Need advice on handling taxes for DoorDash as a second job

Thanks for the info! So if I make less than $600 with DoorDash, do I still have to report that income on my taxes? And how do I figure out how much to put for extra withholding on my regular job's W-4?

Yes, you still need to report all income earned from DoorDash even if it's less than $600 and you don't receive a 1099. The IRS requires reporting of all income regardless of amount. For calculating additional withholding, a simple approach is to set aside about 25-30% of your DoorDash earnings for taxes. To determine how much extra to withhold per paycheck, estimate your monthly DoorDash income, multiply by 0.3 (for 30%), then divide by the number of paychecks you get monthly from your main job. That's approximately what you'd enter on line 4(c) of your W-4.

How accurate is it though? I've tried tax software before and always end up owing way more than they estimated.

Can it help with figuring out how much to withhold from my main job to cover the DoorDash taxes? That's what I'm struggling with most.

It's extremely accurate because it uses actual IRS calculations rather than estimates. I ended up owing almost exactly what it projected, within about $40. I've used other tax tools before too and had the same bad experience you did. For figuring out withholding adjustments, yes that's exactly what helped me most. It calculated precisely how much extra I needed to withhold from my main job based on my projected DoorDash income. You can update it throughout the year too as your earnings change. It even creates a personalized W-4 form you can give to your main employer with the exact numbers filled in.

How does that even work? The IRS phone system is impossible to get through. I've tried multiple times and always gave up after being on hold forever.

Sounds like a scam honestly. Why would you need some third party to call the IRS? And how good is their advice really going to be for specific tax situations? The IRS agents I've spoken to in the past barely understood basic tax questions.

It works by essentially holding your place in line with the IRS and calling you back when an agent is available. Think of it like a virtual assistant that waits on hold so you don't have to. They use a specialized system that navigates the IRS phone tree and stays connected until an agent answers. The IRS agents are actually quite knowledgeable when you get to the right department. I specifically asked about contractor income alongside W-2 income, and the agent gave me detailed guidance about quarterly estimated payments and how to avoid underpayment penalties. They also explained which forms I needed and confirmed which expenses were deductible for delivery drivers. Much more reliable than random internet advice.

Do you deduct actual car expenses (gas, insurance, etc) or just use the standard mileage rate? Not sure which is better.

I just use the standard mileage rate because it's way simpler. For 2024 it's 67 cents per mile which adds up really fast. You can do actual expenses instead, but then you need to track everything - gas, maintenance, insurance, depreciation - and figure out what percentage of those expenses were for DoorDash vs. personal use. Most drivers I know go with the standard rate unless they have a very expensive car with high maintenance costs. Just make sure you track from your first pickup, not from your home, unless home is your official business location.

Omg I didn't even think about the insurance part. Thanks for mentioning this! Did you end up getting special coverage or something? How much extra did it cost?

Yeah, I had to add what's called "commercial" or "rideshare" coverage to my policy. It wasn't as expensive as I thought it would be - only about $25-30 extra per month with State Farm. Some companies like Geico and Progressive have specific rideshare/delivery driver add-ons that are pretty affordable. The key thing is to be upfront with your insurance company about doing delivery work. Don't try to hide it because if something happens while you're on a delivery, they can investigate and find out you were working, then deny everything. I learned this lesson when I had a minor fender bender while picking up an order and almost got dropped from my policy entirely. DoorDash does provide some coverage while you're actively on a delivery, but it's pretty limited and has high deductibles. Your personal insurance with the delivery add-on will give you much better protection.

This is really helpful advice! I'm actually in a similar boat - just started with DoorDash a few weeks ago because my hours got cut at my main job. Quick question about the quarterly payments - how do you actually make those? Do you just send a check to the IRS or is there an online system? And when are they due? I want to make sure I don't mess this up and get hit with penalties!

You can make quarterly payments online through the IRS Direct Pay system (irs.gov/payments) or by mailing a check with Form 1040ES. The online system is super convenient - you just need your bank account info and SSN. The quarterly due dates for 2025 are: April 15, June 16, September 15, and January 15, 2026. These cover income earned in the previous quarter. To calculate how much to pay, use Form 1040ES which has worksheets, or a simple approach is to estimate your total DoorDash income for the year, multiply by 30% (covers income tax + self-employment tax), then divide by 4 for each quarterly payment. Pro tip: It's better to slightly overpay than underpay - you'll get any overpayment back as a refund when you file your annual return, but underpaying can result in penalties and interest!

You can make quarterly payments online through the IRS Direct Pay system (irs.gov/payments) - it's super easy and free if you pay directly from your bank account. You can also mail a check with Form 1040ES. The due dates for 2024 are: Q1 (Jan-Mar) due April 15, Q2 (Apr-May) due June 17, Q3 (Jun-Aug) due September 16, and Q4 (Sep-Dec) due January 15, 2025. Since you just started, you'll probably need to make the June 17 payment for Q2. To calculate how much to pay, use Form 1040ES - it has worksheets that walk you through it. Generally you want to pay either 90% of this year's tax liability or 100% of last year's (whichever is smaller) to avoid penalties. If you're making decent money with DoorDash, I'd honestly recommend talking to a tax professional for your first year just to make sure you get it right! @77bcc5b10f58 Thanks for sharing your experience - the mileage tracking tip is gold!

@185bf088fa41 Great question! You can make quarterly payments online through the IRS Direct Pay system (irs.gov/payments) - it's super easy and free if you pay directly from your bank account. You can also mail a check with Form 1040ES. The quarterly due dates for 2024 are: - Q1: April 15, 2024 (already passed) - Q2: June 17, 2024 - Q3: September 16, 2024 - Q4: January 15, 2025 Since you just started, you'll probably want to make your first payment by June 17th for Q2. To calculate how much, estimate your total DoorDash income for the year, multiply by about 30%, then divide by 4 for each quarter. The IRS also has a safe harbor rule - if you owe less than $1,000 in taxes or pay at least 90% of this year's tax liability (or 100% of last year's), you won't get penalties. So don't stress too much if your estimates aren't perfect!

@185bf088fa41 Great question! You can make quarterly payments online through the IRS Direct Pay system (irs.gov/payments) - it's free and pulls directly from your bank account. You can also mail a check with Form 1040ES. The due dates for 2025 are: Q1 (Jan-Mar) due April 15, Q2 (Apr-May) due June 16, Q3 (Jun-Aug) due September 15, and Q4 (Sep-Dec) due January 15, 2026. To calculate how much to pay, use Form 1040ES - it has worksheets that walk you through it. Basically you estimate your total annual income from both jobs, figure out your expected tax liability, subtract what your main job is already withholding, and divide the remainder by 4. Pro tip: It's better to slightly overpay than underpay. If you overpay, you'll get a refund when you file. If you underpay by more than $1,000, you could face penalties even if you get a refund overall.

@185bf088fa41 Great question! You can make quarterly estimated tax payments online through the IRS Direct Pay system at irs.gov - it's free and pulls directly from your bank account. You can also mail a check with Form 1040ES. The due dates for 2025 are: January 15th (for Q4 2024), April 15th, June 16th, and September 15th. If you just started a few weeks ago, you'd be looking at the April 15th deadline for your first quarter. To calculate how much to pay, use Form 1040ES which has worksheets to help figure out your estimated tax. A simple approach is to estimate your total DoorDash income for the year, multiply by about 0.30 (to cover income tax + self-employment tax), then divide by 4 for your quarterly amount. Pro tip: It's better to slightly overpay than underpay - you'll get a refund if you overpay, but underpaying can result in penalties. The IRS also has a "safe harbor" rule where if you pay at least 100% of last year's tax liability through withholding and estimated payments combined, you won't owe penalties even if you end up owing more.

@185bf088fa41 Great question! You can make quarterly estimated tax payments online through the IRS Direct Pay system (irs.gov/payments) - it's super easy and free. You can also mail a check with Form 1040ES, but online is much faster. The quarterly due dates for 2025 are: - Q1: April 15, 2025 (for Jan-Mar income) - Q2: June 16, 2025 (for Apr-May income) - Q3: September 15, 2025 (for Jun-Aug income) - Q4: January 15, 2026 (for Sep-Dec income) To calculate how much to pay, use Form 1040ES worksheets or estimate about 25-30% of your DoorDash earnings each quarter. The key is to pay at least 90% of what you'll owe for the year or 100% of last year's tax (110% if your prior year AGI was over $150k). I set up calendar reminders for each due date and try to save that 30% from each DoorDash deposit in a separate account. Makes it much less stressful when the deadlines come around! @77bcc5b10f58 Thanks for the great initial advice - definitely helped me get organized when I started!

@185bf088fa41 Great question! You can make quarterly estimated tax payments online through the IRS Direct Pay system (irs.gov/payments) - it's free and pulls directly from your bank account. You can also mail a check with Form 1040ES. The quarterly due dates for 2025 are: - Q1: April 15, 2025 (for Jan-Mar income) - Q2: June 16, 2025 (for Apr-May income) - Q3: September 15, 2025 (for Jun-Aug income) - Q4: January 15, 2026 (for Sep-Dec income) To calculate how much to pay, use Form 1040ES - it has worksheets that help you estimate based on your expected annual income from both jobs. A safe approach is to pay 25% of your DoorDash earnings each quarter (this covers income tax + self-employment tax). The penalty threshold is owing $1,000+ at tax time, so if you're making decent money with DoorDash, definitely don't skip these payments. I learned this the hard way my first year!

@185bf088fa41 Great question! You can make quarterly estimated tax payments online through the IRS Direct Pay system (irs.gov/payments) - it's free and pulls directly from your bank account. You can also mail a check with Form 1040ES. The quarterly due dates for 2024 are: January 16, 2024 (for Q4 2023), April 15, 2024 (Q1), June 17, 2024 (Q2), September 16, 2024 (Q3), and January 15, 2025 (Q4 2024). To calculate how much to pay, use Form 1040ES - it has worksheets that help you estimate your tax liability. A simple approach is to pay 25% of your net DoorDash earnings each quarter (after deducting business expenses like mileage). Pro tip: If you owe less than $1,000 in taxes for the year OR you pay at least 90% of this year's tax liability through withholding and estimated payments, you'll avoid the underpayment penalty. The online system lets you schedule payments in advance too, which is super convenient!

You can make quarterly estimated tax payments online through the IRS Direct Pay system at irs.gov - it's super easy and free if you pay directly from your bank account. You can also mail a check with Form 1040ES if you prefer. The quarterly due dates for 2025 are: January 15th (for Q4 2024), April 15th, June 16th, and September 15th. If the date falls on a weekend or holiday, it's due the next business day. To calculate how much to pay, you generally want to pay either 100% of last year's tax liability (or 110% if your previous year's AGI was over $150k) divided by 4, OR 90% of this year's expected tax liability. The IRS has Form 1040ES with worksheets that walk you through the calculation. Since you just started DoorDash, for your first quarter you might want to estimate conservatively and then adjust as you get a better feel for your earnings. Better to overpay slightly than underpay and get hit with penalties! @185bf088fa41

@185bf088fa41 Great question! You can make quarterly estimated payments online through the IRS Direct Pay system (irs.gov/payments) - it's free and comes directly from your bank account. You can also mail a check with Form 1040ES. The quarterly due dates for 2024 are: April 15, June 17, September 16, and January 15, 2025. So if you just started a few weeks ago, your first payment would be due September 16th for the Q3 period. To calculate how much to pay, use Form 1040ES - it has worksheets that walk you through it. Basically you estimate your total annual income from both jobs, figure out your total tax liability, subtract what's already being withheld from your main job, and divide the remainder by 4 for each quarterly payment. The key thing is you generally need to pay either 90% of this year's tax liability OR 100% of last year's liability (whichever is smaller) to avoid penalties. If you earned less than $150k last year, you can just pay 100% of what you owed last year and be safe from penalties even if you end up owing more.

@185bf088fa41 Great question! You can make quarterly estimated tax payments online through the IRS Direct Pay system (irs.gov/payments) using your bank account for free. You can also mail a check with Form 1040ES, but online is much faster. The quarterly due dates for 2024 are: - Q1: April 15, 2024 (already passed) - Q2: June 17, 2024 - Q3: September 16, 2024 - Q4: January 15, 2025 Since you just started a few weeks ago, you'll want to focus on the June 17th payment for Q2. To calculate how much to pay, estimate your total DoorDash income for the quarter, multiply by about 0.30 (to cover income tax + self-employment tax), then subtract any extra withholding you're having taken from your main job. The IRS also has a safe harbor rule - if you pay at least 100% of last year's total tax liability divided into four quarterly payments, you won't face underpayment penalties even if you end up owing more. This can be a simpler approach if your DoorDash income varies a lot month to month. Don't stress too much about getting it perfect the first time - you can always adjust your next quarterly payment based on how your actual earnings are tracking!

@185bf088fa41 Great question! You can make quarterly payments online through the IRS Direct Pay system (irs.gov/payments) using your bank account for free, or you can mail a check with Form 1040ES. The due dates for 2025 are: January 15th (for Q4 2024), April 15th, June 16th, and September 15th. Since you just started, you'd be looking at the June 16th deadline for your first quarter. To calculate how much to pay, use Form 1040ES - it has worksheets that walk you through it. Basically you estimate your total annual income from both jobs, figure out your total tax liability, subtract what's being withheld from your main job, and divide the remainder by 4 for quarterly payments. Don't stress too much though - if this is your first year with gig work and you owe less than $1,000 in taxes on the DoorDash income, you won't face penalties. The IRS gives you some leeway when you're learning the ropes!

Great question! You can make quarterly estimated tax payments online through the IRS Direct Pay system (irs.gov/payments) using your bank account for free, or you can mail in Form 1040ES with a check. I prefer the online method because it's faster and you get confirmation right away. The quarterly due dates for 2025 are: - Q1: April 15, 2025 - Q2: June 16, 2025 - Q3: September 15, 2025 - Q4: January 15, 2026 Since you just started a few weeks ago, you'll want to estimate your total DoorDash income for the year and calculate 25-30% of that for taxes. Then divide by 4 for your quarterly payment amount. The IRS Form 1040ES has worksheets to help you calculate the exact amount. @185bf088fa41 One tip - it's better to slightly overpay than underpay! You'll get any overpayment back as a refund, but underpaying can result in penalties and interest.

@185bf088fa41 Great question! You can make quarterly estimated tax payments online through the IRS Direct Pay system (irs.gov/payments) - it's free and pulls directly from your bank account. You can also mail a check with Form 1040ES. The quarterly due dates for 2025 are: - Q1: April 15, 2025 (for Jan-Mar income) - Q2: June 16, 2025 (for Apr-May income) - Q3: September 15, 2025 (for Jun-Aug income) - Q4: January 15, 2026 (for Sep-Dec income) To calculate how much to pay, use Form 1040ES - it has worksheets that walk you through it. Basically you estimate your total annual income from both jobs, figure out your total tax liability, subtract what's being withheld from your main job, and divide the remainder by 4 for your quarterly payments. The safe harbor rule is helpful too - if you pay at least 100% of last year's total tax liability (110% if your prior year AGI was over $150k), you won't owe penalties even if you end up owing more at filing time. I'd definitely recommend setting up the payments online - it's much easier than mailing checks and you get confirmation right away!

You can make quarterly payments online through the IRS Direct Pay system (irs.gov/payments) or by phone. It's super convenient - just need your bank account info and SSN. The due dates for 2025 are: January 15th (for Q4 2024), April 15th, June 16th, and September 15th. Since you just started, your first payment would be due April 15th for Q1 2025. To calculate how much to pay, use Form 1040ES - it has worksheets that walk you through it. But as a quick estimate, if you think you'll make $4,000 from DoorDash this year, you'd want to pay roughly $300-400 per quarter ($1,200-1,600 total). Better to slightly overpay than underpay and get hit with penalties! @77bcc5b10f58 Great advice about the mileage tracking - I wish I had started that from day one instead of trying to reconstruct it later!

You can make quarterly payments online through the IRS Direct Pay system (irs.gov/payments) or by mailing a check with Form 1040ES. The online system is way easier - you just need your SSN and bank account info. The quarterly due dates for 2025 are: January 15th (for Q4 2024), April 15th, June 16th, and September 15th. Then January 15th 2026 for Q4 2025. Since you just started a few weeks ago, you probably won't owe much for Q1, but it's good to get in the habit. I'd recommend calculating roughly 25-30% of your net DoorDash earnings (after expenses like mileage) and dividing that by 4 for your quarterly amount. Pro tip: Set up a separate savings account just for taxes and automatically transfer your tax percentage there after each DoorDash payout. Makes it so much easier when payment time comes around! @77bcc5b10f58 thanks for the great breakdown - the mileage tracking tip is gold!

@185bf088fa41 Great question! You can make quarterly payments online through the IRS Direct Pay system at irs.gov/payments - it's free and pulls directly from your bank account. You can also mail a check with Form 1040ES. The quarterly due dates for 2024 are: April 15, June 17, September 16, and January 15, 2025. So if you just started a few weeks ago, your next payment would be due June 17th for the second quarter. To calculate how much to pay, use Form 1040ES - it has worksheets that walk you through it. Basically you estimate your total annual income from both jobs, figure out your total tax liability, subtract what's already being withheld from your main job, and divide the remainder by 4 for your quarterly amount. Pro tip: It's better to slightly overpay than underpay since you'll get a refund if you overpay, but you'll owe penalties if you underpay. I usually round up my quarterly payments by $50-100 just to be safe!

@185bf088fa41 You can make quarterly estimated tax payments online through the IRS Direct Pay system at irs.gov - it's free and lets you pay directly from your bank account. You can also mail a check with Form 1040ES, but online is much faster. The due dates for 2024 are: Q1 (Jan-Mar) due April 15, Q2 (Apr-May) due June 17, Q3 (Jun-Aug) due September 16, and Q4 (Sep-Dec) due January 15, 2025. Since you just started, you'll probably want to focus on the upcoming September and January deadlines. To calculate how much to pay, use Form 1040ES - it has worksheets that help you estimate based on your expected DoorDash income. A rough estimate is 25-30% of your net earnings (after expenses like mileage deductions). Better to pay a little extra than get hit with underpayment penalties! The IRS also has a safe harbor rule - if you pay 100% of last year's tax liability through withholding and estimated payments combined, you won't owe penalties even if you end up owing more at filing time.

You can make quarterly payments online through the IRS Direct Pay system (irs.gov/payments) using your bank account, or you can mail a check with Form 1040ES. The due dates for 2025 are: Q1 - April 15, Q2 - June 16, Q3 - September 15, and Q4 - January 15, 2026. The easiest way is definitely online - you just need your SSN, the tax year, and your bank info. You can also set up automatic payments if you want to make the same amount each quarter. To calculate how much to pay, use Form 1040ES - it has worksheets that help you estimate your total tax liability for the year. Generally, you want to pay either 90% of this year's tax liability or 100% of last year's (whichever is smaller) to avoid penalties. Since you're just starting with DoorDash, you might want to be conservative and estimate on the higher side for your first year. @185bf088fa41 Pro tip: keep receipts for everything DoorDash related - not just mileage but also things like phone mounts, insulated bags, cleaning supplies for your car, etc. These can all be deductible business expenses!