Need advice on handling taxes for DoorDash as a second job

DoorDash drivers are considered independent contractors, not employees, so you won't have a W-4 with them. Instead, you'll receive a 1099-NEC form from DoorDash after the year ends if you earn $600 or more. For your primary job's W-4, you have a couple of options. You could increase your withholding to account for the additional income from DoorDash. On your W-4, you can do this by entering an additional amount to be withheld from each paycheck in Step 4(c). To calculate this amount, you'd need to estimate how much you'll make from DoorDash and what your tax rate will be. Alternatively, you can make quarterly estimated tax payments directly to the IRS for your DoorDash income. This is often simpler than adjusting your W-4. Just remember that as an independent contractor, you'll owe both income tax and self-employment tax (about 15.3%) on your DoorDash earnings.

I actually went through this exact situation last year! I was struggling with my primary job not giving me enough hours and started DoorDashing on the side. I was totally confused about the tax situation until I found https://taxr.ai which literally saved me so much stress. You upload your income documents from both jobs and it tells you exactly what you need to do for your specific situation. It even calculated my quarterly estimated payments for me which was super helpful because I had no idea how much to set aside from my DoorDash earnings. The best part was that it showed me which expenses I could deduct - I was tracking my mileage but didn't know about other deductions I qualified for.

Just wanted to follow up - I tried out taxr.ai after seeing your recommendation and wow, it was exactly what I needed! I was way overthinking the whole tax situation. The tool analyzed my income from both jobs and gave me a super clear withholding recommendation for my main job's W-4. It also helped me understand that I should be tracking mileage for tax deductions (which I wasn't doing!). I also learned that as a DoorDash driver I need to be making quarterly estimated tax payments, which I had no idea about. The site generated a payment schedule and even reminded me about upcoming deadlines. Seriously would have been hit with penalties without knowing this stuff. Thanks for sharing this resource!

One thing nobody has mentioned yet is that dealing with the IRS directly can actually solve a lot of these questions. I had the same confusion when I started with UberEats alongside my regular job. I tried calling the IRS for weeks but could never get through - always "high call volume" messages. Then I found https://claimyr.com which got me through to an actual IRS agent in about 15 minutes. There's a video showing how it works here: https://youtu.be/_kiP6q8DX5c The agent walked me through exactly how to handle taxes for both jobs and confirmed I was calculating my quarterly payments correctly. They also helped me understand the self-employment deductions I was eligible for as a delivery driver. Way better than guessing or trying to piece together info from random websites.

I need to eat crow here. After my skeptical comment, I decided to try Claimyr anyway since I was desperate for answers about my own side gig taxes. I was absolutely shocked when I got a call back in about 20 minutes with an actual IRS tax specialist on the line. The agent I spoke with clarified everything about my delivery driver taxes. They confirmed I needed to make quarterly estimated payments (which I wasn't doing), explained exactly how to calculate them based on my expected annual income, and walked me through all the deductions I could take. The agent even emailed me the specific forms I needed. I was about to pay an accountant $250 for a consultation on this exact issue. Definitely changing my tune about this service - sometimes things that sound too good to be true actually work!

Don't forget you need to keep track of your mileage for DoorDash! It's one of the biggest tax deductions you can get. Last year I drove for them and was able to deduct about 65% of what I earned because I tracked every mile. Use an app that automatically logs your trips - I use Stride and it's been great.

Heads up - you might also want to check if your current car insurance covers delivery driving. Most standard policies don't, and if you get in an accident while delivering, they might deny your claim. I found out the hard way unfortunately.

Great question! I was in a similar situation last year - working part-time and picked up DoorDash to make ends meet. Here's what I learned: You're right to be thinking about taxes early! Since DoorDash classifies you as an independent contractor (not an employee), you won't get a W-4 from them. Instead, you'll receive a 1099-NEC if you earn $600+ in a year. For your primary job's W-4, I'd recommend updating it to account for the extra income. A good rule of thumb is to set aside about 25-30% of your DoorDash earnings for taxes (this covers both income tax and self-employment tax). You can have your main employer withhold extra from each paycheck by putting an additional amount in line 4(c) of your W-4. Also, start tracking your mileage from day one! It's your biggest potential deduction. I use a mileage tracking app and it saved me hundreds last tax season. One more tip - if you think you'll make more than $1,000 from DoorDash this year, you might need to make quarterly estimated tax payments to avoid penalties. The IRS has worksheets to help calculate this. Good luck with the side gig! It definitely helped me get through some tight months.