Disclaimer: DoorDash cannot provide you tax advice. If you have any questions about your own taxes, please consult a tax professional. Specific information may only apply to US.
Taxes are not withheld automatically.
As a Dasher, you are an Independent Contractor - you are your own boss! As an Independent Contract, you’ll receive a 1099 form each year, rather than a W-2 form, and DoorDash does not withhold taxes from your earnings. As a result, the government requires you to pay income tax and self-employment tax every year.
In addition to setting your own hours, working as much or as little as you like, and taking breaks for an hour or year when it works for you, you may be able to deduct expenses from your earnings and only pay taxes on what’s left. If you keep track of things like your mileage and vehicle costs, this could add up to substantial savings come tax season.
Consult a tax professional to understand the business costs that may be eligible for full or partial deductions.
Which expenses might be eligible? Vehicle costs, mileage, care insurance, tolls & parking, phone & phone plan, freebies you buy for customers, like mints or thank you cards, or accounting & bank costs from running your DoorDash business.
Why it's important to track expenses like mileage: As someone operating your own business, the IRS allows you to deduct expenses from your income, which reduces your tax liability. Your travel mileage, for example, may be a significant expense, so if you know how many miles you drove, you can reduce the amount you owe for taxes (or increase your refund). See here for an IRS publication on Standard Mileage Rates at a Glance.
The best way to track your mileage: Many Dashers use Everlance, which provides an app to track your work mileage in detail as you dash. See here.
If you haven't tracked your mileage in the past: DoorDash now provides estimated mileage based on your past dashes. These are designed to be estimates, and are calculated conservatively, so they are likely lower than your actual mileage in order to reduce your risk of over-stating your mileage.
1. To access, visit https://driver.doordash.com/.
2. Click Stats (Mileage)
3. Click Show Details or Download Report
How DoorDash computes estimates: To estimate your mileage for a particular date, we look at all the deliveries you completed, and the times that you marked the pickups and drop-offs as complete. Then we add up the distances between the pickups and the drop-offs. Our estimates only include distances that you traveled while transporting an order. We don't generally include distances from one drop-off to the next pickup. All of the distances are computed in a straight-line fashion, because, as there is no required route, we cannot calculate based on the actual roads you took.
Getting started with DoorDash - W-9 Form
When you apply to dash on the DoorDash platform, you'll need to complete a W-9 form.
Questions we hear often:
What do I list as “Business Name”? You are not required to provide a business name; Dashers often leave this blank.
What about “Federal Tax Classification”? Most Dashers mark “Individual/Sole Proprietor,” but of course only a tax professional can provide you with tax advice if you are unsure.
Tax Season 2017
Dashers who earned $600 or more in the 2017 fiscal year will receive an invitation to Payable via email before or on January 31, 2018 to submit information and receive their 1099-MISC form.
Payable is the software DoorDash works with to help manage 1099 taxes. They've helped thousands of companies, and 100's of thousands of contractors file and receive their tax forms - dealing with sensitive information is Payable's business, and they take it extremely seriously. Payable uses bank-grade encryption that has been audited for security by two separate third parties and recipients are encouraged to enable 2-Factor Authentication to further protect their data.
Please check the email you use to log into DoorDash for a Payable invitation.
More information about Understanding Your DoorDash 1099 here!
Note: only applies to U.S. dashers, excludes Canada.
How do I set up a Payable account?
- You'll get an email invitation to sign up with Payable from firstname.lastname@example.org
- Fill out your info in the "General section"
- Verify your "Tax & Verification Info."
- Select your 1099-MISC form delivery method (e-delivery or mail)
- Note: E-delivery is recommended because you'll get your 1099-MISC form faster and you'll have access to this info online.
How do I change my account info in Payable?
- Login to Payable
- Click on your profile on the top-right hand corner.
- Select My Account
I forgot my Payable login and password info
Just go to Payable on the web or app log in screen and tap the "Forgot Password?" link below the Email and Password fields.
When can I expect to get my 1099-MISC form?
Once you completed your profile in Payable, you'll receive your 1099 form by January 31, 2018.