Tax Filing Information for DoorDash Drivers
When it’s time to pay your taxes, if you have earned more than $600 in that year through DoorDash, you will receive a 1099-NEC form. Generally speaking, DoorDash Dashers tend to pay just over 15% in taxes. You should set aside 30-40% of what you earn to cover federal and state taxes.
Tax Calculation and Details
You will owe income taxes on that money at the regular tax rate and pay a self-employment tax of 15.3% that covers Social Security and Medicare.
All income earned as an independent contractor is self-employment income, which is fully taxable. Independent contractors must report all income, even if less than $600.
Pay Structure and Expenses for DoorDash Drivers
The general pay structure is: Base Pay + Promotions + Tips = Total Earnings. DoorDash drivers typically earn $15-$25 per hour and are responsible for expenses like gas, which depends on delivery numbers and routes.
Tax Deductions and Methods
You can usually deduct unreimbursed vehicle expenses two ways: Standard mileage rate — $0.63 per mile in 2022, or actual expense deduction method. When using the actual expense deduction method, you can write off gas only.
Resources and Support for DoorDash Drivers
Important forms for tax filing include Schedule C to calculate profit/loss, Schedule SE to calculate self-employment tax, and Form 1040 to file a standard return. Attach Schedules C and SE.
Vehicle Expenses and Deductions
Yes, as a DoorDash driver, you may write off gas expenses. You can also deduct phone accessories for your delivery job. The portion attributable to work is deductible.
Earnings and Worth of Being a Dasher
DoorDash states the average hourly pay is $23, which may go up to $20 to $30 per hour with tips and peak pay as a side hustle.