Do I Have to File Taxes for DoorDash If I Made Less Than $600?

If you drove for DoorDash in any year, but earned less than $600, you might be wondering if you need to report that income on your taxes.

While many people assume they don’t have to file if they don’t receive a 1099 form, the reality is a bit more complex. Let’s break it down.

Do You Need to Report Earnings Under $600?

Yes, you are still required to report any income you earn from DoorDash, even if it’s less than $600. The IRS requires all self-employment income to be reported, regardless of whether you receive a 1099-NEC or 1099-K from DoorDash. If you made even a few hundred dollars, that money is considered taxable income and should be included on your tax return.

Why Didn’t I Get a 1099 From DoorDash?

DoorDash only issues a 1099-NEC if you earned $600 or more in a tax year. Additionally, if you received payments through third-party platforms like Stripe or direct deposits, you may not receive a 1099-K unless you surpass the IRS threshold (which is currently $5,000 for 2024).

However, not getting a 1099 does not mean you don’t owe taxes. You are responsible for reporting your income, whether you receive a tax form or not.

How to Report Income Under $600

If you made less than $600 with DoorDash, you should still report your earnings on Schedule C (Form 1040) as self-employment income. The good news is that you can deduct business expenses, such as:

• Mileage driven for deliveries 🚗
• Phone and data plan costs 📱
• Hot bags, phone mounts, and other delivery-related supplies 📦
• Tolls and parking fees 🅿️

These deductions can help lower your taxable income and potentially reduce what you owe. To see other expenses you can write off, check out some of the top deductions for Dashers.

What Happens If You Don’t Report Your Earnings?

If you fail to report your earnings, you risk penalties and interest if the IRS finds out. Even though DoorDash won’t send a 1099 for earnings under $600, their records still exist, and the IRS can request them if needed. Being proactive and reporting your income correctly ensures you stay compliant and avoid any issues down the road.

How Everlance Can Help

Tracking your mileage and expenses throughout the year can make tax time easier and help maximize your deductions. Everlance automatically logs your mileage and categorizes expenses, so you never miss a potential deduction. Whether you made $200 or $20,000 with DoorDash, keeping accurate records is key to filing accurately and saving money on your taxes.

Bottom Line: Even if you made less than $600 with DoorDash, you should still report your income. Take advantage of deductions to reduce your tax liability, and use tools like Everlance to stay organized and maximize your savings. Ready to make tax season easier? Start tracking your miles today!