Are you a Grubhub driver who needs to get your 1099 or file your tax return? Here’s everything you need to know.
Table of Contents
Is Grubhub self-employment income?
Grubhub drivers are independent contractors. That makes Grubhub income self-employment income?
Do you get a W-2 or 1099 from Grub hub?
Since you’re an independent contractor, you get a 1099 instead of a W-2. Grubhub uses Form 1099-NEC.
How do you get your 1099 from Grubhub?
Grubhub mails 1099s to the address listed in your account by default. If you want to get your 1099 by email instead of postal mail, you can change your account settings.
You will only receive a 1099 if you earned more than $600 between January 1st and December 31st. It’s based on when Grubhub paid you not the time of the delivery.
Grubhub does not make copies of your 1099 available in your account. If you didn’t receive your 1099 or lost your 1099, contact Grubhub support.
Grubhub 1099 Information
| Company Name | Grubhub, Inc. |
| EIN/Tax Identification Number | 26-1328194 |
| Business Address | 111 W Washington Street, Suite 2100 Chicago, IL 60602 |
| Business Activity Code | 722300 |
What income from Grubhub do you have to claim on your taxes?
Your income includes the pay for your orders and all tips you receive. Grubhub won’t report your cash tips, but you must include cash tips on your tax return.
What taxes do Grubhub drivers have to pay?
Grubhub drivers have to pay federal income taxes according to their tax bracket as well as self-employment taxes. Self-employment taxes are generally 15.3%.
If you live in a state with an income tax, you may have to pay state income taxes as well.
What tax forms do you have to file?
Grubhub drivers need to file individual tax returns by April 15th. You’ll include a Schedule C with your Form 1040. You can use tax filing software to do all of this for you.
If you work for another food delivery service, such as Uber Eats, Amazon Flex, or DoorDash, you’ll typically combine all of your income and expenses with your Grubhub income onto a single Schedule C.
When and how do you pay taxes?
Even though you have to file your tax return by April 15th, you have to make tax payments throughout the year. These payments are called estimated or quarterly taxes. You can learn more about when and how to make estimated tax payments here.
If you’re doing Grubhub for extra cash and have a W-2 job, you may be able to skip quarterly payments if you increase your withholding at your W-2 job.
Grubhub Tax Calendar
| Action Needed | 2021 Tax Year | 2022 Tax Year |
|---|---|---|
| First Quarter Estimated Tax Payment Due | April 15, 2021 | April 15, 2022 |
| Second Quarter Estimated Tax Payment Due | June 15, 2021 | June 15, 2022 |
| Third Quarter Estimated Tax Payment Due | September 15, 2021 | September 15, 2022 |
| Fourth Quarter Estimated Tax Payment Due | January 15, 2022* | January 15, 2023* |
| Receive Your 1099 | No later than January 31, 2022 | No later than January 31, 2023 |
| File Your Tax Return | April 18, 2022 (due to Good Friday and Passover on the 15th) | April 15, 2023 |
Does Grubhub take out taxes?
Grubhub does not take out taxes even if you ask them too. You have to make quarterly tax payments. You can learn more about budgeting for estimated tax payments here.
What tax deductions can Grubhub drivers take?
The general rule on tax deductions for independent contractors is that you can take ordinary and necessary business expenses. For Grubhub drivers, your main expense will be mileage. There are a few other deductions you can take as a delivery driver as well.
Mileage
Most drivers are best off taking the standard mileage deduction. You can deduct a fixed amount per business mile you drive without worrying about tracking your actual expenses.
A business mile is typically your miles from a restaurant to a customer and back to another restaurant. You can also deduct miles where you’re driving from one gig to another.
You generally can’t deduct your commuting miles. Commuting miles are the travel between your home and your first and last stop.
Standard Mileage Deduction Rate for Grubhub
- 2022 (Miles for July through December): 62.5 cents per mile
- 2022 (Miles for January through June): 58.5 cents per mile
- 2021: 56 cents per mile
- 2020: 57.5 cents per mile
You can also choose to use the actual expenses method instead of the standard mileage deduction. With this method, you need to save receipts for all of your expenses to operate and maintain your car like gas, car repairs, and car insurance. For most cars, this method usually works out to less than the standard mileage deduction.
Does Grubhub track mileage?
Grubhub tracks your mileage during deliveries, but it’s better to keep your own mileage log. You may be able to deduct miles you drive in between deliveries or when switching between apps.
Does Grubhub pay mileage?
Grubhub uses mileage when calculating your pay. You must report the mileage portion of your pay as taxable income. You can then take the standard mileage deduction to offset your driving expenses.
Does Grubhub pay for gas?
Grubhub doesn’t pay for gas. The standard mileage deduction covers your gas expenses.
Things for Your Car
You may also buy things to make your job easier or safer. These can include things like food holders, signs to identify yourself as a delivery driver, or a dash cam.
Generally, the items need to be something that you use for business to be deductible. If you use items for personal reasons, they may not be deductible, or you may need to calculate what percent you use them for business.
Cellphone Bills
Since you need a cellphone connection to use the Grubhub app, your cellphone bills are a potential business expense. However, if you use your personal phone, you can only deduct a portion of your bill.
You might calculate your phone deduction by figuring out what percentage of your data you use for business or how many hours you use your phone for business versus personal use.
Qualified Business Income Deduction
The QBI deduction doesn’t go on your Schedule C, but it applies to self-employment income. Most drivers will get an automatic 20% deduction on their income taxes.
Grubhub QBI Deduction Income Limits for Full Eligibility
| Filing Status | 2022 | 2021 |
|---|---|---|
| Single and Married Filing Separately | $170,050 | $164,900 |
| Married Filing Jointly and Qualifying Widower | $340,100 | $329,800 |
| Head of Household | $170,050 | $164,900 |
Self-Employed Health Insurance Deduction
If you’re self-employed, you may be able to deduct health insurance premiums from your taxes. To be eligible, you generally can’t be eligible for a plan through your employer or your spouse’s employer.
If you receive a health insurance subsidy, the amount of your premiums paid by the subsidy are not deductible.
The self-employed health insurance deduction is also separate from your Schedule C.
Frequently Asked Questions
If you need proof of Grubhub income, you can download your app earnings or provide a copy of your 1099. If you need additional help, contact Grubhub customer support.
Conclusion
Grubhub driver taxes are easy to file if you use tax software. The tax software will walk you through everything you need to do. If you still have questions, you can ask a tax expert.
