Postmate couriers aren’t regular employees. They’re under an independent contract, and as such, they have slightly different tax returns. Instead of deducting taxes from their workers’ salaries, Postmates leave that to the employees themselves.
This means that if you work for Postmates, you have to track your own taxes. Don’t worry, though. You can make many deductions through your work, effectively reducing your taxes. As you may already know, you’ll need a 1099-MISC form to do that.
Postmates will send you this form if you made over $600 in a year. Read on for more details.
How to Get 1099 from Postmates
Getting the form is the easy part. Like we said, Postmates will send a physical form to your home address if your earnings exceed $600. With this form, you calculate your yearly earnings, so make sure you have it available when you file your taxes.
But what about people who don’t earn $600 or more per year on Postmates? If you fall into this category, then things are a little more complicated. You still need to report all your earnings to the IRS, including those you made at Postmates.
In this case, you need to keep track of your earnings. You can do that if you follow the weekly payment statements you always get from Postmates. Although this can be difficult if you work periodically, with long breaks.
Postmates’ official support site recommends using the Stride mobile app for your taxes. It’s free and available for Android and iOS devices. Download it via the links provided, and start using it today. If you work for Postmates, it will make life much easier. The app will also help you with your taxes, providing clear instructions, and explaining everything about 1099.
The form 1099-MISC for independent contractors serves as proof of how much they earned through an employer; in this case, Postmates.
You’re eligible for this form if the company doesn’t employ you, and instead, you work independently. There are many 1099 forms, but we’re only interested in 1099-MISC because that’s the one you need.
In some circumstances, companies will issue this form even if their contractors haven’t earned $600 or more. But don’t rely on this to happen, because it’s not a legal obligation. If you’re wondering when you’ll receive the 1099 document from Postmates, the answer is February.
Postmates have to finalize the forms by the end of January and postmark them (no pun intended!) Therefore, you should get the 1099 at the beginning of the next month.
What Expenses Does 1099 Cover?
You can deduct many expenses from your taxes when working for Postmates. The most prominent write-off is, of course, mileage. Note that you can’t claim for both gas and mileage. It’s better to calculate just the mileage deduction (which is 57.5 cents a mile this year).
The mileage deduction accounts for the price of gas, but also vehicle maintenance, insurance, and depreciation. But you can only write-off the miles when you were working for Postmates. You can’t use your commuting hours, and other times you used your vehicle as an excuse.
The official mileage that can be deducted includes the drive towards your first delivery of the day, the driving between each drop-off, and the drive home from your last delivery.
Other deductibles include the accessories you use for work as a delivery driver. The blankets or hot bags you use to prevent food from going cold. Also, the courier bags are included, e.g., the pizza bag. You can’t use these accessories for personal use, though, so keep that in mind.
Additionally, any parking costs or tolls during your Postmates deliveries are deducted from your taxes. However, you can’t deduct any tickets or other traffic violation costs. These are consequences of irresponsible driving, and can’t be excused or reimbursed.
You can deduct roadside assistance costs during your work hours, however. The same goes for business licenses requested by your country or town for your Postmates’ employment. Health insurance costs are also covered, but these are trickier, so you should look more into the matter in more specific detail.
You can use the official Stride website, or the app, for all additional information, and instructions for filing your Postmates taxes.
Postmates is a reputable company who cares about their drivers. If you’re a Postmate yourself, this article should provide enough information about the 1099 form and how to get it. However, for more info, feel free to consult the official Postmates support website.
Do you file your taxes, or have you hired an accountant to do it for you? Did you receive the 1099 from Postmates? Remember that you can use the deposit records from the Postmates app if you don’t have the physical form.
Share your experiences in the comments section below.