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A Complete Guide to Your Postmates Taxes
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A Complete Guide to Your Postmates Taxes
Postmates is a popular source of delivery gigs for many freelance delivery drivers. The platform puts finding a one-off delivery at your fingertips with the push of a button, which is perfect for freelance delivery drivers who are always on the go.
For these reasons, Postmates is a vital source of income for many delivery drivers, but like other delivery services such as Instacart, Amazon Flex and Uber or Lyft, the company does not offer drivers any help with their taxes.
You probably know this already if you've been working as a freelance driver for some time, but independent contractors do not have any taxes withheld from their pay, and they are entirely responsible for paying their own taxes. The IRS classifies Postmates delivery drivers as independent contractors, and as such you will need to file your taxes on your Postmates income.
Contrary to the ease of getting delivery tasks that Postmates provides, filing taxes as an independent contractor or freelance delivery driver is a different ball game. The hurdles in filing taxes and knowing about the numerous IRS forms with names like Schedule C and 1099-NEC are even bigger if you're just starting out as a Postmates delivery driver.
Thankfully, answers are available for these often-asked Postmates tax questions.
Table of contents
Is Postmates considered self-employment?...Read more
What is a Postmates 1099?...Read more
What is a Postmates 1099-NEC?...Read more
What is Postmates 1099-K?...Read more
How do I file my Postmates taxes?...Read more
What can I deduct from my taxes as a Postmates 1099?...Read more
When do I file my Postmates taxes?...Read more
What’s the easiest way to file my Postmates Taxes?...Read more
Is Postmates considered self-employment?
Yes, the IRS considers Postmates delivery drivers to be self-employed individuals. That means you, if you're working as a freelance Postmates delivery driver.
What is a Postmates 1099?
The IRS 1099 form is the one that Postmates -- or any other company that has a contract with freelancers or self-employed people -- will send to them. It is also sometimes referred to as a Postmates 1099. The form lists the payment the company has made to you for your work, but doesn't include any 1099 tax. The Postmates 1099 has many components, all described below.
You should receive your Postmates 1099 form via mail by February every year since the deadline for sending it is January 31. As required by the IRS, Postmates will also mail a copy of the same 1099 form to the IRS. If you don't receive the form from Postmates by February, you must reach out to the company's support team to request that they send you a 1099 form as soon as possible. It is, after all, the most essential form for you to use in filing your own taxes. With that in mind, consider using a self-employed tax calculator for figuring out your quarterly tax payments that you'll need to make while working for Postmates.
To file your taxes, you'll need to remember to pay these three types of tax:
- Federal taxes
- State taxes
- SECA (Self-Employment Contributions Act) taxes, also known as Social Security taxes for freelancers
What is a Postmates 1099-NEC?
As a freelance Postmates delivery driver, you will need the 1099-NEC form to help you calculate and report your non-employee compensations. Postmates will send you this form to report your earnings from the platform.
The bare minimum requirement to receive the 1099-NEC form is that you make at least $600 in a year from a company or business that doesn't employ you full time. You are not on Postmates' payroll, which means you work as an independent contractor.
If your annual income as a Postmates delivery driver is less than $600, then it's not mandatory for the company to send you this form. This means that you will not receive the 1099-NEC from Postmates, but you'll still need to file taxes from your other overall income.
What is Postmates 1099-K?
As a Postmates delivery driver, you'll probably receive a lot of your payments via third-party apps. The 1099-K form is sent out to anyone who is making an income from third-party online payment sources like credit card companies or PayPal and Venmo.
If you make more than $600 dollars from one of these platforms during the tax year, they are required to report it to the IRS on a 1099-K and send you a copy. When it comes time to file your taxes, you will need to report the information in the 1099-K on Schedule-C of your 1040 form.
How do I file my Postmates taxes?
To file your Postmates taxes, you'll need the IRS Schedule C. It helps you calculate all your earnings by reporting your quarterly profits and losses. The Schedule C also helps you mention your tax deductibles when filing taxes. The Schedule C is part of the 1040 form, and you'll need to attach it with your 1099.
What can I deduct from my taxes as a Postmates 1099?
With the boring stuff behind us, let's talk about the part where you save big money on your taxes. As a self-employed individual, you can take advantage of tax deductibles to help you minimize your taxable income.
These deductibles must be valid business expenses, which you will need to be able to prove to the IRS. Here are some of the valid deductibles:
- Health insurance premiums
- Vehicle repairs and standard mileage deduction claims
- Fuel costs, if you haven't already mentioned them in the mileage
- Your toll and parking expenses during delivery trips
- Any Postmates fees
- Business-related cell phone bills
- Car insurance expenses
- Costs of hot bags or cold bags for delivery
- Bike and helmet
- Depreciation of the car that you use for deliveries
When do I file my Postmates taxes?
For self-employed individuals and freelance drivers, the IRS has a pay-as-you-go model with four deadlines to file quarterly estimated taxes:
- April 15
- June 15
- September 15
- January 15 of the following year
What’s the easiest way to file my Postmates Taxes?
In addition to the Postmates tax forms you'll need to watch for, the important dates for filing taxes, and the deductibles you will claim, you'll need to get all your information in order to have successful Postmates tax filings, so you can be sure to pay your estimated taxes by the deadlines.
To file your quarterly Postmates taxes, you'll need to organize all your profits, losses, and tax deductibles into one sheet to calculate the correct estimated tax. It can be a tedious process, and if you are new to it, the chances of making a mistake can be high. In the worst-case scenario, you might end up paying more taxes in the form of penalties and interest charges for underpayments, or you might not be able to make the most of your deductibles.
To simplify the tax filing process, you can make use of A.I., which takes the guesswork out of tax deductibles, so you can focus on what matters. Link FlyFin to your account statements to let A.I. automatically find every possible business expense you had as a Postmates driver, so you can claim them as tax-deductible.
FlyFin reminds you of crucial IRS deadlines and provides you with 24/7 CPA support for any tax-related questions. When the April 15 deadline approaches, FlyFin's CPA team files a 100% accurate tax return for you, saving you time and money.
What’s FlyFin?
FlyFin is the most powerful A.I.-powered tax service for freelancers, gig workers, independent contractors and sole proprietors. FlyFin tracks all your business expenses automatically to find every possible tax deduction.
And anyone can file taxes through FlyFin. Our CPA team files a guaranteed 100% accurate tax return for you – to save you a couple thousand dollars and a ton of time on your taxes.
Download the FlyFin app for the CPA team to file your taxes for you and get more tax savings than you had last year, guaranteed.
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