DoorDash Taxes 101: A Comprehensive Guide

The gig economy seems like it's here to stay, with major businesses like Lyft, Uber, and DoorDash leading the way. While Lyft and Uber are primarily known as ridesharing companies, similar to taxicabs, DoorDash is associated with food delivery. To use DoorDash, a customer orders food, drinks, or even groceries through DoorDash's website or mobile application. The order is then transmitted to the restaurant or establishment to be prepared for delivery. A worker associated with DoorDash, called a "Dasher," will then pick up the order and deliver it to the customer.Whether you're a part-time or full-time Dasher or deliver for a rival, it's important to understand the tax obligations you'll be responsible for due to your gig work. Use this article as your comprehensive guide to DoorDash taxes, including these key takeaways: 

• How DoorDash workers are classified 

• The taxes they'll be responsible for paying

• The appropriate forms and filing dates 

• Deductions and other tactics to reduce your tax liability 

DoorDash Tax Classification

There has been much debate among gig workers and the businesses they work with regarding the misclassification of employees and independent contractors for tax purposes. In January 2024, the U.S. Department of Labor attempted to provide clarity by publishing a "final rule" that updated guidance on how to categorize workers under the Fair Labor Standards Act (FLSA)The Department of Labor's final rule did not impact Dashers as they continue to be classified as independent contractors. This means that while Dashers maintain the flexibility they've enjoyed, they must also handle their tax obligations on their own, unlike W-2 employees. 

DoorDash Taxes to Pay

Whether full-time or part-time, Dashers must file a tax return if their net earnings are $400 or more annually. 

FICA: Social Security and Medicare

Many Dashers will be responsible for paying a self-employment tax, which funds Medicare and Social Security. The IRS set the self-employment tax rate at 15.3%, which is the sum of two parts: a 12.4% Social Security tax rate and a 2.9% Medicare tax rate. 

Employers usually pay Medicare and Social Security taxes through FICA on behalf of their W-2 employees. They withhold wages to pay half of the tax and are obligated to pay the other half themselves.

Income Tax

Dashers must also pay income tax, which is done via a Schedule C form to report profits and losses. Schedule C consists of five parts: 

1. Income. List all business income, including gross receipts or sales, returns and allowances, and federal and state fuel tax credits. This calculates your gross profit and gross income.

2. Expenses. Report business expenses such as cost of travel, utilities, insurance, and advertising. Subtract your total expenses from your gross income to find your net profit or loss. Report this result on IRS Form 1040.

3. Cost of Goods Sold. If your business doesn't require you to purchase inventory or sell products, this section doesn't apply to you.

4. Vehicle Expenses. If claiming deductions for car or truck expenses, complete this section. Keep detailed records of your mileage and vehicle expenses during the tax year.

5. Other Expenses. Report any expenses that weren't listed above in the second part. Some of these expenses might include education or costs specifically related to your industry.

Dashers should attach their completed Schedule C to their IRS Form 1040. 

Sales Tax (and Tips)

Dashers will find tips and other income information on IRS Form 1099-NEC, Nonemployee Compensation. This form is sent to Dashers by January if they made $600 or more in the previous tax year working with DoorDash. 

Tax Forms DoorDashers Need

IRS Form 1099-NEC is the only tax form that Dashers will receive from the company if they make $600 or more during the fiscal year. This form is a summary of earned DoorDash wages and is essential to filing taxes. DoorDash has a specific process Dashers must follow to obtain this form, which we outline below.

While Form 1099-NEC is the only tax form you'll receive from DoorDash, you may perform other work as an independent contractor or might even be a W-2 employee with DoorDash as your side gig. You may also receive the following forms, including: 

• IRS Form 1099-K, Payment Card and Third Party Network Transactions

• IRS Form 1099-MISC, Miscellaneous Information

• IRS Form W-2, Wage and Income Statement

How to Get Your DoorDash 1099-NEC

DoorDash partnered with Stripe to distribute IRS Form 1099-NEC to eligible Dashers via Stripe Express. Here's how it works: 

• Stripe will send Dashers an email with a link inviting them to claim a Stripe Express account. 

• Click the link and follow the prompts to create an account. 

• Once logged in, Dashers can download their IRS Form 1099-NEC. 

We recommend reviewing your tax information immediately to ensure it's accurate and complete. If you notice inaccurate information, you can fix it in Stripe Express. 

How to Fix Information on Your 1099-NEC

You can make changes to the following information by logging in to Stripe Express: 

• Your name 

• Home address 

• Social Security number 

• Employer Identification Number (EIN)

Other scenarios require DoorDash's assistance to make changes, such as using your Social Security number instead of your EIN on your IRS Form 1099-NEC or vice versa. 

DoorDash Tax Write-Offs to Claim

Business Expenses

Dashers can deduct the cost of business assets, such as a car or bicycle, over time via depreciation. You must follow IRS depreciation rules if the business assets you're writing off exceed $2,500 in value. 

Numerous factors dictate the amount and duration of your DoorDash depreciation expense. We recommend consulting tax professionals for help with depreciation calculations and questions regarding which business assets qualify for depreciation.

Vehicle Deductions

Vehicle deductions can be made using the standard mileage deduction or the actual expense method. 

The 2025 standard mileage rate is 70 cents per business mile. It's important to follow restrictions on depreciation expense deductions and car payments.

You can opt for the actual expense method if your vehicle operating expenses exceed the standard mileage deduction. Instead of deducting your business mileage, determine your expenses for business-related travel. Consider the following costs when using the actual expense method. 

• Insurance

• Registration

• Licenses

• Gas

• Repairs and maintenance

The actual expense method usually allows for larger depreciation expense deductions. 

While mileage deductions only apply to motor vehicles, Dashers can deduct the costs of using a bicycle for deliveries. You can write off the business-use portion of your biking helmet, chain lock, and repair expenses. 

Tools and Equipment

It's common to encounter Dashers using temperature-controlled packaging to keep items hot or cold and other tools and equipment that can be written off. 

Consider the following examples of tools and equipment that can be written off: 

• Hot bags and insulated packaging

• Coolers and ice packs

• Helmet, biking gloves, and other delivery-related clothing

• Backpacks to carry food or groceries to customers

Fees

Dashers can write off the fees related to professional services they rely on to complete deliveries and manage their independent contractor business, including: 

• Mileage tracking software

• Premium subscriptions to navigation apps

• Bookkeeping and expense management software

• Virtual accounting fees

Tolls and Parking

You can deduct tolls and parking fees you paid while working as a Dasher. Keep your receipts from parking lots, garages, and tolls related to your deliveries. 

Claiming DoorDash Tax Deductions

Dashers don’t file IRS Form 1099-NEC, but you’ll use it as a supporting document for your tax return. Forms you may use to claim DoorDash tax deductions include: 

• IRS Form 1040. File Form 1040, U.S. Individual Income Tax Return, to report taxable income and calculate your tax liability for the year.

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

• IRS Schedule SE (Form 1040). Form 1040, Schedule SE, Self-Employment Tax, should be used by Dashers 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 self-employment tax. 

When to File DoorDash Taxes

Unlike W-2 employees, self-employed individuals must estimate and pay quarterly estimated taxes throughout the year. Quarterly estimated tax payment due dates for the 2025 fiscal year include the following: 

• April 15, 2025

• June 16, 2025

• September 15, 2025

• January 15, 2026

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

If you struggle to make accurate calculations by each deadline, our full-service quarterly estimated tax solution can help. 

Get Expert Help Filing as a Dasher

Juggling your DoorDash tax obligations as you deliver customer orders is complex. Preparing your materials while avoiding mistakes by each deadline can be difficult. Many Dashers lack the time or bandwidth to do this, which is why they trust 1-800Accountant, America’s leading virtual accounting firm, for their financial needs.

Whether you need business tax preparation, tax advisory, or any of our professional accounting services, we have the affordable solutions you need to ensure your business remains compliant. Schedule a quick consultation–usually 30 minutes or less—to learn more.