Updated for 2026 (Filing 2025 Taxes)
Navigating the bustling streets of Atlanta as a DoorDash Dasher offers incredible flexibility, but it also places the weight of tax compliance squarely on your shoulders. Since you aren't a traditional employee, the IRS views you as a small business owner. This means you're responsible for tracking your own income and expenses to avoid overpaying when April 15 rolls around.
The IRS requires all Dashers to report their earnings on Schedule C (Profit or Loss From Business) as part of their Form 1040. If your net earnings exceed $400, you're also required to pay self-employment taxes. These taxes cover both the employer and employee portions of Social Security and Medicare. Keeping meticulous records throughout the year isn't just a good habit: it's the only way to ensure you're maximizing your deductions and keeping more of your hard-earned Atlanta "hustle" money.
If you live or work in Georgia, you'll need to file a state income tax return even if your total liability is low. Georgia has moved toward a simplified tax structure with a flat income tax rate, which is set at 5.49% for the 2025 tax year. This makes it easier to estimate what you'll owe the state. Your DoorDash income flows from your federal Schedule C directly to your Georgia Form 540.
However, there's a specific Georgia nuance you should know: the state does not allow a deduction for the federal self-employment tax. While the IRS lets you deduct half of your self-employment tax on your federal return, Georgia requires you to add that amount back when calculating your state adjusted gross income. This often results in a slightly higher state tax bill than some drivers expect. Between the gridlock on I-85 and the complex parking in areas like Midtown or Buckhead, your operational costs can add up quickly. Make sure you're capturing every expense to offset this state-level "add-back" rule.
One of the most powerful tools in your tax arsenal is the Qualified Business Income (QBI) deduction. Under Section 199A, most DoorDash drivers can deduct up to 20% of their net business income from their federal taxable income. This isn't an "expense" you have to pay for; it's a straight deduction that lowers your tax bill. If your business is profitable after all other expenses, the QBI deduction can significantly reduce what you owe the IRS. Our Advanced Calculator can help you estimate how much this specific deduction will save you based on your Atlanta earnings.
Don't leave money on the table by guessing which tax method is best for your situation. Our Advanced Calculator is designed specifically for Georgia gig workers. You can now compare "Standard Mileage" against "Actual Expenses" - including the often-overlooked benefit of vehicle depreciation.
Furthermore, the calculator helps you determine if you qualify for the "Home Office" deduction. If you use a dedicated space in your Atlanta home or apartment to manage your delivery logs, schedules, and bookkeeping, you might be able to deduct a portion of your rent, utilities, and insurance. Using the calculator ensures you choose the strategy that yields the largest legal deduction for your specific driving patterns.
Pro Tip: You must choose between Standard Mileage and Actual Expenses in the first year you use your car for business. If you choose the "Actual" method first, you're stuck with it for the life of that vehicle. Most Dashers find the Standard Mileage rate easier and more beneficial over time.
In a typical W-2 job, your employer pays half of your Social Security and Medicare taxes. When you're dashing in Atlanta, you're the boss, so you pay both halves. This totals 15.3% (12.4% for Social Security and 2.9% for Medicare). Because DoorDash doesn't withhold these taxes for you, it's vital to set aside a portion of every weekly payout. We recommend making estimated quarterly tax payments to avoid underpayment penalties and a massive bill come April. Use our calculator to determine exactly how much you should be sending to the IRS each quarter to stay in their good graces.
Estimate your taxes using current IRS rules.
๐ Confused by these terms? Read the Manual →
*Disclaimer: This is a simplified estimate. Includes SE Tax, State Tax, and QBI Deduction impact. Consult a CPA.
Don't let the IRS take more than their fair share. Use the software built for DoorDash Dashers.
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