When Do You Have to Pay Taxes on DoorDash?

Income earned from DoorDash is considered self-employment income by the Internal Revenue Service (IRS). This classification means Dashers operate as independent contractors, not as employees of the company. As a result, DoorDash does not withhold taxes from a Dasher’s earnings. This places the responsibility of tracking income, identifying deductible expenses, and paying the appropriate taxes on the individual.

Determining Your Taxable Income

The foundation of your tax obligation is your taxable income, which is the amount left after subtracting business expenses from your gross income. For a Dasher, gross income includes all earnings from deliveries, customer tips, and any income from promotions or other incentives. Accurately tracking this income is the starting point for determining what you will ultimately owe.

A significant part of managing your taxes involves identifying and documenting all business-related expenses, as these reduce your taxable income. For Dashers, vehicle expenses are often the largest category of deductions. You can calculate this deduction using one of two IRS-approved methods: the standard mileage rate or the actual expense method. The standard mileage rate for 2025 is 70 cents per mile driven for business, which requires a detailed log of your business mileage, including the date, purpose, and total miles for each trip.

Alternatively, the actual expense method allows you to deduct a percentage of your total vehicle costs based on your business use. To use this method, you must track all of these individual expenses and calculate the percentage of time you used your vehicle for business. These costs can include:

• Gas and oil changes
• Repairs and tires
• Insurance
• Vehicle registration fees

If you use the standard mileage rate the first year you use your car for business, you can switch to the actual expense method in a later year. However, if you start with the actual expense method, you cannot later switch to the standard mileage rate for that same vehicle.

Beyond vehicle costs, other expenses are also deductible. A portion of your monthly cell phone bill can be deducted based on the percentage of time you use your phone for business activities. The cost of work-related accessories, such as car mounts and chargers, is also deductible. Any supplies you purchase for your delivery work, like insulated hot bags, can be claimed as a business expense. If you use a specific area of your home exclusively for managing your DoorDash business, you may be able to claim a home office deduction, which allows a deduction of $5 per square foot for up to 300 square feet.

Tax Filing Thresholds and Required Forms

Understanding when you are required to file taxes and which forms to use is part of compliance. There are two income thresholds that Dashers should be aware of. The first relates to an informational tax form from DoorDash, while the second determines your actual obligation to file a tax return.

DoorDash is required to send you a Form 1099-NEC, Nonemployee Compensation, if you earn $600 or more during the calendar year. This form reports the total amount of nonemployee compensation you were paid. You should receive this form by January 31 of the year following the tax year in question.

The more significant threshold for Dashers is $400. If your net earnings from self-employment—your gross income minus all your business deductions—are $400 or more, you are required to file a tax return and pay self-employment tax. This rule applies even if your gross earnings are below the $600 mark and you do not receive a Form 1099-NEC.

To report your income and expenses, you will use Schedule C (Form 1040), Profit or Loss from Business. On this form, you will list your total gross income from DoorDash and then itemize all of your business deductions. The final calculation on Schedule C will show your net profit or loss for the year.

The net profit calculated on your Schedule C is then used to complete Schedule SE (Form 1040), Self-Employment Tax. This form calculates the amount of Social Security and Medicare taxes you owe. As a self-employed individual, you are responsible for paying both the employee and employer portions of these taxes, which amounts to a combined rate of 15.3% on 92.35% of your net earnings.

Paying Quarterly Estimated Taxes

Because taxes are not withheld from your DoorDash earnings, you are required to pay your income and self-employment taxes throughout the year. This is done by making quarterly estimated tax payments to the IRS. This pay-as-you-go system helps you avoid a large tax bill and potential penalties when you file your annual return.

The IRS has four established due dates for these payments.

• For income earned January 1 – March 31, payment is due April 15.
• For income earned April 1 – May 31, payment is due June 16, 2025.
• For income earned June 1 – August 31, payment is due September 15.
• For income earned September 1 – December 31, payment is due January 15 of the following year.

To calculate how much to pay, a common approach is to set aside a percentage of your net profit. A general guideline is to reserve 25-30% of your net earnings for federal taxes, though this can vary based on your total income and tax bracket. You can use the worksheet provided with Form 1040-ES, Estimated Tax for Individuals, to get a more precise calculation.

When it is time to make a payment, you have several options. You can mail a check or money order with a payment voucher from Form 1040-ES. A more convenient method is to pay online through IRS Direct Pay, which allows you to make a payment directly from your checking or savings account at no cost.

The Annual Tax Filing Process

The annual tax filing is the final step where you reconcile your entire year’s financial activity with the IRS. This process brings together your total income, all your business deductions, and the quarterly estimated tax payments you have made. It determines whether you have paid the correct amount of tax or if you owe more or are due a refund.

The central document for your annual return is Form 1040, the U.S. Individual Income Tax Return. The net profit or loss you calculated on Schedule C is transferred to your Form 1040 as business income. The total self-employment tax calculated on Schedule SE is also carried over to your Form 1040, where it is added to your income tax liability.

Any quarterly estimated tax payments you made during the year are reported on your Form 1040 as well. These payments are credited against your total tax liability, reducing the final amount you may owe. If your total estimated payments exceed your total tax liability for the year, you will receive a refund for the overpayment.

The deadline for filing your annual tax return is typically April 15. If this date falls on a weekend or holiday, the deadline is moved to the next business day.