxes?

Your taxes are withheld with each paycheck when you’re on a company’s payroll. But things are different when you’re a delivery driver. You’re fully responsible for reporting your income and paying taxes when your taxes aren’t withheld. Typically, your employer applies withheld taxes towards Social Security and Medicare taxes. Then the employer usually covers the rest of the Social Security and Medicare taxes for a total of 15.3%. But now that you’re both the employer and the employee, you’re solely responsible for paying the whole 15.3% tax. So to answer the question, how much do Grubhub drivers pay in taxes? You’ll pay the 15.3% self-employment tax, and you’ll pay taxes on all the income you make driving for Grubhub. It might seem overwhelming, but there is a 1099 Tax calculator you can use to help figure out how much you’ll owe.

Important Grubhub tax forms

Since you’re now in charge of filing your own taxes, it’s up to you to understand which Grubhub driver tax forms you’re responsible for filing and which forms will come in the mail.

How to get 1099 from Grubhub

You might be asking the question, how do I get my 1099 from Grubhub? The simple answer is you will automatically receive a Grubhub 1099 form by January 31 if you made $600 or more in Grubhub income. The IRS also receives a copy from Grubhub. You can get the Grubhub 1099 form online, or you can choose to receive it by mail.

Grubhub 1099-NEC

Grubhub and Schedule C

Schedule SE tax form

Quarterly taxes

How much do Grubhub drivers make?

When it comes to answering the question, How much does Grubhub pay?, there are a few factors that determine how much you’re paid. Grubhub compensates drivers for the amount of time they spend on the road. Sometimes you might be sitting in traffic, behind a slow driver or stuck at a railroad crossing, which impacts the amount of time you’re on the road. There is compensation for the number of miles driven per order. Grubhub drivers get to keep 100% of their tips. Grubhub also provides incentives, such as special offers for completing Missions. Each factor determines how much a Grubhub driver makes. So the answer to the question, how much do Grubhub drivers make? depends on varying factors.

Quick tip

Reserve delivery time-slots, using Grubhub’s block scheduling, to ensure you’ll get the time slot you want.

Grubhub tax deductions

One way to save money on your taxes is by making deductions. There are some great deductions for delivery drivers that you can claim on your tax return. Since a car is necessary for your gig, you can write off the miles you drive. You have two options when it comes to making the mileage deduction.

Standard deduction: You can take a deduction for the number of miles you drive and multiply it by the IRS mileage rate to get the deduction amount. For the 2022 tax year, it’s 62.5 cents per mile starting from July 1. The rate from January 1 to June 30, 2022 is 58.5 cents per mile. You can deduct parking fees and tolls with this option, but you can’t deduct any other car-related expenses.
Actual expenses deduction: If you take this route, you’ll need to keep track of the miles you drive and any vehicle-related expenses, so don’t throw those receipts away. With this option, you can claim expenses such as insurance, car maintenance and repairs, car depreciation and registration fees. After adding up your vehicle-related expenses for the tax year, multiply the amount by the percentage that your car is used for business.

It’s best to use a car mileage tax calculator to help you figure out how much to deduct. It’s pretty important to have a cell phone when driving for Grubhub. You can deduct the costs of using a cell phone for business purposes. So if you use your cell phone for business 50% of the time, you can only deduct 50% of the bill. Or, to make things simpler, buying a cell phone and using it solely for your delivery driver gig is best. You can deduct the total cost of the phone, your monthly bill and any phone accessories you might need, like a car charger or stand. Customers expect their food to arrive either hot or cold, depending on the item. If you need to purchase any equipment to keep the food hot or cold, you can deduct those expenses. This includes any hot bags, coolers or courier backpacks.

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