DoorDash Didn’t Send Me a 1099. What Should I Do?

Gig economy participants, like DoorDash drivers, rely on 1099 forms to report their income for tax purposes. These documents detail earnings from independent contractor work, which differ from traditional employment income. Without a 1099 form, individuals may face challenges in fulfilling their tax obligations.

Reasons You May Not Have Received It

There are several reasons why a DoorDash driver might not receive a 1099 form. One common reason is not meeting the income threshold required for the 1099-NEC form. As of 2024, the IRS mandates companies issue a 1099-NEC to independent contractors who earn $600 or more in a calendar year. If your earnings fall below this threshold, DoorDash is not obligated to send you the form. Tracking your earnings throughout the year is essential to determine if you meet this requirement.

Another possibility is an administrative error. DoorDash relies on accurate personal information to distribute tax documents. Discrepancies in your mailing address or email could result in the form being sent to the wrong location. Ensuring your contact information is up-to-date in the DoorDash system can prevent such issues. Additionally, technical glitches or delays in processing may also contribute to the non-receipt of your 1099 form.

In some cases, the form may have been sent but lost in transit. This can happen with both physical mail and electronic delivery. Checking your spam or junk email folders is a prudent step if you opted for electronic delivery. For physical mail, consider the possibility of postal delays or misplacement.

Confirming Income Threshold Requirements

Understanding the income threshold requirements is crucial for tax reporting. The IRS requires companies to issue a 1099-NEC form to independent contractors who earn $600 or more annually. Keeping meticulous records of your earnings helps verify if you meet this criterion. Digital tools and apps designed for gig workers can streamline income and expense tracking, providing a clear picture of your financial status throughout the year. This proactive approach ensures you are prepared for tax season, especially if your earnings are near the $600 threshold. Organized records can also help you verify your income independently if needed.

Requesting a Replacement

If you realize a 1099 form is missing, contact DoorDash support directly through their tax-related inquiries channel. When reaching out, have your full name, Dasher ID, and the tax year in question ready to expedite the process. Follow up to confirm receipt and progress.

According to IRS guidelines, companies must send out 1099 forms by January 31st each year. If you haven’t received your form by mid-February, act promptly. DoorDash may offer both electronic and physical copies, so specify your preference for faster delivery. As tax forms contain sensitive information, ensure your personal details are secure during this process.

Filing Taxes Without the Form

Navigating tax season without a 1099 form is manageable with a strategic approach. Compile all available records and documentation reflecting your income as a DoorDash driver, such as bank statements, pay summaries from the DoorDash app, and payment confirmations. These records allow you to calculate your gross income for the year.

Report this income on Schedule C of your Form 1040, used to report income or loss from a business you operated or a profession you practiced as a sole proprietor. Without a 1099, you’re responsible for accurately reporting your earnings, as discrepancies could trigger an IRS audit. Using tax preparation software or consulting a tax professional ensures compliance with IRS regulations, including self-employment tax obligations.

Possible Tax Ramifications

Failing to receive or account for a 1099 form can have significant tax implications. The IRS expects all income to be reported, regardless of whether a 1099 form is issued. If you neglect to report income, you could face penalties, interest, or an audit. The IRS uses the Information Returns Processing (IRP) program to match income reported by companies on 1099 forms with taxpayer filings. If DoorDash files a 1099-NEC with the IRS but you fail to include that income in your return, the mismatch could trigger an automatic review.

Penalties for underreporting income can be steep. Under the Internal Revenue Code Section 6662, the IRS may impose a penalty of 20% of the underpayment amount if the error is due to negligence or disregard of tax rules. Additionally, interest accrues on unpaid taxes from the return’s due date until payment is made in full. For example, underreporting $5,000 in income could result in a $1,000 penalty plus interest.

Beyond penalties, failing to report income can affect eligibility for tax credits or deductions. For example, the Earned Income Tax Credit (EITC) or deductions for business expenses like mileage and vehicle depreciation require accurate income reporting. Misreporting could lead to disqualification or repayment of previously claimed credits. To avoid these outcomes, ensure your tax return reflects all income streams, supported by thorough documentation. Consulting a tax professional can provide additional assurance that your filing is accurate and compliant with IRS expectations.