DoorDash Dasher Taxes in Vermont - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Vermont?

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

Federal Taxes: You'll report your DoorDash earnings on Schedule C (Profit or Loss From Business) as part of your Form 1040. This form calculates your net profit – your earnings minus your business expenses. It's crucial to keep accurate records of both income and expenses.

Vermont State Taxes: Vermont has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your DoorDash net profit (from Schedule C) will be added to your other income (like wages from a traditional job) to determine your total taxable income for Vermont. Vermont will then apply the appropriate tax bracket to calculate your state income tax liability. You'll use Vermont Form INC to calculate your income tax.

Top Tax Write-offs for DoorDash Dashers

As a self-employed individual, you can significantly reduce your tax burden by claiming legitimate 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 mileage log (date, miles driven, purpose – deliveries) to substantiate your claim. You can use apps designed for this purpose.
• Phone Expenses: You likely use your phone for navigation, accepting orders, and communicating with DoorDash. You can deduct the percentage of your phone bill that relates 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 delivery bags, phone mounts, and even warmers are deductible. These are considered necessary expenses for your business.
• DoorDash Software/Subscription Fees: Any fees you pay directly to DoorDash (beyond the commission they take from orders) for access to tools or services can be deducted.

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 (from Schedule C). 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 on Form 1040.

Closing Tip for Vermont Residents

Navigating self-employment taxes can be complex. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software or a spreadsheet to stay organized. Vermont also offers resources for small business owners on their Department of Taxes website (https://tax.vermont.gov/). Don't hesitate to consult with a qualified tax professional (like myself!) to ensure you're maximizing your deductions and complying with all applicable tax laws. Wishing you a profitable and tax-efficient year of dashing in Vermont!