How do DoorDash and Instacart delivery drivers file taxes in 2025?

As a DoorDash or Instacart delivery driver, you are an independent contractor (not an employee). You report income and expenses on Schedule C and pay self-employment tax on your net profit.

Income reporting: You will receive a 1099-NEC from DoorDash or a 1099-K from Instacart if you earned $600 or more. Even if you do not receive a form, all income is taxable and must be reported. Tips received through the app are included in your gross income.

Top deductions for delivery drivers:

• Mileage: 67 cents per mile for 2024. Track miles from the moment you leave for a delivery to when you return home or start the next one. Miles driven to the first delivery and from the last delivery home count as commuting and are NOT deductible unless your home is your principal place of business.
• Hot bags and insulated carriers: Fully deductible equipment costs
• Phone and accessories: Business-use percentage of your phone, car mount, charger
• Parking fees: Paid parking while making deliveries
• Tolls: Toll fees during deliveries

Quarterly estimated taxes: Since no taxes are withheld from your pay, you must make quarterly estimated payments using Form 1040-ES. Deadlines are April 15, June 15, September 15, and January 15. If you owe more than $1,000 at filing time and did not make estimated payments, you will face an underpayment penalty.

Common mistake: Many new gig workers are shocked by their tax bill because they forget about the 15.3% self-employment tax on top of income tax. Set aside 25-30% of your earnings for taxes throughout the year.