If you drove for DoorDash last year, your DoorDash 1099-NEC taxes work like this: the form reports your gross pay to the IRS, and you turn that number into taxable profit on Schedule C by subtracting mileage and other business expenses, then calculate self-employment tax on Schedule SE. Nothing was withheld during the year, so you owe both income tax and the 15.3% self-employment tax on what’s left, and the IRS expects you to have paid most of it in quarterly installments as you earned it.
Reading Your 1099-NEC and Checking Box 1
DoorDash must send the 1099-NEC by January 31 if it paid you $600 or more during the year, and it files an identical copy with the IRS.1Internal Revenue Service. Instructions for Forms 1099-MISC and 1099-NEC (04/2025) If you earned less than $600, you probably won’t get a form, but the income is still taxable and still has to be reported.
Box 1, “Nonemployee compensation,” is the number that matters. It shows everything DoorDash paid you: base pay, promotions, and in-app tips. It does not subtract any of your expenses. Treat it as gross revenue, not profit. Box 4 shows backup withholding (rare), and Boxes 5 through 7 hold optional state information.1Internal Revenue Service. Instructions for Forms 1099-MISC and 1099-NEC (04/2025)
Compare Box 1 against your own deposit records and in-app earnings summaries before you file. The IRS already has DoorDash’s copy, and a mismatch triggers an automated notice. If the figure is wrong, ask DoorDash for a corrected form. If you can’t get one before the filing deadline, you can file using Form 4852 as a substitute with your best estimate of the correct amount.2Internal Revenue Service. What to Do When a W-2 or Form 1099 Is Missing or Incorrect
If You Also Got a 1099-K
Some drivers receive a second form. A payment platform issues a 1099-K when your payments cross both $20,000 and 200 transactions in a year; both thresholds have to be met.3Internal Revenue Service. Understanding Your Form 1099-K The threshold reverted to that level after Congress overrode the lower $600 figure that had been scheduled to take effect.4Internal Revenue Service. IRS Issues FAQs on Form 1099-K Threshold Under the One, Big, Beautiful Bill; Dollar Limit Reverts to $20,000 Don’t add the two forms together. They can overlap on the same payments. Use your own records to determine your true income and report that once.
Schedule C: Turning Gross Pay Into Taxable Profit
You don’t owe tax on the Box 1 amount. You owe tax on profit, which is what remains after you subtract business expenses on Schedule C, “Profit or Loss From Business.”5Internal Revenue Service. About Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship) Part I is gross income, Part II is expenses, and the bottom line is net profit. That net profit flows onto Form 1040 and becomes the basis for both income tax and self-employment tax.
The Mileage Deduction
Your car is the biggest deduction you have. The IRS offers two methods. The standard mileage rate for 2026 is 72.5 cents per business mile, and that single rate covers gas, maintenance, depreciation, and insurance.6Internal Revenue Service. IRS Sets 2026 Business Standard Mileage Rate at 72.5 Cents per Mile, Up 2.5 Cents The actual expense method means tracking every vehicle cost and deducting the business-use percentage, and it pulls in Form 4562 for depreciation.7Internal Revenue Service. Instructions for Form 4562
The switching rules matter. If you own the car, you must use the standard mileage rate in the first year, but you can switch year to year after that. If you lease, the method you pick locks in for the entire lease including renewals.8Internal Revenue Service. Topic No. 510, Business Use of Car Most delivery drivers come out ahead with the standard mileage rate: less paperwork, and the per-mile amount tends to cover wear and tear on a high-mileage car.
Either way, keep a log. The IRS expects the date, destination, business purpose, and miles for each trip. An app that runs in the background is the easiest way to build one. Reconstructing miles from memory in April is where audit problems begin.
Other Expenses That Reduce Your Profit
- Phone bill, at the business-use percentage. If deliveries account for roughly 60% of your phone use, deduct 60% of the bill.
- Delivery supplies you bought for the job: insulated bags, phone mounts, chargers.
- Tolls and parking paid while on a delivery. Driving to your starting area doesn’t count.
- Tax preparation costs, limited to the portion tied to your business return. A combined personal-and-business fee has to be split.
Every expense needs backup: receipts, bank statements, or digital records. Estimates are not documentation.
Self-Employment Tax on the Net Profit
Self-employment tax is how independent contractors pay Social Security and Medicare. A W-2 employee splits these with an employer; you pay both halves. The rate is 12.4% for Social Security and 2.9% for Medicare, totaling 15.3%.9Office of the Law Revision Counsel. 26 USC 1401 – Rate of Tax
It doesn’t apply to every dollar of profit. Schedule SE first reduces your net earnings by 7.65% (multiplying by 0.9235) to approximate what an employer would have paid, then applies the 15.3% rate to what remains.10Internal Revenue Service. About Schedule SE (Form 1040), Self-Employment Tax
Two thresholds shape the final number:
- The 12.4% Social Security portion only applies to net self-employment earnings up to $184,500 in 2026. Earnings above that are exempt from that portion.11Social Security Administration. What Is the Current Maximum Amount of Taxable Earnings for Social Security?
- If your self-employment income exceeds $200,000 (single) or $250,000 (married filing jointly), an extra 0.9% Additional Medicare Tax applies to the amount above the threshold.12Internal Revenue Service. Questions and Answers for the Additional Medicare Tax
You owe self-employment tax once net earnings hit $400, even if your income is low enough that you owe no regular income tax.13Internal Revenue Service. Instructions for Schedule SE (Form 1040) Part-time drivers are often surprised by this.
Deductions That Bring the Bill Down
A few deductions come off before the IRS calculates your adjusted gross income. They’re reported on Schedule 1 of Form 1040.14Internal Revenue Service. 2025 Schedule 1 (Form 1040)
Half of self-employment tax. Because you paid both employer and employee shares, you deduct the employer-equivalent half. Schedule SE calculates it and it lands on Schedule 1, line 15. It doesn’t reduce the SE tax itself; it lowers your AGI, which can affect your bracket and credit eligibility.
Self-employed health insurance. If you pay your own premiums and aren’t eligible for a spouse’s employer plan, you can deduct 100% of medical, dental, and vision premiums for you, your spouse, your dependents, and any child under 27 (even if not your dependent). Calculate on Form 7206 and report on Schedule 1, line 17.15Internal Revenue Service. Instructions for Form 7206 (2025) This one is easy to miss and often worth a lot.
Qualified business income deduction. The Section 199A deduction lets eligible self-employed people deduct up to 20% of qualified business income, and Schedule C income from DoorDash qualifies.16Internal Revenue Service. Qualified Business Income Deduction The usual driver math: take Schedule C net profit, subtract the deductible half of SE tax and the self-employed health insurance deduction, and 20% of what remains is your QBI deduction. The phase-out begins above $200,000 for single filers, so most drivers get the full amount. It’s not a Schedule 1 adjustment; it reduces taxable income directly on Form 1040.
Paying Quarterly So You Aren’t Caught Short
Nobody withholds from your DoorDash pay, so the IRS expects you to pay as you earn. If you expect to owe $1,000 or more when you file, you’re required to make quarterly estimated payments using Form 1040-ES.17Internal Revenue Service. Form 1040-ES – Estimated Tax for Individuals These cover income tax and self-employment tax together.
The 2026 deadlines are:18Internal Revenue Service. Estimated Tax
- April 15, 2026, covering January through March
- June 15, 2026, covering April and May
- September 15, 2026, covering June through August
- January 15, 2027, covering September through December
A deadline that lands on a weekend or holiday shifts to the next business day. Your 2026 annual return is due April 15, 2027.
Safe Harbor and Penalties
Underpayment triggers a penalty that compounds daily. The rate for the first quarter of 2026 is 7% annual interest, and it can adjust quarterly.19Internal Revenue Service. Interest Rates Remain the Same for the First Quarter of 2026
You avoid the penalty under the safe harbor rule if you pay at least the lesser of 90% of what you end up owing for 2026 or 100% of what you owed for 2025. If your 2025 AGI exceeded $150,000 ($75,000 if married filing separately), that second figure rises to 110%.20Internal Revenue Service. Underpayment of Estimated Tax by Individuals Penalty
Estimating Your Quarterly Amount
If this is your first year, project annual net profit from your first few weeks of driving. Estimate income tax at your bracket, add self-employment tax at roughly 14.1% of net profit (the 15.3% rate applied to the 92.35% base), then divide the total by four. Recheck each quarter and adjust as your real earnings come in. Pay through IRS Direct Pay, EFTPS, or by mailing a check with the 1040-ES voucher.
Don’t Forget State Tax
Federal tax isn’t the whole bill. Most states with an income tax expect independent contractors to report self-employment income and, in many cases, make quarterly state estimated payments on a similar schedule. State rates range from zero in states like Texas and Florida to over 13% at the top. Some cities and counties tax self-employment earnings on top of that. Check your state’s department of revenue for filing thresholds, estimated payment rules, and any gig-worker specifics. Overlooking state obligations is a common and expensive mistake.