What Is DoorDash 1099? A Dashers Guide to Taxes

Posted January 29, 2024

It’s made for gig workers like you—so you can keep moving forward with confidence. Missing these can lead to penalties, so mark your calendar and set reminders. Check out this helpful step-by-step guide to becoming a DoorDash driver so you know what to expect and how to get started the right way. Up to $2,500 for individual taxpayers, or $5,000 for married couples. Up to $6,935 for qualifying taxpayers with three or more children.

Your taxable income for your business is determined on Schedule C, which subtracts expenses from business revenue to determine profits.
Too many Doordash drivers pay too much in taxes because of this.
For example, if GrubHub insists that you get a vehicle inspection before you start driving, you could deduct the expense.
DoorDash will also disclose this information about Dasher tips and Dasher pay to both Dashers and Dasher customers on the DoorDash website and on the Dasher mobile app.
With the help of any 1099 tax calculator, you can estimate how much taxable income to set aside for federal and state taxes when the tax season rolls around.
If not, you’ll receive a paper copy, but that could take up to ten business days more.

What If You Owe Back Taxes from Previous DoorDash Earnings?

But with clear steps and resources, you can create a system that works for you and supports your long-term success. If you use your car for deliveries, you can deduct expenses like gas, oil changes, tire repairs, and even car washes (when used to maintain a professional vehicle). These are considered direct business expenses because you need your vehicle to earn income. Both terms refer to business expenses you can subtract from your income before calculating how much tax you owe. When you deduct something from your tax return, you’re writing it off. A 1099 driver (which is what most delivery drivers are) works independently.

You should access your Stripe Express account to download or request yours. If you are having issues with this, you should contact DoorDash directly to ensure you receive your form promptly. Electronic forms are available through the online driver portal, allowing drivers to download and print them as needed. This option minimizes the risk of lost forms and enables quick resolution of discrepancies.

Tracking and claiming car expenses is the best way to slash your tax bill

If these steps don’t help, visit the IRS website for guidance on reporting your income without a 1099. For further assistance, consult a tax professional to ensure you’re prepared for tax season without any last-minute issues. DoorDash drivers must understand the minimum payment threshold for receiving a 1099 form to prepare their taxes. According to IRS guidelines, independent contractors receive a 1099-NEC form if they earn $600 or more in a calendar year. Earnings below this threshold do not require DoorDash to issue a form. This $600 threshold, mandated by IRS regulations under the Internal Revenue Code Section 6041A, includes all earnings such as base pay, tips, and bonuses.

What is a 1099 Form?

You set your own schedule, choose your gigs, and handle your own taxes. If you don’t report your Doordash income, you may face consequences such as penalties, fines, or legal actions from tax authorities. It is important to accurately report all sources of income, including earnings from such platforms, to comply with tax laws and regulations. Knowing the common tax deductions for Doordash drivers is key to saving money.

What happens if you don’t pay DoorDash taxes?

Dashers receive a 1099-NEC form, which is one type of 1099 form (1099-MISC is the other common one, but it’s not what Dashers receive). Having a tax professional file your taxes will ensure you get every deduction you deserve. While filing taxes this way will only cost you postage, it is the slowest way to file your taxes and receive any refunds. Once you’re logged in, you’ll find your tax information in your account.

Your DoorDash taxes come from profits you make after expenses are deducted from your income. You can reduce your tax burden by deducting your business expenses. These are things you’ve used for your business, not personal use only. Because of your employment status with DoorDash, the company doesn’t withhold federal or state income taxes from your earnings. These DoorDash tax deductions apply to employees and self-employed workers.

If you work as a DoorDash driver, you probably have collected substantial earnings that can supplement or serve as your primary income, which is great. Answering a few questions online will have you well on your way toward filing your taxes. Don’t worry about your total business profit after taxes yet; there’s a light at the end of the tunnel. Since 2012, Brett Helling has built expertise in the rideshare and delivery sectors, working with major platforms like Uber, Lyft, and DoorDash. And conveniently, DoorDash keeps records of the amounts for you. You can find them by going into the Dasher app and selecting Earnings.

There’s a small price to pay for the freedom that comes with being an independent contractor—paying taxes without help from your employer.
The 1099-NEC replaced the 1099-MISC for reporting nonemployee compensation starting in 2020.
If you don’t agree to paperless delivery, Stripe will mail you a paper copy of your 1099 tax form instead.
If you are required to get a vehicle inspection or a background check because of your delivery job, the expense is deductible.

In addition to car expenses, you can also deduct phone-related expenses (since you will be using your data plan to manage orders on the app and customer inquiries). This can include the business-related parts of your phone plan, cost of a new phone, and related phone accessories such as a car charger or holder. For tax year 2022, the Standard Mileage rate is 58.5 cents /mile. So, for example, if you total 5,000 business miles x $0.585 standard rate, you can receive a $2,925 Standard Mileage deduction. If you use a DasherDirect debit card, Stripe Express won’t display the earnings you receive through direct deposit into that account. However, you may now be wondering what the process is for filing DoorDash taxes in 2022, to ensure you cover any tax liability.

Carefully edit the information and ensure all details are accurate before January 15, 2024. If you don’t consent to an e-delivery, Stripe Express will mail your 1099 tax form to the address on your DoorDash account. Ensure your address is accurate and up-to-date if you prefer this option. This form is what you’ll use to file taxes and report them to the appropriate revenue service and state tax departments, if necessary. Besides vehicle costs, you can also deduct the other miscellaneous expenses you incur while Dashing. For example, that includes the business portion of your phone bills since you need the device to access the DoorDash does doordash send you a 1099 mobile app.

Toll charges and parking fees you pay while making deliveries are 100% deductible. But remember, you can’t write off parking tickets or traffic fines—they’re considered personal expenses. Taxes are taken out of their paychecks automatically, and they might get benefits like health insurance or paid time off.

You may find that your 1099 tax form reports your SSN and you want to use your EIN (or vice-versa). If that’s the case, you’ll want to reach out to DoorDash to update your legal entity information. Open the email from Stripe and click on the Get started button, which will prompt you to set up a Stripe Express account. After you’ve claimed your account, you’ll be able to review your tax information and make any necessary changes via Stripe Express. You can download copies of your 1099 through the Stripe Connect portal going back to the 2021 tax year. Doordash worked with Payable before 2021, and there’s no longer access to your Payable account.

It does not cover the entire current year.You can get a better picture by adding up the earnings displayed in the Stripe Connect portal. Note that the Stripe portal doesn’t include payments from the DasherDirect card. If you received payments via that card, you would also want to add up those payments as well. Those can be found in the DasherDirect app.When you are sure the 1099 form is wrong, you must contact Doordash to demand a corrected 1099. You can email with details or contact Dasher support.You can read more here about resolving 1099 issues with Doordash. Working as a Doordash driver, understanding how taxes work is crucial to managing your earnings effectively.

Even though you’re fulfilling orders through the DoorDash app, you technically work for yourself. This means that in the eyes of the IRS, you’re a small business owner. This is why you‘re now on the hook for self-employment taxes. Being a self-employed delivery driver definitely has its perks. You never know where you’ll go next, and there’s nobody looking over your shoulder. And if you know all the DoorDash tips and tricks, you can stand to make a lot of money.