If you’re a Dasher for DoorDash, you’re responsible for tracking and paying your own taxes. Here’s what you need to know about how much to set aside for taxes and how to file your tax return.
Is DoorDash considered self-employment?
Most Dashers sign an independent contractor agreement. You get a 1099-NEC tax form at the end of the year. A 1099 means you get taxed as a business owner and are self-employed.
So, yes, DoorDash counts as self-employed.
Does DoorDash provide a 1099?
DoorDash uses Stripe to process their payments and tax returns. If you earn more than $600 in a calendar year, you’ll get a 1099-NEC from Stripe. (Stripe also sends 1099-Ks for other companies or payments, but the way they’re set up with DoorDash means DoorDash work will go on a 1099-NEC for DoorDash.)
DoorDash no longer uses Payable for 1099-NEC forms, so if you never got your 1099 from Payable, that’s why.
You can view DoorDash’s tax information here.
DoorDash 1099 Form Information
|Company Name||DoorDash, Inc.|
|EIN/Tax Identification Number||46-2852392|
|Business Address||901 Market|
San Francisco, CA 94103
|Business Activity Code||812900|
What business type is DoorDash?
DoorDash doesn’t really fit into any of the IRS business activity codes. Those codes were made long before services like DoorDash or Amazon Flex existed.
You can use the other services code.
Don’t worry about this code too much. It’s mainly for IRS statistics and doesn’t affect what you owe.
Does DoorDash send you a W2?
DoorDash does not send you a W2 since you’re an independent contractor rather than an employee.
Is DoorDash considered income?
Your income includes all the money you receive for your delivery services. This includes both cash and electronic payments whether or not you receive a 1099.
Tips are taxable self-employment income the same as your order fees. Waiters and taxi drivers have previously tried to have tips taxed as non-taxable gifts and failed.
Trying to say that tips are gifts could result in heavy fines or tax evasion charges for taking a frivolous or fraudulent position.
Do you have to pay DoorDash taxes under $600?
You still have to pay taxes if you made under $600 and didn’t receive a 1099.
The main exception is if you made under $400 in total-self employment income from all sources, you generally don’t have to file a tax return unless there’s another reason you don’t have to file.
How can you provide proof of DoorDash income?
Depending on who is asking, there are several different ways you may need to provide proof of DoorDash income.
- DoorDash earnings report
- Bank statements showing deposits
- Tax returns (most lenders will add back certain deductions like your mileage)
Can you deduct mileage?
You can generally take a deduction for all non-commuting business mileage while you are doing DoorDash deliveries or working through multiple apps. This includes when you have an order in your car and when you’re picking up the next order.
DoorDash doesn’t track mileage for you. You can either download a separate mileage tracking app or keep a manual mileage log from your car’s odometer.
Standard Mileage Deduction Rate
- 2023: 65.5 cents per mile
- 2022 July through December: 62.5 cents per mile
- 2022 January through June: 58.5 cents per mile
- 2021: 56 cents per mile
Tip: DoorDash does not reimburse mileage, and even if they did, it would still be taxable income.
What car expenses does the standard mileage deduction cover?
The standard mileage deduction covers the expenses necessary to keep your car running. This includes:
- DMV fees
You can also choose to use the actual expense method and track all of these expenses separately. You then claim that amount instead of taking the standard mileage deduction. This requires you to keep track of all of your receipts and why they were necessary business expenses.
In addition to saving that hassle, most people with consumer cars come out ahead by taking the standard mileage rate instead of actual car expenses.
You can use this AAA guide to help figure out if your car costs more or less to own than the standard mileage rate.
DoorDash Driver Checklist of Tax Deductions
The following items are also generally allowed tax write-offs.