DoorDash Dasher Taxes in Rhode Island - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Rhode Island?

Yes, absolutely. Income earned as a DoorDash Dasher is taxable at both the federal and Rhode Island 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).

Rhode Island Specifics: Rhode Island has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your net profit from DoorDashing will be added to your other income sources (like a W-2 job, if you have one) and taxed according to the Rhode Island tax brackets for the 2024 tax year (filing in 2025). You'll use Form RI-1040 to file your state income tax return. Rhode Island also allows for itemized deductions, which may further reduce your taxable income, but most Dashers will likely find the standard deduction more beneficial.

Top Tax Write-offs for DoorDash Dashers

As a self-employed Dasher, you can significantly reduce your tax liability 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 all miles driven while actively delivering (from the time you accept an order until it's delivered). 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 relates to business use. If you use your phone 75% for DoorDash, you can deduct 75% of the bill.
• Hot Bags & Delivery Equipment: The cost of items like insulated delivery bags, phone mounts, and even warmers are deductible. These are considered business expenses.
• Software & App Fees: Any fees you pay for apps or software used to track your income, expenses, or mileage (like the ones mentioned above) 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 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 changes annually – for 2024, it's $168,600). You do pay Medicare tax on all net earnings.

Closing Tip for Rhode Island 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 tax preparation service specializing in gig economy income. Don't hesitate to consult with a qualified tax professional in Rhode Island to ensure you're taking advantage of all available deductions and complying with all state and federal tax laws. Proactive planning can save you significant time and money when tax season arrives!