DoorDash Dasher Taxes in South Carolina - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in South Carolina?

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

South Carolina Requirements: South Carolina has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your net profit from Schedule C will be included in your total taxable income for South Carolina, and taxed according to the current year's tax brackets. You'll file this information using South Carolina Form SC1040. It's crucial to accurately report your income to avoid penalties or interest.

Top Tax Write-offs for DoorDash Dashers

As a self-employed individual, you can significantly reduce your tax liability 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 a delivery request to completing it). 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 exclusively for DoorDash, you can deduct the entire bill.
• Hot Bags & Delivery Equipment: The cost of items like insulated hot bags, phone mounts, and other equipment used specifically for deliveries are deductible.
• Software & App Fees: Any fees you pay for tax preparation software, or subscriptions to apps that help you track mileage or manage your deliveries, are deductible business expenses.

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 after subtracting your business expenses. Also, you don't pay self-employment tax on earnings below $400. However, half of your self-employment tax is deductible from your gross income, further reducing your overall tax liability.

Closing Tip for South Carolina 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 dedicated app to simplify the process. Don't hesitate to consult with a qualified tax professional – like myself – to ensure you're taking advantage of all available deductions and complying with both federal and South Carolina tax laws. Proper planning can save you significant money and stress during tax season!