Lower Your Tax Bill: 9 DoorDash Tax Deductions to Claim Now

DoorDash delivery drivers, commonly called Dashers, earn money by picking up and delivering orders to customers. They are considered self-employed independent contractors, not W-2 employees, which means it's critically important not only to execute their delivery duties, but to think about taxes strategically throughout the year. How tax deductions lower taxable income should be a top area of focus for Dashers in 2026, but it's not always that simple.

Delivery work can be complex and time-consuming, leaving little time for anything else. Because of this, many gig-style workers let their tax considerations slide down the priority list, potentially leaving money on the table instead of in their bank accounts. It can be difficult for busy Dashers to figure this out on their own, which is why 1-800Acountant, America's leading virtual accounting firm, offers this excellent guide to DoorDash delivery drivers. Use it to learn how to lower your tax liability with tax deductions you can claim right now. 

Key Takeaways

• DoorDash drivers are classified as independent contractors rather than employees, which increases their tax responsibilities. 

• Most Dashers can deduct several everyday expenses, including vehicle, phone, and service charges.

• Mileage tracking and documentation are critical to claiming eligible deductions. 

• Filing Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship), correctly can significantly lower tax liability for Dashers.

• Tax-deductible professional support helps claim every eligible deduction while avoiding costly penalties.

9 Tax Deductions DoorDash Drivers Can Claim

DoorDash drivers represent independent contractors, which means Dashers file business tax returns. As an independent contractor, you can deduct business-related expenses on your DoorDash tax return. Business expenses include operating costs related to: 

• Transportation

• Tools, supplies, and services

• Fees and commissions

• Certain self-employment expenses

The following list of DoorDash tax deductions will help you prepare for the 2026 tax season. 

For personalized, hands-on help with your DoorDash delivery driver tax return, schedule a free 30-minute consultation with 1-800Accountant. We’ll take the tedious calculations off your plate and file your returns on time for an affordable, tax-deductible fee. 

1. Vehicle or Bicycle Expenses

Whether you use your car or bicycle for deliveries, you can deduct several transportation costs on your income tax return.

Depreciation Expense

Depreciation typically refers to writing off business assets, such as your car or bike used to deliver for DoorDash, over several years rather than deducting the entire cost in the year of purchase. Business owners must follow IRS depreciation rules for assets costing more than $2,500. However, generous accelerated depreciation options, such as the Section 179 deduction and bonus depreciation, are available due to the passage of the One Big Beautiful Bill Act in 2025. 

Numerous factors affect the amount and duration of your depreciation expense. For example, your car's purchase price, business-use percentage, and method affect your deductions. We recommend consulting tax professionals for help with depreciation calculations.

Parking Fees and Tolls

Keep your receipts from parking garages and tolls related to your DoorDash deliveries. You can deduct the charges on your business tax return. 

Vehicle Expenses: Standard Mileage Deduction or Actual Expense Method

Business car expenses can be claimed as tax write-offs using the standard mileage deduction or the actual expense method. Bike expenses can only be claimed via the actual expense method. You must choose one method per business vehicle. 

Standard Mileage Deduction

Dashers can deduct business mileage driven in their motor vehicle. The 2026 standard mileage rate is 72.5 cents per business mile, up from 70 cents in 2025. Business owners using the standard mileage deduction must follow restrictions on depreciation expense deductions and car payments.

Actual Expense Method

If your vehicle operating expenses exceed your standard mileage deduction, you can opt for the actual expense method for your transportation deductions. 

Instead of deducting your business mileage, determine your expenses for business-related travel. For example, consider the following costs. 

• Insurance

• Registration fees

• Licenses

• Gas

• Repairs and maintenance

The actual expense method generally allows for larger depreciation expense deductions, but is more complex in comparison to the standard mileage deduction. Our tax professionals can help you determine whether the standard mileage or actual expense deduction is better for your DoorDash operations.

Bicycle Expenses

Dashers can deduct the costs of using a bicycle for deliveries. For example, you can write off the business-use portion of your biking helmet, chain lock, and repair expenses. 

Mileage deductions apply only to vehicles, but your bike could generate other write-offs. Consult tax professionals to determine whether your delivery bike qualifies for depreciation expense.

2. Cell Phone and Data Expenses

As a delivery driver, you need your cell phone to:

• Use the DoorDash app

• Accept deliveries

• Navigate to your destination

If you use a dedicated business phone, you can deduct the full phone service and data costs as they represent necessary business expenses. If the phone is mixed-use for both personal and business, you must determine the business-use percentage, which is deductible. Personal expenses typically aren't.

Track the portion of your cell phone and data usage related to your deliveries so you can deduct the business-related cost on your tax return. For example, if you determine your phone is used 80% of the time for business purposes, 80% of your phone expenses will be able to be deducted.

Retaining supporting documentation is essential to claiming deductions, including those related to phone use and data. 

3. Equipment, Tools, and Supplies

Many Dashers use temperature-controlled packaging to keep deliveries hot or cold. You can write off your DoorDash tools and supplies as long as these expenses are ordinary and necessary. If the expenses are common for Dashers, they're considered ordinary. If they are helpful and appropriate for achieving your business goals, they are deemed necessary. If your DoorDash expenses meet these standards, they're typically deductible.  

Consider the following examples of delivery equipment that you can claim as DoorDash tax deductions: 

• Hot bags and insulated packaging

• Coolers and ice packs for cold deliveries

• Delivery-related clothing, such as a helmet or biking gloves

• Backpacks to carry food or groceries

• A collapsible cart to accommodate larger DoorDash deliveries 

4. Business License Fees

The frequency with which you deliver and the area you work in will help determine if you need to obtain a business license. For example, if you are a full-time Dasher in Los Angeles, California, you will need to obtain a license to operate. However, if you have low income due to infrequent deliveries, some municipalities may not require a license. We recommend consulting with state or local officials to help determine your licensing obligations.

State and city rules may vary; license and business registration paperwork often generate costly filing fees for business owners.

Fortunately, you can write off the costs of your business license and registration. Save your license application and paperwork so you can deduct the fees on your DoorDash business tax return.

5. Services

Many Dashers rely on professional services for smoother deliveries, business management, and virtual accounting, which are deductible. For example, Dashers who use 1-800Accountant's full-service bookkeeping and tax preparation solutions can deduct those costs.

In addition to virtual accounting, you can also write off the costs for the following business services:

• Mileage tracking mobile applications and software

• Premium subscriptions to navigation apps

• Expense management software, such as TurboTax

• Outsourced tax advisory fees

6. Home Office Deduction

IRS rules allow business owners to deduct certain home office costs. Eligible taxpayers include self-employed individuals, such as DoorDash delivery drivers. To claim this deduction, the space must be used regularly and exclusively for business purposes. Meaning, you can take the home office deduction if you use part of your home for business-only activities.

You can calculate your deduction based on the percentage of your home dedicated to your business (simplified method) or by itemizing your home business costs (actual expense method). We recommend reviewing the IRS instructions and talking to your professional CPA for help with your calculations.

7. Self-Employment Tax Deduction

Independent contractors are responsible for taxes that traditional employees aren't. For example, employees are exempt from paying the 15.3% self-employment tax that funds Social Security and Medicare.

Employees contribute 7.65% of their income to these programs, and their employers match that contribution, while independent contractor delivery drivers must pay both portions.

Fortunately, the self-employment tax generates a business tax write-off for small business owners. Freelancers, including DoorDash drivers, can deduct half of their self-employment taxes on IRS Form 1040, U.S. Individual Income Tax Return. 

8. Self-Employed Health Insurance Deduction

DoorDash delivery drivers who qualify for the self-employed health insurance deduction can write off certain health insurance costs. To qualify: 

• A profit is required 

• You cannot have access to an employer-subsidized healthcare plan

If your spouse has access to a plan through their employer, you would be ineligible to claim this deduction. This is an example of an employer-subsidized healthcare plan.

The self-employed health insurance deduction reduces your business income. Freelancers must complete IRS Form 7206, Self-Employed Health Insurance Deduction, to determine the write-off. 

9. Qualified Business Income (QBI) Deduction

DoorDash delivery drivers can take the QBI deduction, which allows small business owners to deduct 20% of qualifying self-employment income. Income thresholds apply, and not all drivers will qualify. For example, if you make less than $203,000 and file as single, you can claim the full QBI deduction.  

QBI calculations can be complex. Your outsourced tax professionals can help you calculate your QBI deduction and report the write-off on your income tax return.

How to Claim DoorDash Tax Deductions

Maximize your DoorDash tax deductions by following this step-by-step overview: 

1. Track income and expenses throughout the tax year. 

2. Retain supporting documentation for your deductions. 

3. Prepare and file Schedule C by the deadline.

4. Calculate and pay estimated taxes four times per year, if required.

Tax Forms for DoorDash Drivers

Learn which tax forms to file and what documentation to keep for support as an independent contractor. 

IRS Form 1099-NEC

If you made $600 or more delivering in a year, DoorDash sends a Form 1099-NEC, Nonemployee Compensation, to report your total earnings.

As a Dasher, you won’t need to file Form 1099, but you’ll receive the form as support for your tax return. DoorDash also sends a copy to the IRS. 

IRS Form 1040

U.S. individuals generally file IRS Form 1040, U.S. Individual Income Tax Return, to report taxable income and calculate the tax liability for the year.

IRS Schedule C (Form 1040)

Report your business income on IRS Form 1040, Schedule C, Profit or Loss from Business (Sole Proprietorship). Schedule C reports your DoorDash self-employment income and business tax deductions. 

If you’ve set up a different business entity, such as an LLC or S corporation, check with your CPA to confirm which tax return you should file. 

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IRS Schedule SE (Form 1040)

IRS Form 1040, Schedule SE, Self-Employment Tax, calculates your self-employment tax liability. 

DoorDash drivers should use Schedule SE to report freelance income and calculate the self-employment tax liability. You’ll also need to pay income taxes, but you can deduct half of your 15.3% self-employment tax. 

IRS Form 1040-ES

The IRS requires taxpayers to pay taxes throughout the year, not just when filing their tax returns. Freelancers who receive 1099s must make quarterly income tax payments to avoid fines and penalties if they expect to owe at least $1,000 in federal income taxes. 

Use Form 1040-ES, Estimated Taxes for Individuals, to calculate and pay quarterly taxes. The form includes payment vouchers and instructions for filing online.

When you work with 1-800Accountant, your dedicated accountant can monitor your income throughout the year. Accurate, timely quarterly tax payments ensure compliance while avoiding penalties.

Documentation DoorDash Drivers Should Keep

The IRS can audit taxpayers’ returns for up to three years (or longer, in some cases). To prepare for an audit, Dashers should save support for their business tax returns. 

Keep the following documents in addition to your other income tax return paperwork:

• 1099 forms

• Receipts for business purchases

• Mileage log, including business vs. personal travel

• Tip reports

• Vehicle or bicycle purchase paperwork

• Repairs and maintenance receipts

• Cell phone usage reports

• Bookkeeping records

• Health insurance premium payments

• Business license paperwork

• Quarterly and estimated tax payments

We recommend reviewing IRS guidance and consulting tax experts for a personalized list.

FAQs About DoorDash Taxes

Are DoorDash drivers employees or independent contractors?
DoorDash delivery drivers are considered to be independent contractors, not employees. Because of this, their tax responsibilities increase, as do their opportunities to reduce their taxable income via business tax deductions. W-2 employees aren't typically eligible for these deductions.

Do I need an LLC to deduct expenses?
No, Dashers do not need to operate their businesses as LLCs to deduct ordinary and necessary business expenses. Many operate as sole proprietors, which still entitles them to claim deductions, assuming eligibility requirements are met.

Can I deduct mileage and gas?
Yes, you can deduct gas and mileage, but you cannot claim both at the same time. Use the standard mileage rate as a simplified way to deduct mileage, and the actual expense method to deduct gas and other associated costs. 

What happens if I don’t receive a 1099?
If you've made $600 or more delivering for DoorDash, you should receive IRS Form 1099-NEC by January 31 of the following year. Check in the Dasher mobile application or portal if you don't receive a 1099 by that time. Note that whether you receive a 1099 or not, it is still your responsibility to report eligible income to the IRS.

How long should I keep receipts?
Retain pertinent receipts for at least three years after filing your income tax return. Some Dashers keep their documents for as long as six years in case they receive an audit notice. 

Let 1-800Accountant Help You Claim Your DoorDash Income Tax Write-Offs

Don’t let your Dasher business tax return feel overwhelming. Efficiently maximize your DoorDash tax deductions and lower your income tax bill with personalized support from your team at 1-800Accountant.

Personal income tax preparation helps you file accurate, timely returns, while our CPAs, EAs, and tax professionals monitor critical due dates and help with tax return calculations. You’ll gain confidence in your small business taxes with year-round advisory from an expert familiar with the nuances of DoorDash taxes in your region.

Schedule a free 30-minute consultation with 1-800Accountant for hands-on, personalized income tax services and support for your delivery operations.