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Grubhub 1099 Tax Forms Explained In Simple Terms

Want to know how Grubhub 1099 tax forms work? This guide explains everything you need to know as a Grubhub driver.

Key Takeaways

  • Grubhub considers drivers self-employed, requiring self-employment taxes.
  • Drivers receive 1099-NEC or 1099-K forms based on earnings and transactions.
  • Grubhub sends 1099 forms by January 31; electronic delivery is optional.
  • Drivers must file taxes even under $600; deductions can lower tax bills.

What Taxes Do Grubhub Drivers Owe?

Grubhub and the Internal Revenue Service (IRS) consider you to be self-employed, meaning you’ll need to pay the self-employment taxes. These include Social Security and Medicare taxes.

Other than the above, you must also pay income tax, the rate of which will vary depending on factors like your location and tax bracket.

If you deliver for Grubhub, you’re probably aware that the company doesn’t view you as an employee but as an independent contractor. You can expect to receive a Grubhub 1099 tax form at some point if you haven’t already.

Types of 1099 Forms Grubhub Sends

Depending on your Grubhub earnings for the past calendar year, the company will send you the 1099-NEC or 1099-K forms.

IRS 1099-NEC Forms

This form is specifically meant for filing taxable income earned outside of employment.

Before 2020, self-employed individuals had to use the 1099-MISC form to pay taxes. Grubhub will send you this form when you earn between $600 and $20,000.

IRS 1099-K Forms

Grubhub sends this form to drivers who’ve made $20,000 or more or who’ve notched up to 200 transactions. The form is typically used for reporting payments received from a third-party settlement organization.

How to Get Your 1099 Form

Grubhub sends drivers 1099 forms annually (specifically, every 31st of January).

To be eligible to receive it, you need to have earned at least $600 driving for the company by the time the current year’s tax season arrives.

If you meet the above eligibility requirement, you can receive your 1099 form by snail mail or email.

Grubhub automatically enrolls drivers in receiving physical copies of their 1099 forms if they didn’t receive an electronic copy the previous year.

Therefore, you’ll have to request that your 1099 be sent electronically if that’s your preferred method. Here’s how to do it via the app:

  1. Launch the Grubhub for Drivers app
  2. Tap “Account” and navigate to the “Personal Info” section
  3. Tap on “Tax Form Information” and then “Send My 1099 Form Electronically.”

You can view your current enrollment status by following the above steps and checking in the “Tax Form Information” section.

The company also forwards a copy of the form to the IRS.

What To Do If You Don’t Receive the 1099 Forms

If you haven’t received the 1099 form, double-check your records to confirm that you’ve met the earnings threshold.

Once you’ve confirmed that you’re eligible to receive a 1099, contact Grubhub at driver1099@grubhub.com.

Grubhub advises that you refrain from sending multiple emails if the company doesn’t respond to your request immediately.

According to the company, doing otherwise may delay the process. Exercise patience, and you should get a response.

Check out more ways to contact Grubhub for other inquiries.

Do You Have to File a Tax Return If You Earn Less Than $600?

Absolutely. As a US citizen, you’re legally obligated to file returns. The IRS provides a detailed guide on its website that explains why and how to file tax returns. Check it out to learn what form to use.

Filing Grubhub Taxes: Other Forms You’ll Need

When driving for Grubhub, you’ll need to make quarterly tax payments on the income you receive. The dates these payments fall due are as follows:

  • 1st Quarter: April 15th
  • 2nd Quarter: June 15th
  • 3rd Quarter: September 15th
  • 4th Quarter: January 15th

In addition to filing your 1099, you must file a 1040 form. It has two sections:

  1. Schedule C: It’s used to report income or loss received in the course of doing business as a sole proprietor. Use the tax information in your 1099 form when doing this step. You can also use it to get write-offs. By the end of the process, you should’ve figured out your total taxable income.
  2. Schedule SE: Use this section to report your self-employment tax.

Once you’ve filled out the 1040 form, submit it with the rest of your tax documents before the dates your quarterly taxes fall due.

Grubhub Tax Deductions

One of the perks of being a delivery driver for Grubhub is that you can minimize your tax bill come tax season.

Grubhub taxes are eligible for write-offs, meaning you can deduct expenses incurred while driving for the company.

Typically, these expenses will be related to your car and may include:

  • Parking fees/tolls
  • Gas
  • Maintenance fees
  • Repairs
  • Insurance
  • Mileage deduction
  • A portion of your car payments

Beyond your vehicular expenses, you can deduct your tax bill based on personal expenses incurred. Typical deductions include:

  • Cell phone usage (when used for calls related to Grubhub deliveries)
  • Cell phone accessories purchased for deliveries (for example, chargers, phone holders, and hands-free devices)
  • Tax preparation fees (for example, if you consult a tax professional)

You’ll need to be diligent about keeping your receipts if you plan to reduce your bill via deductibles. The IRS will need them as evidence.

Final Thoughts

Expect to receive a 1099 form once you cross the $600 income threshold for the tax year. Grubhub will default to sending it through the mail, but you can request to have it emailed if you ask early enough.

Depending on your income, you’ll receive either the 1099-K or 1099-NEC form. Either way, make sure to deduct any eligible out-of-pocket expenses to keep your bill low.

Gasoline payments, replacement parts, auto-insurance payments, and more are all fair game when reporting tax deductibles.

Rest assured that we have similar guides for DoorDash and Uber, if you drive for them instead!

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