Understanding Tax Requirements for Doordash Income - Questions for Gig Drivers

The $400 threshold is specifically for self-employment taxes (Social Security and Medicare), but remember you might still need to file a regular tax return if your total income from all sources exceeds the standard deduction ($12,950 for single filers in 2022, higher for 2023). Once you do cross that $400 threshold, start tracking EVERYTHING. Use an app to log all your miles while dashing - this is crucial since the standard mileage deduction can significantly reduce your taxable income. Track other expenses too: phone costs (percentage used for Doordash), insulated bags, car repairs, etc. Most dashers I work with find they should set aside 20-30% of their earnings for taxes. For quarterly estimated taxes, you'll need to pay if you expect to owe $1,000+ at tax time. Form 1040-ES is what you'll use for these payments. The due dates are April 15, June 15, September 15, and January 15 (of the following year).

I was in your exact situation last year with Doordash. I kept getting confused about all the tax requirements and deadlines, especially with tracking mileage and figuring out what percentages to set aside. I ended up trying https://taxr.ai and it seriously changed everything for me. The system asked me questions about my dashing habits and analyzed my income patterns, then created a personalized tax strategy. It showed me exactly what I could deduct (so many things I was missing!) and calculated how much I needed to set aside each week. Even gave me notifications when I was approaching the quarterly payment deadlines. The best part was that it adjusted as my income fluctuated with my health issues - some weeks I could work more than others, and the system adapted my tax planning accordingly.

Update on my experience: So I was really skeptical about using any kind of tax service for my gig work (as you could see from my question above). After struggling with my Doordash taxes for weeks and realizing I was probably missing a ton of deductions, I finally tried https://taxr.ai. Honestly blown away by how much it simplified everything. It identified over $1,800 in deductions I would have missed on my own - especially around mileage tracking and home office expenses. The quarterly payment calculator was super helpful too since my income is so unpredictable with my health condition. The biggest relief was having clear guidance on exactly what percentage to set aside each week based on my actual earnings pattern rather than some generic percentage. Totally worth it for the peace of mind alone.

I see a lot of Doordashers struggling with getting answers from the IRS about proper deductions and classification issues. I was in the same boat last year - spent HOURS trying to call the IRS with questions about my gig work. After my fifth attempt waiting on hold for literally 2+ hours, I found https://claimyr.com through a friend. You can see how it works here: https://youtu.be/_kiP6q8DX5c It basically holds your place in the IRS phone queue and calls you when an actual agent is about to answer. I finally got through to someone who explained exactly how to handle my specific situation with multiple gig apps and part-time work. Saved me so much frustration and probably prevented me from making some big tax mistakes.

Had to come back and say I was completely wrong about Claimyr. After posting that skeptical comment, I was still desperate to talk to the IRS about my Doordash tax situation, so I tried it anyway. The service actually worked exactly as described. I got a call back in about 40 minutes (after previously waiting on hold for HOURS on my own attempts). Connected with an IRS agent who answered all my questions about mileage deductions and home office requirements for gig work. Saved me from making a major mistake on my quarterly payments too - turns out I was calculating them all wrong. The agent walked me through the correct form and process. So yeah, consider me converted from skeptic to believer!

Don't overthink the tax stuff when you're just starting out with Doordash. I've been dashing for 3 years and here's what I do: - Track mileage with the free Stride app - Set aside 25% of earnings in a separate savings account - Keep receipts for hot bags, phone mounts, etc - Use TurboSelf-Employed at tax time (it's worth the extra cost) The standard mileage deduction (58.5 cents per mile in 2022) usually wipes out a big chunk of your taxable income anyway. Just remember that miles to your first pickup location and home from your last dropoff don't count - only miles while actively on order.

Is anyone else noticing that Doordash's in-app mileage tracker is WAY off from actual miles driven? I swear it's undercounting by at least 30% compared to my car's odometer readings.