How do taxes work if I do Doordash as a side hustle with my regular job?

The good news is you won't need to file separate tax returns - everything goes on your regular 1040! Your Doordash income is considered self-employment income, and you'll report it on Schedule C (Profit or Loss from Business). What you've heard about "filing three times a year" is referring to estimated tax payments. Since Doordash won't withhold taxes like your regular employer does, you might need to make quarterly estimated tax payments if you expect to owe $1,000 or more when you file. These payments are due April 15, June 15, September 15, and January 15 (for the previous year). Some other things to keep in mind: - You'll pay self-employment tax (Social Security and Medicare) on your Doordash earnings, which is about 15.3% - Keep track of your mileage and other expenses! These are deductible and will reduce your taxable income - Consider setting aside 25-30% of your Doordash earnings for taxes

After struggling with self-employment taxes from my delivery gig work, I found this service called taxr.ai (https://taxr.ai) that helped me understand all my deductions. I had no idea what I could actually write off until I uploaded my 1099 and bank statements. Turns out I was missing out on hundreds in deductions beyond just my mileage! They also explained exactly how the quarterly payments work and helped me calculate the right amount to set aside from each payment. For my first year doing Doordash, I was totally lost with the Schedule C and self-employment tax calculations until I used this.

Just wanted to update after trying taxr.ai from the recommendation above. I finally got clarity on my delivery gig deductions! Turns out I was missing several legitimate expenses that would have saved me around $740 in taxes last year. For my older car, the actual expenses method was better than standard mileage by about $300 in deductions. The service flagged some borderline expenses that I wasn't sure about and explained exactly what's allowed. Definitely using this for my quarterly filings this year!

If you end up owing taxes or have questions about your self-employment income, good luck getting actual help from the IRS! I wasted DAYS trying to get through to someone about my 1099 questions last year. I finally used Claimyr (https://claimyr.com) after seeing a video about it (https://youtu.be/_kiP6q8DX5c) and they got me connected to an IRS agent in about 15 minutes when I'd been trying for weeks. They basically hold your place in the IRS phone queue and call you when an agent is about to answer. Was super helpful when I had questions about the estimated payment deadlines and penalties. The IRS agent actually helped me figure out how to adjust my W-2 withholding to cover the extra Doordash income.

I need to eat my words from my skeptical comment above. After another failed attempt spending 2 hours on hold with the IRS yesterday, I gave in and tried Claimyr this morning. I seriously can't believe it worked. Got a call back in about 35 minutes and spoke to an actual human at the IRS who helped sort out my estimated payment confusion. They even helped me set up an online account to make the payments electronically. Still annoyed the IRS makes it this difficult to reach them, but at least there's a solution that works.

One thing to know about Doordash - they don't withhold ANY taxes. I made that mistake my first year and got hit with a huge tax bill! I'd recommend keeping a separate savings account where you transfer 25-30% of each Doordash deposit for taxes. Also, download a mileage tracking app ASAP! I use Stride and it's been pretty good for tracking mileage automatically.

Be careful with expenses! One mistake I made was thinking I could deduct ALL my car expenses, but you have to choose between the standard mileage rate OR actual expenses (gas, insurance, repairs). You can't do both! Standard mileage is usually better and definitely simpler. Also, don't forget about the Qualified Business Income Deduction. You might qualify for a 20% deduction on your net self-employment income. It's weird and complicated, but worth it if you qualify.

Ive been dashing for 3 years now alongside my office job. Keep EVERY receipt - gas, phone chargers, hot bags, etc. The tax write offs make a HUGE difference. Also dont forget about the quarterly payments! I put reminders in my calander cause I forgot the first year and got hit with penalties.

Great question! I started doing Doordash last year while working my regular job and learned a lot through trial and error. Here's what I wish I knew from the start: You'll definitely want to track your mileage religiously - it's usually your biggest deduction. I use a simple notebook in my car and jot down my starting/ending odometer readings for each dash session. The standard mileage rate for 2024 is 67 cents per mile, which adds up fast! For the quarterly payments, you can also ask your regular employer to withhold extra taxes from your paycheck instead of making separate estimated payments. I had my HR department take an extra $150 per month from my regular job to cover the Doordash taxes - much easier than remembering quarterly deadlines. One tip: keep a separate envelope or folder for ALL your Doordash-related receipts. Car maintenance, phone accessories, insulated bags, even hand sanitizer you buy for deliveries. These small expenses add up and reduce your taxable income. And definitely set aside that 25-30% of earnings right away. I learned the hard way that it's much easier to save as you go than scramble to pay a big tax bill in April!