DoorDash Dasher Taxes in Wisconsin - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is DoorDash Dasher income taxable in Wisconsin?

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

Wisconsin Specifics: Wisconsin has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your net profit from DoorDashing will be added to your other income sources (like a W-2 job, if you have one) and taxed according to the Wisconsin tax brackets for the 2024 tax year (filing in 2025). You'll use Form 1040-ES to estimate and pay quarterly taxes if you expect to owe $1,000 or more in Wisconsin income tax. Wisconsin also has its own Schedule 1, which may be required depending on your income and deductions.

Top Tax Write-offs for DoorDash Dashers

As a self-employed Dasher, you can significantly reduce your tax liability 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 the time you accept an order to the time you drop it off). You can use apps to track this, or a simple notebook. You cannot include commuting miles.
• 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 relates to business use. If you use your phone 50% for DoorDash, you can deduct 50% of the 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 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). However, you only pay self-employment tax on your net earnings after subtracting your business expenses. There's also a deduction for one-half of your self-employment tax on Form 1040, which helps reduce your overall tax burden. You don't pay self-employment tax on earnings below $400.

Closing Tip for Wisconsin 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 designed for freelancers or consulting with a qualified tax professional (like myself!) to ensure you're taking all the deductions you're entitled to and complying with both federal and Wisconsin tax laws. Don't wait until tax season to start organizing – proactive planning will save you time, money, and stress. Good luck and safe dashing!