DoorDash Dasher Taxes in Alaska - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Alaska?

Yes, your income as a DoorDash Dasher is taxable, but the situation is simpler in Alaska than in most other states. The federal government considers you self-employed, meaning you operate as a business. You'll report your DoorDash earnings on Schedule C (Profit or Loss From Business) as part of your Form 1040 federal income tax return. This form is where you’ll detail your income and expenses.

Alaska-Specific Rule: Alaska has no state income tax. This means you won’t file a state income tax return and won’t owe any income tax to the State of Alaska on your DoorDash earnings. However, you are still responsible for federal income and self-employment taxes.

Top Tax Write-offs for DoorDash Dashers

As a self-employed individual, you can significantly reduce your tax liability by claiming eligible business expenses. Here are some key deductions for DoorDash Dashers:

• Mileage: This is often the biggest deduction! For 2024, the standard mileage rate is 67 cents per mile for business use. Keep a detailed log of all miles driven while “on duty” (from accepting a delivery request to completing it). You can use apps to track this, or a simple notebook.
• Phone Expenses: You likely use your phone for the DoorDash app, navigation, and communication. You can deduct the percentage of your phone bill that corresponds to business use. If you use your phone 75% for DoorDash, you can deduct 75% of the bill.
• Hot Bags & Delivery Equipment: The cost of items like insulated delivery bags, phone mounts, and other equipment used specifically for DoorDash deliveries are deductible.
• DoorDash Software/Subscription Fees: Any fees you pay directly to DoorDash (beyond the standard commission) for access to tools or services can be deducted.

The 15.3% Self-Employment Tax Surprise

Many Dashers are surprised to learn about self-employment tax. When you work for an employer, they pay half of your Social Security and Medicare taxes. As a self-employed individual, you’re responsible for both the employer and employee portions – a total of 15.3%. This is calculated on Schedule SE (Self-Employment Tax). You only pay self-employment tax on profits over $400. The good news is that you can deduct one-half of your self-employment tax from your adjusted gross income on Form 1040, which can lower your overall tax bill.

Closing Tip for Alaska Residents

While Alaska’s lack of state income tax is a benefit, don’t underestimate your federal tax obligations as a DoorDash Dasher. Meticulous record-keeping – especially mileage logs and expense receipts – is crucial. Consider using accounting software or consulting with a tax professional (like myself!) to ensure you’re maximizing your deductions and complying with all federal tax laws. Good luck, and happy dashing!