DoorDash taxes for Dashers

Which tax form you'll get

DoorDash reports Dasher pay, including tips, on Form 1099-NEC, delivered through its tax partner Stripe. Starting with payments made in 2026, a client or platform only has to send you a Form 1099-NEC once it pays you $2,000 or more in a year (it was $600), under the One Big Beautiful Bill Act. The threshold is set to adjust for inflation after 2026.

Either way, every dollar is taxable whether or not you get a form. Your own records are what count.

Tips

Tips are taxable income. For 2025 through 2028, the new "no tax on tips" deduction lets eligible workers deduct up to $25,000 of qualified tips from income tax (it phases out above $150,000 of modified AGI, $300,000 joint, and for the self-employed can't exceed your net profit from that work). It doesn't reduce self-employment tax. Treasury's list of tipped occupations includes a transportation and delivery group; check that your work is listed before claiming it.

The write-offs that matter

Using the standard mileage rate means you can't also deduct gas, repairs or car insurance; the rate covers them.

• Mileage: miles driven to pickups, to customers and between deliveries while you're on a dash. 2026 rates: 72.5¢ through June 30, 76¢ from July 1.
• Parking and tolls on deliveries (on top of mileage).
• The business share of your phone and data plan.
• Hot bags, phone mounts, chargers and other delivery gear.
• Health insurance premiums you pay yourself (self-employed health insurance deduction), if you aren't eligible for an employer plan.
• Retirement contributions to a SEP IRA or solo 401(k), which lower income tax (not self-employment tax).

How much to set aside

Example (an estimate, single filer, no other job, no state tax): you earn $30,000 in 2026 and drive 15,000 business miles, half before July 1. Your mileage deduction is about $11,138, so your profit is about $18,863. Federal income tax plus self-employment tax on that comes to roughly $2,780: about 15% of profit, but only 9% of what you were paid.

That's why drivers who track mileage can often save a smaller share of each payout than other freelancers. Without a mileage log you'd be taxed on far more. Add your state's income tax on top.

• How much to set aside in your state
• Work out your number with the calculator

Make it automatic

Quarterbird lets you start and stop each dash as a trip so a quick stop never splits it, applies the right IRS rate by date, and shows what to save from every payout.