Are you a Grubhub driver who needs to get your 1099, maximize your deductions, or file your tax return? Here’s everything you need to know.
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 Grubhub?
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
You can use this information if you want to enter your 1099 in your tax filing software before you get it from Grubhub.
|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|
How do you get Grubhub proof of income?
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.
Related: Looking for Grubhub alternatives? Check out the Best Food Delivery Services to Work For.
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 are supposed to report them on your tax return.
Not reporting your tips can have more consequences than the IRS figuring it out and fining you. If you don’t report your income, you may not be able to verify it for a mortgage or rental. While independent contractors don’t usually qualify for unemployment, many Grubhub drivers lost out on COVID-19 relief money that was based on their reported income. You’ll also be reducing your future Social Security earnings.
Tip: Boost your income by figuring out the best hours to drive.
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 as an independent contractor are generally 15.3%.
If you live in a state with an income tax, you may have to pay state income taxes as well.
Some places may require you to get a business license for Grubhub or other gig work.
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 to. You have to make quarterly tax payments.
It’s a good idea to put your tax money into a separate bank account as soon as you get paid. If you don’t set aside money and don’t have enough to pay your taxes, you could have to pay a penalty.
Setting aside 30% for taxes is usually a good rule of thumb. If you want a more precise estimate based on your income, expenses, and tax bracket, you can use a tax tracker.
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.
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
- 2023: 65.5 cents per mile
- 2022 July through December: 62.5 cents per mile
- 2022 January through June: 58.5 cents per mile
- 2021: 56 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. The app may not track miles you drive in between deliveries or when switching between apps that would be deductible.
You can either manually log your miles or get an app that automatically tracks all of your driving. If you use an app, you just need to log in and press whether the trip was for business or personal reasons.
If you manually log your miles, it’s usually not necessary to record every stop. You can generally write down your starting and ending mileage on your odometer for your workday. Don’t include your commute or if you stop working to do personal errands.
Does Grubhub pay mileage?
Grubhub doesn’t specifically pay mileage, but its pay rates are meant to cover your driving expenses. Report your full pay from Grubhub as income, then take your mileage deductions in the deductions section of your Schedule C.
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.
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 can’t deduct your entire cellphone bill just because you use your phone for Grubhub unless you use it 100% for Grubhub.
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.
For example, for every $10,000 in net profits, you’ll get a $2,000 QBI deduction. Your taxable income for income taxes would be $8,000.
The QBI deduction does not apply to self-employment taxes. Self-employment taxes are based on your net profit before taking the QBI deduction.
Grubhub QBI Deduction Income Limits
The Qualified Business Income deduction has income limits that most Grubhub drivers don’t have to worry about. If you’re below the following income levels, you can generally take the full deduction. If your income is above the limit, you may qualify for a partial deduction.
|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. So if your $400 monthly premium has a $300 subsidy, you can deduct $100 per month.
The self-employed health insurance deduction is separate from your Schedule C. Instead of entering it with your Schedule C deductions, it goes on Part II of Schedule 1.
Grubhub Driver Tax Filing
If you understand the basics of this tax guide for Grubhub drivers, it’s easy to file your own taxes using tax software. The software will ask you questions and guide you through each step.
If you’re worried about making a mistake or aren’t quite sure what you can deduct, you can upgrade to tax software with live support. You’ll be able to call or chat with a CPA or Enrolled Agent when you need help.
You can also just let a tax professional do your taxes if you’re not comfortable filing your Grubhub taxes or just don’t want to.
Grubhub Driver Tax Audits
Whether or not the 87,000 new IRS agents target Americans making less than $400,000 per year (like Grubhub drivers), you do have a risk of being audited as a Grubhub driver.
The most common thing you may be audited for is the mileage deduction since that will be the largest deduction for most drivers. The IRS might ask for your mileage log or for proof that your business trips were actually business trips.
The IRS may also ask for receipts for your other expenses or for proof that those were business expenses.
Should Grubhub drivers use an LLC?
Some Grubhub drivers choose to form an LLC for their work.
There usually isn’t much tax benefit to using an LLC for Grubhub. You don’t need an LLC to claim business expenses. While you can have your LLC taxed as an S-corporation, it’s usually hard to argue that Grubhub income should be dividends which is usually the reason people want an S-corporation for taxes.
Having an LLC may protect you from legal liability in the event you cause an accident or have a customer sue you for something like food poisoning. The protection you receive may vary based on your state’s law. You may want to ask a lawyer if using an LLC is right for you.