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 who earn $600 or more. The 1099-NEC Box 1 includes base pay, tips, and bonuses. Below $600, 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 72.5 cents/mile (IRS 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).
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).