DoorDash classifies Dashers as independent contractors. No taxes are withheld from earnings — you owe federal income tax plus 15.3% self-employment tax on net profit, reported on Schedule C (Profit or Loss From Business) and Schedule SE.
Income tracking: DoorDash issues a 1099-NEC to Dashers once they earn $2,000 or more for 2026 (raised from $600 by the One Big Beautiful Bill Act, inflation-adjusted after 2026). The 1099-NEC Box 1 includes base pay, tips, and bonuses. Below the threshold, no form is issued, but income is still fully taxable. ExpenseBot can scan weekly DoorDash earnings emails from Gmail to build a running income record automatically, or you can upload your Dasher earnings CSV from dasher.doordash.com.
Mileage — the biggest deduction: The 2026 IRS standard mileage rate is 76 cents/mile for miles driven from July 1, 2026 (Announcement 2026-11); miles driven January 1 - June 30 use 72.5 cents (Notice 2026-10). Deductible miles include: driving to the restaurant, restaurant to customer, between deliveries, and from last delivery to home. DoorDash's CSV includes earnings but mileage data varies by market — a GPS tracker during shifts captures full mileage including deadhead. IRS requires a contemporaneous log with date, destination, business purpose, and miles.
Other deductions: Phone and data plan (business-use %), insulated delivery bags, car washes, parking, tolls, phone mount, accounting fees. Schedule C Line 27 (other expenses) for bags and equipment.
2026 new deduction — No Tax on Tips: Under the One Big Beautiful Bill (signed July 4, 2025), app-based delivery workers are explicitly listed as qualifying tipped occupations. Dashers may deduct up to $25,000 in qualified tips, phasing out at MAGI above $150,000 (single).
How much to set aside — a percentage of NET profit, not of deposits. This is the most common Dasher mistake and it goes wrong both ways: high-mileage drivers who save a flat cut of every deposit massively over-save, while drivers who barely drive (dense urban routes, bike or scooter) under-save because the mileage deduction never materialises. Worked example: $24,000 gross payouts, 18,000 business miles split evenly across the year (9,000 × 72.5¢ = $6,525, plus 9,000 × 76¢ = $6,840), minus $635 of other deductions, gives $10,000 net profit. Self-employment tax applies to 92.35% of that ($9,235) at 15.3% = about $1,413, half of which is deductible on Schedule 1 Line 15. Setting aside 25–30% of net profit (~$2,500–$3,000) is far closer than 25% of gross payouts ($6,000). Estimates — confirm with your tax professional.
What the DoorDash earnings export does NOT contain: it records what DoorDash paid you, not what you spent, and in most markets it is not a complete mileage log. It omits (a) full business mileage — miles to the first pickup, between orders while waiting in the zone, and home at shift end are deductible but yours to record; (b) every expense — bags, phone, tolls, parking, car washes never pass through DoorDash; (c) earnings from other platforms. Field names and availability vary by market and tax year, so check your own download and keep an independent mileage log regardless.
Miles while waiting for an order: miles actually driven while the app is on and you are available — including repositioning between deliveries — are business miles. Time spent parked waiting adds nothing, because no miles accrue while stationary. Commuting to a separate W-2 job never counts. See IRS Publication 463 for the qualifying rules and record requirements.
Quarterly estimated taxes: Due Apr 15, Jun 15, Sep 15, Jan 15 2027. Safe harbor: pay 100% of prior year tax (110% if AGI > $150K) in four equal payments. Rule of thumb: set aside 25–30% of net earnings after deductions.
1099-K threshold 2026: $20,000 (OBBBA reinstated original threshold).