DoorDash Dasher Taxes in Mississippi - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Mississippi?

Yes, absolutely. Income earned as a DoorDash Dasher is taxable at both the federal and Mississippi 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 Requirements: You'll report your DoorDash income on Schedule C (Profit or Loss From Business) as part of your Form 1040. This form is where you detail your earnings and, importantly, your deductible business expenses (more on those below). DoorDash will send you a Form 1099-K if you earn over $20,000 and have more than 200 deliveries. However, you are legally obligated to report all income, even if you don't receive a 1099-K.

Mississippi Specific Rules: Mississippi has a flat income tax rate of 5% for the 2024 tax year (filing in 2025). This means all your taxable income, after deductions, will be taxed at this single rate. You'll report your federal adjusted gross income (AGI) on your Mississippi state income tax return (Form 82-101) and calculate your state tax liability based on that figure, applying the 5% rate.

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 accepting an order to dropping it off. Apps like Stride Tax or Everlance can help with this. You can't claim mileage for commuting to your delivery area, only while actively delivering.
• 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 corresponds 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 delivery bags, phone mounts, and even warmers are deductible. If the item has a useful life of more than one year (like a phone mount), 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 enhance your DoorDash business (e.g., tax preparation software geared towards 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 halves – 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 profit (income minus 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, which helps reduce your overall tax liability.

Closing Tip for Mississippi 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 dedicated app designed for gig workers. 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 Mississippi tax laws. Proper planning can save you significant money and stress during tax season!