DoorDash Taxes in South Carolina: 2025 Driver Guide

Independent contractors managing self-employed taxes should stay proactive about independent contractor deductions and year-round recordkeeping.

DoorDash payouts look simple in the app, but once you start juggling promos, tips, and mileage in South Carolina, you become a self-employed business owner. This playbook walks you through the South Carolina rules that matter most so you can stay on top of quarterly payments, avoid penalty letters, and keep more of every dash.

The guide blends IRS requirements with guidance from the South Carolina Department of Revenue. Use it as a reference whenever you reconcile deposits, plan maintenance, or set aside cash for estimated taxes. Bookmark the state links in each section so you can log in quickly on payment day.

South Carolina tax snapshot for Self-Employed Taxes

• DoorDash classifies you as an independent contractor, so state income tax is based on your net profit after legitimate business deductions. Track every mile and deductible expense to lower the amount subject to tax.
• Create an online account with the South Carolina Department of Revenue to send estimates, view correspondence, and download past returns. Electronic records are your best defense if an audit or gig-platform review shows up.
• Federal and state estimated tax payments follow the April, June, September, and January cadence. Add those deadlines to your phone with separate reminders for IRS Form 1040-ES and your South Carolina voucher or online payment.
• Hilton Head, Charleston, and Columbia require local business licenses—MyDORWAY manages renewals online.

Understand filing thresholds in South Carolina

The IRS expects a return when your net self-employment income exceeds $400. South Carolina uses its own filing thresholds tied to gross income, residency, and filing status, so double-check the latest instructions before assuming you are exempt. Even if no state income tax applies—like the situation in Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, or Wyoming—you still owe federal self-employment tax and should document that you reviewed the state rules.

Keep a one-page summary in your bookkeeping system with your DoorDash EIN (if you obtained one), local business license numbers, and any reminder to renew state registrations. When you cross into another metro area for deliveries, add a note about local permits so you are not caught off guard by city tax letters.

Build rock-solid records

Accurate records lower your taxable income and keep cash flow predictable. Export the weekly earnings statement from DoorDash and save it in a YYYY-MM-DD folder alongside mileage screenshots or odometer photos. Reconcile those documents with your bank feed in QuickBooks, Wave, or a spreadsheet every Sunday night.

Capture separate categories for:

• Standard mileage or actual vehicle expenses (fuel, maintenance, insurance, lease payments, depreciation).
• Phone, hotspot, and data charges dedicated to the app.
• Insulated bags, scooters or bikes, safety gear, and parking or toll fees.
• Health insurance premiums, retirement contributions, and bookkeeping software.

The IRS expects contemporaneous mileage logs. Use apps such as Everlance, MileIQ, or the built-in tracker from your accounting tool. For backup, photograph your odometer on the first and last day of each quarter and upload those pictures to a cloud folder labeled with the quarter.

Quarterly checklist for South Carolina Dashers

1. Reconcile Q1 (Jan–Mar) activity. Export earnings, categorize expenses, and use IRS Form 1040-ES to compute the combined federal and South Carolina payment due in April. If your state lacks an income tax, base your payment solely on federal self-employment obligations.
2. Adjust your reserve account. DoorDash deposits fluctuate, so transfer at least 25–30% of gross payouts into a separate savings account after each week. Bump the percentage higher if your South Carolina rate or local taxes exceed the national average.
3. Schedule Form SC1040ES (Estimated Tax Payment Voucher) payments. Use the South Carolina Department of Revenue portal at https://dor.sc.gov/ or mail the voucher from https://dor.sc.gov/tax/individual-income/estimated-tax. Electronic scheduling lets you set the payment a few days before the deadline without risking late delivery.
4. Audit your vehicle records. Match every oil change, tire rotation, brake job, and car wash to a mileage log entry. These receipts support both the standard mileage rate and the actual expense method if you decide to switch.
5. Download DoorDash year-to-date summaries. Midyear statements highlight trends in promos, tips, and base pay so you can forecast the rest of the calendar year.

Deduction playbook tailored to South Carolina

Vehicle expenses. Whether you dash in dense downtown corridors or cover rural highways, mileage is your largest deduction. Compare the IRS standard mileage rate with your actual costs twice a year. If your car payment, insurance, repairs, and fuel outpace the standard rate, you can switch to actual expenses as long as you kept detailed receipts from the first year you placed the vehicle in service.

Home office or dispatch space. If you manage route planning, supply storage, or bookkeeping from a dedicated room at home, measure the square footage and evaluate the simplified home-office deduction or Form 8829 for actual expenses.

Tolls, parking, and ferry fees. Many South Carolina metro areas—think major bridges, express lanes, or island ferries—add extra costs. Track these separately from fuel so you can justify them during an audit.

Education and safety. Defensive driving courses, first-aid kits, reflective jackets, and snow or all-weather tires are legitimate business expenses when tied to delivery work. Keep course completion certificates and receipts with the associated dash week.

Resource library

• South Carolina Department of Revenue
• Form SC1040ES (Estimated Tax Payment Voucher) guidance and payment options
• Local tax lookup and registrations
• Schedule C (Form 1040)
• Schedule SE (Form 1040)
• Form 1040-ES
• Form 1099-NEC instructions
• Publication 463
• Publication 535

Frequently asked questions

What if DoorDash sends me a Form 1099-K and a Form 1099-NEC?
It’s normal to receive both once your payouts or transaction counts cross reporting thresholds. Reconcile the totals so you do not double-count income, then report the combined gross on Schedule C.

Do I owe South Carolina tax if I only dash part-time?
Part-time drivers owe tax when their net profit passes the filing threshold. Check the most recent South Carolina Department of Revenue instructions each year—some states require a return once you exceed a few thousand dollars in gross income.

How do I document tips paid in cash?
Record cash tips on the day you receive them using a notes app or spreadsheet. Include the amount, date, and delivery ID. Add a weekly total to your bookkeeping software so it matches your bank records and mileage log.

Can I contribute to a retirement account?
Yes. SEP IRAs, SIMPLE IRAs, and solo 401(k)s are available to self-employed workers. Contributions reduce your taxable income and can be scheduled at the same time you run quarterly tax estimates.

7-step action plan for South Carolina Dashers

1. Set aside 30 minutes this week to open or update your South Carolina Department of Revenue online account.
2. Download the latest DoorDash payout CSV and reconcile it against your bank deposits.
3. Log every mile driven for DoorDash, including deadhead miles between deliveries.
4. Estimate your quarterly payment with IRS Form 1040-ES and the Form SC1040ES (Estimated Tax Payment Voucher) worksheet.
5. Transfer the calculated amount to a dedicated tax savings account so the funds stay untouched.
6. Review local licensing requirements via https://mydorway.dor.sc.gov/ and set reminders for renewals.
7. Schedule preventive maintenance for your primary delivery vehicle and file the receipt immediately.

See Also