If you deliver for DoorDash, understanding your tax obligations is crucial. As an independent contractor, DoorDash does not withhold taxes from your earnings. Instead, you’ll receive a 1099 form, which you’ll need to file your taxes correctly. This article will guide you through obtaining your DoorDash 1099 and what you need to know about filing your taxes as a delivery driver.
What is a DoorDash 1099?
A 1099 form is a tax document issued to independent contractors who earn at least $600 from a company within a tax year. DoorDash issues two types of 1099s to eligible Dashers:
- 1099-NEC (Nonemployee Compensation): If you earned $600 or more from DoorDash, you will receive this form to report your income.
- 1099-K (Payment Card and Third-Party Network Transactions): If you earned at least $20,000 in payments and completed at least 200 transactions in a year, you will receive this form.
Not all Dashers will receive both forms. Even if you do not receive a 1099, you are still required to report your income.
How to Get Your DoorDash 1099
DoorDash partners with a third-party service, such as Stripe, to distribute 1099 forms electronically or via mail. Here’s how you can access it:
- Log into your Dasher account.
- Navigate to the Tax Information or Earnings section.
- Look for your available 1099 form and download it.
- If you opted for mail delivery, check your mailbox after DoorDash’s tax form release date (usually in late January).
If you do not receive your 1099 and believe you should have, contact DoorDash support or check your Stripe Express account for updates.
Understanding Tax Deductions for DoorDash Drivers
As an independent contractor, you can deduct various business expenses to lower your taxable income. Common deductions include:
- Mileage: You can deduct the miles driven for deliveries. The IRS standard mileage rate changes yearly, so check the latest rate.
- Vehicle Expenses: If you use your car for deliveries, you can deduct gas, maintenance, insurance, and depreciation.
- Bike & Scooter Costs: If you deliver by bike or scooter, you can deduct related expenses like repairs and maintenance.
- Phone & Data Plan: If you use your phone for DoorDash, you can deduct a portion of your bill.
- Tolls & Parking Fees: Any tolls or parking expenses related to deliveries are deductible.
- Hot Bags & Equipment: Insulated delivery bags and other necessary gear can be deducted.
How to File Your Taxes with a DoorDash 1099
When filing your taxes, report your DoorDash earnings on Schedule C (Profit or Loss from Business). You’ll also need to calculate and pay self-employment taxes using Schedule SE. If you expect to owe more than $1,000 in taxes, consider making quarterly estimated tax payments to avoid penalties.
Final Thoughts
Understanding your DoorDash 1099 is essential to staying compliant with the IRS. Keep accurate records of your earnings and expenses, and consider consulting a tax professional to maximize deductions and minimize liabilities. With proper planning, filing your DoorDash taxes can be straightforward and stress-free.