Updated for 2025 (Filing 2024 Taxes)
Yes, absolutely. Income earned as a DoorDash Dasher is taxable at both the federal and Missouri 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).
Missouri Specific Rules: Missouri has a graduated income tax system. This means the tax rate you pay increases as your taxable income increases. Your net profit from DoorDashing will be added to your other income sources (like wages from a traditional job, if applicable) to determine your total taxable income for Missouri. You'll then use the Missouri tax brackets for the 2024 tax year (filing in 2025) to calculate your state income tax liability. You'll file this information using Missouri Form MO-1040.
As a self-employed individual, you can significantly reduce your tax burden by claiming eligible business expenses. Here are some key deductions for DoorDash Dashers:
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 (profit) after subtracting your business expenses. Also, you don't pay self-employment tax on any earnings below $400. You can deduct one-half of your self-employment tax from your gross income on Form 1040.
Tax laws can be complex, and it's easy to miss deductions. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software designed for freelancers or consulting with a qualified tax professional (like myself!) to ensure you're maximizing your deductions and complying with all federal and Missouri tax regulations. Don't wait until the last minute – proactive tax planning can save you money and stress. Good luck, and happy dashing!
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