If you drive for Grubhub, you might be wondering if you have to file taxes on the money you make from the service. You must file taxes for your Grubhub money, hence the answer to this query is indeed yes. You must pay taxes on any income you get, including that from Grubhub.
According to the “$600 rule,” any company that pays a person $600 or more in a single year is required to send them and the IRS a 1099-MISC form. This implies that if you make $600 or more through Grubhub in a year, they will send you a 1099-MISC form. Partnerships with LLCs and 1099s
Instead of a 1099-MISC form, if you are a partner in an LLC, you will get a Schedule K-1 form. The Schedule K-1 form will detail your portion of the partnership’s earnings, credits, and deductions, which you must disclose on your individual tax return.
Yes, if you obtain a 1099 form, the IRS is aware of it. Businesses must provide 1099 forms to the IRS so that they have a record of the money you earned. The IRS will be aware if you fail to declare this revenue on your tax return and is likely to issue you with a notice of deficiency.
The IRS will most likely discover the error and send you a notice of deficiency if you fail to submit income that is indicated on a 1099 form. You will learn about the additional tax, interest, and penalties you owe in this message. Even if you don’t get a 1099 form, you still need to record any income you get.
In conclusion, Grubhub will send you a 1099-MISC form if you work as a driver and make $600 or more annually. You must include this information on your tax return. Instead of a 1099-MISC form, if you are a partner in an LLC, you will get a Schedule K-1 form. To avoid IRS fines or interest, remember to declare every income you receive, even if you don’t obtain a 1099 form.