DoorDash Dasher Taxes in Washington - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Washington?

Yes, your income as a DoorDash Dasher is taxable, but the specifics are a bit different in Washington State. At the federal level, the IRS considers you self-employed. This means you'll report your DoorDash earnings on Schedule C (Profit or Loss from Business) as part of your Form 1040. You’ll report your total DoorDash income (after subtracting any app fees) as gross receipts, and then deduct your business expenses to arrive at your net profit. This net profit is then added to your other income when calculating your overall federal tax liability.

Now, for Washington State. Washington does not have a state income tax. However, it's crucial to understand this doesn't mean all income is tax-free. Washington does have a capital gains tax, but generally, income earned from services (like DoorDashing) is not subject to this tax. Keep in mind tax laws can change, so staying updated is important. You will still be responsible for federal taxes on your DoorDash income.

Top Tax Write-offs for DoorDash Dashers

As a self-employed individual, you can significantly reduce your tax burden 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 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 50% for DoorDash, you can deduct 50% of the bill.
• Hot Bags & Other Equipment: The cost of items essential for your work, like insulated hot bags, phone mounts, dash cams, and even a portion of your car maintenance (oil changes, tires – potentially using actual expenses instead of mileage if it's more beneficial) are deductible.
• DoorDash Software/Subscription Fees: Any fees you pay for apps or services specifically used to help you with DoorDashing (e.g., tax preparation software focused on self-employment) are deductible.

The 15.3% Self-Employment Tax Surprise

Many Dashers are surprised to learn about self-employment tax. 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 calculated on Schedule SE (Self-Employment Tax). However, you only pay self-employment tax on profits over $400. The good news is you can deduct one-half of your self-employment tax from your gross income, which helps lower your overall tax liability.

Closing Tip for Washington Residents

While Washington State doesn't have an income tax, diligent record-keeping is still vital for federal tax purposes. Accurately tracking your mileage, expenses, and income will ensure you pay the correct amount of tax and maximize your deductions. Consider using accounting software or consulting with a tax professional to simplify the process and avoid potential issues. Don't hesitate to seek professional advice tailored to your specific situation – a small investment in tax planning can save you significant money and stress in the long run.