DoorDash Dasher Taxes in Montana - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Montana?

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

Montana Specific Rules: Montana 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) and taxed according to Montana’s tax brackets for the 2024 tax year (filing in 2025). You'll use Form 2101, Montana Resident Income Tax Return, to calculate your Montana income tax liability. Montana also allows for itemized deductions, which may further reduce your taxable income, but we'll focus on business deductions relevant to DoorDashing here.

Top Tax Write-offs for DoorDash Dashers

As a self-employed Dasher, you can significantly reduce your tax bill by claiming legitimate 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 every mile driven while actively delivering orders (from the time you accept an order until delivery is complete). 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 corresponds to business use. If you use your phone 100% for DoorDash, you can deduct the entire bill.
• Hot Bags & Delivery Equipment: The cost of insulated bags, phone mounts, dashcams, and other equipment used specifically for DoorDashing is deductible.
• Software & App Fees: Any fees you pay for apps or software that help you manage your DoorDash business (like tax preparation software specifically for self-employment) are deductible.

Important Note: Keep receipts for all expenses! The IRS requires documentation to support your deductions.

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 (profit) after subtracting your business 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 Montana Residents

Navigating self-employment taxes can be complex. As a Montana resident, remember to factor in the state’s graduated income tax rates when estimating your tax liability. Consider making estimated tax payments quarterly to avoid penalties. I strongly recommend keeping meticulous records of your income and expenses throughout the year, and consulting with a qualified tax professional (like myself!) to ensure you're taking advantage of all available deductions and complying with both federal and Montana tax laws. Good luck and safe dashing!