Are There Taxes for Doordash?

Doordash could be a great side gig to earn income outside of your normal work hours and on the weekends. Although some treat it as their main source of income, the number of people that do it as a gig on the weekends and out of their normal working hours is a lot more. The income earned from Doordash begs an important question for this – whether it is taxable or not.

This article will provide you with everything you need to know about taxes and Doordash.

Type of income earned from Doordash

The income you earn from Doordash is basically self-employed income as a freelancer. That’s why you get a 1099-NEC from Doordash through Stripe if you earned $600 or more during the tax year. Additionally, Doordash or Stripe doesn’t withhold federal or state income taxes from the income you earned, so you must make estimated tax payments to be even with your tax liability.

Even if you work for someone and they withhold taxes from your paychecks, the income earned from Doordash is probably not included in their calculations. That’s unless you enter an other income amount on Form W-4 that you file. If you did enter an other income figure on Form W-4, your employer is probably going to take it into consideration when withholding taxes. If not, you’ll need to make estimated tax payments to be even with your tax bill.

Since the federal law requires taxpayers to pay taxes as they go, paying less than 90 percent of your total tax bill during the tax year may result in monetary penalties.

Takeaway from this article

Having all these things said, yes, there are taxes for the income you earned through Doordash. If you’re not keen on making estimated tax payments, you can enter the income you expect to earn from your Form W-4 if you’re employed. If not, you will need to make estimated tax payments. This is mandatory for taxpayers that expect to have $1,000 or more in tax liability for that tax year.