Can You Get a Tax Refund From DoorDash Earnings?
Understand how DoorDash earnings impact your taxes, what deductions apply, and whether you're eligible for a tax refund as a delivery driver.
Earning money through DoorDash as a delivery driver means you’re considered self-employed for tax purposes. Unlike traditional employees, taxes aren’t automatically withheld from your earnings, which can make filing more complicated. Many drivers wonder whether they’re eligible for a tax refund or if they’ll end up owing money instead.
Understanding how taxes apply to gig work helps avoid surprises when filing. Tracking income and expenses, knowing self-employment tax obligations, and taking advantage of deductions all determine whether a driver qualifies for a refund or owes taxes.
Classifying Delivery Earnings
Income from DoorDash deliveries is reported on Form 1099-NEC as self-employment income rather than a W-2. Because DoorDash does not withhold taxes, drivers must calculate and pay their own tax liabilities. This income is subject to both income tax and self-employment tax.
Since delivery earnings are classified as business income, drivers can deduct eligible expenses like mileage, phone usage, and vehicle maintenance to reduce taxable income. These deductions lower the amount subject to taxation, affecting whether a driver owes taxes or qualifies for a refund.
Drivers earning at least $400 in net income from DoorDash must file a tax return. Because self-employment income isn’t subject to automatic withholding, estimated tax payments may be necessary to avoid penalties.
Tracking Earnings and Expenses
Accurate record-keeping is essential for managing tax obligations. DoorDash provides a 1099-NEC, but drivers should track their own earnings, including payment deposits, cash tips, and bonuses. A bookkeeping app or spreadsheet can help organize this information.
Documenting expenses is just as important. Mileage is a major deduction, but other costs—such as tolls, parking fees, insulated food bags, and a portion of phone bills used for work—can also be written off. The IRS requires documentation for deductions, so drivers should keep receipts, bank statements, and mileage logs. A mileage tracking app can simplify this process by automatically recording trips and separating personal and business use.
Estimated tax payments help prevent a large tax bill. The IRS requires these payments if total tax liability exceeds $1,000. Failing to pay on time can result in penalties. Drivers can calculate these payments using prior-year tax returns or IRS Form 1040-ES.
Self-Employment Tax Obligations
Self-employed individuals must pay the full amount of Social Security and Medicare taxes, known as self-employment tax. As of 2024, this tax is 15.3%—12.4% for Social Security on earnings up to $168,600 and 2.9% for Medicare. If net earnings exceed $200,000 for single filers or $250,000 for married couples filing jointly, an additional 0.9% Medicare surtax applies.
Self-employment tax is based on net earnings, which is gross income minus allowable business expenses. The IRS allows a deduction for half of the self-employment tax paid, which reduces taxable income but not the actual tax owed. To avoid penalties, self-employed individuals often make quarterly estimated tax payments using Form 1040-ES.
Determining Eligibility for a Refund
Whether a DoorDash driver receives a tax refund depends on total tax liability after deductions, credits, and any payments made during the year. Unlike traditional employees who have taxes withheld, independent contractors must manage their own tax burden, making refunds less common but still possible.
Tax credits can significantly impact refund eligibility. The Earned Income Tax Credit (EITC) provides refunds to low-to-moderate income workers, including gig workers, if they meet income and filing status requirements. The Saver’s Credit may benefit those contributing to a retirement account, reducing tax liability further. Refundable credits, such as the Additional Child Tax Credit (ACTC), can also generate a refund even if no income tax is owed.
Prepayments through estimated tax filings or overpayments from a prior year’s return can also result in a refund. If a driver overestimated their quarterly tax payments or had excess withholding from another job, the IRS will refund the difference.
Filing Steps
Once a DoorDash driver determines their tax liability, the next step is filing their return accurately. Since self-employment income is reported differently than traditional wages, drivers must use the correct forms and claim all deductions and credits available to them. Filing correctly and on time helps avoid penalties and ensures any refund is processed without delays.
Income is reported on Schedule C (Form 1040), which details business earnings and deductible expenses. Net profit from this form is transferred to Form 1040 as taxable income. Self-employment tax is calculated using Schedule SE (Form 1040), which determines the amount owed for Social Security and Medicare. Estimated tax payments should be reported to offset any remaining liability.
Tax software like TurboTax Self-Employed or H&R Block can automate calculations and ensure compliance with IRS regulations. For those with complex tax situations, consulting a tax professional can help maximize deductions and avoid errors. Filing electronically through the IRS Free File program or a tax software provider can speed up processing times, especially for those expecting a refund.