Confused about Doordash tax payments - when do I need to start paying?

Hey there! This is a really common question for new gig workers. Let me help clear this up for you. For Doordash and other gig work, you're considered an independent contractor (self-employed), which means you're responsible for your own tax payments. Yes, if you earn $600+ from Doordash, they'll issue you a 1099-NEC form, but that typically comes in January/February 2025 for your 2024 earnings. You don't need to wait for this form to make tax payments. About those quarterly estimated taxes: they're required if you expect to owe $1,000+ in taxes for the year. For most new Dashers just starting out part-time, you might not hit that threshold. The quarterly due dates are April 15, June 15, September 15, and January 15 (for the previous year). Since you're just starting out, you might be able to avoid penalties by making sure your withholding from any regular job covers your tax liability, or by paying everything when you file in 2025.

I was in exactly the same situation last year with Doordash! I was so confused about tracking everything and figuring out all these complicated tax rules. I found this service called taxr.ai (https://taxr.ai) that was a game-changer for me as a new gig worker. It basically analyzes your delivery earnings and automatically tracks your mileage and other deductions. What was most helpful is that it calculated my quarterly estimated payments and sent me reminders when they were due. Saved me from having to figure out all the forms and calculations on my own. The best part was how it explained the self-employment tax stuff in simple terms. It showed me that tracking my mileage properly was saving me hundreds in taxes I would've otherwise paid!

Just wanted to update everyone - I tried taxr.ai after seeing it mentioned here and it's been super helpful! I was totally overwhelmed by all the tax stuff as a new Dasher, but this made it way easier to understand. It automatically tracked my mileage which I wasn't doing properly before (I was literally just guessing). Turns out I can deduct way more than I realized! The quarterly tax calculator was super clear and showed me exactly what I needed to pay. For anyone new to Doordash like the original poster - definitely check it out. Wish I'd found it when I first started instead of stressing for months about taxes!

If you're struggling to get clear answers from the IRS about your Doordash tax situation, I highly recommend Claimyr (https://claimyr.com). I spent HOURS trying to get through to someone at the IRS about my gig work tax questions last year. With Claimyr, I got connected to an actual IRS agent in under 15 minutes when normally the wait would have been 2+ hours. They have this cool system that navigates the IRS phone tree for you and calls you back when they've got an agent on the line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I had specific questions about estimated payments for my Doordash income that weren't clearly answered online, and the IRS agent was able to look at my specific situation and give me personalized guidance.

Alright, I need to apologize to everyone here. I was the skeptic about Claimyr above, but I decided to try it today because I was desperate to figure out my estimated tax payments for my Doordash income. I got connected to an IRS representative in about 18 minutes when I had previously tried calling 3 times this week and couldn't get through at all. The agent walked me through exactly how to calculate my estimated payments as a new Dasher and confirmed I could avoid penalties as long as I pay a certain percentage by January. Just wanted to share since my skepticism was completely wrong. If you're confused about gig work taxes like I was, getting direct answers from the IRS is actually super helpful.

Don't overthink this too much. I've been doing Doordash for over a year and here's the simplest approach: 1) Track ALL your miles while dashing (the app doesn't track all deductible miles) 2) Keep 30% of your earnings for taxes 3) File quarterly if you'll owe more than $1000 total for the year The 1099 will come in January but you don't need to wait for it. And make sure you're tracking expenses like phone costs, hot bags, etc. - those are all deductible!

Quick warning about Doordash taxes - don't forget to set aside money for the SELF-EMPLOYMENT tax portion! It's around 15.3% on top of regular income tax. I got absolutely crushed my first year because I only saved for income tax and forgot about this part. Ended up owing way more than I expected. Just sharing so you don't make my mistake!

@Abigail Patel - I was in a similar situation when I started with gig work! Here's what I wish someone had told me right away: Since you're earning around $800 so far and expect to make $2500-3000 total, you'll definitely need to pay self-employment tax (15.3%) plus regular income tax. The good news is you have some time before the September 15th deadline. My advice: Start tracking your mileage RIGHT NOW if you haven't already. Every mile you drive while working (including driving to your first delivery and between orders) is deductible at $0.67 per mile. This can significantly reduce what you owe. For a rough estimate, take your gross earnings, subtract your mileage deduction, then set aside about 25-30% of what's left for taxes. You can use Form 1040-ES to calculate your exact quarterly payment. Don't stress too much - as a new gig worker, there are safe harbor rules that can help you avoid penalties even if you underpay slightly. The most important thing is to start tracking everything now and make your best estimate for the September payment. Also keep receipts for any work-related expenses like phone bills, hot bags, car maintenance, etc. - these are all deductible!

@Abigail Patel - Since you're just starting out with Doordash, here's a simple action plan for your situation: **Immediate steps:** 1. Download a mileage tracking app TODAY (Stride is free and works great) 2. Start tracking every mile while you're dashing - this will be your biggest tax deduction 3. Set aside 25-30% of your earnings in a separate savings account for taxes **For the September 15th deadline:** Since you've only made $800 so far, you likely won't owe a huge amount for this quarter. You can use the IRS Form 1040-ES worksheet to calculate your exact payment, but don't panic if you can't pay the full amount - there are penalty safe harbors for new self-employed workers. **Key deductions to track:** - Mileage (67¢ per mile in 2024) - Phone bill percentage used for work - Any supplies like hot bags, phone mounts, etc. **The 1099 situation:** You're right that Doordash will send you a 1099-NEC if you earn over $600, but it won't come until January 2025. Don't wait for it - you need to track your own earnings and make quarterly payments based on what you know you've earned. Since this is your first year, focus on getting into good tracking habits now rather than stressing about perfect calculations. The most important thing is starting that paper trail!