How to File Taxes For Doordash Drivers QUICK & EASY (2023-2024) | Write-offs and Benefits
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- čas přidán 4. 02. 2024
- Breaking down how to file your taxes as a doordash driver, what write offs and deductions you get & more
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The ad for this video was DoorDash about how the girl was making so much money and getting to keep 100% of the tips and not having to work a boring 9-5 job. If only folks knew the other half of it.
bro I made 11k in three months sleeping in my truck eating five star dinners going where ever i wanted to go. 9-5s are for squares
@@Findmylimitdoing door dash? What city?
@@Findmylimithow did your taxes come out though because that too is self employed work and those five star dinners are not tax write offs because you are not having business meetings eating them?😂😂
@@synthesizerisking2886 i did them my self and if i go by the standard ill owe 1100 but if i write off everything ill most likely be owed 2-3 thousand but ahh dont care
@@squirrelkiller3589 south jersey near philly. and i was doing great untill door dash tried there hardest to get rid of me. just so everyone knows they will give you a fake strike to psych you into reacting and acting with different behavior so youll then cause a account deactivation. i still have my account
Thank you!
@Moore Driven Thanks for the video. My question is can you use BOTH the mileage deduction AND the standard deduction at the same time? I think the mileage deduction is .655 cents per mile and the standard deduction for 2023 is around $13,000.
I subscribed 😊
0 (zero) state taxes here in Texas!
Florida too!
I don’t think state income tax matters for gig workers does it? Because we pay a self employment tax
@@ZavHustles GENERALLY it's safer to just apply in the state you are working out of's state tax. I'm sure at our tax bracket, no one would knock on your door, but I've been hit once. For me, that's all it takes.
you lost me at the federal, state, and self employed tax rate. Aren't those all separate taxes? how do we calculate that for our state? thanks
Thanks for the video, easier than reading about it. 😂
What are the deductions for bicycle we can apply?
Which forms do you use 1099 NEC, and what else, 1040?? Thanks.
can you deduct phone bill if you worked like 5 months of the year?
Your generalized formula is inaccurate.
The federal tax rate chart you showed is incorrect.
$15-$20 per month ($180-$240 per year) using solo is not the cheapest way to file your taxes.
Going to H&R block is horrible advice.
Why did I get taxed so much. How do you guys get a refund.
do yourself a favor and take your taxes to a reliable accountant like I have and have it done for you!!! I wouldn't try this on my own unless I want to be audited
usually the IRS audits people earning $100,000. or more. people can come up under random audit. The IRS always sends a letter first if there is a problem with the tax return.
@garylivingston144 yea the odds of someone getting audited in our tax bracket is pretty slim.
@@nomaderic also the IRS is a business. It is part of the government as you know. If the IRS thinks they can get back $5,000 just to pick a number and they are send an employee to do an audit they also take into account the employee's time and money that would be spent for an audit.
Skip the standardized deductions? Itemize it?
@@robertallison9653 if you want to take the time do the math. Do your income tax both ways and see if the standard deduction makes more sense or itemizing makes more sense.
Do they ask for proof of miles driven?
Keep deduct everything possible irs give you deduction on interest you pay for the car,
Thanks so much! I want to get more into dashing, knowing your from Utah like me I subscribed because I want to learn more. However I started to DoorDash right at the end of 2023 and made less than 600$ how do I report this amount of money?
As far as I’m aware you don’t have to report it if it’s less than $600
Do I track all miles I drive when I start my dash, or just the ones I do when I expect an offer?
Is this canada applicable too?
Can you make a video how to do quarterly?If you just now started doordash this year
I was surprised he didn't cover this as I've heard it is important to file quarterly to avoid fines, penalties.
Since he hasn't responded I think he's just interested in getting the YT money, and $$ from people clicking on the affiliate link..
how to fill the t2125 by this information
Can anyone help me please: Are estimated quarterly payments mandatory? Or are they only to get a return when you do your taxes on April 15th?
They are not mandatory but you can get a fine of $500 from the IRS if your total ends up being more than $1000 at the end of the year.
I didn’t use my quarterly payments this year and my tax professional said that they randomly fine people for not paying quarterly😮
Hi, do you know where you add the tips on the schedule c form for DoorDash? I have the 1099 DoorDash sent, but I don’t think it includes tips, or does it? I’m so confused. I don’t see anywhere on schedule c to add the tips. Our Regular tips. Thanks
No you don’t need to add tips separately. It is included in your 1099 earning form you receive.
I didn't know what to expect at the beginning, so I would do a screenshot of every order offer - before I accepted it. It shows the mileage and the pay, which I enter into a spreadsheet for reference.
As for tips, it's difficult to know if they're included in the pay. Looking back at my screenshots, Doordash has changed its wording thru the course of the year.
- Beginning in March, 2023:
"$XX.xx Guaranteed."
- In June, 2023:
"$XX.xx + Guaranteed - Total will be higher." (Note the plus symbol after pay.)
In July, 2023:
"$XX.xx Guaranteed (Incl. tips)"
Very confusing.
@@andthepoetliftshispen5752 It’s added in your 1099 fork they send. You also don’t need to do the screenshots. You can go into your pay area, click on week, then day, then on the order and it gives you the break down of delivery pay and tip on each order. Also DoorDash sends you a mileage log of your year’s mileage. They send it out the end of February for your taxes.
crazy how we have to pay taxes to work, then pay more taxes for buying things we need, taxed on every service. so you are telling me i can not file for miles and the 1000s or more i pay to maintain my car, put gas in the tank, replace my tires, oil changes ect.
Dude the .65 cent per mile covers not only gas + everything you just listed. It helps to read.
@@otgbaby4615that rate doesn’t cover nothing. Do the math.
@@wizardofraw how does it not? Please explain
@@wizardofraw My current rate is .24 per mile that it will cost me just in gas. The other .40 cents covers repairs and extra costs. Idk about you but I save my money and I have a reliable car. So I’m not worried about repairs or buying a new car.
@@otgbaby4615 So 64 cents per mile covers buying a new car when you run the current one into the ground delivering Chic-fil-a?
I don’t understand any of this
This was the most dumbed down tax video i've ever seen, You need education my friend
I know you said total miles driven but is that for on orders only or the bigger total of miles
I wasn't sure either, so I asked Google Gemini. Explained it pretty well.
"When preparing taxes as a Doordash delivery driver, which mileage estimate should I use? The on-delivery mileage or the total dash mileage?"
You should use the total business miles driven for tax purposes, not just the on-delivery mileage provided by DoorDash.
Here's why:
Accuracy for Deductions: The IRS allows a mileage deduction based on all business miles driven. This includes miles from driving to pick up deliveries, driving to your delivery zone, and driving home after your shift. DoorDash's estimate only captures "on-delivery" miles, which underestimates your total business use of the car.
IRS Compliance: For maximum tax savings and IRS compliance, you need a record of all business miles. DoorDash's estimate might not be detailed enough for an audit.
Here are some options for tracking your mileage:
Mileage Tracking App: Consider using a mileage tracking app specifically designed for gig workers. These apps can automatically track your miles and provide detailed reports.
Manual Log: You can manually keep a log of your starting and ending mileage for each dash shift.
Remember, it's crucial to maintain accurate records for tax filing. Don't rely solely on DoorDash's estimate.
Oh jeez here we go again. This is to estimate your taxes, NOT to file them. Taxes are so complicated with each state having different rules. You will never be able to use any formula to correctly pay your taxes. The answer is: plug numbers into software and let it tell you what you owe.
What about write offs? Do you enter them before you file
Have you noticed a disparity between the miles DoorDash tells you that you drove and the miles you tracked?
How do I get my miles ? What they are telling is like I work 5 days only. I need to file my taxes and I do not know how to get my trips
DoorDash should have sent you an email with your miles. I would call support if you never got it.
Do you get a year summary if you didn't make enough to get a 1099 form? Or you just print the month/months you made income?
what if I worked in 2 different states. Do I go by where my doordash account is?
Yes. You file by the address your 1099 form is made out too. If the other state is where you worked more at then you would need to change that info thru DoorDash first so your 1099 aligns with it. It should always go off your home address, assuming that’s where you have done at least 75% of your work.
Hello my friend, one question: where can I find the miles I drove with the app?
you can't, i write down my miles after every dash.
@@PhobosPlace Me too, total time on line, not per dash to drop.
Best thing to do is write down beginning mileage when you start dashing for that day. Then at the end write down the ending mileage. Subtract and you have total miles for that day. No need to track each delivery. As long as you have a reasonable process and keep a log the IRS is unlikely to challenge you on that deduction in the unlikely event of an audit.
Doordash emails you a rough estimate but it is not exact
How do you file if you only worked in one month and wont get a 1099 as you just made a few deliveries?
What if half of your income comes from a W2 job and half comes from gig work.
You'll get credit from your W2 towards your 1099
Most likely you will owe taxes assuming you are not being over withheld on your W2 job. Remember you have to pay federal taxes on your next profit. Plus you have to pay the SE tax (self employment) of 15.3% as well. Gig workers should be putting at least 20% of earning aside for taxes (maybe more or less depending what state you work in).
I just started. Doordash. I havent gotten to the 600 part where afterwards I was told I have to pay taxes. But my question is, so far I haven't kept track of my miles for doordash. Is that ok or
I just became a DoorDasher today. Do I keep all my gas receipts and mail all those receipts at tax season or do I just add them all up but keep the receipts just in case?
So there's 2 ways to go on about it, There is the way that he's talking about it, And then you can go to route 2, Would be all your vehicle expenses like gas anything to do with your vehicle breaks everything else
So keep a record of all your mileage, Is like in a notebook or something like you can get from Walmart, And keep or get 2 of them one to track all your knowledge and everything, And want to keep all your receipts in for gas if you have any mechanical problems, And everything maintenance was on your vehicle
I got two wide ruled composition books, One I have all my maintenance and gas receipts in,
And one, Has the dateThe time you started the time you ended, And your mileage from the beginning to the shift, And the mileage you have after the shift that you work, And just to keep up with my hourly rate of pay, I put the dash time in the active time down as well
When I know I'm going to accept an order, I take a screenshot before I accept it. That way I have a record of the miles and payout. Once a week I go thru my screenshots and enter the data in a spreadsheet.
Is Schedule C the best line for tax write offs for a single individual with no dependents?
It's your only option if you are a gig worker getting income from a 1099 (not a W2). It's not a line, it's a schedule, which details out your business income and expenses.
@@hellscpa2180 so schedule c is the best for dashers who are single with no dependents?
I’ve never paid taxes on doing this 😂
How would u know how many miles I drove from door dash last year if I didn't track miles?
Every Dash shows how many miles to drop off. They keep very close watch of that
@@robertallison9653imagine doing door dash full time doing 30 deliveries a day and having to scroll through and calculate the miles on 8 thousand orders
@@robertallison9653 what about when you drive 10 miles out of your area/map to drop an order, can you write off the miles that it took you to drive back? For example it’d be 20 miles.
Doordash emails you every year your estimated miles around February 28th but it's only a rough estimate which is why everyone advices you use an app to get the correct amount of miles.
@@old_redlk3319 starting January first I just started keeping a drivers logbook in my vehicle.
is there a premade calculator for doordash by chance?
I haven't received any taxes from DD in almost 2yrs whats up with that?
They send you an email of your 1099 through stripe app so you can view and print the document. Another email of the mileage also.
@@peks4924 I got the mileage email fasho but no 1099 email yet...
i didnt keep track of my miles.. i just started last year and didnt know id need to. do i have to put it on my taxes if i dont even know the mileage?
I know for DoorDash they sent me an email a while back in February with the "On Delivery/Total Dash Mileage" for 2023. Check with customer service to see if they can get that to you on the fly.🎬
I use gridwise to track my miles because I deliver for 3 different apps. I use the free version and so far that has been enough for me.
Ok so what if you didn’t keep track of your mileage 😢
Check your email DoorDash sends you your mileage for the year.
I always do a screenshot of the run offer just for the mileage purpose, but I was pleasantly surprised when Doordash emailed me the info.
@@andthepoetliftshispen5752 You continue to should keep track of your mileage - you can still count offline miles that were used for doordash.
@@rodneyrobinson138can I ask an agent for the mileage I’ve done since the beginning of the year or it has to be until the end of the year
Sure, you get to deduct your mileage and vehicle maintenance, but you're still paying a lot for gas and vehicle maintenance each year.
You pay that to work a w2 job anyways. Not as much but still.
@@fungames1594 I think it's fair to say it's quite a big difference in amount. I have a W2 job and I fill up my tank on average once a month.
If anyone here has driven about the same amount of miles as per dollar amount you made if you add in all the other write offs you will actually get a return.
Thanks for the info, but damnn that’s too much work for me lol 😅
Are solo monthly fees tax deductible?
Yes
Can’t you just get your just do the 1099 if you don’t want to go clear, all the miles and stuff
What if I've been tracking my mileage myself
You need some form of proof for the IRS (generally speaking). So, a ledger book probably won't work because you can just enter in whatever you want. You would need metadata-based pictures of your milage when you boot up the app along with the metadata for when you booted the app. It's (generally) safer to let the app track your milage.
Supposed to pay quarterly or you pay upto 25% penalty tax for the year
How did he miss that?! Feels like he just made this b.s. quicky to get views, and get people to click on his affiliate link.
And how do you prove thats what you drove?
There’s multiple apps thag will track how much you drive for the entire shift, from start to finish
Thanks for telling me nothing I wanted to know.
And not being responsive in the comments.
Do doordashers need to do quarterly taxes or yearly?
You can do yearly 😊
@@tecno8335 But dont you have to pay taxes quarterly?
What’s the best way to go about this when door dash hasn’t sent you a 1099 bc you haven’t made over $600 ?
Don't worry about it
You don’t have to file for it at all. 😊
You left off so much. Cell phone. Warming bags. Health insurance. Softwares to track your mileage and expenses. Office supplies.
Can I ask how you deduct your cell phone? I keep hearing you can but i have never figured out how
@@hotpinkbear31 while Dashing you are using your cell phone. Therefore you can deduct a portion of your monthly cell phone bill. For example and for simplicity, let’s say you dash 8 hours a day every day. 8 hours is 1/3 of a day. So every month 1/3 of your phone usage is for business proposes. So you can write off 1/3 of your monthly phone bill. Let’s say your bill is $60 per month. You can write off $20 per month times 12 months is $240 a year. That will reduce your income by $240 dollars on this example.
@@hotpinkbear31yeah same here I’m curious
What if I made less than $600 in DD?
My son has that same question
No need to file that.
Just don’t report I never do and neither do my sister nothing ever happens
87K new IRS agents, be safe!
You better hope and pray Uncle Sam doesn’t find you because believe he eventually will and it won’t be good for you.
They will. It takes about 2-2.5 years before you get that notice.
You better get a good lawyer and save money for the lawyer. Because they always come back for their money. If you have done under 12k you are OK for this year from next year on I think is 5k
When does dd send out the 1099
I got mine last week
Also I only started in Nov and never tracked my milage does dd have anyway of checking that or am I just out of luck
@@Fearthyangelsjust throw out a fake number. But make it seem realistic. I said I drove more miles than what Uber tracked me for and they didn’t question it
@olwan96 yep. I've never tracked my miles I just throw a number out there.
Mine came last week . You should’ve gotten it by mail or email
How you gonna make a video on how to do Doordash taxes and not know (4:28) 100% what form they send you for taxes?
Filing the $2 in profit should be easy.
I'll subscribe, only if you promise to NOT enter me into any contests, sweepstakes, giveaways, etc.
😂