A well-known supermarket delivery business called Shipt has grown in popularity recently. You may choose your own schedule as a Shipt shopper and make money by delivering groceries to consumers. However, the duty of filing taxes comes along with the increased income. We will address some of the most often asked queries about taxes in this article for Shipt users. Do You Receive a W2 for Shipt?
As a Shipt shopper, you are regarded as an independent contractor rather than an organization employee. Accordingly, Shipt is not obligated to provide you a W2 form at the end of the year. An annual report of your earnings, known as a 1099 form, will be delivered to you instead. You are in charge of filing your tax returns and paying your own taxes as an independent contractor.
You must use a Schedule C form, a component of your personal tax return, to submit your taxes as an independent contractor. You can use this form to submit your earnings, tax deductions, and other costs associated with your work as a Shipt shopper. Self-employment taxes, which are due in addition, must also be paid. These payments cover both Social Security and Medicare.
It is advised that you maintain thorough records of your earnings and outgoings during the course of the year in order to make the process of filing taxes as a Shipt customer simpler. This may include travel costs, materials, and any other costs associated with your employment as a Shipt shopper. Maintaining correct records will help you make sure that you are taking all of the permitted deductions, which can assist lower your tax obligation.
You will get a 1099 form from Shipt if your earnings as a Shipt shopper exceed $600 in a given year. Your annual profits will be reported on this form, and it will be your responsibility to include this income in your tax return. What Salary Must You Earn to File Taxes?
In general, if your income exceeds the standard deduction for your filing status, you must file a tax return. The standard deduction is $12,400 for solo filers and $24,800 for married couples filing jointly for the 2020 tax year. However, if you work for yourself and make $400 or more in net self-employment income, you must file a tax return. Are Shoppers on Shipt Independent Contractors?
Yes, Shipt users are regarded as independent contractors rather than workers. This implies that you are responsible for paying your own taxes because Shipt does not deduct taxes from your paycheck. In addition, you must supply your own tools as an independent contractor, such as a vehicle for deliveries.
To sum up, as a Shipt customer, you are in charge of your own tax preparation and payment of self-employment taxes. To make sure that you are claiming all of the deductions that you are entitled to, it is crucial to maintain precise records of your income and expenses during the course of the year. Also keep in mind that Shipt will send you a 1099 form if you earn more than $600 as a Shopt shopper in a single calendar year.