How to File DoorDash Taxes

How Do You File Taxes as a DoorDash Driver

even though you will not be getting a W-2, your income tax charge action will not be much different than those who have traditional employment. You will get a 1099 from DoorDash, which will list how much yield you received through deliveries .
Most Dashers operate as a sole owner, meaning there is no legal structure to their study like there is with an LLC or S-corp. As such, they will hush file a personal tax return. There is a section on the personal tax tax return called the Schedule C on Form 1040 where Dashers can write off their business expenses .
DoorDash write-offs add up

9 DoorDash Tax Writeoffs

What business expenses does a DoorDash driver have ? We ’ rhenium glad you asked because it ’ s a set more than you might think.

1. Mileage and DoorDash taxes at the end of the year

You should be keeping chase of your work-related mileage. You can do this with one of the many available apps. by and large speaking, commuting mileage is not tax-deductible, but as a Dasher, you ’ re not commuting anywhere. You ’ re already at work the moment you get in your car .
The standard mileage rate is $ 0.56 per mile, and that measure is meant to reflect the cost of flatulence, maintenance, car lend, indemnity, and even depreciation. If you don ’ t want to use the standard mileage, you will have to add all these expenses up yourself, which can be crafty. sometimes, though, it will yield a bigger tax deduction—for model, if car indemnity in your area is peculiarly high or if you had a class with a lot of car repairs. This is normally the biggest DoorDask tax write-off .

2. Parking

sometimes you will need to pay for parking when you pick up a DoorDash order or deliver it. Though it may not seem worth it to keep track of these numbers, you should, because at the end of the class, the money adds up .
If you ’ re Dashing in an urban area where pay meters are coarse, consider using a separate credit or debit calling card to fund your parking expenses. In fact, this could ( and should ) be the card you use for all Dasher expenses. This will make certain you track your DoodDash write-off .

3. Tolls

Tolls are another expense you can write off on your taxes. As it turns out, DoorDash does not reimburse for tolls. If you live in an area where bell roads are common, consider getting an electronic pass and linking it to the wag dedicated to DoorDash expenses. This will make it easier to keep racetrack of your toll road and bridge toll expenses .

4. Cell Phone

You need a cell phone to be a Dasher, so you can take orders and communicate with customers as needed ( such as where to leave their food ). A cell call, even if it ’ s your personal telephone, becomes a necessary piece of business equipment. The only catch is that you can only deduct the fortune of costs that are being used for commercial enterprise .
It ’ mho fairly to say that adenine long as you are on the speculate, your telephone is chiefly dedicated to your work, and that can be the percentage of full phone costs you write off your taxes. Consult your personal tax adviser if you have specific questions on the best work for deducting expenses you use for work and pleasure .

5. Insulated Courier Bags

DoorDash is not like delivering for a particular restaurant. When you work for a restaurant, they typically supply insulated messenger bags to keep the food warm during delivery But if you ’ re a Dasher, you ’ re on your own.

Courier bags are not besides expensive, running approximately $ 15 for a standard pizza pocket. however, if you buy several of these insulated bags, you could be looking at a $ 100 investment. You should have no qualms about writing these off as a commercial enterprise expense .

6. Inspections

sometimes, peer-to-peer, app-based services involving vehicles will require a preliminary or occasional inspection. DoorDash is a short different because they do not require these types of fomite inspections, though it ’ s a good thing to keep in heed since many DoorDash drivers besides perform bring for other rideshare apps that do require these inspections .
Depending on the country you live in, you may even be able to write off all or a assign of any state-required vehicle inspections. If you have questions about this serve, you should ask a stipulate tax professional, as unlike states will have different write off rules .

7. Repairs

Remember, car repairs are covered under the standard mileage deduction. however, if you look back on the year and see that you ’ ve had to put a draw of function into your vehicle, you might consider foregoing the standard subtraction in favor of adding everything up yourself. In this case, you will have to add up your car insurance, accelerator, and fomite depreciation. If you besides use the vehicle for personal habit, you will want to speak to a tax adviser about the appropriate share to deduct from your DoorDash taxes .

8. Health Insurance and DoorDash taxes

Do you pay for your own health insurance ? If sol, did you know that health indemnity is tax-deductible ? Businesses that provide health indemnity surely deduct this as a occupation expense, and you ’ re able to a well. There are a few extra requirements you must meet ( according to the IRS ) in order to deduct your health insurance. The chief one is that you must not be eligible to receive health policy through a spouse or parent. If you are besides paying for health insurance for your dependents ( spouse and children ), that total is tax-deductible arsenic well. This can besides be a big save on your DoorDash taxes allowing you to keep more of what you earned .

9. Retirement Contributions

If you ’ re an independent contractile organ and you have a tax-deferred retirement plan, like a Solo 401 ( thousand ), the money you put into that explanation is besides tax-deductible. Some of the most common retirement plans for freelance individuals are the SEP-IRA and the SIMPLE, and the upper threshold for contributions to these plans is actually quite high .
For model, you can contribute angstrom much as $ 58k to a SEP. In terms of writing off that contribution on your tax reelect, you can take up to 25 percentage of your income or the actual dollar come contributed, whichever is less. Speak to your tax adviser on the best room to leverage the benefits of writing off retirement contributions, because some of the tax laws in this area can be quite generous in terms of lowering your sum taxable income .

You Have to Pay Taxes on your Income as a DoorDash Driver

But There Are Lots of Write offs Against Your DoorDash Taxes

If you ’ re a Dasher, these Doordash write offs are crucial when it comes time to file your taxes. But even if you ’ re not a Dasher, you should surely pay attention to these tax write offs—especially if you are freelance or participate in the gig economy.

Companies that provide an app facilitating peer-to-peer activities, like ridesharing and mercenary ferment, all issue 1099 forms. If you ’ re getting one, then you are operating as a lone proprietorship ship’s company, and you can write off the associate expenses that are needed to perform your work, which in turn can lower your annual tax payments .
If you have more questions about filing taxes as a gig worker/independent contractor, please join our free Tax Tuesday live flow. It ’ s a bang-up opportunity to get advice on sole proprietorship tax issues, square from the Anderson Advisor ’ mho experts themselves .
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