Doordash Federal/State Refund

[bggsm03]

I only made 1,110 last year driving for DD. Will my federal/state refund be reduced automatically in order to compensate for unpaid state/self-employment taxes or do I still have to pay it separately?  I am also a W2 employee.

[Bsch4477]

You will pay self employment tax on DD income at about 15.3%. Unemployment payments are taxed at your marginal tax rate. 

[JulieS]

Yes, your refund is likely to be lower due to your DoorDash income. The additional taxes are part of your tax refund or tax due as long as you report your DoorDash income on that tax return. 

As @Bsch4477 points out, your net profit on that activity is subject to self-employment tax, but those taxes are included on your return as long as you report the income on your return. 

Click here to learn more about reporting this type of income. 

[Critter-3]

Once you account for the miles driven chances are you will have very little profit to worry about.  Fill in the Sch C section & see. 

If your AGI is $73,000 or less you can probably use IRS Free File.