Do You Have to File Taxes for DoorDash?

Whether you drive for DoorDash on a part- or full-time basis, your tax filing requirements can be tricky to navigate. 

Dashers must understand whether and how to report their DoorDash earnings, when to file taxes, and how much to pay. This article explains the tax rules for delivery drivers. We’ll help you understand the forms you should file, how much you should pay, and when to file. 

Keep reading to learn everything you need to know about filing taxes for DoorDash.

Do I Have to File Taxes for DoorDash Income?

Yes, if you earned at least $400 from DoorDash (or other food delivery services), you must file a personal tax return. The IRS requires taxpayers with over $400 of self-employment income to file IRS Form 1040.

The IRS considers DoorDash drivers to be self-employed business owners. The rule also applies to delivery drivers for similar apps, such as Grubhub and Uber Eats. Taxpayers earning at least $400 from a combination of delivery apps meet the return filing threshold. 

Unfortunately, the IRS doesn’t offer relief to taxpayers who don’t understand how taxes work. Learning how to file your DoorDash taxes will make your tax season easier. 

Keep reading to learn our top tips for reporting your DoorDash income and avoiding penalties.

How Much Tax Should DoorDash Drivers Pay?

Your total tax bill depends on several factors, including the following: 

• Income from DoorDash and other sources

• Federal income and self-employment taxes

• State income tax rate, if any

• Personal and business tax deductions

Use this guide as a starting point for calculating your DoorDash tax liability.

Federal Income Tax

Your federal tax liability represents a percentage of your taxable income. The IRS updates income tax rates and brackets annually. 

Refer to the following table to determine your rate for tax year 2024.

The IRS 2025 tax brackets are also available.

Your taxable income includes receipts from DoorDash and all other sources. Taxpayers must net total income with deductions to calculate federal taxable income.

DoorDash will send an IRS Form 1099-NEC, Nonemployee Compensation, to every Dasher who earned more than $600 from deliveries during 2024. Dashers should receive 1099-NEC forms by the end of January 2025. Gather the 1099-NEC forms you receive from DoorDash and other delivery service companies.

Review the Form 1040 instructions for guidance on calculating your taxable income. We recommend working with tax professionals for specialized, hands-on help.

Self-Employment Tax

Dashers work as independent contractors, meaning DoorDash does not withhold taxes on drivers’ income. DoorDash drivers must pay self-employment taxes on their earnings. 

Self-employment tax represents the employer’s and employee’s portion of Social Security and Medicare taxes, known as FICA. Employers generally pay half of all FICA taxes on employee income. However, independent contractors must cover the employer’s portion.

The self-employment tax rate is 15.3%, representing 12.4% of Social Security and 2.9% of Medicare tax.

Dashers pay self-employment taxes (in addition to federal income tax) on all freelance income.

State Income Tax

Many states impose individual income taxes, and rates vary by location and income tax bracket. We recommend checking your local laws or consulting with tax experts to determine your state income tax liability.

Are DoorDash Tips Taxed?

Taxable income includes tips earned on deliveries, meaning Dashers must pay taxes on DoorDash tips.

Your DoorDash tax forms reflect all income, including tips, boosts, and milestones. The form includes tips paid through the DoorDash app, but drivers should also report and pay taxes on cash tips. 

We recommend keeping records of your base pay, tips, and other weekly income. Alternatively, you can outsource your bookkeeping and avoid tedious calculations.

Tax Write-Offs for DoorDash Drivers and Independent Contractors

You can lower your DoorDash tax bill by deducting your delivery costs. Track and report your business expenses on your income tax return.

Consider the following examples of tax deductions for DoorDash drivers. 

Vehicle Expenses and Transportation Costs

Dashers can deduct their travel expenses, including the cost of using their vehicle for deliveries. Deductible travel expenses include tolls, parking charges, and depreciation. 

Additionally, drivers can use the standard mileage deduction or deduct actual vehicle expenses: 

• The standard mileage method represents a tax deduction per business mile driven. The 2024 standard mileage rate is 67 cents per mile. We recommend keeping a detailed mileage log to determine your business miles.

• Actual expenses include vehicle insurance, registration, fuel, repairs, and maintenance costs. Drivers using the actual expense method can accelerate their depreciation expense deductions. 

Your tax advisor can help you determine the most advantageous vehicle expense deduction method for your tax return.

DoorDash Delivery Costs

In addition to vehicle expenses, Dashers can deduct additional operational costs of their DoorDash business.

Eligible tax deductions include the business-related portion of the following: 

• Delivery tools and equipment, such as hot bags and ice packs

• Business use of cell phone, including data and internet charges

• Professional services and accounting fees

Other Personal and Self-Employed Tax Deductions

Individual taxpayers and small business owners can take numerous other tax deductions, such as the following.

• Standard deduction (for yourself and dependents)

• Self-employed health insurance premiums

• Self-employment taxes

• Qualified business income (QBI) deduction

Which Tax Forms Do Dashers Need to File?

IRS Form 1040

Individual taxpayers file IRS Form 1040, U.S. Individual Income Tax Return. Form 1040 calculates your federal taxable income and tax liability.

Dashers should file additional schedules to report independent contractor income: Form 1040 Schedules C and SE.

Form 1040, Schedule C

DoorDash drivers work as independent contractors and represent sole proprietors for federal income tax purposes. Dashers should file IRS Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship), to report business income and expenses.

Schedule C calculates your business income or loss from self-employment.

Form 1040, Schedule SE

As mentioned above, delivery drivers must pay self-employment tax on their freelance income. Independent contractors must calculate their self-employment tax liability using IRS Schedule SE (Form 1040), Self-Employment Tax.

Note that Dashers pay federal income and self-employment taxes on DoorDash income. 

Tax calculations can get complicated. Professional CPAs can help you organize your tax information, prepare forms, and calculate your tax bill. 

When Should Delivery Drivers Pay Taxes?

Form 1040 is generally due on April 15th. However, taxpayers can request a six-month extension of time to file, which extends the filing deadline to October 15th. 

Note that extensions allow additional time to file, not time to pay.

The IRS requires self-employed taxpayers to pay taxes as they earn income. Business owners expecting to owe at least $1,000 in tax must make quarterly estimated tax payments. 

DoorDash drivers must calculate their income and tax liability quarterly and remit tax payments by mail or online.

The following schedule outlines the quarterly tax payment due dates for tax year 2025.

• First quarter (January 1 – March 31): April 15, 2025

• Second quarter (April 1 – May 31): June 16, 2025

• Third quarter (June 1 – August 31): September 15, 2025

• Fourth quarter (September 1 – December 31): January 15, 2026

Dashers who make delinquent payments could face penalties. However, tax experts can help you accurately calculate and timely file your estimated taxes. 

Schedule a free consultation with 1-800Accountant for help with your quarterly business taxes.

Partner with 1-800Accountant For Your DoorDash Taxes

1-800Accountant offers year-round tax advice to support your DoorDash delivery business. Professional CPAs and tax experts can help you file taxes and correctly report your DoorDash income at tax time.

Maximize your deductions, lower your tax bill, and file your taxes on time with 1-800Accountant’s personal income tax preparation services. 

Schedule a free consultation and get all your DoorDash tax questions answered.