Updated for 2025 (Filing 2024 Taxes)
Yes, absolutely. Income earned as a DoorDash Dasher is taxable at both the federal and Utah 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 allows you to deduct business expenses (more on that below) to arrive at your taxable profit. DoorDash will send you a Form 1099-K if you earn over $20,000 and have more than 200 deliveries. However, you are legally required to report all income, even if you don't receive a 1099-K.
Utah Specific Rules: Utah has a flat income tax rate of 4.85% for the 2024 tax year (filing in 2025). This means regardless of your income level, you'll pay 4.85% of your taxable income to the state. You'll report your federal adjusted gross income (AGI) on your Utah state income tax return (Form TC-1040) and then calculate your Utah taxable income after any applicable deductions and credits.
As a self-employed Dasher, you can significantly reduce your tax liability by claiming eligible business expenses. Here are some key deductions:
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 ($168,600 for 2024). You can deduct one-half of your self-employment tax from your gross income on Form 1040.
Don't wait until the last minute to prepare your taxes! Keeping accurate records of your income and expenses throughout the year will make filing much easier and help you maximize your deductions. Consider using accounting software or a tax professional specializing in self-employment income. As a Utah resident, remember to file both your federal and state returns by the filing deadline (typically April 15th). Good luck, and happy dashing!
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