DoorDash Dasher Taxes in Minnesota - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Minnesota?

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

Minnesota Specific Rules: Minnesota has a graduated income tax system. This means the tax rate you pay increases as your taxable income increases. Your DoorDash net profit (from Schedule C) will be added to your other income sources (like wages from a traditional job, if applicable) to determine your total taxable income for Minnesota. Minnesota also has its own forms for calculating state income tax, typically Form M1 and potentially Schedule M1 if you have adjustments to your federal AGI. You'll use the Minnesota tax brackets to calculate your state income tax liability.

Top Tax Write-offs for DoorDash Dashers

As a self-employed individual, you can significantly reduce your tax burden by claiming legitimate 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 the time you accept a delivery request until you complete it. Apps like Stride Tax or Everlance can help with this.
• Phone Expenses: You likely use your phone for navigation, accepting orders, and communicating with customers. You can deduct the percentage of your phone bill that relates to business use. If you use your phone exclusively for DoorDash, you can deduct the entire bill.
• Hot Bags & Other Equipment: The cost of items like insulated hot bags, phone mounts, dash cams, and even a portion of your vehicle maintenance (oil changes, tires – potentially) can be deducted. Items with a useful life of more than one year may need to be depreciated.
• DoorDash Software/Subscription Fees: Any fees you pay directly to DoorDash for access to their platform or for optional services (if any) 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 the portion of your earnings that exceeds the Social Security wage base (which changes annually – for 2024, it's $168,600). You do pay Medicare tax on all net earnings. Importantly, half of your self-employment tax is deductible from your gross income on Form 1040.

Closing Tip for Minnesota Residents

Navigating self-employment taxes can be complex. I strongly recommend keeping meticulous records of your income and expenses throughout the year. Consider using accounting software or a tax preparation service specializing in gig economy income. Minnesota has specific rules and forms, and ensuring accurate filing will help you avoid potential penalties and maximize your deductions. Don't hesitate to consult with a qualified tax professional for personalized advice tailored to your specific situation. Good luck, and happy dashing!