If you’re using DoorDash to earn extra income as an independent contractor, you must pay taxes on what you earn.
Filing taxes as a self-employed worker allows DoorDash drivers to stay in good standing with the IRS and claim tax benefits that can reduce what Dashers owe in taxes or get them higher tax returns.
Don’t worry if you need a DoorDash W2 or other tax forms as tax season approaches.
Below, you’ll find everything you need to know about filing taxes as a Dasher, where to find essential tax forms, and what you’re allowed to write off as a DoorDash driver.
Do You Get a DoorDash W2?
No. DoorDash drivers are independent contractors, so instead of a DoorDash W2 tax form, they receive the DoorDash 1099 form. Salary employees have deductions on each paycheck that can be reclaimed by filing a W2 tax form.
As independent contractors for DoorDash, no wages are withheld or deducted, so a DoorDash W2 isn’t necessary. Instead, Form 1099-NEC allows Dashers to report their income and deduct their expenses to see tax benefits.
What DoorDash Taxes Do You Have to Pay?
Dashers are independent contractors or self-employed in the eyes of the IRS. Once you’ve earned over $600 with DoorDash, you must pay state and federal taxes.
Similar to Instacart taxes, DoorDash taxes include a 15.3% self-employment (SE) tax and income tax for your tax bracket.
Your income tax will depend on your earnings and your filing status. For example, if you’re a single-filer, you’ll have different income tax rates than a married couple filing joint taxes.
What DoorDash Tax Forms Will You Need to File?
Instead of a DoorDash W2, Dashers file their taxes with IRS Form 1099-NEC and Form 1099-K.
Form 1099 states that any income above $600 is taxable income.
Meanwhile, Form 1099-K focuses on income earned from card transactions like credit or debit cards. As of 2022, Dashers must report a gross income above $20,000 from 200+ card transactions.
Where Do You Get Your 1099?
The IRS provides a pdf version of Form 1099-NEC and a pdf version of Form 1099-K that Dashers can use to file their taxes.
Likewise, DoorDash will issue Form 1099-K through the mail or Stripe Express to any of their independent contractors with earnings over $20,000 from 200+ card transactions.
Through Stripe
If you have an account with Stripe, have verified your information, and have consented to e-delivery, you can easily view and download your 1099 tax forms by clicking the Tax Forms tab on Stripe Express.
Through the Mail
DoorDash will issue Dashers the necessary tax documents to the address on file. Remember, receiving your tax forms by mail may take up to three weeks.
What if You Didn’t Get Your DoorDash 1099?
If you don’t get your DoorDash 1099 form through Stripe Express or the mail, visit the IRS website for pdf versions of the necessary tax forms.
Why Didn’t You Receive Your 1099?
If you’re a Dasher and didn’t receive your 1099 or 1099-K tax form from DoorDash, likely, you didn’t get your forms for one or both of the reasons below.
You didn’t earn more than $600 for miscellaneous earnings as a self-employed worker.
You didn’t make over $20,000 in gross earnings from 200+ card transactions.
DoorDash monitors each independent contractor’s earnings and sends the necessary tax forms to their Stripe account or address on file if their income qualifies them to report their earnings.
In some cases, Dashers won’t get forms sent to Stripe if they haven’t allowed e-delivery. In that case, DoorDash sends your tax forms in the mail.
Suppose you haven’t updated your address after moving. In that case, your tax forms may have gotten mailed to your old address, so keep your DoorDash profile updated with your most current address to avoid delays.
How to File Your DoorDash 1099
To file your DoorDash 1099, enter all necessary information and submit one copy (Copy A) to the IRS and a second copy (Copy B) to DoorDash.
If you file your 1099 tax forms by mail, you must complete and submit Form 1096.
Depending on your state, you may also be required to file taxes with your state.
Visit your local government website for necessary forms and instructions on filing, or hire a professional accountant to help handle all the paperwork.
What Can You Deduct?
One of the benefits of working as an independent contractor for DoorDash is the tax deductions or write-offs you can use to lower your earned income and qualify for a lower tax bracket, thus reducing the amount owed in income tax.
Some of the qualifying expenses you can deduct as a Dasher on your 1099 tax forms include the following:
Car expenses like gas and maintenance
Cell phone bills
Parking expenses
Road tolls
Health insurance
Auto insurance
Courier bags and work supplies
Roadside assistance
How to Track Your DoorDash Write-Offs
When it comes to tracking what you include on your tax forms, follow the three steps below.
Keep records
Keep receipts
Use cards instead of cash
Make a spreadsheet or download an app like QuickBooks to keep complete and up-to-date records to track your DoorDash write-offs.
Always hold onto your receipts for work supplies, parking booths, gas bills, or road tolls.
This will be your proof to support your claims should the IRS choose you for an audit.
Likewise, use cards over cash for business transactions, so you have evidence of the purchase even if you lose a receipt.
How to Track DoorDash Mileage
Track your DoorDash mileage by viewing your delivery history in the DoorDash app.
Here, Dashers will find the distance they drove to complete each delivery.
Use a designated column or tab for your mileage on a spreadsheet or download an app to keep track of the total miles driven for DoorDash.
How to Keep Track of Your Earnings
Whether you use Fast Pay, DoorDash’s version of Instant Pay, or wait until payday, it’s essential to keep track of your DoorDash earnings to prepare for tax season.
Track your earnings from DoorDash by selecting the Earnings tab. Here, Dashers will get a breakdown of their weekly earnings. Select individual orders to view the payment history from each delivery.
Use the same spreadsheet or app for your miles, earnings, and write-offs so everything is in one easy-to-access place for filing DoorDash taxes.
When Do You Have to File DoorDash Taxes?
Tax Day in the United States is on April 15th every year unless it falls on a weekend. Tax Day is the deadline for all calendar year filers.
On the other hand, fiscal year filers must submit their taxes no later than three and half months (the 15th day of the fourth month) after the close of their fiscal year.
To file in time for Tax Day, the deadline to file DoorDash tax forms by mail is February 28th. However, the deadline is extended to March 31st for those filing taxes electronically.
Wrapping Up
Whether you’ve been a Dasher for years or are just starting, understanding the necessary tax forms is essential for self-employed workers and independent contractors to stay in good standing with the IRS and maximize their income with tax benefits and write-offs.
Now that you know you need to pay taxes on your DoorDash income using Form 1099 and 1099-K instead of a DoorDash W2, you’re ready to take on tax season like a champ.
Are you a DoorDash driver? Track your income from cash and card purchases now to make tax season worry and stress-free.