DoorDash Dasher Taxes in Illinois - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Illinois?

Yes, absolutely. Income earned as a DoorDash Dasher is taxable at both the federal and Illinois state levels. The IRS considers you self-employed, meaning you're essentially running your own business. This has implications for 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 is where you detail your income and your deductible business expenses. The difference between your income and expenses is your net profit, which is then added to your other income when calculating your adjusted gross income (AGI).

Illinois Specific Rules: Illinois has a flat income tax rate of 4.95% for the 2024 tax year (filing in 2025). Your net profit from Schedule C will be added to your other income, and this total taxable income will be subject to the 4.95% Illinois income tax rate. You'll report this on Illinois Form IL-1040.

Top Tax Write-offs for DoorDash Dashers

As a self-employed individual, you can significantly reduce your tax liability by claiming eligible business deductions. Here are some key write-offs 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 an order to dropping it off. You can't include 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 corresponds to business use. If you use your phone 75% for DoorDash, you can deduct 75% of the bill.
• Hot Bags & Other Equipment: The cost of items essential for your work, like insulated hot bags, phone mounts, dash cams, and even a portion of your car maintenance (oil changes, tires – potentially using actual expenses or mileage) are deductible.
• DoorDash-Specific Software/Apps: If you pay for any apps or software specifically to help you with DoorDash (e.g., mileage trackers, tax preparation software), those fees 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 net earnings after subtracting your business expenses. Also, you don't pay self-employment tax on earnings below $400. You can deduct one-half of your self-employment tax from your gross income on Form 1040.

Closing Tip for Illinois Residents

Tax time can be complex, especially when you're self-employed. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using a dedicated mileage tracking app and a spreadsheet or accounting software to organize your finances. If you're unsure about any aspect of your tax filing, consulting with a qualified tax professional (like myself!) can help ensure you're maximizing your deductions and complying with all applicable laws. Good luck, and happy dashing!