Here are some helpful things to keep in mind in the run up to tax season
Please keep in mind that these are simply helpful resources and that you should consult with a tax pro for specific advice.
This guide should answer most of the high-level general questions you have about taxes, but we are not able to give specific advice and highly recommend you talk to a tax professional especially if this is new to you. All of the below is guidance based on general situations and may not pertain to you given your specific situation so please use this information only as a starting point.
Do I need to report income and file taxes?
You are required to report any income you make through Poppy (though you may not need to pay self-employment tax if it’s under a certain minimum threshold). You will use the Annual Summary provided by Poppy to fill out the relevant tax forms (more info with how Uber drivers do theirs here).
Where to find what you need:
In your Poppy account on the Payments tab, you’ll find your ANNUAL SUMMARY for [year].
This summary will list the income information you need to file your annual taxes.
The gross amount is what you will report
for Gross Income and the Poppy Service Fee can be reported on the Schedule C under Expenses: Commissions and Fees.
Will I get a 1099-K or 1009-MISC?
You will receive a 1099-K if your Gross Amount was greater than $20,000 AND you had more than 200 payment transactions. If you have done other work for Poppy and/or referral income is greater than $600 then you will also get a 1099-MISC. If you do not meet these thresholds, you will generally not be issued a 1099. Otherwise, you will use the Annual summary to get the information you need to file your taxes.
Do I need to file quarterly or annually?
Consult a tax professional on your specific situation, but the general rule-of-thumb from the IRS for determining if you should be paying taxes quarterly: If you expect to owe more than $1,000 in taxes for the year for your freelance or contracting work (which amounts to around $3,000 or more in profit) then you may need to pay quarterly taxes. It’s a safe rule of thumb to put aside 30% of each paycheck so it’s available to pay taxes when the time comes. However, again, it’s recommended to talk with your tax accountant when you have questions.
What other expenses can I deduct:
Tracking expenses may help lower how much you owe. Common expenses include anything that is “ordinary and necessary for your business.” Talk to a tax professional to see what might qualify for you. Common examples may include:
What are the tax filing deadlines?
Some popular tax preparation services that may be helpful (not endorsed or recommended by Poppy):
- TaxAct: https://www.taxact.com/individual-taxes/online/freelancer
- TurboTax: https://turbotax.intuit.com/personal-taxes/self-employment-taxes
- H&R block: (in-person appts) https://www.hrblock.com/
- IRS Self Employed Tax center: https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center
- Guide to help Uber drivers file taxes: https://quickbooks.intuit.com/r/driver/tax-help-uber-drivers-file-uber
- 1099/Overall 1099 resources: https://payable.com/support-workers-tax-forms If you have any questions beyond this, please contact a tax professional that can help and assess based on your specific situation and facts.
This guide is intended solely for information purposes and no Poppy caregiver or other third party may rely upon it as tax or legal advice or use it for any other purpose. As such, Poppy assumes no responsibility whatsoever to Poppy Caregivers or other third parties as a result of the use of information contained herein. This page contains information in a summary format. It does not provide tax advice to any taxpayer because it does not take into account any specific taxpayer’s facts and circumstances. Readers are encouraged to consult with professional advisors for advice concerning specific matters before making any decision or taking a position on any tax return, and Poppy disclaims any responsibility for positions taken by taxpayers in their individual cases or for any misunderstanding on the part of readers. While Poppy has used its best efforts in preparing this booklet, it makes no representations or warranties with respect to the accuracy or completeness of the contents of this page and specifically disclaims any implied warranties. Poppy shall be liable for any loss of profit or any other damages, including but not limited to direct, indirect, special, incidental, consequential.