DoorDash Dasher Taxes in North Dakota - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in North Dakota?

Yes, absolutely. Income earned as a DoorDash Dasher is taxable at both the federal and North Dakota 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 Taxes: You'll report your DoorDash earnings on Schedule C (Profit or Loss From Business) as part of your Form 1040. This form allows you to deduct business expenses (more on that below) to arrive at your taxable profit. Even if you receive a 1099-K from DoorDash, it's your responsibility to accurately report all income, even if it's below the 1099-K reporting threshold.

North Dakota Taxes: North Dakota has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your DoorDash profit (after deducting business expenses on Schedule C) will be added to your other income, and then taxed according to the North Dakota tax brackets for the 2024 tax year (filing in 2025). You'll use Form ND-1 to file your North Dakota state income tax return. You'll need to determine your North Dakota taxable income based on your federal adjusted gross income (AGI) and any applicable state adjustments.

Top Tax Write-offs for DoorDash Dashers

As a self-employed Dasher, you can significantly reduce your tax liability by claiming eligible business deductions. Here are some key write-offs:

• 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 actively delivering (from the time you accept an order until delivery is complete). You can use apps to track this, or a simple notebook. You cannot deduct commuting miles.
• Phone Expenses: If you use your personal phone for DoorDash (which is common), you can deduct the percentage of the phone bill attributable to business use. For example, if you use your phone 60% of the time for DoorDash, you can deduct 60% of your monthly bill.
• Hot Bags & Delivery Equipment: The cost of items like insulated hot bags, phone mounts, and other equipment used specifically for DoorDash are deductible.
• Software & App Fees: Any fees you pay for apps or software that help you manage your DoorDash business (e.g., mileage trackers, expense trackers) 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 profit (income minus expenses). 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 can deduct one-half of your self-employment tax from your gross income on Form 1040.

Closing Tip for North Dakota 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 working 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 North Dakota tax laws. Don't wait until tax season to start organizing – proactive planning will save you time, money, and potential headaches. Good luck, and happy dashing!