Overview of Taxes
It’s that time of the year again! We understand taxes can be difficult and confusing but reporting taxes as a Runner on the Favor platform can be pretty simple. Keep in mind that the following is not tax advice and you should always report income according to tax laws. Also, please keep in mind that all Runners are independent contractors regardless of the type of income reported and are not employees of Favor. If you have more questions about how to file or that are specific to your tax situation, we suggest speaking with a tax professional.
All Runners are users of the Favor platform. No matter the type of income you’re reporting, you have an independent contractor relationship with Favor, and are not an employee of Favor.
Receiving a 1099
Whether you will receive a 1099 depends on a couple of factors.
Form 1099-K: Runners who delivered at least 200 Favors and generated at least $20,000 in gross Favors in the last year will receive a Form 1099-K.
If you expect to receive a 1099, here’s how it breaks down:
1099-K: If you are eligible to receive a 1099-K, it will come from Stripe, our payment processor, via Payable and the dollar amount you see in Box 1 consists of the total amount from all Favors for which you ran in the previous year. Please note that this amount includes the cost of items, so it will be a larger number than what you took home in delivery fees and tips. The 1099-K does not provide a separate box for Favor to report your take home earnings, but we will provide that information to you in Runner Tools.
If you don’t expect to receive a 1099, here’s how it breaks down:
Whether or not you receive a form, we will provide a summary in Runner Tools with your yearly income.
We’re here for you
The Favor Runner Success team is here to help you out with questions along the way, including best practices for tracking your earnings and expenses.
Writing off mileage or other expenses
We highly advise you speak to a tax professional to make sure you are reporting all Favor-related activity in the best way possible. We also recommend you use a mileage and expense tracking app like Everlance, so you can keep track of all your business mileage and expenses and deduct them at tax time. Through our partnership with Everlance, Runners get 6 months free of Everlance Premium.
Other great tax-related resources
Our partner Everlance also has a wealth of helpful articles, like top deductions for delivery drivers or taxes 101 for the self-employed.
If you have additional questions about how to file or that are specific to your tax situation, your best bet is to speak with a tax professional.