Updated for 2026 (Filing 2025 Taxes)
Navigating the Wasatch Front and delivering meals through DoorDash offers flexibility, but it also comes with tax responsibilities. As a DoorDash driver in Utah, understanding how to properly report your earnings and claim deductions is crucial for a smooth tax season.
The IRS considers DoorDash Dashers independent contractors, meaning earnings over $400 require filing a Schedule C (Profit or Loss from Business) with your federal income tax return (Form 1040). This also triggers the obligation to pay self-employment taxes, covering both Social Security and Medicare contributions, which are not automatically withheld from your DoorDash payouts.
As a resident of Utah, you are required to file a state income tax return, even if no Utah income tax is ultimately due. Utah operates under a flat income tax rate, currently at 4.85% for the 2025 tax year. This means all taxable income is taxed at the same rate. DoorDash income, reported on your federal Schedule C, flows to your Utah state income tax return. The primary form for self-employed individuals to report income and calculate tax liability is Form TC-1040, Utah Individual Income Tax Return. You will need to report your net profit (or loss) from Schedule C on this form. Utah also allows for a deduction for qualified business income (QBI), potentially reducing your taxable income. It's important to note that Utah conforms to many federal tax provisions, but it's always best to check for any specific state differences. The Utah State Tax Commission provides detailed information and resources for self-employed individuals, including FAQs and guides. Failure to file a state return, or filing incorrectly, can result in penalties and interest. Keep accurate records of all income and expenses throughout the year to ensure accurate reporting. Remember to consider estimated tax payments if you anticipate owing more than $1,000 in Utah state income tax.
Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (like gas, oil changes, repairs, and insurance) 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. 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. The 15.3% applies to 92.35% of your net earnings (your profit after deducting business expenses) exceeding $400.
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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