GrubHub Inc., owned by Just Eat Takeaway, is an American online and mobile platform for ordering and delivering prepared food that allows users to buy meals from local restaurants.
The GrubHub app is a real-time food delivery service that allows you to order from your favorite restaurants in real-time.
Uber Eats, DoorDash, Postmates, and GrubHub are just a few of the on-demand food delivery firms that hire riders.
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How Can I Obtain a GrubHub Tax Form?
The question is, how can I obtain my GrubHub 1099 form?
You will need to learn a few new tax forms and terms to prepare your tax return. If you’ve always worked as a grubhub W2 employee, it may seem particularly strange.
When does grubhub send 1099?
Businesses having delivery drivers that earned more than $600 must mail 1099s to them by January 31st.
This Grubhub 1099 form will include all of the tax information for each delivery made by each driver. Along with this form, you will obtain other relevant tax paperwork. If you match certain criteria, you may receive a distinct GrubHub tax 1099 form.
GrubHub drivers are likely to receive Form 1099-NEC from the company. NEC is an abbreviation for Nonemployee Compensation. The IRS utilizes this form to report payments to independent contractors for services rendered. People used to record this revenue on Form 1099-MISC, but now they report it on Form 1099-NEC. If you earned more than $600 as a GrubHub driver, you should have gotten this document in the mail after January 31.
GrubHub may also send you a grubhub 1099-K form. Anyone earning more than $20,000 per year must complete the form. GrubHub will give you a Form 1099-K if you received more than $20,000 in taxable profits or completed more than 200 transactions.
EIN for GrubHub
Another crucial piece of information is the GrubHub Employer Identification Number (EIN).
An EIN is used to identify a firm on tax forms and other official documents.
The GrubHub EIN will appear on your 1099-NEC. GrubHub discloses to the IRS any payments received during the year.
If you’re inclined to underreport your GrubHub revenue, you should be aware that the IRS is aware of the amount documented on Form 1099-NEC.
What Should I Do If I Didn’t Get My Tax Form?
If your profits as an independent contractor are less than $600, GrubHub will not issue you a 1099 form. Nonetheless, your earnings are still taxable.
Whatever you earn from GrubHub, you must report it to the IRS. If you did not file your taxes, the IRS would penalize you. Correctly filing your taxes will help you avoid penalties and interest.
When And How Should You File Your Taxes?
It’s time to file your self-employment taxes once you’ve received your 1099.
Here are the two forms you’ll need.
Putting your Schedule C together
You’ll utilize this Grubhub tax form information to prepare your taxes.
Self-employed individuals who deliver for GrubHub are taxed on Schedule C of their tax returns because they are showing their business earnings (or losses).
This form will also be used to calculate the amount of tax you must pay on your total taxable income. The amount you earn through self-employment less the amount you spend on business expenditures is your self-employment income.
Putting Your Schedule Together SE
The self-employment tax is based on the taxable income reported on Schedule SE.
Keeping your Schedule C taxable income as low as possible will help you pay less in Schedule SE taxes. These forms, as well as any other tax documentation, must be submitted by April 15.
Tax Filing Deadlines for GrubHub
Isn’t the deadline for filing taxes April 15th? Yes, in most circumstances. Those who deliver for GrubHub and expect to owe more than $1,000 in taxes must make quarterly payments.
The following are the quarterly tax deadlines:
- Q1 is April 15th;
- Q2 is June 15th;
- Q3 is September 15th;
- Q4 is January 15th.
What Are GrubHub Tax Breaks?
The ability to take write-offs is the finest aspect of being a 1099 driver.
The following GrubHub 1099 deductions are available to you.
- Cell phone usage is tax deductible
- The mileage deduction is determined by how many miles you drive for each employee and how many cents per mile you deduct.
- Diesel fuel
- Automobile payments
- Fees for tolls and parking
- Vehicle maintenance and repair
- Travel expenses are tax deductible.
- Premiums for healthcare
- Accounting and taxation fees
- Cell phone accessories such as chargers and holders
Can drivers for Grubhub be considered employees?
Grubhub’s delivery partners and drivers are independent contractors. In February 2018, a federal judge in San Francisco determined that Grubhub drivers are not employees of the corporation, following a lawsuit filed by Grubhub driver Raef Lawson for unpaid wages, overtime, and expenses.
This case has sparked much debate because it was the first to incorporate the gig economy.
Independent contractors, on the other hand, have several advantages over regular workers, such as the opportunity to choose their schedules.
Is it possible for Grubhub drivers to work full-time?
It’s not uncommon to see people working 40 hours per week (or more) on Grubhub, even though this is typically considered part-time employment. Because you are still considered an independent contractor, you will be unable to obtain the exact hours you require each week.
To earn a full-time equivalent, a driver can work for various food delivery companies, such as Postmates and DoorDash, in addition to Grubhub.
How often are Grubhub drivers paid?
You’ll be able to withdraw cash from your Chase bank account once a week after completing your deliveries. Any driver with a Chase bank account, on the other hand, can withdraw cash promptly and at no extra cost.
When you work as a delivery driver for Grubhub, you are not regarded as an actual employee. You are recognized by the IRS as an independent contractor, and you are in charge of submitting your own taxes.