Updated for 2026 (Filing 2025 Taxes)
Enjoying the sunshine and flexibility of delivering with DoorDash across the Sunshine State? While the lifestyle is appealing, remember that income earned as a DoorDash driver is taxable, and proper record-keeping is essential for maximizing deductions and avoiding issues with the IRS.
As an independent contractor, DoorDash drivers are required to report all earnings on Schedule C (Profit or Loss from Business) when filing their federal income tax return. Furthermore, earnings exceeding $400 necessitate the payment of self-employment taxes, covering both Social Security and Medicare contributions, which are not automatically withheld from your DoorDash payouts.
Florida stands out as one of the few states with no state income tax. This means DoorDash drivers in Florida do not need to file a state income tax return. However, this doesn't mean tax obligations are nonexistent. The lack of a state income tax can, paradoxically, increase scrutiny from the IRS. Florida’s robust tourism industry and significant cash flow, particularly in popular areas like Miami, Orlando, and Tampa, can lead to more aggressive federal audits of cash-based businesses, including gig work. The IRS often targets areas with high tourism and a prevalence of independent contractors to ensure compliance. Therefore, meticulous record-keeping of all income and expenses is paramount. Maintaining accurate mileage logs, receipts for business expenses, and a clear understanding of deductible items is crucial for defending against potential audits. Remember, even without a state income tax return, all federal requirements still apply. For business registration and information, visit the Florida Department of State, Division of Corporations (Sunbiz.org): https://dos.myflorida.com/sunbiz/. Properly classifying yourself as an independent contractor and understanding the implications of that status are also vital for avoiding penalties.
Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (like gas, oil changes, repairs, insurance) in the same tax year. Choose the method that yields the larger deduction.
The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Unlike traditional employment, DoorDash and other gig platforms do not withhold these taxes from your earnings. Therefore, it’s your responsibility to calculate and pay this tax, typically through estimated tax payments made quarterly to the IRS. Failing to do so can result in penalties.
Estimate your taxes using current IRS rules.
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*Disclaimer: This is a simplified estimate. Includes SE Tax, State Tax, and QBI Deduction impact. Consult a CPA.
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