Overview of Favor 2018 Runner Taxes
We understand taxes can be difficult and confusing, so we’re providing you with some information on what to expect over the next few weeks. Keep in mind that the following is not tax advice and you should always report earnings according to tax laws.
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 a Favor employee.
Receiving a 1099-K
Runners who delivered at least 200 Favors and generated at least $20,000 in gross Favors in 2018 will receive a Form 1099-K.
If you expect to receive a 1099-K, here’s how it breaks down:
Your 1099-K will come from Stripe, our payment processor, via Payable. The dollar amount in Box 1(a) consists of the total amount from all Favors you ran in 2018. 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 do not expect to receive a 1099-K, here’s how it breaks down:
We will still provide a summary of your yearly income in Runner Tools.
Writing Off Expenses
We highly advise that you speak to a tax professional to ensure you are correctly reporting all Favor-related activity. If you did not do so in 2018, we recommend using a mileage and expense tracking app like Everlance to track your business mileage and expenses and deduct them at tax time. Through our partnership with Everlance, Runners get six (6) months free of Everlance Premium.
Everlance also has helpful articles, like taxes 101 for the self-employed.
If you have additional questions about how to file or that are specific to your tax situation, please speak with a tax professional.
We’re Here For You
The Favor Runner Success team is here to help with questions along the way, including best practices for tracking your earnings and expenses.