Updated for 2025 (Filing 2024 Taxes)
Yes, absolutely. Income earned as a DoorDash Dasher is taxable at both the federal and Kansas 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 Taxes: 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. Even if you receive a 1099-K from DoorDash, it's your responsibility to accurately report all income, even if it's below the 1099-K reporting threshold.
Kansas State Taxes: Kansas has a graduated income tax system. This means the tax rate you pay depends on your total taxable income. Your DoorDash profit (after deducting business expenses on your federal Schedule C) will be included in your Kansas taxable income, and taxed accordingly. You'll use Kansas Form K-40 to file your state income tax return. Kansas also allows for itemized deductions, which may further reduce your state tax liability, but these are separate from your Schedule C deductions.
As a self-employed Dasher, you can significantly reduce your tax bill by taking advantage of eligible deductions. Here are some key ones:
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 halves. This is known as self-employment tax, and it's currently 15.3% (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare).
You'll calculate this on Schedule SE (Self-Employment Tax). The good news is you get to deduct one-half of your self-employment tax from your adjusted gross income on Form 1040, which helps lower your overall tax liability. However, this tax is in addition to your regular income tax, so it's important to plan for it. Self-employment tax applies to earnings over $400.
Navigating self-employment taxes can be complex. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software or a dedicated app to simplify the process. Don't hesitate to consult with a qualified tax professional (like myself!) to ensure you're taking all the deductions you're entitled to and complying with both federal and Kansas tax laws. Proper planning can save you significant money and stress during tax season. Good luck and safe dashing!
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