DoorDash Dasher Taxes in Virginia - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Virginia?

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

Virginia Specific Rules: Virginia has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your net profit from DoorDashing (as reported on Schedule C) will be added to your other income, and Virginia will apply the appropriate tax bracket to determine your state income tax liability. You'll file this information using Virginia Form 540. Virginia also allows for many of the same deductions as the federal government, which can help lower your taxable income.

Top Tax Write-offs for DoorDash Dashers

As a self-employed Dasher, you can significantly reduce your tax burden by claiming eligible 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 orders (from accepting the order to dropping it off). You can't include commuting miles.
• Phone Expenses: You likely use your phone for navigation, accepting orders, and communication. 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 dashcams are deductible. If the item has a useful life of more than one year (like a dashcam), you'll likely need to depreciate it over several years.
• DoorDash Software/Subscription Fees: Any fees you pay directly to DoorDash for access to their platform or for optional services (if any) 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 earnings after subtracting your business 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 do pay Medicare tax on all net earnings. Half of your self-employment tax is deductible from your gross income on Form 1040.

Closing Tip for Virginia Residents

Tax laws can be complex, and it's easy to miss deductions. I strongly recommend keeping meticulous records of your income and expenses throughout the year. Consider using accounting software designed for freelancers or consulting with a qualified tax professional (like myself!) to ensure you're maximizing your deductions and complying with both federal and Virginia tax regulations. Don't wait until the last minute – proactive tax planning can save you time, money, and stress. Good luck with your DoorDash endeavors and happy filing!