DoorDash Dasher Taxes in Louisiana - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Louisiana?

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

Federal Taxes: You'll report your DoorDash income on Schedule C (Profit or Loss From Business), which is filed with your Form 1040. Schedule C allows you to deduct business expenses (more on that below!), reducing your taxable income. The net profit (income minus expenses) from Schedule C is then reported on your Form 1040 as part of your overall income.

Louisiana State Taxes: Louisiana has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your DoorDash net profit (after federal adjustments and deductions) will be included in your total Louisiana taxable income, and taxed according to the current year's graduated tax brackets. You'll file this information using Louisiana Form 540. Louisiana also allows for itemized deductions, which may further reduce your state tax liability. Be sure to check the Louisiana Department of Revenue website for the most up-to-date tax brackets and forms.

Top Tax Write-offs for DoorDash Dashers

As a self-employed Dasher, you can significantly reduce your tax burden by claiming eligible business expenses. Here are some key deductions:

• 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 actively delivering (from the time you accept an order until it's delivered). Apps like Stride Tax or Everlance can help with this.
• 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. If the item has a useful life of more than one year (like a dashcam), you'll likely need to depreciate it over several years.
• DoorDash Software/Subscription Fees: Any fees you pay for apps or services specifically used to manage your DoorDash business (e.g., tax preparation software designed for gig workers) 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 (from Schedule C). 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, which helps reduce your overall tax liability.

Closing Tip for Louisiana Residents

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 tracking. Don't hesitate to consult with a qualified tax professional (like myself!) to ensure you're taking advantage of all eligible deductions and complying with both federal and Louisiana tax laws. Filing accurately and on time will help you avoid penalties and maximize your refund. Good luck, and safe dashing!