Working as a delivery driver is a gig that has a lot of perks. You can set your hours and schedule based on when it's convenient for you. But, it also means the IRS considers you to be a self-employed individual, responsible for paying your taxes. DoorDash driver taxes can be confusing and you might be wondering, does DoorDash take out taxes? This guide will take you through everything you need to know about DoorDash taxes to help you avoid tax penalties and save the most possible.

Table of contents

How do DoorDash taxes work?...Read more

How much do you make working for Doordash?...Read more

Can you choose when Doordash pays you?...Read more

Does Doordash withhold taxes?...Read more

How much do Doordash drivers pay in taxes?...Read more

What happens if you don’t pay DoorDash taxes?...Read more

DoorDash tax forms...Read more

How do I get my 1099 form from DoorDash?...Read more

Deductions for delivery drivers...Read more

How do DoorDash taxes work?

DoorDash considers delivery drivers to be independent contractors. According to the IRS, independent contractors need to report and file their own taxes. You’ll need to calculate your DoorDash tax and pay both income taxes and self-employment tax. DoorDash does not provide drivers with a report of total earnings, tips, raises or bonuses so you’ll have to track your earnings meticulously. If you use FlyFin, a built-in income tracker does the work for you.

How much do you make working for Doordash?

DoorDash says delivery drivers typically make $15-25 per hour, including 100% of customer tips. But the rate depends on the time of day, location and the number of completed deliveries. DoorDash offers a base pay for all deliveries, calculated by the distance, estimated time and demand for the order.

Can you choose when Doordash pays you?

Instead of a typical paycheck, most drivers get paid weekly using direct deposit. But if you need your earnings sooner, you can choose the FastPay option and get paid once a day for a small fee. You can also receive instant deposits with no fee if you have DasherDirect. You don’t need a bank account to do this.

Infographic entitled When Do Dashers Get Paid showing how DoorDash drivers get paid.

Does Doordash withhold taxes?

Does DoorDash take out taxes? When you’re on an employer’s payroll, your taxes are typically withheld from your paycheck. But DoorDash considers its drivers to be independent contractors, so they don't withhold taxes.

How much do Doordash drivers pay in taxes?

There are two types of taxes you need to pay to the IRS when filing taxes as an independent contractor.

Income tax

All income, whether from your own gig or working for a company, is eligible to be taxed at the federal level. Working for DoorDash is no different, so you’ll need to pay federal taxes on any income you make through DoorDash. The amount you’ll pay depends on your filing status, tax bracket and state regulations. If you live in a state that collects income tax, you’ll also owe state and local taxes.

Self-employment taxes

Your taxes are automatically taken out of every paycheck when you’re on a company’s payroll. Part of the money withheld for tax purposes goes toward Social Security and Medicare taxes. And the cost is shared, with your employer paying half. As someone new to running their own gig and working as an independent contractor, it might be shocking to receive your first tax bill. Because DoorDash taxes are different. You’re now considered both the “employer” and the “employee,” meaning you are responsible for paying the full 15.3%, making your tax bill much higher. You can always use a 1099 tax calculator to find some delivery driver tax write-offs to lower your taxes.

Infographic entitled What Are DoorDash Taxes listing all the taxes DoorDash drivers have to pay.

What happens if you don’t pay DoorDash taxes?

For DoorDash drivers, not paying taxes can lead to serious problems. Self-employed individuals also owe estimated taxes throughout the year so missing these payments can lead to heavy fines with interest. The IRS could also audit you, which can be stressful. It can also make it harder to get loans or do business in the future. To avoid this, you should keep track of your earnings, report them correctly and pay your taxes on time. That way, you can stay out of trouble and keep your finances in good shape.

DoorDash tax forms

When it comes to filing DoorDash taxes, there are some important tax forms you’ll need. DoorDash drivers will calculate their income and report deductions on Schedule C. The net income will be reported on Schedule SE where your self-employed tax will be calculated. DoorDash drivers should attach both these forms to Form 1040 when they file. Form 1040 is where your taxable income is calculated and you can choose between the standard and itemized deduction. Apart from these forms, drivers will get a 1099-NEC or 1099-K form from DoorDash’s payment partner Stripe with their income information. 1099 forms do not need to be filed as they are just information forms. In 2024, DoorDash drivers will get a 1099-NEC if they made $600 in a year and a 1099-K if they made over $5,000.

How do I get my 1099 form from DoorDash?

You have two options for receiving your DoorDash 1099 form– an electronic copy by email or a paper copy by mail. If you choose the email option, you’ll need to create an account through DoorDash’s third-party platform, Stripe. Next, you’ll receive an email from Stripe with the title ‘Confirm your tax information with DoorDash’. Once you create an account, you’ll need to give consent to receive an electronic copy of the form. Although email is the fastest way to get your 1099, you can opt to receive a paper copy of Form 1099-NEC in the mail from Stripe. The form will be mailed to you at the end of January, but it can take up to 10 days to be delivered to you.

Deductions for delivery drivers

Regardless of the ridesharing or delivery service you work for, there are many tax deductions you can claim as a 1099 driver to help lower your tax bill. The most common DoorDash tax deduction is vehicle mileage. Drivers can use any type of Doordash mileage tracker to track their business miles and claim the deduction. You can use the standard mileage or actual expenses method to do this.

Infographic entitled How To Write Off Vehicle Mileage showing how DoorDash drivers can write off mileage.

Along with deducting mileage driven for work, you can also write off vehicle maintenance expenses such as gas, oil changes, and car washes, as well as parking fees incurred during deliveries. Additionally, depreciation on your vehicle's value due to wear and tear can also be claimed. Food and beverage expenses related to your work, like meals while on the job, are also deductible. DoorDash drivers can also deduct health insurance premiums and professional service fees like hiring a lawyer or CPA.

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What’s FlyFin?

FlyFin is built to cater to the tax needs of self-employed individuals, including freelancers, gig workers, independent contractors and sole proprietors. A.I. scans your business expenses to find every possible tax deduction. Our expert CPA team files a 100% accurate tax return for you, saving you a couple thousand dollars and a ton of time on your taxes.