How to File Taxes For Doordash Drivers (2022-2023) | Write-offs and Benefits
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- čas přidán 5. 09. 2024
- Breaking down how to file your taxes as a doordash driver, what write offs and deductions you get & more
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Good video Moore. 15.3 % of self employment tax has to be paid as well when you have 1099 income that is reported on a Schedule C. Appreciate you ensuring others check with a tax professional to confirm.
3:25 - That equation has one too many values and operations in it. Your tax write-off total is simply your miles driven multiplied by the standard mileage rate (in decimal form). If you were to actually complete the formula you’re sharing, the answer would be 848,804,184.1125. 😑
That’s true
Yeah that shit confused me. It should be Total Earnings - (Miles x Mileage rate)
@@TomSomniac Shows his priorities are more founded in ratings than they are in providing actual valuable information. Not to say it wasn’t an honest mistake, but he should have immediately put out an updated video.
Someone told me they get their mileage info with their 1099 info. Is this true I don't recalled getting one in 2022
@@Chenda-rr6yo I don’t recall getting that info either. Maybe in a separate email, but I don’t trust DoorDash to estimate properly for me. I track my own mileage.
The extra deductions you mentioned, like phone, hot bags, etc should be subtracted from the taxable income before you multiply it by the tax rate. You forgot to mention that.
That seems standard
Thats the individual expense decuction that he mention at the start.
This was very helpful. I just started dashing in December and have been so STRESSED about filling taxes on that 1 month lol
No problem! Glad I could help😃
Me too😮
@@Moore.Driven yea bro yo equation doesn't make since the one u have on screen the fuk
Same,don’t know how many miles driven 🤦🏻♀️
Me to ! Not full time but here and there
Bruh thank you! This is the most straightforward comprehensive video on the topic for me to digest, with real figures too. I appreciate you!
I run both side by side and itemized deductions always wins for me. I travel multiple times a year and use multiple expense categories to maximize my deductions.
I took standardized would it have been better for me to used itemized and more write offs?
I don’t even get a refund I have federal tax due and it’s like so much
Somebody told me that for the very first year, choose standard mileage deduction versus individual expenses
But this was always my question, if I choose standard mileage deduction, can I still include oil changes, the brake job I had to get, my cell phone bill, the bags that I bought on Amazon, etc. etc.
Someone said, if you choose the IRS standard mileage deduction, you can’t include any of those other things
I think I’ll do a side-by-side running tally
Itemize means soecifics i.e. oil changes, phones, tire changes, ect.; whereas standard deduction is what the irs thinks what all these expeneses add up to.
@@cyn2612 incorrect just run them side by side to see what works best for you. However if you're FT the itemized will always win.
I've been thinking about trying doordashing but I swear the taxes are just making me not even want to lol.
That mindset is really damaging 💔
So are taxes
@@libbyzumbrun907 valid… id rather have the tax problem than that mindset problem tho
Don’t do it
Updates? The expenses plus w2s are interesting
I made a little bit more (40K) with all of the apps I do. After mileage deduction, other phone/supplies deductions, and my prior year losses from doing it part time prior to 2022, my taxable profit was just under 7K.
Prior year losses? How did you lose money last year?
@@brianhenry7983 It was mostly from doing rideshare 2019-2021.
How much did you owe or have to pay ?
You left out self employment tax which covers social security and Medicare. That's 15.3 percent just by itself
Right 👏👏👏
Doordash sends you an email
Thanks for this information. I have another method, "Up yours, IRS!"
I'm going to do the milage deduction. With my day job, I get 50% most vehicle maintenance and get free oil changes. Add on the fact my main driver is a compact car and my expenses are actually very low.
How you get free oil changes. I want that 😔
@@xpapagi0rgi0x56 I'm a lube tech with Jiffy Lube and all employees get a free oil change in the months of February, June, and October.
Outside of changing career fields, most vehicles are pretty to do oil changes on. However, that requires tools. So if you ever plan on changing your own oil recommend watching tutorials to find out what tools you'd need and getting a bottle of spray-9 for cleanup.
4:07 - Should only be the miles driven multiplied by the standard mileage rate. You don't also multiply it by your earnings. The end math for the deduction is correct in the video (it's only miles times rate).
This is a very helpful video. I thank you from the bottom of my heart❤️
No problem!
What do you use to track your miles? Can you also write off percentage’s of your car payment, vehicle maintenance on turbo tax?
Am I the only one confused by his math? He instructs to multiply the miles driven by the standard mileage rate, and then multiply that number times the total you made. But his total of 22,201.99 is only the result of (miles driven x standard mileage rate)
Yeah I’m confused how he did the math!
You forgot to deduct the part that Uber lists as expenses, taxes and fees!
Awesome video. Thanks for sharing. I use the SOLO app, I got introduced to it in another one of your videos.
Dude getting your 1099 with DD is such a pain…Uber is easy as cake
I’ve been following you for a while ! And you are one of the people who got me started on my own dashing/instacart/Uber/grubhub/and more. I appreciate your videos more than you know! Great video hope you have a good week 😎
Im confused so how does the irs know you’re not lieing about the miles driven that is not counted for in between deliveries
I don't have anything saved though.. Every week everything I make goes to food, gas, and rent..
This was a very “bare bones” video that doesn’t go over any of the tax forms that you’re required to fill out and didn’t mention some of the other deductions you can take advantage of. I’ll be making a way better video going over everything I did to do my taxes for 2023.
Could you make a video on the correct tax form/s to use and how to do both federal and state (maybe show how to get there on turbotax?)? And how/where to send the tax money from the bank account? Thanks
I heard the same thing filing taxes quarterly I never done doordash, might do it in the future. Love this type of information. Thanks
man so many gurus out I've seen , I am so happy someone finally explained something so clearly thank you 🙏yo made this so much more understandable
Yeah, I hope you're paying SE Taxes xD That might sting in an audit later. This is for sure why I am skeptical of programs like Turbo Tax because they don't always prompt you, make sure to pay the extra fee to talk to a tax professional from their website. Also the "quarterly taxes" isn't actually filing your taxes every 3 months, it's paying the IRS is quarterly payments. Your tax person can help you with this. It's not always required but it can be super helpful! The fee for not doing it if you are required to do it is honestly very minimal, if you earn under a certain amount, so I don't think it's much incentive for people to care, haha.
I didn’t report 2022- 2023 and im so confused if I can use my statement on DoorDash direct to estimate how much I made in a year and add those up and figure how much I made I haven’t even made that much in 2022 but 2023 was a hard year for me I lost my job inflammation hit and couldn’t find no jobs and started doing DoorDash without even giving my self time to think about the taxes later on :/ idk what to even do or start on I’m so lost 2022 I started around the end of the year when inflammation happen I think and kept doing DoorDash I saved some of my mileage but yea rn it doesn’t look to good
So where does the standard deduction come in?
$12,950.00 for single...
I have a couple of questions for you veteran doordashers. Hopefully somebody can help me out.
1.) Do you start tracking your business miles from your house when you get your first order and then stop tracking your miles when you get back home? Or do you start tracking your miles from your first pick up and then stop tracking miles after your last drop off?
2.) Do I have to also track my personal miles along with my business miles in order to distinguish between the two? For example, I'm using Everlance to track miles as well as writing them down manually. Can I only use my Everlance mileage tracking app when I'm actually doing doordash and not use it while I'm driving for personal miles? Or do I have to track all the miles I drive and then distinguish which miles are for business and which or for personal use?
Thanks for any and all help in advance.
I don't know about you, but I received an email from Doordash about my 2022 mileage estimates.....I used Stride by the way. Doordash calculated my miles in 2 ways. 1 - From when I accepted deliveries to when I marked them complete and 2 - when I begin my dash session to when I end it. So I'm just going to use that information that they gave me. Cuz I know I forgot to calculate some miles through the Stride app.
The IRS website says that we cannot count our commuting miles. Basically, start your tracker at your first pickup (not where you are located when you accept first order) and stop it at your last delivery. I’m new to this, but I just watched another DD video explaining this. I hope it helps you too!
I might have found a formula that works pretty decently. So you make about a dollar per mile. But according to this videos number, if you do a little multiplication, it can almost tell you exactly what you did.
Per this video, if you take the total amount you made and multiply by .95, it gives you just about how many miles you used to get from the order and drop off location. Keep in mind it's only an estimate, but it's close.
So in this example:
38231 * .95 = 36319.45 miles. No, it's not his exact number, but gives you a really good idea. Which in turn makes sense. Because basically most orders I've seen is about a dollar per mile. Some might be a little more than a dollar per mile. But the 5 percent is a good round about number that's it's close enough.
@jayguurl I never received anything from Doordarsh on my mileage estimate only a 1099
What if you just counted the miles manually every time dashing by just looking at your odometer? Does the irs want prof of your miles and how would you prove that?
This is the way I do it. I have them written in a spreadsheet for each day and just add all them up come tax season. If they come at me,I’ll just show ‘em the spreadsheet. I have them set up by year.
Very informative!
You didn't mention subtracting the standard federal deduction after subtracting your business expense (mileage write-off) which is then your taxable income.
lol your first equation is wrong, 38,231*(36697.50*0.605) does not equal 22,201.99
You don't multiply your income by the miles times the rate....the mileage expense is just miles driven times the rate...then subtract it from your 1099 earnings.
thank you broo i was literally so confused by this video
How does the deduction work for someone who also has a W2 job? Can you do the standard deduction as an employee and ALSO the standard miles deduction for delivery driving? Or is it one or the other? Thanks for the vid
Can you write off car tint as a delivery driver?
I also would like to know this cuz colorado mountains you NEED tint
I’m thinking of starting dashing when I’m 18 so I need to know how these taxes work cause my current job takes taxes out of my paycheck so I never had to worry. Now I do 😂
This shit gets me excited 🤣 I love learning how to utilize the system
Excellent advice thanks for the information! One question, I may have missed it. As 1099 employees are we required to file QUARTERLY? I read somewhere this is a requirement. Sorry if I missed it in the video?
No you don’t need to file quarterly
HOLY SHIT THANK YOU SIR
I bought my car at 43,950 miles. I have been DoorDashing for 5 days now, so can’t recall how much Iv ran so far, any tips? An app anyone recommends? Or do I guess ?
Hey man I'm new too and Im learning as well. I was able to find how much I made on certain days by checking the tab, "earnings" on the Dasher app.
Can you write off, new tires, inspection, oil changes
If you take the actual expense method, than yes.
Thanks for the help
Don't they send a w2 for your taxes? Because I have a friend who does door dash and said they send a w2 so why do you have to do this when they take the taxes from your earnings anyway?
No it’s a 1099 form since we’re independent contractors
What about Medicare and social security?
Anybody know if payments to the car that I’m using can qualify for the write offs?
yes
Very helpful. Thanks!
You're welcome!
It’s smart to put back 10% of all you earn in the savings app
One question
If i want to claim for example fuel, should i use fuel in the time of working as a Doordash driver or not?
I mean if i don't work for Doordash for one month, can i claim fuel as a tax deduction?
Def subscribing
Why do you not mention that self employment income is taxed TWICE, as self employment income at 15.3% as well as taxed at standard income bracket percentage??? Seems like an absurd oversight.
It's total made MINUS (miles driven x std. mileage rage) not multiplication 😭😭😭
Dude I was over here having a heart attack 😂😂
So if I made a total of 4,870. And I drove about 10000 miles for DD and I do 10,000x std mileage and get 6250 . Am I done or do I have to do anything else ?
I don't know if I'm doing his math right but I'm not getting what he is getting...
How do you track your miles ???
Use solo app
Thank for the content, am new to dashing , pls can someone help me with this question. If am using a standard mileage reduction, can I deduct the money I got a car for dashing with within the period.
Secondly, my wife also dashes , but had her car engine changed,can she deduct that along with standard reduction.
In your formula you mixed up sign minus with multiply. Anyway thank for video
you also have to pay 15% for FICA
Super helpful
In addition to state and federal tax, don't you also need to pay self employment tax?
SETA - Self employment taxes is also a requirement to pay… you need to take your income after business write offs and multiply that by .153, giving you the amount you need to pay for your Social Security and Medicare taxes as the employer and employee since you’re self-employed. This gets filed on a Schedule SE along with your Form 1040.
Good news: you are only required to pay half of that amount as if you was a W2 tax filer (employee) and write off the other half (employer).
This is not figured into and not part of your adjusted gross income (AGI).
yes!
Great video
After collecting my All expenses for food mileage gas etc. And where do I need to go and show its?
How can this be done by calculating gas spent? Asking for the people who drive with diesel or people who have four speed transmissions and will burn more gas. 🙏🏻 Yes I have a four speed automatic...I want to eventually convert it to six speed manual.
just started in January how do I tell the miles I've drove? Does door dash show that or do I calculate? I've kept every gas receipt since.
Is gas considered a write off?
If your fire fighter and police officer yes
Does anybody know if we need to log or have proof of our miles driven ?
How would the IRS know we’re not lying about the miles driven ?
Any help would be greatly appreciated !
wondering the same thing
If you get audited you need to be able to prove the miles you drove for the job. you need to keep a log, app/notebook ext.
Hi sir if I did not make milage calculator how can I prove this? Which i drive while my delivery time?
Do you have to show the breakdown of total mileage or just the total
I do Uber and Doordash since Oct 2022, my question is if individually I made less than $600 but combined Uber and DD I made more than that I have to fill the taxes? Combined I made 700 hundred something. I tracked everything expenses, miles etc.
It’s $600 minimum per platform. If you owe self employment taxes you have to file a schedule C per platform. Say you earned $100 on Instacart, $700 on DoorDash, and $1000 on Uber Eats. You’d do a schedule C each for DoorDash and Uber Eats but you’re not required to do a filing for Instacart in this example because it’s below the $600 threshold.
@@msport4769 ok perfect I think I got it! So in my case because each platform is less than 600 I don't have to fill it, correct?
If it’s under $600 in a given year, then the companies (DoorDash etc.) won’t notify the IRS of it. Technically you owe taxes on $1 of earned income but the $600 is the threshold where the IRS gets notified of your earnings from the company paying you. Not saying you shouldn’t file, that’s up to you.
If you have a lot of detailed records you can write off any amount of legitimate business expenses (especially mileage).
Unless you only do gig work a couple times a year it’s really easy to exceed the $600 threshold so I would get in the habit of tracking everything. Plus you’re going to need to do record keeping in order to properly calculate your estimated self employment taxes to the IRS (due quarterly).
@@msport4769 I'm keeping records of everything, miles, expenses etc. I do DD or Uber ocasionally when I have the time, the market is great but I'm not always available.
@@msport4769 thanks for all the information
My one big question (with door dash) IA it like any other job do they automatically just take out the state and federal incoming tax and THEN pay us. Like a normal job. Even though they don't make you fill out a W2 where you can claim yourself or is being an independent contractor automatically make that a self claim. So they should deduct taxes from your garnish pay. Then we file taxes and see if we owe or get any back. Because I want to make big bucks on the side prior to my full-time job. But if you get stuck paying big amounts of taxes it may not be worth dashing. I'd rather them already take it out before they pay me. So I don't have to pay them Nothing.
No, they pay you the gross income (total) and you have to take out taxes yourself.
@@dlariby so is that why we have to track our miles, and save gas receipts?
@@TheSPEEZY99 If you want a tax deduction, yes. I don't know if you have to save gas receipts though. I'm a little new at this.
@@dlaribyyou should save every receipt you used to deduct just in case you get audit
I have a question! Do you track miles from the time you leave your house to the time you get back? Or just when you are active? If that makes sense
I do it from the time I start my dash
If you use an app to track your miles you just turn that on as soon as you start dashing so it can begin tracking miles. So essentially as soon as you start your shift your miles start there.
But I thought the door dash app tracked your miles?
@@bbyjcky1 it only track the miles you pick up and deliver the orders but not the miles in between.
@@vincetheveganprince @bbjcky1 yes and also doesn't account for miles driven while multi-apping (which, for obvious reasons, cannot doubly (or more) count).
What is the best way to track your mileage? Does doordash send you total miles at end of year? Is it a ballpark figure??
Download the solo app with the link in the description of the video, it automatically tracks your miles for you
@@Moore.Driven cool. Thank you
CRA saying I have not registered the business number. How do I do this?
Oppss I saw it. It is here. I'm new in your channel
Always awesome explanation! I so appreciate it!
So when you are dashing in multiple cities what do you do for your city taxes? State and federal is basic i know about that but what about city tax you have to file?
Question.. is all this accurate with Lyft drivers also?
Also, Lyft says since I made less than $20,000 I don’t qualify for a 1099.. does this mean I don’t have to file?
No no no noooooo that just means. They won’t send it via mail it’s still on the app lol
Is it true that doordashers need to pay 80% tax rate on tips? I was at a restaurant and a fellow dasher said that he had to pay 80% tax on tips.
When you write off you mileage, can you do your total mileage that year or just specifically the mileage u spent doing gig work?
Only working mileage
I have my Doordash W2 but there's some kind of number they ask for that I dont see on the W2. Anyone else having this problem?
How do I find the EIN. No one in support seems to know what this is
So I’m a delivery driver for my company that uses my own vehicle. I file a W2…..can I write off my car expenses/mileage?
Yeah
I just started doing Doordash full-time but I'd like to get a better reliable vehicle. Any advice?
corolla
Prius
Honda accord or Toyota
when you file taxes for ship, grubhub doordash and uber eats would you file them all on the same paper? or would they all be separate
Separate different companies
@@bushtyga999 oh okay yeah makes sense
My first year doing both UberEATS and DoorDash, I may have filed them separately. But I file them all together now.
It seems too much work to be filling out a hundred forms.
The way I look at it. It’s a delivery business whether it be goods or people.
Imagine keeping mileage for each delivey app. That just seems like a headache.
I just keep a tab on my mileage and when the year ends, I combine all my mileage and 1099s.
All I’ve ever claimed has been mileage though. That basically takes cares of anything to do with your car…gas, maintenance, depreciation etc.
I don’t really think yas way is wrong. For me, it’s just not worth the extra work.
off the point.....do you make video about which best Doordash mapping for iPhone? I seem to think my mapping GPS isn't accurate or maybe you might have a good suggestion
I use google maps, seems to work a lot better then apple maps
on turbo tax where do you enter the milage deduction? I cant find it on there anywhere
My earnings on my app don’t match the 1099 they sent me for the year. It’s over by $200. I knew this was going to be a pain.
Brooo.. im only 18 and I didn’t know we were supposed to track milage and have made at least $300 😪
Thanks
How did you get your tax rate as .1485
Could we use “tax credit” for purchasing a Tesla if we do 1099?
sooo uhh did he address where we'd have to pay the 15% self employment taxes on top of the federal + state taxes for taxable income? Where does the 15% self employment tax go in place? is that 15% on top of the taxable income? or is the 15% self employment tax multiplied into our gross income earnings before taxes?
Thanx bro
What form does the mileage go on? Is it considered to be Scheduled A? Charitable miles
Schedule C where you put all the details for business expenses
Quick question, how much do I need make till the IRS starts taxeing door dashers🤔. I read in Google $600 till door dash sends a 1099 form.
Did you forget about the 15.3% FICA tax?
lol this..
Do I need to report a $300 per YEAR profit? That includes tips....
Speaking of tips.... Do I need to keep track of tips separate from doordash pay? I am not talking about cash tips which I am not getting anyway.... but the tips that doordash reports...
What if the tax write off is more than I made?
Door Dash under estimates miles. They measure as the crow flies, not as the car drives.
How can a new user get rhe correct amount?
Sign up for the solo app with the link in the description of the video. It automatically tracks the miles you drive when you’re on shift once you link your Doordash account!
How do I add gas mileage expenses for Doordash when doing taxes on Cash App?
I have a question. So for the upcoming tax day our we only paying taxes on money that we made in 2022? Even though ive already made money in January of 2023?
So I have a question is it one or the other you can’t do both you can only claim one? So if you do mileage you can’t do your repairs? Or if you do repairs you can’t do mileage?