DoorDash Dasher Taxes in Nebraska - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Nebraska?

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

Nebraska Specifics: Nebraska 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 Nebraska taxable income. This total income is then used to calculate your Nebraska income tax liability based on the current year's tax brackets. You'll file Nebraska Form 1040N to calculate and pay your state income tax.

Top Tax Write-offs for DoorDash Dashers

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:

• 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. You can use apps to track this automatically.
• 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 exclusively for DoorDash, you can deduct the entire bill.
• Hot Bags & Equipment: The cost of your insulated delivery bags, phone mounts, dashcams, and other equipment used specifically for DoorDashing is 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 Note: Keep receipts and documentation for all expenses you claim!

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 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 net profit (after deducting business expenses). Also, you don’t pay self-employment tax on the portion of your net earnings that exceeds the Social Security wage base (which is $168,600 for 2024). 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 Nebraska 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 designed for freelancers or consulting 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 Nebraska tax laws. Don't wait until the last minute – proactive tax planning can save you time, money, and stress. Good luck and safe dashing!