Skipcart Driver Guide: Essential Tips for New Drivers

What is Skipcart?

Skipcart is a technology platform that connects drivers with delivery opportunities in their cities. Drivers use their own vehicles to pick up and deliver goods, ranging from groceries to catering orders. Moreover, the app provides a straightforward way for individuals to earn money on a flexible schedule.

How to become a Skipcart Driver

Driver Requirements

To become a Skipcart driver, you must meet the following requirements:

• Be at least 21 years old.
• Own a reliable vehicle.
• Have a smartphone with iOS 9.0 or newer, or Android 7.0 or newer.
• Hold a valid U.S. driver’s license and auto insurance.
• Pass a thorough background check.
• Be able to lift at least 50 pounds.
• Possess a valid Social Security Number (SSN).

Sign-Up Process

Applying to drive with Skipcart involves a few simple steps:

1. Provide Personal Information: You will need to enter your name, email, phone number, and select your state and metro area.
2. Background Check: Submit to a background check, which typically takes 3-5 business days.
3. Document Submission: Upload required documents like your driver’s license and insurance information.
4. App Download: Install the Skipcart app from the App Store or Google Play.
5. Activation: Once your background check is approved, you’ll receive instructions on how to start accepting deliveries.

Skipcart’s Pay and Bonuses

Pay Model

Skipcart’s pay model includes a base fare for each delivery, with additional earnings for longer distances and high-demand times. Bonuses and incentives are also offered for completing a certain number of deliveries within a specified timeframe. Here’s an overview of the pay structure:

• Base Fare: A fixed amount for each delivery.
• Distance Pay: Additional compensation for longer delivery distances.
• Time-Based Bonuses: Extra earnings during peak hours.
• Incentives: Bonuses for completing a set number of deliveries within a given period.

Pay Cycle

Drivers are paid weekly through direct deposit. Detailed earnings reports are available in the app, providing transparency about your pay and any bonuses you’ve earned. There is also a cash-out option to request deposits outside the payment cycle.

Tips and Tricks for Enhanced Earnings

To maximize your earnings as a Skipcart driver, consider these tips:

• Deliver a 5-Star Experience: Providing excellent customer service can increase your tips and lead to higher ratings.
• Understand Catering Orders: Catering orders can be more lucrative but require careful handling and punctuality.
• Best Practices for Deliveries: Plan your routes efficiently, and communicate clearly with customers.

What Are the Tax Responsibilities for Skipcart Drivers?

As a Skipcart driver, you operate as an independent contractor. This means that unlike traditional employees, who have taxes withheld from their paychecks, you must manage your own tax affairs. This involves several key aspects of self-employed taxation:

Quarterly Tax Payments

Because your income isn’t subject to automatic withholding, the IRS requires you to make estimated tax payments quarterly. Making these payments helps you manage your cash flow better and avoid large lump-sum payments at tax time. These payments cover your income tax and self-employment tax obligations for the year:

• Income Tax: The income tax you owe as an independent contractor is based on your adjusted gross income. This includes all your earnings minus allowable deductions and exemptions. Since your tax rate depends on your total income, it’s crucial to accurately report all earnings and understand which deductions you can claim to reduce your taxable income.
• Self-Employment Tax: In addition to income tax, independent contractors must pay self-employment tax, which covers your contributions to Social Security and Medicare. This tax is calculated on your net earnings from self-employment, and it’s essential to include this in your quarterly tax payments to avoid penalties.

Annual Income Tax Return

You must file an income tax return with the IRS using Form 1040 each year. Along with this form, you’ll attach Schedule C, which is used to report the income you’ve earned as a Skipcart driver. This form helps you calculate your net business income after deductions, forming the basis for your income tax and self-employment tax.

Understanding these elements of self-employed taxation ensures you meet your tax obligations as a Skipcart driver, avoid potential penalties, and possibly reduce the amount of tax you owe through strategic deductions and credits.

What is the 1099 Form I Have Received from Skipcart?

As a Skipcart driver, you will receive a Form 1099 from Skipcart, detailing the income you earned over the year without any tax withholdings. This form is essential for accurately reporting your income to the IRS and ensuring you’re not overpaying or underpaying your Skipcart delivery tax dues.

What Tax Deductions Am I Eligible For?

Understanding and utilizing tax deductions can significantly reduce your taxable income, potentially saving you a considerable amount of money each year. For Skipcart delivery drivers, various expenses directly related to your driving activities can be deducted from your taxes. Here’s a deeper look at some of the specific deductions you might be eligible for:

Mobile Phone and Data Plans

Since a smartphone is essential for managing your delivery routes and communicating with customers and the Skipcart platform, a portion of your phone bill and data plan can be deducted. The key here is only to deduct the percentage of time the device is used for work-related activities.

Health Insurance Premiums

If you’re self-employed and responsible for your own health insurance coverage, you may be able to deduct premiums paid for medical, dental, and some long-term care insurance. This deduction is taken on your Form 1040 and can reduce your adjusted gross income.

Meals

While on the road, you might need to purchase meals. A portion of these expenses can be deductible if the meals are consumed during a business operation. Note that after the Tax Cuts and Jobs Act, only 50% of these expenses are generally deductible.

Supplies and Accessories

Any supplies you purchase directly for use in your delivery work can be deductible. This includes things like maps, flashlights, batteries, car chargers, or even more substantial items like a car-top carrier or specialized equipment for handling your deliveries.

Parking and Tolls

Fees for parking and tolls paid while on delivery jobs can be fully deductible. However, parking tickets and fines are not deductible.

Vehicle Expenses

This is one of the largest categories of deductions for delivery drivers. You have two choices here—either deduct actual vehicle expenses or use the standard mileage rate. Actual expenses include tracking gas, oil, repairs, tires, insurance, depreciation, and lease payments, and the ratio of personal and business miles. Alternatively, the standard mileage rate simplifies record-keeping by allowing you to deduct a set amount for each business mile driven, as specified by the IRS each year.

Accurate record-keeping of your expenses and miles is crucial as it provides evidence for your claims in case of an IRS audit. Utilizing these deductions effectively can lead to substantial savings in your tax liabilities, enhancing your overall financial success as a Skipcart delivery driver.