Taxes

Introduction:
As a biker for our delivery platform, you’re classified as an independent contractor, meaning you’re responsible for managing your own taxes. This section covers everything from key forms to deductions and tips for simplifying tax preparation.

Overview of Tax Responsibilities and Requirements:

1. Key Tax Forms

   • Form 1099-NEC (Nonemployee Compensation): If you earn $600 or more from the platform within a tax year, you’ll receive a 1099-NEC form from us. This form outlines your income for tax purposes.

   • Form 1040 (U.S. Individual Income Tax Return): This is the main form used to report all income, including your earnings from bike delivery work.

   • Schedule C (Profit or Loss from Business): Used to report your delivery income and any expenses related to your work. This form helps you calculate your net earnings.

   • Schedule SE (Self-Employment Tax): Calculates your Social Security and Medicare contributions, required for self-employed individuals.

2. Reporting All Income

   • Requirement: You must report all income earned from delivery work, even if it’s below $600 or if you did not receive a 1099-NEC.

   • Multiple Platforms: If you work with other delivery services, include all earnings from each platform to ensure complete reporting.

3. Eligible Deductions and Write-Offs

   • Bike and Equipment Expenses: Deduct costs for bike maintenance, repairs, and depreciation, as well as expenses for safety gear (helmets, reflective clothing, thermal bags, etc.).

   • Phone and Data Plans: If you use your phone for work, you can deduct a portion of phone and data expenses.

   • Insurance: Any business-related insurance can also be deducted, helping reduce taxable income.

   • Tracking Expenses: Keeping records of expenses related to your delivery work is essential for accurate deductions.

4. Self-Employment Tax

   • Overview: As an independent contractor, you’re required to pay self-employment tax, covering Social Security and Medicare contributions.

   • Calculation: This tax is calculated using Schedule SE and added to your total tax liability. Many self-employed individuals set aside around 15% of their income for self-employment taxes.

5. Estimated Tax Payments

   • Requirement: If you anticipate owing $1,000 or more in taxes, you’re expected to make quarterly estimated tax payments. These are due on April 15, June 15, September 15, and January 15 of the following year.

   • Tip: Paying estimated taxes helps you avoid penalties and manage your tax responsibilities more efficiently.

6. State and Local Taxes

   • Overview: Be aware of any additional tax obligations, as state and local taxes may apply based on your location. Check your state’s tax requirements for independent contractors.

7. Professional Assistance

   • Tip: Tax laws for self-employed individuals can be complex. Consulting with a tax professional can help ensure compliance, optimize deductions, and simplify tax preparation.