DoorDash Dasher Taxes in Colorado - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Colorado?

Yes, absolutely. Income earned as a DoorDash Dasher is taxable at both the federal and Colorado state levels. The IRS considers you self-employed, meaning you're essentially running your own business. This impacts how you report your income and pay taxes.

Federal Requirements: You'll report your DoorDash earnings on Schedule C (Profit or Loss From Business) as part of your Form 1040. This form allows you to deduct business expenses (more on that below) to arrive at your taxable profit. DoorDash will send you a Form 1099-K if you earn over $20,000 and have more than 200 deliveries. However, you are legally required to report all income, even if you don't receive a 1099-K.

Colorado Specific Rules: Colorado has a flat income tax rate of 4.40% for the 2024 tax year (filing in 2025). Your federal taxable income, after deductions, will be the starting point for calculating your Colorado income tax liability. Colorado also has a standard deduction, which can reduce your taxable income. You'll use Colorado Form DR 0104 to calculate your state income tax.

Top Tax Write-offs for DoorDash Dashers

As a self-employed Dasher, you can significantly reduce your tax bill by claiming legitimate business expenses. Here are some key deductions:

• 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 every mile driven while actively delivering (from accepting an order to dropping it off). Apps like Stride Tax or Everlance can help with this. You can't deduct commuting miles.
• Phone Expenses: You likely use your phone for navigation, accepting orders, and communicating with customers. You can deduct the percentage of your phone bill that relates to business use. If you use your phone 50% for DoorDash, you can deduct 50% of the bill.
• Hot Bags & Delivery Equipment: The cost of items like insulated hot bags, phone mounts, and dashcams are deductible. If the item has a useful life of more than one year (like a dashcam), you'll likely need to depreciate it over several years.
• DoorDash Software/Subscription Fees: Any fees you pay for apps or services specifically used to improve your DoorDash business (e.g., tax preparation software geared towards gig workers) are deductible.

The 15.3% Self-Employment Tax Surprise

When you're an employee, your employer pays 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 called self-employment tax.

You'll calculate this on Schedule SE (Self-Employment Tax). The good news is you only pay self-employment tax on your profit (income minus expenses). Also, you don't pay self-employment tax on the portion of your earnings that exceeds the Social Security wage base ($168,600 for 2024). You can deduct one-half of your self-employment tax from your gross income on Form 1040.

Closing Tip for Colorado Residents

Tax laws can be complex, and this information is for general guidance only. I strongly recommend keeping meticulous records of your income and expenses throughout the year. Consider using accounting software or a tax professional specializing in gig economy taxes to ensure you're maximizing your deductions and complying with all federal and Colorado state requirements. Proactive tax planning can save you significant time and money when filing in 2025. Good luck and safe dashing!