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.
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.