Independent contractors managing self-employed taxes should stay proactive about independent contractor deductions and year-round recordkeeping.
Quick Snapshot for Self-Employed Taxes
- {{state}} taxes DoorDash earnings as self-employment income. Expect to file a state return if your net profit meets local thresholds.
- Register for an online tax account with the {{tax_authority}} so you can send estimates and view notices digitally.
- State and federal estimated taxes are generally due in April, June, September, and January. Mark both calendars so nothing slips.
Weekly Workflow
- Reconcile the DoorDash Earnings tab with deposits in your bank account.
- Categorize miles, tips, incentives, and cash adjustments in your bookkeeping app.
- File receipts for fuel, maintenance, phone, and gear in a cloud folder tagged by quarter.
Monthly and Quarterly Actions
- Close out each month with a profit and loss statement so you know how much to reserve for both IRS and {{state}} obligations.
- Submit {{estimated_form}} using your state tax portal when your combined federal and state estimates come due.
- Refresh your odometer log, check tire and fluid maintenance, and store inspection invoices.
Key IRS References
- Schedule C (Form 1040) for reporting courier income and expenses.
- Schedule SE (Form 1040) for calculating self-employment tax.
- Form 1040-ES vouchers and payment vouchers for quarterly estimates.
- IRS Publication 463 for mileage, travel, and car expense rules.
State Forms and Links
- {{tax_authority}}: {{tax_url}}
- {{estimated_form}} instructions: {{estimated_form_url}}
- Sales and local tax lookup (if required): {{local_tax_url}}
Frequently Asked Questions
Do I need a business license?
Check with your city or county clerk; some municipalities require a delivery or general business license even if the state does not.
How do I handle DoorDash cash orders?
Record the gross amount you collect, then deduct the amounts remitted to DoorDash as cost of goods sold or reimbursed expense. The IRS expects to see the full cash flow, not just direct deposits.
Can I deduct health insurance premiums?
Yes, if you pay for coverage out of pocket and are not eligible for an employer-sponsored plan, the self-employed health insurance deduction may apply on Schedule 1 of your Form 1040.
What mileage rate should I use?
Compare the IRS standard mileage rate with your actual operating costs. Keep records for both so you can choose the higher deduction at tax time.
Customize each section with state-specific reminders, portal names, and any unique local taxes before publishing.
How do I track mileage for gig work in 2025?
Use IRS-approved mileage logs or apps like Everlance to document date, distance, and purpose for every self-employed trip.
Can I deduct equipment or vehicle lease payments?
Yes, deduct the portion tied to independent contractor work; keep receipts and lease statements for 1099 tax audits.
When should I pay quarterly estimated taxes?
Send payments by April, June, September, and January to cover self-employed taxes and avoid IRS penalties.
What records should independent contractors keep?
Maintain income statements, mileage reports, receipts, and bank deposits to support deductions and 1099 filings.
How can I reduce surprise tax bills as a freelancer?
Estimate your independent contractor deductions monthly, set aside 25-30% of income, and automate transfers to a tax savings account.