One of the most well-known meal delivery services in the US is DoorDash, which is also a source of income for many people. However, DoorDash revenues are subject to taxes just like any other kind of income. You could experience severe repercussions if you don’t pay your DoorDash taxes.
It’s crucial to remember that DoorDash does file tax returns with the IRS first and foremost. Any Dashers who make more than $600 a year must receive a 1099 form from the company. This indicates that your income from the platform is known to the IRS. You risk an audit, fines, and interest on any unpaid taxes if you don’t disclose this income on your tax return.
DoorDash is also seen as a self-employment option. This implies that you are liable for paying self-employment taxes on your income as a Dasher. You risk penalties and interest on any overdue sums if you don’t pay these taxes.
It’s also crucial to remember that, as a self-employed person, you must file taxes on your DoorDash revenue. This implies that you must file your tax return by the deadline of April 15 and include information about your income and spending on a Schedule C form. You risk penalties and interest on any unpaid amounts if you don’t file your tax return or pay your taxes on time.
And finally, for tax purposes, DoorDash qualifies as a delivery or courier service. This implies that any costs you incur while working as a Dasher, such mileage, can be written off against your taxable income. However, it’s crucial to maintain thorough records of these costs since the IRS would require supporting information in the event of an audit.
In order to avoid fines and interest, it’s critical to pay your DoorDash taxes and submit your tax return on time. You are obligated to record your income and pay self-employment taxes on it as a self-employed person. You can reduce your tax bill and stay out of trouble with the IRS by maintaining thorough records of your expenses and income.