Updated for 2025 (Filing 2024 Taxes)
Yes, your income as a DoorDash Dasher is taxable at the federal level, even though Florida has no state income tax. The IRS considers you self-employed, meaning you're essentially running your own business. You'll report your earnings and expenses on Schedule C (Profit or Loss From Business), which is filed along with your Form 1040. This form calculates your net profit (income minus expenses), which is then subject to income tax.
Florida Specifics: Because Florida does not have a state income tax, you will only be dealing with federal tax obligations. This simplifies things considerably compared to Dashers in states with state income taxes.
As a self-employed individual, you're responsible for both the employer and employee portions of Social Security and Medicare taxes. This combined tax is called Self-Employment Tax and totals 15.3% (12.4% for Social Security and 2.9% for Medicare). You'll calculate this on Schedule SE (Self-Employment Tax). The good news is you only pay self-employment tax on your net profit (after deductions) and only on earnings over $400. You do get to deduct one-half of your self-employment tax from your gross income on Form 1040.
Being a Florida resident simplifies your federal tax filing, but diligent record-keeping is crucial. Track your mileage, expenses, and income throughout the year. Consider using accounting software or a tax professional specializing in gig economy income to ensure you maximize your deductions and avoid any issues with the IRS. Don't wait until the last minute – planning ahead will make tax season much less stressful!
Don't let the IRS take more than their fair share. Use the software built for DoorDash Dashers.
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