Schedule C for Doordash and Uber Eats

Your net profit (not your 1099 income) is added to other income on your Doordash tax return to determine the income tax portion of your tax bill. Since DoorDash operates a technology platform that processes orders and coordinates deliveries, this code is relevant to its IT infrastructure. Brad Thibeau is the Head of Growth & Partnerships at Everlance. Brad has worked at Everlance since 2021 with a focus on helping self employed people save time and money on their taxes. Remember to double-check your code each year as your business activities evolve, and take advantage of tools like Everlance to keep your records in order. A well-organized tax strategy starts with a single code, but it can lead to significant savings and peace of mind.

For instance, mileage and vehicle expenses are typical for drivers (Uber, Lyft), while office supplies and software expenses are common for freelance writers or designers. An accurate code helps you maximize allowable deductions by providing clarity on which expenses are typical for your industry. Also known as NAICS (North American Industry Classification System) codes, business activity codes play a vital role in your tax filing process. These codes allow the IRS to classify your work, making it easier to ensure that your reported income and expenses align with industry standards.

This hybrid approach is a key factor in DoorDash’s rapid growth and market presence. Suppose you make an income with food delivery apps like DoorDash, UberEats, etc., that makes you an independent contractor. Because of this, the platforms will not deduct taxes from your pay.

The business code helps in regulatory compliance, tax reporting, and industry analysis, ensuring DoorDash is correctly categorized in official records. It helps in properly classifying the business for tax purposes and helps analysts, investors, and curious minds understand the primary service DoorDash offers. Remember, DoorDash isn’t just a big name in the US; it’s a global player in the food delivery market. As an independent contractor, working for other delivery apps means operating the same type of business.

How to Fill Out Schedule C for Doordash Independent Contractors 2025

Dr. Emily Chen (Professor of Business Administration, Stanford Graduate School of Business). DoorDash operates primarily under the business code for online food delivery services, classifying it within the broader gig economy and e-commerce sectors. This classification reflects its role as a digital intermediary connecting consumers with local restaurants through a mobile platform. In today’s fast-paced digital economy, understanding the classification and business codes of major companies can offer forex blog valuable insights into their operations and industry positioning.

I used Hurdlr or another GPS app to track my delivery miles. Does that mean it’s not written?

• DoorDash operates within the courier and delivery services industry, focusing on food delivery and last-mile logistics.
• The form you’ll use to file taxes will not be a W-2 (for employees) but a 1099 form.
• If you skip Schedule C, you skip necessary business deductions and thus pay higher taxes.
• The business code helps in regulatory compliance, tax reporting, and industry analysis, ensuring DoorDash is correctly categorized in official records.

However, 1099 income is your business’s income, not your personal income. It’s added to the income part of Schedule C to help determine your personal income. We’ll get more into that when we get into the expense section. You only put an Employer ID Number (EIN) if you actually HAVE an EIN. If you’re not sure if you have an EIN, you probably don’t.

How the expense part of Schedule C works

This does not get into state or local taxes or taxes in other countries. Check with your tax professional for details related to your location. That net profit is the part that gets moved over to your 1040 form as income.

This is part of a series of articles on Doordash taxes. There’s a lot more to it than you can cover in just one extensive article, and that’s why we wanted to give you some more in-depth information. You’ll find links to other articles, and you can find a list of other articles in the series. Understanding these codes is crucial for DoorDash to maintain compliance and optimize operational strategies in a complex regulatory environment. This section is usually left blank because you probably don’t have an Employer ID Number.

Frequently Asked Questions

Returns and allowances are rare for delivery contractors. This is used if you received money, such as for selling an item or getting paid for work, and then had to return or refund money. The IRS instructions say, “If you started or acquired this business in 2024, check the box on line H. The interview process in these programs is incredibly important. The less you know about the tax process, the more you need a program that will walk you through things with the right questions, asked in the right way, to ensure you don’t miss anything.

Which industry classification does DoorDash fall under? DoorDash operates within the courier and delivery services industry, focusing on food delivery and last-mile logistics. Specifically, the principal business code for DoorDash would fall under the category that encompasses delivery services.

• For example, Uber Eats will report they paid $13, but you only received $10 (hypothetical numbers).
• Because of this, the platforms will not deduct taxes from your pay.
• Seriously consider finding a tax professional who understands independent contractor (especially gig economy) taxes.

The vast majority of independent contractors for gigs like Doordash, Uber Eats, Grubhub, etc. use cash accounting. It simply means you pay as you go and get paid as you go. Accrual accounting is a more advanced form of accounting used by larger businesses. Seriously consider finding a tax professional who understands independent contractor (especially gig economy) taxes. The savings they can find may often save you far more than you pay in, and they are far more likely to keep you out of trouble.

Realizing his experience could help other drivers, he founded EntreCourier.com to encourage delivery drivers to be the boss of their own gig economy business. Several expenses don’t fit well into the expense categories in lines 8 through 26. Part V is where you write a description of the items and the total paid for those items.

Neither one lets you create different “other” expense categories for tracking. First, you must make sure that the software supports Schedule C filing. If you use the lower-priced or free programs, you may get something that doesn’t let you write off your expenses. However, most of these principles apply to gig economy contractors with companies like Grubhub, Uber Eats, Instacart, Uber, Lyft, and many others. You can look for more information in our article in this series about how Doordash 1099’s work, where we answer questions like do I have to file taxes for Doordash if I made less than $600.

Whether you’re driving for Uber, delivering for DoorDash, or offering freelance services, selecting the proper code can help you simplify tax season and potentially increase your tax savings. Incorrectly categorizing your business could raise red flags with the IRS, especially if your reported expenses deviate significantly from what’s typical for your industry. By choosing the correct NAICS code, you help minimize audit risks. The purpose of this article is to provide education on how the Schedule C form works for independent contractor taxes.

Exploring DoorDash’s business code not only reveals its place within the broader economic landscape but also highlights the evolving nature of delivery services in the digital age. As you delve deeper, you’ll gain a better understanding of how this code reflects DoorDash’s multifaceted role in connecting consumers, merchants, and drivers through innovative technology. This code applies to companies providing local delivery services, such as DoorDash’s courier and logistics operations.