DoorDash Dasher Taxes in Kentucky - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Kentucky?

Yes, absolutely. Income earned as a DoorDash Dasher is taxable at both the federal and Kentucky state levels. The IRS considers you self-employed, meaning you're essentially running your own business. This impacts 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).

Kentucky Specific Rules: Kentucky has a flat income tax rate of 4.0% for the 2024 tax year (filing in 2025). Your net profit from your Schedule C will be included in your Kentucky income calculation, and taxed at this flat rate. Kentucky also requires you to file a state income tax return (Form 740) to report this income.

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 mile for business use. Keep a detailed log of all miles driven while “on duty” (from accepting a delivery request to completing it). You can use apps to track this, or a simple notebook. You cannot include commuting miles.
• Phone Expenses: You likely use your phone for navigation, accepting orders, and communicating with DoorDash. You can deduct the percentage of your phone bill that relates to business use. If you use your phone 50% for DoorDash, you can deduct 50% of the bill.
• Hot Bags & Delivery Equipment: The cost of items like insulated hot bags, phone mounts, dashcams, and other equipment used specifically for DoorDash deliveries are deductible.
• DoorDash Software/Subscription Fees: Any fees you pay directly to DoorDash (beyond the standard commission) for access to tools or services can be deducted.

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 combined 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 Kentucky Residents

DoorDashing can be a great way to earn income, but it also comes with tax responsibilities. Keeping accurate records of your mileage, expenses, and income throughout the year is crucial. Consider using accounting software or working with a tax professional to ensure you're maximizing your deductions and complying with both federal and Kentucky tax laws. Don't wait until tax season to get organized!