DoorDash Dasher Taxes in Michigan - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Michigan?

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

Michigan Specific Rules: Michigan has a flat income tax rate of 4.05% for 2024. Your net profit from your Schedule C will be added to your other income, and this total taxable income will be subject to this 4.05% rate. Michigan also has a standard deduction, which can reduce your taxable income. For 2024, the standard deduction for single filers is $5,750 and for married filing jointly is $11,500 (these amounts are subject to change, always verify with the Michigan Department of Treasury).

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't include commuting miles.
• Phone Expenses: You likely use your phone for the DoorDash app, navigation, and communication. You can deduct the percentage of your phone bill that corresponds to business use. If you use your phone 75% for DoorDash, you can deduct 75% of the bill.
• Hot Bags & Equipment: The cost of insulated bags, phone mounts, dash cams, 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.

Important: Keep receipts and detailed records for all expenses you plan to deduct!

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). However, you only pay self-employment tax on your net earnings above $400. The good news is that you can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI) on Form 1040, which helps lower your overall tax bill.

Closing Tip for Michigan Residents

Navigating self-employment taxes can be complex. I strongly recommend keeping meticulous records throughout the year – mileage logs, receipts, and income statements. Consider using accounting software designed for freelancers or consulting with a qualified tax professional (like myself!) to ensure you're taking all eligible deductions and complying with both federal and Michigan tax laws. Don't wait until tax season to get organized! The Michigan Department of Treasury website (https://www.michigan.gov/treasury) is also a valuable resource.