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When Does DoorDash Send Out 1099s? Your Tax Season Survival Guide

DoorDash sends out 1099-NEC forms by January 31st of each year to eligible Dashers. This form reports your earnings as an independent contractor for the previous calendar year, which you’ll need to file your taxes accurately.

Understanding Your 1099-NEC from DoorDash

Let’s delve into the specifics of the 1099-NEC form from DoorDash, what it means for you as a Dasher, and how to navigate the often-confusing world of self-employment taxes. Forget the jargon; think of this as your personal translator for tax season!

Who Receives a 1099-NEC from DoorDash?

Not everyone who dashes will receive a 1099-NEC. The key factor is earnings. You’ll receive a 1099-NEC from DoorDash if you meet both of these criteria in the previous calendar year:

Earnings Threshold: You earned at least $600 from DoorDash.
Payment Processing: DoorDash paid you this amount (or more) through methods like direct deposit or other electronic payments.

So, if you dashed sparingly and didn’t hit that $600 mark, you won’t receive a 1099-NEC. However, remember that you are still legally obligated to report all income to the IRS, even if you don’t receive a 1099-NEC.

How Does DoorDash Send the 1099-NEC?

DoorDash typically offers the 1099-NEC in two formats:

Electronically: This is the most common and convenient method. DoorDash will usually notify you via email or through the Dasher app when your 1099-NEC is available to download. Look for it within your Dasher account.
Via Mail: If you haven’t opted in for electronic delivery, DoorDash will mail a physical copy of your 1099-NEC to the address they have on file for you. This is why it’s crucial to keep your address updated in the Dasher app!

What Information is Included on the 1099-NEC?

The 1099-NEC contains essential information for your tax return. Here’s a breakdown:

Your Information: Your name, address, and Taxpayer Identification Number (TIN), which is usually your Social Security Number (SSN) or Employer Identification Number (EIN). Double-check this information for accuracy!
DoorDash’s Information: DoorDash’s name, address, and Employer Identification Number (EIN).
Box 1: Nonemployee Compensation: This is the most important box! It shows the total amount DoorDash paid you for your services as a Dasher during the year. This is the amount you’ll use to calculate your self-employment taxes and income tax.

What to Do When You Receive Your 1099-NEC

Once you receive your 1099-NEC, take these steps:

Verify Accuracy: Carefully review all the information on the form, especially your personal details and the amount in Box 1. If you spot any errors, contact DoorDash immediately to request a corrected form (1099-NEC corrected).
Keep it Safe: Store your 1099-NEC in a secure location. You’ll need it when you file your taxes.
Report Your Income: Use the information from your 1099-NEC to report your income on your tax return. This is typically done using Schedule C (Profit or Loss from Business (Sole Proprietorship)).
Consider Professional Help: If you’re unsure about how to file your taxes as a self-employed individual, consider seeking assistance from a qualified tax professional. They can help you navigate the complexities of self-employment taxes and ensure you’re taking all the deductions you’re entitled to.

Key Considerations for Dashers: Self-Employment Taxes

As an independent contractor, you’re responsible for paying self-employment taxes. This includes both Social Security and Medicare taxes. Unlike employees, where these taxes are split between the employer and employee, you’re responsible for paying both portions.

Estimate Your Taxes: It’s wise to estimate your self-employment tax liability throughout the year and make quarterly tax payments to the IRS. This can help you avoid a large tax bill (and potential penalties) at the end of the year.
Deductible Expenses: The good news is that as a self-employed individual, you can deduct many business expenses to reduce your taxable income. This is where careful record-keeping is essential!

Maximizing Deductions: A Dasher’s Secret Weapon

One of the biggest advantages of being a Dasher is the potential to deduct a wide range of expenses. These deductions can significantly lower your tax bill. Here are some common deductions for Dashers:

Mileage: You can deduct the business miles you drive while dashing. Keep accurate records of your mileage, including dates, destinations, and purposes of your trips. The IRS provides a standard mileage rate each year.
Car Expenses: Instead of the standard mileage rate, you can deduct your actual car expenses, such as gas, oil changes, repairs, insurance, and registration fees. However, you can’t use both the standard mileage rate and actual expenses.
Phone Expenses: If you use your phone primarily for dashing, you can deduct a portion of your phone bill.
Hot Bags and Other Supplies: Expenses for items like hot bags, insulated containers, and other supplies used for delivering food are deductible.
Health Insurance Premiums: Self-employed individuals may be able to deduct health insurance premiums.
Business Use of Home: If you use a portion of your home exclusively and regularly for your business (e.g., for bookkeeping or managing your dashing activities), you may be able to deduct a portion of your home-related expenses, such as rent or mortgage interest, utilities, and insurance.

Frequently Asked Questions (FAQs) About DoorDash 1099s

Here are some common questions Dashers have regarding their 1099-NEC forms from DoorDash:

1. What if I didn’t receive my 1099-NEC by January 31st?

Contact DoorDash support immediately. Check your Dasher account and your email (including spam folders) for a digital copy. If you opted for mail delivery, confirm your address is correct in the app. DoorDash is legally obligated to provide it, and the sooner you address it, the better.

2. How can I access my 1099-NEC online?

Log into your Dasher account through the DoorDash website or app. Look for a “Tax Information” or “Earnings” section. Your 1099-NEC should be available for download as a PDF file.

3. Can I change my delivery preference for my 1099-NEC?

Yes, you can usually change your delivery preference (from mail to electronic or vice versa) within your Dasher account settings.

4. What if the information on my 1099-NEC is incorrect?

Contact DoorDash support immediately. Provide them with the correct information and request a corrected 1099-NEC (1099-NEC corrected). Don’t file your taxes until you receive the corrected form.

5. Do I need to report income even if I didn’t receive a 1099-NEC?

Yes! The $600 threshold is just for issuing the form. You are legally required to report all income to the IRS, regardless of whether you receive a 1099-NEC.

6. How do I file my taxes as a DoorDash driver?

You’ll typically use Schedule C (Profit or Loss from Business (Sole Proprietorship)) to report your income and expenses. You’ll also need Schedule SE (Self-Employment Tax) to calculate your self-employment taxes.

7. What are some common tax deductions for DoorDash drivers?

Mileage, car expenses, phone expenses, hot bags, health insurance premiums, and home office expenses are all potential deductions. Keep meticulous records!

8. How can I track my mileage for tax purposes?

Use a mileage tracking app, a spreadsheet, or a notebook to record your business miles. Be sure to note the date, destination, and purpose of each trip. Apps are typically the most convenient.

9. Should I make estimated tax payments?

It’s highly recommended. If you expect to owe $1,000 or more in taxes, you should make quarterly estimated tax payments to avoid penalties.

10. Where can I find more information about self-employment taxes?

The IRS website (IRS.gov) has a wealth of information about self-employment taxes. Search for “self-employment tax” or “independent contractor tax.”

11. Is DoorDash required to withhold taxes from my earnings?

No, DoorDash does not withhold taxes from your earnings as an independent contractor. You are responsible for paying your own taxes.

12. Can I deduct the cost of tax preparation software or a tax professional?

Yes, the cost of tax preparation software or a tax professional is a deductible business expense.