Updated for 2026 (Filing 2025 Taxes)
Delivering for DoorDash across the Cornhusker State offers flexibility, but it also comes with tax responsibilities. As an independent contractor, understanding these obligations is crucial for a smooth tax season.
DoorDash drivers in Nebraska, like all independent contractors, are required to report their income to the IRS 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 DoorDash payouts.
As a resident of Nebraska, a state income tax return is required, regardless of income level. Nebraska utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, self-employed individuals will primarily use Nebraska Form 1040N, along with Schedule I (Adjustments to Income) to report business income and deductions. Nebraska also requires a separate calculation for income subject to the state tax, which may differ from your federal adjusted gross income. It's important to note that Nebraska allows a deduction for the federal income tax paid, which can reduce your state tax liability. Additionally, Nebraska offers various credits and deductions that may be applicable to self-employed individuals, such as those related to business expenses. Keep meticulous records of all income and expenses to accurately calculate your Nebraska tax obligation. The Nebraska Department of Revenue provides detailed information and resources for taxpayers, including online filing options. Failure to file or pay taxes on time can result in penalties and interest. Consulting with a qualified tax professional familiar with Nebraska tax law is highly recommended, especially if your tax situation is complex.
You can find more information and resources on the Nebraska Department of Revenue website: https://revenue.nebraska.gov/
Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (like gas, oil changes, repairs, and 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. 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 pay estimated taxes can result in penalties.
Estimate your taxes using current IRS rules.
📖 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.
Start Filing Now →