DoorDash Dasher Taxes in Iowa - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Iowa?

Yes, absolutely. Income earned as a DoorDash Dasher is taxable at both the federal and Iowa state levels. The IRS considers you self-employed, meaning you're essentially running your own business. For federal taxes, you'll report your DoorDash income and expenses on Schedule C (Profit or Loss From Business), which is filed with your Form 1040. This schedule calculates your net profit (income minus expenses).

Iowa has a graduated income tax system. This means the tax rate you pay depends on your total taxable income for the year. Your DoorDash net profit (from Schedule C) will be added to your other income (like wages from a traditional job, if any) to determine your total taxable income and the applicable tax bracket. Iowa's tax rates change annually, so refer to the Iowa Department of Revenue website (see resources at the end) for the most up-to-date information when filing in 2025.

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 business mile driven. Keep a detailed log of all miles driven for deliveries (from when you open the Dasher app until you close it). You can't use mileage if you've already claimed depreciation on your vehicle.
• Phone Expenses: You can deduct the portion of your cell phone bill that relates to your DoorDash work. If you use your phone solely for DoorDash, you can deduct the entire bill. Otherwise, you'll need to calculate the percentage of time you use it for business.
• Hot Bags & Delivery Equipment: The cost of items like insulated delivery bags, phone mounts, and dashcams are deductible.
• Software & App Fees: Any fees you pay for tax preparation software or other apps directly related to managing your DoorDash business are deductible.

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). However, you only pay self-employment tax on your net earnings (profit) after subtracting your business expenses. You don't pay self-employment tax on the first $400 of your net earnings. The good news is you can deduct one-half of your self-employment tax from your adjusted gross income on Form 1040.

Closing Tip for Iowa Residents

Being a DoorDash Dasher offers flexibility, but it also comes with tax responsibilities. Keep meticulous records of your income and expenses throughout the year. Consider using a mileage tracking app and a spreadsheet or accounting software to organize your finances. Don't hesitate to consult with a qualified tax professional (like myself!) if you have questions or need assistance with your Iowa tax return. The Iowa Department of Revenue website (https://tax.iowa.gov/) is also a valuable resource. Wishing you a profitable and tax-smart year!