Doordash and Taxes

Doordash and Taxes

These 9 Tips will help you understand how taxes work for Dashers

1. You're taxed as a small business owner

1. You're taxed as a small business owner

Independent Contractor means you provide services as a business, not as an employee

2. You're On Your Own for Taxes

2. You're On Your Own for Taxes

No one is withholding taxes for you.

3. Taxes are based on Profits

3. Taxes are based on Profits

You pay taxes on what's left over after expenses, not on total earnings

4. You can deduct business expenses even when taking the standard tax deduction

4. You can deduct business expenses even when taking the standard tax deduction

You don't have to itemize personal deductions to claim expenses

5. You MUST track your miles when Dashing

5. You MUST track your miles when Dashing

For 2023, you can write off 65.5 cents for every mile you drive while you Dash

6. Schedule C is the tax form where it all happens

6. Schedule C is the tax form where it all happens

This is where you list all your income and expenses.

7. We also pay Self- Employment Tax

7. We also pay Self- Employment Tax

It covers Social Security and Medicare: 15.3% of every dollar of profit

8. Your Taxable Profits are added to other earnings to determine your income tax bill.

8. Your Taxable Profits are added to other earnings to determine your income tax bill.

9. Self-Employment tax plus income tax bill equal your total tax bill. 

Subtract any other withholding, payments and tax credits to determine if you pay in or get a refund

9. Self-Employment tax plus income tax bill equal your total tax bill.