How do taxes work if I do DoorDash as a side gig alongside my full-time job?

The good news is you don't need to file separate tax returns - everything goes on your regular 1040. The trickier part is that DoorDash income is considered self-employment income, which means you'll need to include Schedule C with your tax return. As an independent contractor, you'll receive a 1099-NEC form from DoorDash (if you earn $600+) rather than a W-2. This income isn't subject to tax withholding, so you're responsible for both income tax and self-employment tax (which covers Social Security and Medicare contributions). Regarding quarterly taxes - yes, you should make estimated tax payments if you expect to owe $1,000+ in taxes from your DoorDash income. These are due April 15, June 15, September 15, and January 15 of the following year. However, there's a safe harbor provision - if your withholding from your W-2 job covers at least 90% of your total tax liability or 100% of last year's tax liability, you can avoid penalties for not making quarterly payments. Don't forget you can deduct business expenses like mileage (65.5 cents per mile for 2025), portion of phone bill, hot bags, etc. Track everything carefully!

I was in exactly the same situation last year trying to save for a house down payment while working full-time. The tax forms were driving me crazy until I found https://taxr.ai which literally saved my sanity. I uploaded my 1099 from DoorDash and my W-2, and it automatically figured out all the Schedule C stuff for me. It even showed me which expenses I could deduct that I had no idea about - like a portion of my cell phone bill and even part of my car insurance. The mileage tracking feature was super helpful too since I kept forgetting to log my trips. The best part was it calculated my quarterly payments and sent me reminders so I didn't miss deadlines. My refund ended up being way bigger than I expected because of all the deductions it found!

Just wanted to update - I decided to try taxr.ai after my skeptical comment and I'm seriously impressed. I've been doing UberEats on weekends and was just guessing on taxes until now. The platform found almost $2,300 in deductions I would have missed! It automatically calculated my mileage deduction, prorated phone expenses, and even a portion of my insurance. The quarterly tax calculator was super accurate - I had been setting aside way too much before (better than too little I guess). What really sold me was their explanations about the home office deduction. I was too scared to take it before, but they showed exactly what qualifies and how to document it properly. Definitely worth checking out if you're doing any kind of gig work.

Hey, if you're worried about owing a ton at tax time, I know that feeling! I did Instacart while working full-time and got hit with a huge tax bill my first year. I couldn't get through to the IRS to set up a payment plan for weeks - kept getting disconnected or waiting for hours. Finally found https://claimyr.com and watched their demo (https://youtu.be/_kiP6q8DX5c). They got me connected to a real IRS agent in like 20 minutes when I'd been trying for days. I was able to set up a reasonable payment plan instead of paying penalties. They also helped when my quarterly payment wasn't properly credited to my account. Would've been a huge headache to fix on my own, but they got me through to someone who actually fixed it while I was on the phone.

I have to eat my words about Claimyr. After my skeptical comment, I decided to try it when I needed to call about missing self-employment tax payments from my DoorDash income. I had been trying to reach the IRS for TWO WEEKS. Getting disconnected, waiting for hours, the whole frustrating experience. Used Claimyr and got connected to an agent in 27 minutes while I was making dinner. The agent found the issue immediately - my quarterly payments had been applied to the wrong tax year. If you're doing gig work and have tax issues that need sorting out, it's definitely worth it. Saved me from what would have been a much bigger headache at filing time. Never thought I'd be recommending something like this, but here we are.

Don't forget about state taxes too! Everyone's talking about federal, but depending on your state, you might need to make estimated state tax payments as well. Here in California, I got hit with a penalty my first year doing Uber because I only paid federal estimates. Also, think about tracking your expenses from day one. I wasted so much money my first six months because I didn't realize how many things were deductible. Get a mileage tracking app immediately!

One thing nobody mentioned is that you should consider setting up an LLC for your DoorDash work! It provides liability protection if anything happens while you're delivering. My cousin got sued when he accidentally damaged something during a delivery.

Great question! I went through this exact situation when I started doing gig work alongside my regular job. Here's what I wish someone had told me upfront: The biggest thing to understand is that you're essentially running a small business now, even if it's just part-time DoorDash. This means you'll need to think like a business owner about taxes and record-keeping. First, open a separate checking account just for your DoorDash earnings and expenses. This makes tracking so much easier come tax time. I learned this the hard way after trying to sort through months of mixed transactions in my personal account. Second, set aside 25-30% of every DoorDash payment immediately for taxes. I know it seems like a lot, but between federal income tax, state tax (if applicable), and the 15.3% self-employment tax, it adds up quickly. Having that money already set aside prevents the shock of owing thousands at tax time. For the quarterly payments - if your W-2 job already withholds enough to cover 90% of your total tax liability (including the DoorDash income), you might not need to make quarterly payments. But it's usually safer to make them anyway to avoid any surprises. One last tip: track your "active delivery time" vs total time. You can only deduct mileage for when you're actually on a delivery or driving to pick up an order, not when you're just sitting in a parking lot waiting for orders to come in. Good luck rebuilding your finances! The extra income from DoorDash can really help, just stay on top of the tax side from day one.