Maybe it’s still inevitable that death and taxes are still inevitable, even if the latter is now potentially on the chopping block. And perhaps death can be overcome someday under certain circumstances. While the chances are possibly lesser than 50/50 President Trump will eventually eliminate American income taxes, let’s assume taxes (including self-employment taxes) are still going to be around for a while. DoorDash and Uber Eats will most definitely still warn you about that.

One thing I learned as a freelance writer before the Uber/DoorDash days was, self-employment taxes are a massive head scalp. If you make up to $30,000 or $40,000 per year with your own business, you can expect to pay about $3,000 annually in non-withheld tax. While I paid a little less with DoorDash and Uber, it was still expensive. The IRS continues to think you can pay all that in quarterlies, due four times per year. But, when other expenses get in the way, it’s often challenging to pay even those amounts.

It’s one thing to think about, seriously, if you start working for DoorDash. Some people with no experience paying SE tax still don’t realize you’re an independent contractor when delivering food & drink. And this often gets people into tax debt, something I admit happened to me. 

Don’t sit around assuming the IRS and/or income taxes are going to become extinct before the end of 2025. If you’re adamant on doing Uber Eats or DoorDash to make extra money, it’s time to plan a self-employment tax strategy until further notice from the President of the United Taxable States.

Let’s dive into what you might have to pay, how to lessen that amount, and what taxes may look like in a future DoorDash world.

Will You Have to Pay $3000 in Self-Employment Taxes?

Yes, it’s very possible you’ll have to pay in the neighborhood of $3,000 if you do Uber or DoorDash a lot. I met a few people during my Dashing times who told me they did DoorDash as their main job. You really shouldn’t, despite the extreme temptation thanks to the freedom of working your own hours and driving open roads. 

I learned the hard way that making money while working from home or via car has a steep tax price. You’re basically chained to the U.S. economic system of having to work for a company (mostly on-site in their workplaces) if you want your taxes withheld.

This was one reason I had to start working for Amazon after working as a freelance writer for 15 years. Anyone who’s gone through self-employment tax hell probably made the same moves due to the 15% SE tax bracket.

Again, just don’t do DoorDash as your only job since you’ll likely end up making far too much money that’ll be taxed. Your best bet is to just make it a side gig with another job. The ideal sweet spot is to simply do DoorDash once per week on a day off. This can fill in well to help you make extra income without getting a steep tax bill by the following April.

There’s still many who do Uber and DoorDash more than three days, though. If you insist on this, be sure to set aside money to pay your quarterlies. This can be a major challenge if you have other expenses you have to pay each month. Unless you have some money set aside for emergencies (and many don’t nowadays), I recommend not doing DoorDash beyond one or two days.

Just keep in mind Uber and DoorDash will ultimately try to push you to deliver as often as possible. Much of that is corporate hype, though it’s entirely up to you based on what you need to do. In the chance you have no choice but to use DoorDash as a means of making money, the best scenario is to work out a payment plan with the IRS after you get the tax bill. This is something I had to do. Fortunately, the IRS became more like a kind uncle in recent years in helping you set up long-form, time payment systems. 

With major IRS cuts recently, however, perhaps the existing agents aren’t as kind as they were over the phone.

What About Adding Tips to Your Taxable Income?

The recent “No Tax On Tips Act” in Congress leaves it open now to many employees being able to write off tips as an exemption rather than part of income. While President Trump will supposedly sign this if it passes in both houses of Congress, it’s only designed for restaurant and hospitality workers. Because Uber and DoorDash deliverers are independent contractors, no taxes on tips there won’t yet apply.

Yeah, you probably just scoffed at that piece of info. It also broaches another discussion on whether you should report any tips you get from DoorDash when filing your taxes. If you’ve already done Uber or DoorDash, then you know most customers tip through the app. With this, any tips you get are already on record and added as income.

Once in a while, though, you’ll get tips in cash from your customers. During a delivery run to an outside town here in the valley of Oregon, I received a $100 cash tip from two women who realized I had to drive a bit of a distance to get there. “That was a long fucking drive, right?” One of the women said. “Yeah”, I uttered while my eyes bulged out at the sight of a hundred dollar bill in the other woman’s hand.

It’s cash tips like this that bring a lot of ethical debate when filing your taxes. Considering it’s cash, some might say it’s all under the table and doesn’t apply. Tax professionals will say you absolutely need to report cash tips in the chance the IRS audits you. Others may even say the chances of you being audited are slim, unless you’re making $100,000 per year as a Dasher.

In this case, I say it’s up to you whether to report cash tips. Most of the cash tips I made while delivering were generally from a few bucks to $10. Only occasionally did I receive bigger cash amounts from wealthy families living in the hills of my city.

One thing for sure is that any tips added through the apps will pump up the income you make. Just going by the base pay would otherwise lessen your earnings by far.

What is the Future of Self-Employment Taxes While Doing Uber and DoorDash?

I’d lobby tirelessly (if having the time) to abolish self-employment taxes in general. But I don’t think they’ll ever go away, unless income tax is abolished while Trump is in office. Those of you who do Uber or DoorDash over the coming year or beyond will likely still have to pay SE tax on every penny you make.

By chance income tax goes away, it might attract more people to sign up to deliver for Uber Eats and DoorDash. The only reason many people still want to do food deliveries is no doubt because they don’t initially realize how deep of a head slice self-employment taxes will give them. 

You might want to know that DoorDash has been lobbying in Congress to get tax exemptions for those earning tips while delivering. The company wants gig workers who work through apps to enjoy the same tax savings as W-2 employees. Their goal is to add this to the “No Tax On Tips Act”, which still isn’t law at time of this writing.

Reportedly, Uber is advocating the same thing for their drivers and deliverers. Just when you thought corporations like this are greedier than ever, they’re morally standing up for the deliverers to at least save on their taxes.

You can probably say that the IRS scares DoorDash and Uber anyway. The more taxes people have to pay on delivery earnings, the least likely anyone else will want to do the same. 

Once the reality of self-employment taxes gets out there, the stats may already show the majority of Uber deliverers and Dashers are those just stuck in it due to inability to have any other job.

It’s best to say use DoorDash and Uber in moderation—something you’d say to all your food and drink recipients. 

In Part XXXIV, I’ll cover detours in making deliveries, something you’ll need to think about if roads are blocked—or blocked by trains—while in a rush to deliver.