Doordash has become a popular way for people to earn extra income by delivering food. The requirements to get started are low and the pay can be surprisingly good in some locations. Of course, taxes must be paid on Doordash income, which brings with it a lot of questions. One of those questions is, how do you get a W2 from Doordash?
You do not get a W2 from Doordash as the food delivery app classifies drivers as independent contractors. Instead, Doordash drivers receive a 1099-NEC form from Doordash that is used when filing your taxes.
Doordash classifying drivers as independent contractors has some positives as well as some negatives. In this article we will carefully examine both the positives and negatives of this tax classification for Doordash drivers.
How to Get a 1099-NEC from Doordash?
Doordash does not give W2s to their drivers. Instead, drivers will receive a 1099-NEC. This is delivered through the mail in February of every tax year (Source: Doordash).
It’s also possible to receive your 1099-NEC by e-delivery from Stripe. Doordash sends out an email asking drivers to sign up for Stripe Express in order to receive their 1099-NEC Stripe Express. Stripe Express is opt-in, but it’s faster than having Doordash mail your 1099-NEC to you.
I Did Not Receive a 1099 from Doordash
If you did not receive a 1099-NEC from Doordash, then that means one of the following occurred:
- You made less than $600 driving for Doordash in the tax year.
- Doordash, Stripe Express, or the US Post Office made some mistake the caused your 1099-NEC to either not generate or get lost in the mail.
- This is extremely unlikely, so make sure you verify your Doordash earnings before calling driver support.
Why Does Doordash Not Give W2s?
Doordash does not give their drivers W2 forms because, as mentioned previously, the drivers are independent contractors rather than employees. Some of the positives of this classification include the following:
- The ability to write off expenses on your tax return.
- It’s common for independent contractors to not pay taxes on about half their earnings because of the many expenses available for write offs.
- The ability to work for multiple companies at the same time.
- Independent contractors have much more autonomy than normal employees. One of those perks is that they can work for multiple companies at the same time.
- No uniform requirement
- This is a minor perk of being a 1099 employee, but it’s a nice one. Doordash drivers do not have to wear a uniform.
Unfortunately, the negatives of being an independent contractor outweigh the positives. Some of the negatives of being an independent contractor, for Doordash specifically, include the following:
- No health insurance or fringe benefits are provided to the worker.
- Self-employment tax must be paid.
- Doordash will not withhold your taxes, so you must budget enough money to pay taxes when tax time comes around.
- No reimbursement for gasoline like a W2 delivery driver receives.
- Note: You can write off your mileage on your taxes.
Overall, the benefits of being an independent contractor do not make up for the downsides. With that said, most people drive for Doordash for extra income and receive benefits from their day job.
Final Thoughts
You will not receive a W2 from Doordash if you drive for them. Instead, you will receive a 1099-NEC if you made over $600 while driving for them. A 1099 can make your taxes fairly complicated, but it can lower your tax liability if you write off enough expenses.