Dashers must understand whether and how to report their DoorDash earnings, when to file taxes, and how much to pay […]

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Do You Have to File Taxes for DoorDash?

The rise of the gig economy has opened up numerous opportunities for motivated individuals who prefer to work outside the confines of more traditional W-2 employment. Large companies like Uber, Lyft, and DoorDash are synonymous with gig work, but other well-known businesses are making an impact.If you've placed an order for delivery with Walmart, chances are it was delivered to your residence <a href="https://1800accountant.com/blog/how-to-file-taxes-independent-contractor">by an independent contractor on the Spark Driver platform</a>. Launched in 2018, the Spark Driver platform has worked with hundreds of thousands of independent contractors to fulfill orders from customers in urban, suburban, and rural locations. Over time, the Spark Driver platform has become Walmart's largest local delivery provider.&nbsp;While many individuals enjoy the flexibility of gig work, there are increased tax responsibilities associated with being your own boss. Key takeaways for Spark drivers include:<ul><li>Learn about the taxes you'll have to pay in connection with this work</li><li>How to keep proper records in support of your finances</li><li>Discover the top expense deductions for Spark drivers</li><li>Determine the forms and information required to file your taxes&nbsp;</li></ul>Some of this guidance applies to other gig work you might perform outside of the Spark Driver platform.&nbsp;&nbsp;<h2>What Taxes Do Walmart Spark Driver Drivers Pay?</h2><a href="https://www.nerdwallet.com/article/finance/what-gig-workers-need-to-know-about-taxes" target="_blank">Whether full-time or part-time, gig workers</a> must file a tax return if their net earnings are $400 or more annually.<h3>Self-Employment Taxes</h3>Gig workers will be responsible for <a href="https://1800accountant.com/blog/self-employment-tax-2">paying a self-employment tax</a>, 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.&nbsp;Employers usually pay Medicare and Social Security taxes through <a href="https://1800accountant.com/blog/1099-vs-w2">FICA on behalf of their W-2 employees</a>. They withhold wages to pay half of the tax and are obligated to pay the other half themselves.&nbsp;<h3>Federal Income Tax</h3>You will be responsible for paying federal income tax, which is done via your Schedule C form to report profits and losses. Schedule C consists of five parts:&nbsp;<ul><li>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.</li><li>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.</li><li>Cost of Goods Sold. If your business doesn't require you to purchase inventory or sell products, this section doesn't apply to you.</li><li>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.</li><li>Other Expenses. Report any expenses that weren't listed above in the second part. Some of these expenses might include education or costs related to your industry.</li></ul>You will attach your completed Schedule C to IRS Form 1040 and file your taxes.&nbsp;<h3>State and Local Income Tax</h3>The state and local income taxes Spark drivers may be responsible for can vary by location. Because Spark drivers are independent contractors, they'll make quarterly estimated tax payments four times per year. Many states that require quarterly tax payments adhere to the same schedule as federal estimated tax payments.If you have questions, contact state and local authorities or seek the advice of a qualified tax professional for expert guidance on your Spark Driver taxes.&nbsp;<h2>What Expenses Can I Deduct From My Walmart Spark Driver Income?</h2>There are numerous deductions that drivers who work with Spark and other platforms can take advantage of. <a href="https://www.gobankingrates.com/money/side-gigs/how-much-do-walmart-spark-delivery-drivers-make/" target="_blank">Some of the top Walmart Spark Driver platform</a> deductions include:&nbsp;<ul><li>Depreciation Expense. You can deduct the cost of business assets, including the vehicle you use as a Spark driver, 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 depreciation expense, including the depreciation method you apply.&nbsp;</li><li>Fees. You can write off the fees related to professional services you rely on to complete deliveries for the Spark Driver platform and manage your independent contractor business. Fees that qualify include mileage tracking software, navigation app subscriptions, bookkeeping software, and virtual accounting costs.&nbsp;</li><li>Tolls and Parking. You can deduct the tolls and parking fees you paid while delivering for the Spark Driver platform. Keep receipts from parking lots, garages, and tolls related to your deliveries.</li><li>Phone and Internet. You need your phone to access the Spark Drive mobile application to access deliveries and navigate to your destination. You can deduct part of your bill since your phone service and data costs represent necessary business expenses. 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.</li><li>Fuel and Maintenance. You can deduct fuel and maintenance costs for your delivery vehicle. As with virtually every deduction, keeping receipts and other supporting documentation is essential.&nbsp;</li></ul><h3>How to Keep Records of Your Walmart Spark Driver Expenses</h3>It is critical to retain supporting documents and records to prepare your tax return and defend your interests during a possible audit. Whether your records are digital, physical, or a combination of the two, they must be kept in a safe and secure location.Keep the following documents to support your Walmart Spark Driver platform expenses:<ul><li><a href="https://1800accountant.com/blog/types-of-1099-tax-forms">IRS Form 1099-NEC</a></li><li>Receipts for business purchases</li><li>Mileage log, including business vs. personal travel</li><li>Vehicle purchase paperwork</li><li>Repairs and maintenance receipts</li><li>Phone usage reports</li><li>Bookkeeping records</li><li>Business license paperwork</li></ul>We recommend reviewing <a href="https://www.irs.gov/businesses/small-businesses-self-employed/recordkeeping" target="_blank">IRS guidance regarding record retention</a>.&nbsp;<h2>How to File Taxes for Your Walmart Spark Driver Earnings</h2>Review the following forms, processes, and deadlines you'll need to be familiar with to file your taxes as part of the Walmart Spark Driver platform.&nbsp;<h3>Required Forms</h3>If you've made $600 or more on the Spark Driver platform in a year, <a href="https://1800accountant.com/blog/freelancing-and-form-1099-nec-everything-you-need-to-know">Walmart will send you&nbsp;</a><a href="https://1800accountant.com/blog/freelancing-and-form-1099-nec-everything-you-need-to-know">IRS Form 1099-NEC, Nonemployee Compensation</a>. This form summarizes earned Spark Driver wages and is essential to filing taxes. Contact the Walmart Spark Driver directly if you do not receive this form by the end of January.You may perform other <a href="https://1800accountant.com/blog/proscons-entity-formation-independent-contractors">work as an independent contractor</a> outside of the Spark Driver platform or are a W-2 employee with Spark deliveries serving as a part-time side gig. In this scenario, you may also receive <a href="https://1800accountant.com/blog/5-tax-issues-that-cause-irs-trouble-for-1099-workers">IRS Form 1099-K</a>, Payment Card and Third Party Network Transactions, and IRS Form W-2, Wage and Income Statement.<h3>Claiming Your Tax Deductions</h3>Use IRS Form 1099-NEC as a supporting document for your tax return. Forms you may use to file your taxes and claim tax deductions include:<ul><li>IRS Form 1040. File Form 1040, U.S. Individual Income Tax Return, to report taxable income and calculate your tax liability for the year.</li><li>IRS Schedule C (Form 1040). Report your income from the Spark Driver platform on IRS Form 1040, Schedule C, Profit or Loss from Business. Schedule C reports your self-employment income and business tax deductions.&nbsp;</li><li>IRS Schedule SE (Form 1040). Form 1040, Schedule SE, Self-Employment Tax, should be used to <a href="https://1800accountant.com/blog/accountant-for-freelancers">report your freelance income</a> 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.&nbsp;</li></ul><div class="embedded-entry redactor-component block-entry" type="entry" data-sys-entry-uid="blt79207efd7bb01d06" data-sys-entry-locale="en-us" data-sys-content-type-uid="rte_ad" sys-style-type="block"></div><h3>When to Pay Your Taxes</h3>Self-employed individuals must estimate and pay quarterly estimated taxes throughout the year. Quarterly estimated tax payment due dates for 2025 include:&nbsp;<ul><li>April 15, 2025</li><li>June 16, 2025</li><li>September 15, 2025</li><li>January 15, 2026</li></ul>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 <a href="https://1800accountant.com/services/quarterly-estimated-taxes">full-service quarterly estimated tax solution can help</a>.<h2>Let Our Experts Spark Your Path to Tax Savings</h2>Juggling your tax responsibilities while delivering for Walmart's Spark Driver platform can be challenging. As your delivery business matures and grows, avoiding costly tax mistakes that invite penalties and unwanted scrutiny from the IRS is essential. That's why many drivers and gig workers trust 1-800Accountant, America’s leading virtual accounting firm, <a href="https://1800accountant.com/blog/delivery-driver-tax-return">to deliver maximum tax savings</a>.&nbsp;Whether you need <a href="https://1800accountant.com/services/small-business-taxes">business tax preparation</a>, <a href="https://1800accountant.com/services/business-tax-advisory">tax advisory</a>, or any of our professional accounting services, we have the affordable solutions you need to ensure your self-employed delivery business doesn't spin its wheels. Schedule a quick consultation–usually 30 minutes or less—to learn more.

While many individuals enjoy the flexibility of gig work, there are increased tax responsibilities associated with being your own boss. […]

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Walmart Spark Driver Taxes: Calculations, Deductions & Filing

Uber, a ride-hailing business, rose to prominence by offering an affordable and more convenient transportation alternative. Since its launch, Uber has become a household name and instrumental in creating the modern gig economy. As a result, workers have embraced the entrepreneurial spirit by becoming their own bosses. In the wake of Uber's ride-hailing success, they eventually created Uber Eats, a streamlined way for customers to order food for delivery. Like Uber, Uber Eats has been embraced by the public worldwide.Navigating taxes related to your Uber Eats work can be tricky, as the Internal Revenue Service (IRS) does not make allowances for workers who do not know what they'll owe. However, there are tax write-offs that <a href="https://1800accountant.com/blog/self-employment-tax-2">independent contractors and self-employed individuals</a>, a large part of Uber Eats workers, are eligible for, so there is certainty about tax-saving opportunities.Uber Eats Income: What to Pay &amp; How to File Key Takeaways include:&nbsp;<ul><li>Determining whether your Uber Eats work qualifies for taxes</li><li>Discovering which tax forms to use if you owe</li><li>Learning when and how to file taxes</li><li>Browsing helpful deductions to lower your tax liability</li></ul><h2>Uber Eats Taxes: Do I Have to File Taxes for Uber Eats Income?</h2>You're considered a <a href="https://1800accountant.com/blog/how-to-file-taxes-independent-contractor">self-employed independent contractor</a> if you deliver for Uber Eats. This applies to gig workers delivering for GrubHub, DoorDash, and other modern delivery services. <a href="https://1800accountant.com/blog/1099-vs-w2">Unlike W-2 employees, whose employers handle tax withholdings for them</a>, gig workers are responsible for handling their own taxes.If you make $600 or more in a year working with Uber Eats, you will be responsible for filing taxes to report your income.&nbsp;<h2>Which Forms Do Self-Employed Uber Eats Drivers Need?</h2><a href="https://1800accountant.com/blog/freelancing-and-form-1099-nec-everything-you-need-to-know">Uber Eats will prepare IRS Form 1099-NEC</a> and IRS Form 1099-K if you're eligible.&nbsp;You will use IRS Form 1099-NEC if you make $600 or more in non-Uber Eats payments, including trip supplements, referrals, and promotions. You'd use IRS Form 1099-K if you made $5,000 or more in a year making deliveries for Uber Eats.&nbsp;<a href="https://help.uber.com/en/driving-and-delivering/article/how-do-taxes-work-as-a-delivery-partner-with-uber-eats-what-if-im-a-delivery-partner-with-uber-eats-and-a-ridesharing-driver-partner?nodeId=dd247b9d-329d-4df7-8193-0ed70e97c3be" target="_blank">Uber Eats will send an email</a> notifying you when your tax documents are ready on their website,&nbsp; <a href="http://drivers.uber.com" target="_blank">drivers.uber.com</a>, and in the Driver mobile application. Your tax forms should be available no later than January 31.Schedule a call with the experts at 1-800Accountant if you're having difficulty preparing and filing your taxes.&nbsp;<h2>When Do Uber Eats Drivers Owe Income Tax?</h2><a href="https://1800accountant.com/blog/proscons-entity-formation-independent-contractors">Unlike W-2 employees, independent contractors</a> such as those who work with Uber Eats must estimate and pay quarterly estimated taxes four times per year. Quarterly estimated tax payment due dates for the 2025 calendar year include the following:&nbsp;<ul><li>April 15, 2025</li><li>June 16, 2025</li><li>September 15, 2025</li><li>January 15, 2026</li></ul>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 <a href="https://1800accountant.com/services/quarterly-estimated-taxes">full-service quarterly estimated tax solution can help</a>.&nbsp;<h2>How to File Taxes for Uber Eats Earnings</h2>You will use <a href="https://1800accountant.com/blog/types-of-1099-tax-forms">IRS Form 1099-NEC and/or IRS Form 1099-K</a> as supporting documents for your tax return. Forms you may use to file your taxes and claim tax deductions include:&nbsp;<ul><li>IRS Form 1040. File Form 1040, U.S. Individual Income Tax Return, to report taxable income and calculate your tax liability for the year.</li><li>IRS Schedule C (Form 1040). Report your business income from Uber Eats on IRS Form 1040, Schedule C, Profit or Loss from Business. Schedule C reports your self-employment income and business tax deductions.&nbsp;</li><li>IRS Schedule SE (Form 1040). Form 1040, Schedule SE, Self-Employment Tax, should be used to report your 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.&nbsp;</li></ul>Uber offers <a href="https://www.uber.com/us/en/drive/tax-information/" target="_blank">a guide to tax season</a> with helpful insights for Uber Eats deliverers who handle their own tax preparation and filing responsibilities.&nbsp;<div class="embedded-entry redactor-component block-entry" type="entry" data-sys-entry-uid="blt79207efd7bb01d06" data-sys-entry-locale="en-us" data-sys-content-type-uid="rte_ad" sys-style-type="block"></div><h2>What Tax Deductions Are Uber Eats Workers Eligible For?</h2><a href="https://1800accountant.com/blog/tax-deductions-food-delivery-drivers">Tax deductions related to your Uber Eats work</a> can lower your taxable income. Consider the following deductions and make sure to keep detailed records supporting each deduction you take.<ul><li>Business Expenses. You can deduct the cost of business assets, such as a car or bicycle you use with Uber Eats, over time via depreciation. You must follow IRS depreciation rules if the business assets you're writing off exceed $2,500.&nbsp;</li><li>Vehicle Deductions. Vehicle deductions can be made using the standard mileage deduction or the actual expense method.&nbsp;<ul><li>The 2025 standard mileage rate is 70 cents per business mile. It's important to follow restrictions on depreciation expense deductions and car payments.</li><li>If your vehicle operating expenses exceed the standard mileage deduction, you can opt for the actual expense method. Instead of deducting your business mileage, determine your expenses for business-related travel, including insurance, gas, and maintenance costs. The actual expense method typically allows for larger depreciation expense deductions.&nbsp;</li><li>While mileage deductions only apply to motor vehicles, you 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.&nbsp;</li></ul></li><li>Tools and Equipment. It's common to use temperature-controlled packaging to keep items hot or cold and other tools and equipment that can be written off. Examples of tools and equipment that can be written off include hot bags and insulated packaging, coolers and ice packs, helmet, biking gloves, and other delivery-related clothing, and backpacks to transport deliveries to customers.</li><li>Fees. You can write off fees related to professional services you rely on to complete deliveries and manage your independent contractor business. Eligible fees include mileage tracking software, navigation app subscriptions, bookkeeping and expense management software, and virtual accounting costs.</li><li>Tolls and Parking. You can deduct tolls and parking fees you paid while delivering for Uber Eats. Keep your receipts from parking lots, garages, and tolls related to your deliveries.&nbsp;</li></ul><h2>Don’t Let Tax Season Eat Up Your Income: Get Expert Support</h2>Handling IRS compliance and <a href="https://1800accountant.com/blog/delivery-driver-tax-return">preparing tax materials</a> is a complex, time-consuming challenge. If you make a mistake or miss a deadline, you could be inviting penalties and <a href="https://1800accountant.com/blog/5-tax-issues-that-cause-irs-trouble-for-1099-workers">additional scrutiny from the IRS</a>. That's why many gig workers trust 1-800Accountant, America’s leading virtual accounting firm, for their financial needs.Whether you need<a href="https://1800accountant.com/services/small-business-taxes"> business tax preparation</a>,<a href="https://1800accountant.com/services/entity-formation"> </a><a href="https://1800accountant.com/services/business-tax-advisory">tax advisory</a>, or any of our professional accounting services, we have the affordable solutions you need to ensure your self-employed business remains compliant. Schedule a quick consultation–usually 30 minutes or less—to learn more.

Unlike W-2 employees, whose employers handle tax withholdings for them, gig workers are responsible for handling their own taxes […]

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Do I Owe Taxes on Uber Eats Income: What to Pay & How to File

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, <a href="https://1800accountant.com/blog/tax-deductions-food-delivery-drivers">DoorDash is associated with food delivery</a>. 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:&nbsp;<ul><li>How DoorDash workers are classified&nbsp;</li><li>The taxes they'll be responsible for paying</li><li>The appropriate forms and filing dates&nbsp;</li><li>Deductions and other tactics to reduce your tax liability&nbsp;</li></ul><h2>DoorDash Tax Classification</h2>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. <a href="https://www.dol.gov/newsroom/releases/whd/whd20240109-1" target="_blank">In January 2024, the U.S. Department of Labor</a> attempted to provide clarity by publishing a "<a href="https://www.dol.gov/agencies/whd/flsa/misclassification/rulemaking" target="_blank">final rule</a>" 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 <a href="https://1800accountant.com/blog/proscons-entity-formation-independent-contractors">classified as independent contractors</a>. 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.&nbsp;<h2>DoorDash Taxes to Pay</h2>Whether full-time or part-time, Dashers must file a tax return if their net earnings are <a href="https://www.irs.gov/businesses/small-businesses-self-employed/manage-taxes-for-your-gig-work#:~:text=You%20must%20file%20a%20tax,withhold%20tax%20from%20your%20paycheck." target="_blank">$400 or more annually</a>.&nbsp;<h3>FICA: Social Security and Medicare</h3>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.&nbsp;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.<h3>Income Tax</h3>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:&nbsp;<ol><li>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.</li><li>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.</li><li>Cost of Goods Sold. If your business doesn't require you to purchase inventory or sell products, this section doesn't apply to you.</li><li>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.</li><li>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.</li></ol>Dashers should attach their completed Schedule C to their IRS Form 1040.&nbsp;<div class="embedded-entry redactor-component block-entry" type="entry" data-sys-entry-uid="blt79207efd7bb01d06" data-sys-entry-locale="en-us" data-sys-content-type-uid="rte_ad" sys-style-type="block"></div><h3>Sales Tax (and Tips)</h3>Dashers will find tips and other income information on <a href="https://1800accountant.com/blog/freelancing-and-form-1099-nec-everything-you-need-to-know">IRS Form 1099-NEC, Nonemployee Compensation</a>. This form is sent to Dashers by January if they made $600 or more in the previous tax year working with DoorDash.&nbsp;<h2>Tax Forms DoorDashers Need</h2><a href="https://www.irs.gov/forms-pubs/about-form-1099-nec" target="_blank">IRS Form 1099-NEC</a> 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 <a href="https://1800accountant.com/blog/types-of-1099-tax-forms">as an independent contractor</a> or might even be a W-2 employee with DoorDash as your side gig. You may also <a href="https://1800accountant.com/blog/5-tax-issues-that-cause-irs-trouble-for-1099-workers">receive the following forms</a>, including:&nbsp;<ul><li><a href="https://www.irs.gov/forms-pubs/about-form-1099-k" target="_blank">IRS Form 1099-K, Payment Card and Third Party Network Transactions</a></li><li><a href="https://www.irs.gov/forms-pubs/about-form-1099-misc" target="_blank">IRS Form 1099-MISC, Miscellaneous Information</a></li><li><a href="https://www.irs.gov/forms-pubs/about-form-w-2" target="_blank">IRS Form W-2, Wage and Income Statement</a></li></ul><h3>How to Get Your DoorDash 1099-NEC</h3>DoorDash partnered with Stripe to distribute IRS Form 1099-NEC to eligible Dashers via Stripe Express. Here's how it works:&nbsp;<ul><li>Stripe will send Dashers an email with a link inviting them to claim a Stripe Express account.&nbsp;</li><li>Click the link and follow the prompts to create an account.&nbsp;</li><li>Once logged in, Dashers can download their IRS Form 1099-NEC.&nbsp;</li></ul>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.&nbsp;<h3>How to Fix Information on Your 1099-NEC</h3>You can make changes to the following information by logging in to Stripe Express:&nbsp;<ul><li>Your name&nbsp;</li><li>Home address&nbsp;</li><li>Social Security number&nbsp;</li><li>Employer Identification Number (EIN)</li></ul>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.&nbsp;<h2>DoorDash Tax Write-Offs to Claim</h2><h3>Business Expenses</h3>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.&nbsp;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.<h3>Vehicle Deductions</h3>Vehicle deductions can be made using the standard mileage deduction or the actual expense method.&nbsp;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.&nbsp;<ul><li>Insurance</li><li>Registration</li><li>Licenses</li><li>Gas</li><li>Repairs and maintenance</li></ul>The actual expense method usually allows for larger depreciation expense deductions.&nbsp;While mileage deductions only apply to motor vehicles, Dashers can deduct the costs of <a href="https://1800accountant.com/blog/delivery-driver-tax-return">using a bicycle for deliveries</a>. You can write off the business-use portion of your biking helmet, chain lock, and repair expenses.&nbsp;<h3>Tools and Equipment</h3>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.&nbsp;Consider the following examples of tools and equipment that can be written off:&nbsp;<ul><li>Hot bags and insulated packaging</li><li>Coolers and ice packs</li><li>Helmet, biking gloves, and other delivery-related clothing</li><li>Backpacks to carry food or groceries to customers</li></ul><h3>Fees</h3>Dashers can write off the fees related to professional services they rely on to complete deliveries and <a href="https://1800accountant.com/blog/how-to-file-taxes-independent-contractor">manage their independent contractor business</a>, including:&nbsp;<ul><li>Mileage tracking software</li><li>Premium subscriptions to navigation apps</li><li>Bookkeeping and expense management software</li><li>Virtual accounting fees</li></ul><h3>Tolls and Parking</h3>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.&nbsp;<h2>Claiming DoorDash Tax Deductions</h2>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:&nbsp;<ul><li>IRS Form 1040. File Form 1040, U.S. Individual Income Tax Return, to report taxable income and calculate your tax liability for the year.</li><li>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.&nbsp;</li><li>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 <a href="https://1800accountant.com/blog/self-employment-tax-2">half of your self-employment tax</a>.&nbsp;</li></ul><h2>When to File DoorDash Taxes</h2><a href="https://1800accountant.com/blog/1099-vs-w2">Unlike W-2 employees, self-employed individuals</a> must estimate and pay quarterly estimated taxes throughout the year. Quarterly estimated tax payment due dates for the 2025 fiscal year include the following:&nbsp;<ul><li>April 15, 2025</li><li>June 16, 2025</li><li>September 15, 2025</li><li>January 15, 2026</li></ul>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 <a href="https://1800accountant.com/services/quarterly-estimated-taxes">full-service quarterly estimated tax solution can help</a>.&nbsp;<h2>Get Expert Help Filing as a Dasher </h2>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<a href="https://1800accountant.com/services/small-business-taxes"> business tax preparation</a>,<a href="https://1800accountant.com/services/entity-formation"> </a><a href="https://1800accountant.com/services/business-tax-advisory">tax advisory</a>, 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.

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On December 27, 2024, Bench Accounting announced it was shutting down, putting thousands of small business owners in a difficult position just ahead of tax season. Bench clients will face many high-pressure decisions in the coming days, and we hope this article will alleviate some of your stress by empowering you with the information you need to move forward.While details had been scarce for a couple of days, Bench's main page updated clients with this message on December 30, 2024: "We’re excited to share some important news: Bench is being acquired by Employer.com. Your service will continue seamlessly with the platform you’ve always trusted. To continue, please log in." Once clients log in, they must either consent to transfer ownership of their data from Bench to <a href="https://techcrunch.com/2024/12/30/bench-to-be-acquired-after-abruptly-shutting-down/" target="_blank">employer.com, a relatively new company with an unproven track record</a>, or opt-out and download their data. Opting out suspends your services and indicates you will not be refunded. Before the acquisition was announced, Bench said clients could access their data from December 30, 2024, to March 7, 2025.&nbsp;This article, updated regularly, will inform you about the latest Bench developments and what its former clients can do to fulfill their tax obligations in less-than-ideal short-term conditions.&nbsp;<h2>Why is Bench Shutting Down?</h2>While it is unclear what the precise reason or series of events that led to Bench's closure was, Ian Crosby, a co-founder who had previously left the firm, offered some insight <a href="https://www.linkedin.com/posts/iwcrosby_im-very-sad-today-to-see-that-bench-accounting-activity-7278491381528981506-wQkZ" target="_blank">via social media:</a> "I had been battling with some of the board members over strategy. They wanted me to take the company in a new direction that I thought was a very bad idea. I wanted to continue with what was working and with what our partners had signed on to distribute. I was intransigent."Analysis and other insights emerging from Bench's closure and acquisition shouldn't distract you from important decisions you must consider. Do you risk your business's financial future on an unknown entity in employer.com, or should you embrace other proven financial firms in continuous operation? 1-800Accountant has served over 100,000 small businesses with an innovative mix of accounting experts and technology since its founding a decade ago.&nbsp;If you choose to use a different financial services firm, they must be capable of ensuring a seamless transition from Bench.&nbsp;<h2>If I pre-paid for Bench, can I get a refund?</h2>If you choose to use a different financial services provider, Bench will not provide a refund for the services you paid for. While this is understandably upsetting, you may be able to take action depending on when you purchased services.&nbsp;If you purchased services from Bench within the last 90 days, you may be able to file a chargeback with your credit card company. We suggest contacting your credit card institution immediately for more information and to potentially begin the chargeback filing process.&nbsp;<h2>Should I file an extension for my 2025 taxes if Bench was doing my books?</h2>Whether you should <a href="https://1800accountant.com/blog/file-for-an-extension">file an extension</a> for your small business will depend on numerous factors, including the overall complexity of your finances. Filing for a tax extension can be <a href="https://1800accountant.com/blog/benefits-of-a-tax-extension">tremendously beneficial</a>. It can give you the additional time you need to get your paperwork in order as you deal with this sudden transition from Bench to a new financial services provider.Speak with small business tax professionals if you're struggling with the decision to file a tax extension.&nbsp;<h2>Finding the Right Bench Accounting Alternative for Your Business</h2>1-800Accountant, America's leading virtual accounting firm, is ready to help fast to ensure you last. For a decade and counting, our <a href="https://1800accountant.com/services/bookkeeping">full-service bookkeeping</a>, <a href="https://1800accountant.com/services/payroll">payroll</a>, and <a href="https://1800accountant.com/services/small-business-taxes">accounting solutions</a>, powered by real bookkeeping, payroll, and accounting professionals, ensure compatibility with your current books, error-free tax preparation and filing, and smooth, reliable payroll each period. And if you require a custom solution outside our core financial services, we have forged strategic partnerships with leading financial institutions to ensure you're covered. Learn more about <a href="https://1800accountant.com/blog/legalzoom-and-1-800accountant-partner-announcement">our recent partnership with LegalZoom</a> to grasp the scope and scale of our flourishing operations.Schedule a quick consultation—usually 30 minutes or less—to learn how we can help you get off the bench and back in action quickly!

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