DoorDash Dasher Taxes in Indiana - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Indiana?

Yes, absolutely. Income earned as a DoorDash Dasher is taxable at both the federal and Indiana 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).

Indiana Specific Rules: Indiana has a flat income tax rate of 3.15% for 2024. This means regardless of your income level, you'll pay 3.15% of your taxable income to the state. Your net profit from Schedule C will be included in your Indiana adjusted gross income (AGI) and subject to this flat tax. Indiana also requires you to file a state income tax return (Form IT-1040) to report this income.

Top Tax Write-offs for DoorDash Dashers

As a self-employed individual, you can significantly reduce your tax liability by taking advantage of eligible 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 use apps to track this automatically.
• 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 exclusively for DoorDash, you can deduct the entire bill.
• Hot Bags & Other Equipment: The cost of items like insulated hot bags, phone mounts, dash cams, and even a portion of your car payment (if you use the actual expense method – see a tax professional for details) can be deducted.
• DoorDash-Specific Software/Subscriptions: If you pay for any apps or subscriptions specifically to help you with DoorDashing (e.g., mileage trackers, tax preparation software), those costs are deductible.

The 15.3% Self-Employment Tax Surprise

Many Dashers are surprised to learn about self-employment tax. 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%.

You'll calculate this tax on Schedule SE (Self-Employment Tax). However, you only pay self-employment tax on your net earnings after subtracting your business expenses (from Schedule C). There's also a deduction for one-half of your self-employment tax on Form 1040, which helps reduce your overall tax burden.

Remember, self-employment tax applies to earnings over $400.

Closing Tip for Indiana 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 working with a qualified tax professional (like myself!) to ensure you're taking all the deductions you're entitled to and filing your federal and Indiana state taxes accurately. Proactive tax planning can save you money and stress during tax season. Good luck and safe dashing!