CAN DOORDASH DRIVER FILE FOR UNEMPLOYMENT? (ALSO APPLIES FOR GRUBHUB & UBER EATS)
Do you drive for an App-Based company?
If you are a driver for Doordash, Lyft, Uber, Grubhub, and others, you should now be eligible for regular unemployment compensation benefits.
Will Doing DoorDash Affect My Unemployment?
If you have lost your main job recently, even if you are working part-time to earn some income, you will be able to collect some payment, all thanks to the US unemployment benefits program.
Officials will keep an eye on your part-time income and cut the amount you earned from the original unemployment benefit payment.
Do I Have To Report Doordash Earnings?
Yes, you are required to report earnings from Doordash to unemployment.
Failure to do so may constitute unemployment fraud, which can cause you to have to pay back all of the benefits you’ve received + an additional penalty. In some cases, you could even be banned from receiving unemployment benefits for life.
Remember that the government will inevitably find out about your income anyway. Don’t take unnecessary risks by failing to disclose the money you earn from Doordash.
How Many Hours Can I Work And Still Claim Unemployment Benefits?
This varies state-to-state, but normally it isn’t the amount of hours but the income earned.
If you’re dashing part-time and earning a quarter of what you made at your full-time job, you’ll likely still receive unemployment benefits to match the amount missing.
Can You Collect Unemployment While DoorDashing?
Yes, you can DoorDash part-time and receive unemployment benefits at the same time. Remember, you need to report your DoorDash earnings to the official unemployment office.
With that, depending on the amount you earn while DoorDashing, the unemployment office may adjust the benefits you receive.
What Are The Requirements To Apply For Unemployment Benefits?
You can apply for a regular unemployment benefit payment if you have recently lost your job, your primary source of income.
If your health conditions led to leaving your job or because someone in your household is at the immediate risk of a severe health condition.
If everything goes according to the plan, you will receive a weekly payment based on your gross income instead of your net income for more benefit.
What Is 1099?
A 1099 is a form given by an employer stating how much money you have earned working for the company.
The employer sends out 1099 forms, typically in February, to both you and the IRS.
Freelancers and independent contractors (like DoorDash drivers) all receive 1099 forms.
Once you receive your 1099 and are filing your taxes, you report the exact number as your total earnings to the IRS when filing your taxes.
Do You Have To Pay Taxes If You DoorDash?
Yes, you are required to pay taxes if you earn more than $600 during the year from DoorDashing.
With that, if you meet the earnings requirements, DoorDash will send you a 1099-NEC tax form, indicating your earnings and the amount you owe in taxes.