Updated for 2026 (Filing 2025 Taxes)
Navigating the charming, yet sometimes hilly, streets of Providence and beyond as a DoorDash Dasher offers flexibility, but also brings tax responsibilities. As an independent contractor, understanding these obligations is crucial for a smooth tax season.
The IRS requires all DoorDash drivers to report their income on Schedule C (Profit or Loss From Business) with Form 1040. Furthermore, earnings exceeding $400 necessitate the payment of self-employment taxes, covering both Social Security and Medicare contributions. Platforms such as DoorDash do not withhold these taxes, making proactive tax planning essential.
As a resident of Rhode Island, filing a state income tax return is mandatory, even if no federal tax is owed. Rhode Island employs a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, self-employed individuals will primarily utilize Form RI-1040NR to report their income and calculate their state tax liability. Rhode Island also requires the Schedule RI-1040-IC, which is used to report income from self-employment. It’s important to accurately calculate your net profit from DoorDash deliveries on this schedule. Rhode Island’s Division of Taxation offers resources and guidance specifically for self-employed individuals, including information on estimated tax payments. Failing to pay estimated taxes throughout the year can result in penalties. The state also allows for certain deductions that may reduce your taxable income, mirroring some federal deductions. Keep meticulous records of all income and expenses to ensure accurate reporting and maximize potential savings. Rhode Island’s tax laws are subject to change, so staying updated through official state resources is highly recommended. Remember to factor in any local taxes or assessments that may apply based on your city or town of residence within Rhode Island.
Key Warning: You cannot deduct both the standard mileage rate and actual car expenses like gas, oil changes, or repairs in the same year. Choose the method that yields the larger deduction.
This tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Because DoorDash and similar platforms classify you as an independent contractor, they do not withhold these taxes from your earnings. Therefore, it’s your responsibility to calculate and pay this tax, typically through quarterly estimated tax payments to the IRS.
For more information on Rhode Island state taxes, please visit the Rhode Island Division of Taxation.
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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