Guide Gives Gig Drivers A Leg Up on Finding Deductions
SAN JOSE, Calif., Aug. 3, 2022 /PRNewswire/ — FlyFin, a human plus A.I.-powered tax prep and tax filing service, announced a free tax guide dedicated to helping gig drivers prepare their taxes. The new tax guide is for self-employed people leveraging their cars to make money as independent contractors. Ideally suited for delivery drivers to learn about Doordash taxes, Postmates taxes, Instacart taxes and Grubhub taxes, FlyFin’s new tax guide is also helpful for rideshare drivers, to learn about Uber taxes and Lyft taxes.
Gig workers are uniquely positioned to take advantage of the gig economy for full-time or part-time work, or as a side hustle. Approximately 16% of Americans –– nearly 53 million people –– earned money on gig platforms in 2021. Gig workers, however, should be on their toes with the new tax reporting standards. The stimulus bill signed by President Joe Biden last March amends the tax code and places even more responsibility for reporting accurate wages onto gig workers. Effective January 2022, the new tax reporting standards lower the tax reporting threshold on income from these gig platforms from $20,000 to $600.
Gig drivers who make $600 or more annually will now need to report their taxes on all Instacart 1099, Doordash 1099, Postmates 1099, Grubhub 1099, Uber 1099 and Lyft 1099 forms. However, now that the IRS has lowered the reporting threshold, the new tax reporting means that gig drivers need to track their income and report it accurately. As independent contractors, gig drivers are still responsible for paying the taxes on their earnings. Further, self-employed individuals, who expect to owe $1,000 or more in annual taxes, must also make quarterly estimated tax payments.
FlyFin’s Ultimate Tax Guide for Gig Drivers is beneficial as gig drivers can sometimes miss out on all the deductions they might not have been aware they are eligible to take. Missing any tax credits or deductions means paying more money in taxes. FlyFin’s free tax guide includes:
- Clearly understand how drivers can calculate their taxes
- A comprehensive list of the expenses drivers can deduct from their taxes
- An easy-to-understand run-down on how deductions work for drivers
- Tools to automate taxes
FlyFin’s new guide is part of a larger initiative the company is undertaking to build a comprehensive resource center for tax preparation dedicated to the needs of self-employed people, freelancers and independent contractors such as delivery drivers. The following is one of several resources the company introduced this year that benefit delivery drivers and other self-employed people.
- FlyFin’s1099 Tax Calculator tool helps self-employed individuals quickly compute quarterly or annual income taxes, so they know what amount their next tax payment needs to be.
FlyFin is an A.I.-powered platform that provides self-employed, sub-contractors, independent contractors, gig workers, freelancers and creator economy workers with a convenient, easy-to-use and affordable tax filing solution. FlyFin helps individuals maximize self-employment tax deductions and income tax refunds. With a "Man + Machine" approach, FlyFin leverages A.I. paired with highly experienced tax CPAs to deliver automation that eliminates 95% of the work required for 1099 self-employed individuals to prepare their taxes. FlyFin is a privately-held, venture-backed company based in San Jose, California.