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GrubHub 1099 Form

GrubHub 1099 Form
Ines Zemelman, EA
06 May 2022

Being a GrubHub driver allows you to be very flexible. The decision to take delivery is up to you, and you are ultimately responsible for making money.

It might seem great to have this type of freedom, but there is a cost involved: you will have to file and pay taxes on your own.

In this article, we'll explore exactly what GrubHub drivers need to do to file their taxes and help understand how GrubHub driver 1099 forms play a crucial role in all of this.

What Is GrubHub? 

GrubHub Inc. is an American online and mobile platform for ordering and delivering prepared food, owned by Just Eat Takeaway, that lets diners order meals from local restaurants. The GrubHub app is a real-time food delivery service that lets you order in real-time from your favorite restaurants.

Uber Eats, DoorDash, Postmates, and GrubHub are among the on-demand food delivery services that provide employment opportunities to riders.

How Do I Get GrubHub Tax Form?

The question is, How to get my 1099 form from GrubHub? To prepare for your tax return, you will need to learn a few new tax forms and terms. If you've worked as a W2 employee your entire life, it can seem particularly foreign to you.

Form 1099

Businesses with drivers who earned more than $600 via deliveries are required to mail 1099s by the 31st of January to them.

This Grubhub 1099 form will list all the tax details of how much each driver received for each delivery they made. You will also receive other important tax documents along with this form. A different GrubHub tax 1099 form may be sent to you if you meet specific requirements.

Form 1099-NEC

GrubHub drivers are most likely to receive Form 1099-NEC from GrubHub. NEC stands for Nonemployee Compensation. For the purpose of reporting payments to independent contractors for the services they perform, the IRS uses such a form.

In the past, people would report this income on a 1099-MISC, but now they are instead reporting it on Form 1099-NEC. You should have received this form by mail after January 31 if you made over $600 as a GrubHub driver.

Form 1099-K

You may also receive a 1099-K form from GrubHub. Anyone making more than $20,000 a year is required to fill out the form. If you received more than $20,000 in taxable earnings or over 200 transactions, GrubHub will send you a Form 1099-K.

GrubHub EIN

The GrubHub Employer Identification Number (EIN) is another very important piece of information. Tax forms and other official documents include an EIN to identify a business. A GrubHub EIN will appear on the 1099-NEC you get from the company. GrubHub reports to the IRS all payments that you receive throughout the year. 

You should be aware that the IRS is aware of the income amount recorded on Form 1099-NEC if you're tempted to underreport GrubHub income.

What Should I Do If I Didn’t Receive The Tax Form?

GrubHub won't send you a 1099 form if your earnings are less than $600 as an independent contractor. Nevertheless, your income is still taxable.

No matter how much you make from GrubHub, you need to report it to the IRS. You would be fined by the IRS if you didn't file your taxes. Filing your taxes correctly will help you avoid penalties and interest.

When And How To File Taxes? 

Once you have your 1099, it’s time to file your self-employment taxes. Here are two forms you’ll need to use

Putting together your Schedule C

You're going to use the Grubhub 1099 form tax information here in order to prepare your taxes. Self-employed people who deliver for GrubHub are taxed on Schedule C of their tax returns because they are listing their earnings (or losses) associated with their business.

This form will also be used to calculate how much tax you will have to pay on your total taxable income. Self-employment income is the amount you earn from self-employment less the amount you spend on business expenses.

Putting together your Schedule SE

Self-employment tax is calculated based on taxable income reported on Schedule SE. Getting your Schedule C taxable income as low as possible will lower your Schedule SE tax bill.

Both of these forms and any other tax documents must be submitted by April 15.

GrubHub Tax Filing Deadlines

The deadline for filing taxes is April 15th, right? In most cases, yes.  Those who deliver for GrubHub and plan to owe more than $1,000 in taxes will have to pay in quarterly installments.

The quarterly tax due dates are as follows: Q1 - April 15; Q2 - June 15; Q3 - September 15; Q4 - January 15

What Are GrubHub Tax Deductions? 

The best part of being a 1099 driver is being able to take write-offs. You can take advantage of the following GrubHub 1099 deductions.

  • Use of cell phones is deductible

  • The deduction for mileage depends on how many miles you drive for each job and how many cents per mile you deduct

  • Fuel oil

  • Payments for cars

  • Tolls and parking fees

  • Maintaining and repairing vehicles

  • The cost of travel is deductible

  • Healthcare premiums

  • Accounting & tax related fees

  • Accessories like chargers and holders for cell phones

Frequently Asked Questions 

Can Grubhub drivers be considered employees?

The delivery partners and drivers of Grubhub are independent contractors.

A federal judge ruled in San Francisco in February 2018 that Grubhub drivers cannot be considered employees of the company after Grubhub driver Raef Lawson sued the company for unpaid wages, overtime, and expenses.

There has been considerable controversy surrounding this case as it was the first to involve the gig economy.

Independent contractors, however, do have some benefits compared to traditional employees, like the ability to set their own schedules.

Does Grubhub allow drivers to work full-time?

It's not uncommon to find people working 40 hours a week (or more) on Grubhub, although this is usually seen as a part-time job. As an independent contractor, you'll still be unable to get the exact hours you need every week since you are still treated as an independent contractor.

A driver can earn more money with multiple food delivery companies, like Postmates and DoorDash on top of Grubhub, to achieve a full-time equivalent.

How frequently do Grubhub drivers get paid?

Once a week, you'll be able to withdraw cash from your Chase checking account once you complete your deliveries. However, any driver with a Chase checking account can withdraw cash instantly at no extra cost.

Ines Zemelman, EA
Founder of TFX