DoorDash Driver Tax Guide (Updated for 2024)

A lot of DoorDashers have the same questions: how to file taxes? how to track mileage for taxes? are there any other tax deductions I should know about? Don't worry, we're here to help, and today, we're going to walk you through everything you need to know to prepare for filing taxes as a DoorDash driver.

We’ll tell you the forms you need, how to maximize your tax write-offs, if you owe quarterly taxes, and if your tips are taxable income.

Our goal is to make your self-employed tax prep easy and straightforward, and walk you through the prep process step-by-step—let’s dive in!

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Step 1: Collect and fill out relevant tax forms

There are various forms you’ll need to file your taxes. Let’s get organized!

Filing forms

To file taxes as a DoorDash driver (a.k.a. an independent contractor), you’ll need to fill out the following forms:

• Form 1040, U.S. Individual Income Tax Return or Form 1040-SR, U.S. Tax Return for Seniors
• Schedule SE (Form 1040), Self-Employment Tax
• Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship)

You’ll report income through the standard tax return, Form 1040. You’ll use Schedule C to list your income and expenses (and expenses = write-offs!).  Plus, there may be additional state and local tax forms you’ll need as well—check with your tax service or professional.

Forms from DoorDash

You should receive your income information from DoorDash. This may come in the form of:

• A 1099-NEC—you’ll receive this from DoorDash if you received at least $600 from DoorDash. Learn more here. 

Note: You’re still required to report your rideshare and delivery income to the IRS even if you don’t receive a 1099.

Step 2: Calculate your write-offs/tax deductions 

Mileage

You can write-off miles you drove waiting for a delivery, en-route to a delivery, and on a delivery. However, it’s crucial to keep careful and detailed records of off-trip mileage ( a mileage tracker like Everlance makes this easy and automatic!).

There are two ways to calculate your mileage deduction: 

• Actual Expense Method: you calculate and deduct the actual expenses of operating your car. These expenses include gas, oil, insurance, registration, repais, lease payments, or maintenance. For more information on the Actual Expense Method, visit the IRS’s guide. 
• Standard IRS Mileage Deduction: This is the easiest method and can result in a higher deduction. To use this method, multiply your total business miles by the IRS Standard Mileage Rate for business. In 2023, this would look like: 10,000 work miles x $0.655 mileage rate = $6,550 deduction. The 2024 federal mileage rate has been updated to 67 cents per mile.

Pro Tip

Do you use the same car for work and personal transportation? If so, then you’re required to keep detailed and accurate records that separate these uses. If you don’t have mileage logs, receipts, or other documentation, the IRS may disallow any business expenses you list. That’s why a mileage tracker is so important (Everlance is the #1 mileage and expense tracker, and it makes mileage logs easy and automatic!). Dashers get 20% off their first year of Everlance Premium so download now and start tracking your mileage and business expenses automatically -- and save money and time on your taxes!

Smartphone

You are required to have a smartphone in order to do rideshare or delivery—so certain phone costs count as business expenses! Expenses that are deductible can include:

• Smartphone cost
• Essential phone accessories (e.g., chargers, mounts, etc.)
• Carrier billing charges for work use

Pro Tip

Do you use the same phone for work and personal? If so, then you’re required to keep detailed and accurate records that separate these uses. Many DoorDash drivers end up buying a new phone that is only used for their business. Then, this business phone’s costs are deductible. 

Other common deductions

Many costs associated with ridesharing and delivery can qualify as a write-off. In addition to work mileage and phone costs, other common deductions include:

• In-car supplies: bottled water and snacks for customers; floor mats; car tool kit; first aid kit; flashlights and flares; tire inflator and pressure gage; 
• Driving fees: city and airport fees; freeway, highway, and bridge tolls; business taxes and licenses 
• Roadside assistance plans
• Office supplies

Remember, Everlance doesn’t offer tax advice. Please refer to your tax professional or service for more information about your specific deductions. 

Do you owe quarterly taxes?

Since you’re an independent contractor, you might be responsible for estimated quarterly taxes—especially if DoorDash is your sole source of income. 

Make sure to pay estimated taxes on time. Each quarter, you're expected to pay taxes for that quarter's payment period. Here are the due dates for 2023:

1st Quarter:

• Payment period: January 1 – March 31
• Tax payment is due April 15, 2024

2nd Quarter:

• Payment period: April 1 – May 31
• Tax payment is due June 17, 2024

3rd Quarter:

• Payment period: June 1 – August 31
• Tax payment is due September 16, 2024

4th Quarter:

• Payment period: September 1 – December 31
• Tax payment is due January 15, 2025

For more information, visit our Quarterly Taxes Guide.

What about tips?

Your tips are part of your gross earnings total and are taxable income. Talk to your tax professional or service for more specific answers regarding your specific tax situation.

That’s all there is to it! That’s how you can easily prepare for your next tax filing. 

If you found this guide helpful, share it with your fellow Dashers! Our goal is to make Dasher tax prep easy and straightforward.

This guide is built around generalities and while it may apply to many, it will not apply to all. Even with this useful guide, we recommend that you seek guidance from a qualified tax professional to assess your individual situation.