Did you know DoorDash now dominates 66% of the US food delivery market, with billions in gross order volume according to Statista? If you’re a Dasher, these numbers mean big earnings—and tax forms. In this guide, learn everything you need to know about the DoorDash tax form, how to access your 1099, and essential tax deductions.
What Tax Forms Do You Need as a DoorDash Driver?
If you’re a DoorDash driver earning $600 or more, DoorDash will send you a 1099-NEC form—your main tax document for income taxes. Because you’re considered an independent contractor, DoorDash doesn’t withhold taxes, meaning it’s up to you to report and pay income taxes and self-employment taxes (including Social Security and Medicare taxes).
This 1099 from DoorDash will detail your total earnings for the year and is necessary to complete your tax return. Make sure to confirm your tax information before receiving your form, as any errors can delay your filing. The IRS relies on this form to ensure you’re accurately reporting income, so keep it accessible for tax time.
What Is a 1099-NEC, and Why Is It Important for Dashers?
The 1099-NEC is the tax form for self-employed people and delivery drivers who earn at least $600. If you drive for DoorDash, this form is used to figure your income tax and self-employment tax amount. Unlike a W-2, which is for employees, the 1099-NEC doesn’t include any tax withholdings—so you’ll need to set aside funds to cover your federal and state tax payments. The IRS matches this form with your tax return, ensuring that your reported earnings are correct.
How Do You Receive Your DoorDash 1099 Tax Form?
To receive your 1099 tax form, DoorDash uses Stripe Express. You’ll receive an email from Stripe with instructions to create an account and confirm your tax information for accuracy. Here’s how to access your 1099-NEC:
- Create a Stripe Express account or log in if you already have one.
- Opt into e-delivery for a faster, electronic copy, which will be available by January 31.
- Download your 1099 tax form directly from Stripe Express.
Alternatively, if you don’t choose e-delivery, Stripe will send a paper copy by mail, which can take up to 10 business days. Checking that your SSN or EIN is accurate will help avoid delays in getting your 1099 form.
Further Reading: Learn the different types of IRS 1099 forms
How to File Your Taxes with a DoorDash 1099
What Do Dashers Need to Know About Filing DoorDash Income?
When filing your tax return, report all DoorDash earnings under “business income.” This includes deliveries, tips, and any bonuses. Since DoorDash doesn’t withhold taxes, you’re responsible for both income taxes and self-employment tax on your earnings. Quarterly taxes may also apply if you expect to owe over $1,000 for the year. For self-employed people, filing form 1040 is standard, with additional schedules for business expenses. Consider using a 1099 tax calculator to estimate your tax bill accurately.
Should Dashers Consider Quarterly Tax Payments?
If your earnings result in a possible tax balance over $1,000, paying quarterly taxes can save you from a large bill and penalties. Calculating these tax payments is easier with tools from Taxfyle, which can estimate how much you’ll owe. Setting aside funds or using a 1099 tax calculator regularly can help you budget for these payments effectively.
Further Reading: Know how to report income by entering IRS Form 1099 Composite
Maximizing Your DoorDash Tax Deductions
What Are the Top Tax Deductions for DoorDash Drivers?
DoorDash drivers can reduce their tax amount significantly with business expenses. Some top tax deductions include:
- Mileage: The IRS allows you to claim either a standard mileage deduction or use the actual expense method. The standard mileage rate simplifies things, but if your business mileage is high, the actual expense method (including fuel, maintenance, etc.) may be better.
- Phone and Internet: Deduct part of your mobile and internet expenses used for dashing.
- Car Expenses: If you use your car solely for DoorDash, you can deduct actual costs like repairs and oil changes.
- Parking and Tolls: Costs for tolls and parking on delivery trips are deductible.
Tracking these expenses carefully ensures you maximize deductions, lowering your tax bracket impact.
How Can You Track Your Mileage for Tax Purposes?
To claim the IRS mileage deduction, it’s essential to track mileage accurately. Tools from Taxfyle can track mileage automatically, so you won’t need manual records. DoorDash provides mileage estimates, but using an app provides a more accurate record for tax purposes. Tracking properly keeps your deductions secure and makes filing easier.
Key Takeaways
- Verify Tax Info on Taxfyle: Ensure your social security number, address, and email are correct to avoid delays with your 1099-NEC.
- Receive Your 1099 Quickly: Opt for e-delivery on Taxfyle to get your form fast; otherwise, expect a mailed copy.
- Troubleshoot Missing 1099s: If you don’t receive your 1099, check email folders, contact Taxfyle support, or reach out to DoorDash.
- Track Key Deductions: Deduct expenses like mileage, phone, and car costs to lower your tax bill on DoorDash earnings.
- Consider Quarterly Payments: To avoid a big tax bill, pay quarterly estimated taxes if you expect to owe more than $1,000.
How can Taxfyle help?
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