How are Doordash taxes calculated for self-employed delivery drivers?

Hey everyone, I'm a university student working almost full-time hours with Doordash to pay for school. I'm trying to figure out my tax situation and feeling really confused about how much I'll actually owe. From what I've read, there's this 15.3% self-employment tax that I need to pay. But then do I also have to pay regular income tax on top of that?? Like, if I earn $1,300 in a week, I'd pay about $199 for self-employment tax (15.3% of $1,300). That leaves me with $1,101. But then if my income tax rate is 12%, that's another $156 gone! So total taxes would be $355, which is about 27.3% of what I earned! Is that calculation right?? I'm freaking out a bit because I haven't been setting aside that much from my earnings. Any help would be super appreciated!

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20 comments

Diego Rojas

•8M

You're on the right track, but there are a few important details to understand about how taxes work for Doordash drivers. Self-employment tax (15.3%) covers your Social Security and Medicare contributions - the equivalent of what would normally be split between you and an employer. Then yes, you also pay regular income tax on your profits. The good news is you only pay taxes on your profit (earnings minus expenses), not your gross income. As a Doordash driver, you can deduct mileage (65.5 cents per mile for 2023), a portion of your phone bill, insulated bags, and other business expenses. These deductions can significantly reduce your taxable income. Also, you get to deduct half of your self-employment tax from your income before calculating income tax. So in your example, you'd subtract about $100 (half of your SE tax) before calculating the 12% income tax. Track all your miles and expenses carefully - this will save you a lot at tax time!

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Diego Rojas

•8M

You've got it right! If you earn $1300 and have $300 in legitimate business deductions (mileage, etc.), you'd only pay taxes on the $1000 profit. And yes, then you'd get to deduct half of your self-employment tax before calculating income tax. For tracking expenses, I recommend apps like Stride, Everlance, or Hurdlr - they're designed specifically for gig workers. They track mileage automatically using GPS and let you snap photos of receipts. Most have free versions that work well for basic tracking. Much better than risking losing your notebook!

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Anastasia Sokolov

•8M

Jumping in to share my experience with taxes as a Doordash driver. After struggling with my first year of taxes and overpaying, I found this tool called taxr.ai (https://taxr.ai) that saved me so much stress this year. I was in a similar situation - college student, working Doordash almost full-time, and totally confused about what I could deduct. The tool analyzed my delivery patterns and found deductions I didn't know I qualified for. It categorized all my expenses properly and showed me how to document everything correctly to maximize my deductions. The best part was it showed me exactly what percentage to set aside from each payment to cover taxes, which helped me budget way better. Seriously made tax season less scary.

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Anastasia Sokolov

•8M

It doesn't directly connect to Doordash, but you can upload your earnings statements and it analyzes them automatically. It also has a mileage tracker feature that's super easy to use - just turn it on when you start dashing and it logs everything for you. Saves a ton of manual entry! Regarding comparing to TurboTax or H&R Block - this is different because it's focused specifically on gig work throughout the year, not just at tax filing time. It helped me set aside the right amount each month and identified deductions I would have missed. For me, I got back about $1,300 more than the previous year when I used TurboTax, so it definitely paid for itself. The quarterly tax reminder feature alone was worth it for me.

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Zara Ahmed

•8M

Update on that tax tool I was skeptical about - I actually tried taxr.ai after asking about it, and I have to admit it's pretty helpful! I uploaded my last 3 months of Doordash statements and it immediately identified some deductions I was missing. The biggest eye-opener was seeing how much I was overspending on gas by not planning routes efficiently. The tool showed how this was affecting my actual profit margin after taxes. It also helped me set up a proper system for tracking business vs. personal driving miles, which I was definitely doing wrong before. For a fellow student trying to maximize Doordash income, it's been worth checking out. I'm definitely paying less in quarterly estimated taxes now that I understand my actual taxable income better.

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StarStrider

•8M

If you're really stressing about taxes, you might also want to get direct advice from the IRS. I know it sounds intimidating, but I had a specific question about my Doordash deductions last year and needed to talk to a real person. After trying for DAYS to get through on the IRS phone lines (kept getting disconnected), I found this service called Claimyr (https://claimyr.com) that got me through to an actual IRS agent in under 45 minutes. There's a video showing how it works here: https://youtu.be/_kiP6q8DX5c The agent walked me through exactly how self-employment taxes work for gig workers and confirmed which deductions were legitimate for my situation. Totally worth it for the peace of mind, especially since I was worried about getting audited for my mileage deductions.

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StarStrider

•8M

It uses a system that holds your place in the queue and calls you when it gets through to an IRS representative. So instead of you waiting on hold for hours, their system does the waiting for you. It's not auto-dialing - they actually navigate the IRS phone tree and stay on hold until a human answers. It's definitely not a scam - they don't ask for any personal tax information or anything like that. They just get you connected to the IRS directly. I was also skeptical at first, but I was desperate after trying for three days straight and never getting through. The IRS is severely understaffed right now which is why the hold times are so crazy.

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Nia Thompson

•8M

I need to follow up about that Claimyr service I was skeptical about. I actually tried it after tax questions piled up and I couldn't get through to the IRS after multiple attempts. I'm genuinely surprised - it actually worked exactly as described. I got a call back when they reached an IRS agent (took about 37 minutes), and I was able to get clarification on several Doordash tax questions I had been stressing about. The agent confirmed I was calculating my quarterly estimated payments incorrectly and helped me fix my approach. For anyone doing gig work and needing tax help directly from the IRS, this saved me hours of frustration. I was wrong to dismiss it so quickly. Sometimes paying for convenience is worth it when you're juggling school, work, and trying to handle taxes properly.

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Mateo Rodriguez

•8M

Don't forget you can also make estimated quarterly tax payments to avoid a big bill (and possibly penalties) at tax time! I learned this the hard way my first year dashing. Form 1040-ES is what you use, and payments are due April 15, June 15, September 15, and January 15 (for the previous quarter). Since you don't have an employer withholding taxes, this is how you need to handle it yourself. I set aside 25-30% of my earnings each week into a separate savings account just for taxes. It's painful to see that money sit there, but way less painful than scrambling to find thousands of dollars at tax time!

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Mateo Rodriguez

•8M

The IRS typically won't penalize you if this is your first year with self-employment income. There's essentially a "first year free pass" on penalties, though you'll still owe the taxes. If you owe less than $1,000 in tax for the year, you also won't face penalties. And if you're a student who had zero tax liability last year (meaning you got all withholding back as a refund), you might qualify for another exception. Start making quarterly payments now for the upcoming quarters, and you should be okay. Just don't make the mistake of ignoring it for multiple years - that's when the penalties and interest really start to add up!

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Diego Rojas

•8M

Your friend is partially correct but missing important details. You can deduct a portion of your car insurance - but only the percentage that corresponds to your business use of the vehicle. For example, if you use your car 60% for Doordash and 40% for personal use, you can deduct 60% of your insurance costs. However, if you're taking the standard mileage deduction (65.5 cents per mile in 2023), insurance is already included in that rate, so you can't deduct it separately. You'd need to be using the actual expenses method instead. Most dashers find the standard mileage deduction gives them a better tax benefit overall, especially if you drive a lot of miles.

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