top of page

Getting Your Tax Forms from Doordash - EVERYTHING You MUST Know!!

So as with a lot of companies, Doordash is required to send tax forms to certain Dashers and operates a little differently than a normal W-2 Job.


And not knowing some of the nuances can lead to a lot of confusion and panic, especially if you don’t know where to look and if you are not prepared.


So with that said, we are talking about:

  • EVERYTHING You MUST Know about Getting Your Tax Forms from Doordash

  • What they tell you vs how it ACTUALLY is

  • Everything in between!


Disclaimer: The content of this article does not contain and is never intended to be legal, business, financial, tax, or health advice of any kind, This video is for entertainment purposes only. It is advised that you conduct your own research and consult with qualified professionals before applying anything you find online. 


Thank You to GigTax for Verifying this information and making this video possible!



Doordash: If you earned $600 or more in 2023 on the DoorDash platform, you’ll receive a 1099-NEC form via our partner Stripe. 


This is unusual, because 1099-K’s would normally be required if someone were to make over $20,000 in 2023, or $5000 in later years. However, Doordash is going to send 1099-K’s to merchants only while drivers will only receive 1099-NEC. 


This is a little different where rideshare drivers expect 1099 K’s because of how the Uber and Lyft platform records earnings. So although the IRS says 1099 K’s are required, this doesn’t apply to Doordash for how they record earnings. They fall under the $600 1099-NEC ruling.


Doordash: Important to keep in mind: 

  • Eligible Dashers who earned $600 or more in 2023, will be receiving an email from Stripe by mid-January 2024. Emails will be sent out in phases to Dashers starting in October 2023. 

  • The subject line is “Get your DoorDash 2023 tax forms faster by enabling e-delivery”.


Stripe is a completely separate company from Doordash, and the way it works is Doordash is going to set up the form, send it to Stripe and they are going to have a landing page setup in your account that will allow you to download it from your Stripe account Home Page.


If you didn’t set up an account with Stripe, you can either check your email (including spam) or you will receive it in the mail if you didn’t set one up in time, or if you just prefer the physical copy and choose not to opt into it.


Doordash: If you received a Stripe email asking you to confirm your TIN (Tax Identification Number) in order to keep your account active, please use the unique link sent to you. This information is not to create a Stripe account, this information is used to ensure we have the correct TIN number for every Dasher on the platform. This email was only sent to certain Dashers so if you did not receive one, that means we have your correct information and no action is needed.


Yes, Stripe does check to verify but don’t be stupid about it either. Some Phishing scammers are good and can make a pretty damn good fake email. Just make sure the email is sent from Stripe, not Doordash or D00ra$h or $tipe or some other scammy lookin email. 


Last thing you want is your Identity stolen AND a pain in the IRS, I mean Auditor on your case.


Doordash: How can I check my mileage for tax deduction purposes?  

A: As an independent contractor, managing your own business and expenses can be tough. Your business-related mileage can be a significant expense, so if you know how many miles you drove, you may be able to reduce the amount you owe for taxes (or increase your refund).


This is in reference to the Standard Deduction Rate for the amount of miles you drove for business related purposes. Doordash does send you an email about the miles you drove, but a lot of people have reported that the numbers they send you are often REALLY wrong, like “not even close” wrong.


This is because they only record the mileage when you are on an order but not any other mileage such as between zones, driving to get another order, etc.


Last year I got an email from one of my subscribers: B c thank you so much for emailing me about this and making this part of the article possible! 


B c: You need a video on how to easily and accurately track your expenses for independent of the gig apps. DD mileage is so off, it's not even funny.


Which you can easily accomplish with a Mileage and Expense Tracking App, but more on that later. 


Doordash: Q: How do I update my tax information?

You’ll be able to review and edit your tax information directly in Stripe Express. Please update your information no later than mid-January 2024.


If you’re looking to update your Individual Taxpayer Identification Number (ITIN), which would be either your Social Security Number (SSN) or Employer Identification Number (EIN), please note that you will first need to create a Stripe Express account using the invitation sent to you. 


If you already created your account and have access to your e-copy of your 1099-NEC, please follow these steps: Go to the ‘Platform Settings’ → Select the arrow → Select the pencil icon under ‘Personal Details’ to edit the Social Security Number or Employer Identification Number.


Please note: If you don’t consent to e-delivery by mid-January 2024, we’ll automatically mail your 1099 tax form to the address on file, so it’s critical that your information is current, correct, and complete. You can still update your information via Stripe Express after mid-January 2024 and download your 1099 electronically. However, you will not be mailed a new paper copy of your 1099 tax form.


In the event that you didn’t update your tax information in time or you kind of leveled up as a gig worker from when you signed up on a whim for Doordash, liked it and decided to open an LLC or S-Corp and now you have an EIN you want to earn under, don’t panic. 


I remember panicking when I forgot to do this when I first opened up my S-Corp and I didn’t consult my CPA until after I was told it was too late to change it by Doordash and they STILL refused to fix it on their end!


Which when I did consult my CPA, they handled it so they would remove the income from my Social Security Number and put it in the name of my business and EIN, which is not THAT big of a deal but is extra work that they don’t need, ya know?


No Form Doesn’t Mean No Income


The reporting threshold for 1099-NEC is $600, but that doesn’t mean you didn’t receive income. The income threshold for reporting income is not the same as receiving a form. 


According to the IRS, You must file a tax return if you have net earnings from self-employment of $400 or more from gig work, even if it's a side job, part-time or temporary. 


Squeaker: But Joe, what about the 3 cash tips I received from a few customers I had received from them. Do I have to report that too?


While it is rare to receive cash tips and it is the long hard sung argument of every single hate commenter who claims they “Tip after service” that you don’t have to report it, I will say this:


Officially, that is not recommended but that is your business and is up to you. Either way, it is not a reason to accept no-tip orders. 


Either way, you are required to report ALL income, including things you have stolen. To be honest, I can’t take this seriously enough at the moment to do a proper deep dive on it but yes stolen items too.


Stripe is More than just Doordash


Stripe is a separate company from Doordash and actually works with Instacart as well, so if you receive an email from IC but not DD, or visa-versa, you will be able to get them on the same page. 


Yet another reason to diversify your gig portfolio


US vs Everywhere else


As you can imagine, these rules are specifically in regards to the Gig workers in the US, and places like UK, Canada, Australia and otherwise have their own set of rules and regulations. The source of which I pulled from Doordash is going to be in the description, and has links to pages for other countries. Feel free to check that out.


Mileage and Expense Tracking Apps


As an independent contractor, you are responsible for keeping track of your earnings and accurately reporting them in tax filings. DoorDash does not provide a breakdown of your total earnings between base pay, tips, pay boosts, milestones, etc. 


Doordash has stated that they can send you the miles you drove for them on their page, however most people found the information HIGHLY inaccurate. Which is why I would say it is vital to have a mileage and expense tracking app. 


These apps can not only save you a bunch of money on your taxes if implemented properly but can end up saving you a lot of time and stress when it comes to tax season.


There have been quite a few that popped up over the years and some even developed by other gig workers:

  • Everlance

  • Mile IQ

  • Quickbooks self-employed

  • Solo

  • Para


The list goes on and each has varying pros, cons, and price points. 


I will make more breakdowns of each of them in the future, but either way it is vital to have one of these for yourself and not wait until the last day of the year to actually figure out how many miles you drove for your work. 


Standard Mileage Rate vs Actual Expense Method


Now Doordash touched on Standard mileage rate a little bit, but didn’t talk about Actual Expense Method at all. 


Yes, in a lot of cases Actual Expense Method won’t be as beneficial to gig workers but that doesn’t mean there won't be a year where you won’t use it if the amount you would deduct would be higher that way.


In short the Actual Expense Method is where, just like the name suggests, you write off the ACTUAL expenses that you used your vehicle for business related purposes, and Standard Mileage Rate is where you would use the number of miles you drove. 


Joseph Mayo, Founder of GigTax: Either way, tracking mileage must be done. Of course for the standard mileage deduction but also to know the percentage use (of your vehicle) for business when taking the actual expense method. This isn’t the case if you have a vehicle that you only use for doordash, but most of us also have our vehicles available for personal use.


Don’t Be That Guy


Now a lot of people who see stuff like this think they can pretty much write off anything and everything as a tax-write off because they can CLAIM it is for business purposes but in reality it is really you going to do your own personal crap. 


This can end up getting you into a lot of trouble with the IRS and the last thing you want is to end up audited.


Or you don’t want to pay for an app service so you guesstimate the number and hope you aren’t losing too much money in write-offs. I don’t understand the logic at all, why wouldn’t you spend a few bucks a month on a tracker and save THOUSANDS on a tax return?


So do yourself a favor, don’t be that guy.


Working with a Tax Professional


One of the best decisions I have made that saved me time, energy and tax dollars was to begin working with a tax professional to help me with my taxes so I can focus on making the most of my working time towards gig work and growing my business. 


I know for a lot of people this can be expensive and can cost a lot if you go to the wrong people, which is why GigTax is here to help!


Partnership Ad:

As someone who has ventured into self-employment via food delivery apps, the income is promising. That said, you are also faced with challenges in navigating taxes as a self-employed person and transforming your “gig” into a sustainable business.


GigTax was founded by Joseph Mayo, a seasoned Gig Worker with over 7000 deliveries across 7 platforms since 2020, and they understand the challenges of freelancers, rideshare drivers, couriers, online sellers and gig workers of all kinds! 


Their #1 Online Tax Preparation service is designed to maximize your tax savings and save you time, energy and money!


Enjoy exclusive discounts on tax prep services as well as a range of additional benefits such as:

  • Electronic Filing

  • Strategy Sessions

  • Year-Round Direct Access to Tax Pros and Financial Partners

  • Client App and Portal

  • Tax Planning Services

  • Quarterly Tax Reviews


All Absolutely Free and Incredibly Valued Benefits when filing with GigTax


Book your free strategy session today at gigtaxservice.com/drivenwyld and enter code"wyld" (All lowercase) to access your special offering.


Let GigTax simplify, educate and support you on your tax journey, whether you are a gig worker making some extra money, or becoming a successful entrepreneur leading an incredible lifestyle! Visit GigTax and get started with saving the money you made and making even more along the way!


If you would like to add some other perspective on Getting Your Tax Forms from Doordash, feel free to email me: drivenwyld@gmail.com and who knows? Maybe your email or perspective and be featured in a post as well!



Comments


© 2021 Copyright Driven Wyld

  • Discord
  • Instagram
  • X
  • YouTube
  • TikTok

Join our mailing list

bottom of page