Updated on Monday, December 23, 2024: TurboTax continues to provide tools and discounts that simplify tax preparation and help filers save money. This year, DoorDash Dashers can benefit from exclusive TurboTax offers, making it easier to file taxes, claim deductions, and maximize refunds. Let’s take a look at the current TurboTax 2025 discounts, the special DoorDash partnership, and practical tax tips for Dashers.
Current TurboTax Discounts, January 2025:
1. Extra 10% Off TurboTax Federal Products
TurboTax is offering an additional 10% instant coupon on federal tax products when purchased directly through Intuit. This discount stacks on top of early-season savings of up to 40%. Note that state tax filing products are not eligible for this offer, and it cannot be combined with other TurboTax promotions. To take advantage of this deal, file your taxes early—this offer ends January 31, 2025.
2. TurboTax Free Edition for Simple Returns
For those with basic tax situations, the TurboTax Free Edition allows users to file both federal and state taxes at no cost. This option supports straightforward filings, such as:
- Form 1040
- Earned Income Tax Credit (EITC)
- Child Tax Credit
- Student Loan Interest Deduction
However, eligibility is limited. About 37% of taxpayers qualify for the Free Edition, as it doesn’t support complex filings like investments, itemized deductions, or self-employment income. If you qualify, it’s an excellent way to file without spending a dime.
3. 50% Off QuickBooks Solopreneur Bundle
For small business owners and freelancers, TurboTax offers a discount on its QuickBooks Solopreneur Bundle. This bundle, designed to streamline expense tracking and year-round bookkeeping, is available at 50% off for the first three months, reducing the cost from $20/month to $10/month.
4. Free TurboTax Freedom Edition for Military Members
Active-duty military personnel ranked E1 through E9 can file their taxes for free using the TurboTax Freedom Edition. Higher-ranking service members receive discounted pricing. A military W-2 form from fiscal year 2024 is required to access this offer. TurboTax also includes tools to address military-specific tax issues, such as allowances and combat pay exemptions.
5. Bank and Credit Union Discounts
TurboTax frequently partners with financial institutions—like Bank of America, Fidelity, BECU and Chase—to provide exclusive discounts to their customers. Check your bank or credit union’s online portal under the “deals” or “partnerships” section to see if any TurboTax offers are available.
TurboTax’s Exclusive Discount for DoorDash Dashers
DoorDash has teamed up with TurboTax to provide Dashers with a 20% discount on key TurboTax products. This partnership makes it easier for delivery drivers to file self-employment taxes while ensuring they claim all eligible deductions.
TurboTax Options for Dashers
- TurboTax Deluxe: Ideal for individuals looking to maximize deductions, this version is perfect if you have itemized expenses such as mortgage interest, medical costs, or charitable donations.
- TurboTax Premier: If you have investments, rental income, or side earnings from cryptocurrency, this version simplifies the process of filing complex returns.
- TurboTax Self-Employed: Tailored for independent contractors and small business owners, this version helps track business expenses, including mileage, and ensures you don’t miss out on deductions specific to delivery drivers.
- TurboTax Live and Full Service: If you prefer professional assistance, TurboTax Live connects you with experts on demand, while Full Service allows a tax professional to handle the entire filing process.
How to Access the Discount
Dashers can use a special link provided by DoorDash to activate the TurboTax discount. This link automatically applies the 20% discount at checkout—no coupon or service codes are needed.
Key Tax Information for DoorDash Dashers
As independent contractors, Dashers are responsible for reporting their income, tracking expenses, and paying taxes. Here are essential details and tips to keep in mind:
DoorDash Tax Forms and Important Dates
- 1099-NEC Form: If you earned $600 or more on the DoorDash platform in 2024, you’ll receive a 1099-NEC form by January 31, 2025. DoorDash uses Stripe to distribute these forms, so look out for an email from Stripe with instructions on how to access your tax documents.
- Mileage Report: DoorDash will email you an estimate of your mileage for the year by February 28, 2025. If you used mileage-tracking apps like Everlance, you can download detailed records to support your deductions.
- Tax Deadline: Taxes are due by April 15, 2025. Make sure to file on time to avoid penalties.
Common Tax Deductions for Dashers
As an independent contractor, you can deduct business expenses to lower your taxable income. Common deductions for delivery drivers include:
- Mileage
- Gas
- Oil changes and vehicle maintenance
- Car insurance
- Parking fees
- Car cleaning supplies
- Cell phone service and accessories
Tracking these expenses throughout the year is crucial. Use apps like Everlance or QuickBooks to maintain accurate records and make tax season easier.
Tips for Filing as an Independent Contractor
- Set Aside Taxes: Since DoorDash doesn’t withhold taxes from your earnings, consider setting aside 25–30% of your income for federal and state taxes.
- Estimate Quarterly Taxes: If your earnings are substantial, you may need to make estimated quarterly payments to the IRS to avoid penalties.
- Stay Organized: Keep detailed records of your earnings and expenses to ensure you claim all eligible deductions and avoid IRS audits.
DoorDash Overview: History, Benefits, and Tax Implications
A Brief History of DoorDash
DoorDash was founded in 2013 by four Stanford students—Tony Xu, Stanley Tang, Andy Fang, and Evan Moore. It started as a way to connect local businesses with delivery drivers and has since grown into one of the largest food delivery platforms in the U.S., operating in more than 7,000 cities across North America.
Becoming a Dasher
Signing up to become a Dasher is straightforward:
- Visit the DoorDash website or app and complete the online application.
- Provide your personal details, including a valid driver’s license and vehicle information.
- Pass a background check.
- Start accepting deliveries once approved.
Benefits of Dashing
- Flexibility: Dashers can set their schedules, making it an excellent option for those seeking part-time or supplemental income.
- Weekly Payouts: Earnings are deposited weekly, with the option for instant payouts for a small fee.
- Opportunities for Tax Deductions: As a self-employed contractor, Dashers can claim a variety of deductions, which can significantly reduce tax liability.
Drawbacks
- No Tax Withholding: Dashers must handle their own tax obligations, including estimated quarterly payments.
- Vehicle Wear and Tear: The job requires frequent driving, which can lead to higher maintenance and fuel costs.
Maximizing Tax Savings as a DoorDash Dasher
Understanding your tax obligations is essential as an independent contractor. By taking advantage of TurboTax’s discounts, using tools like Everlance to track expenses, and staying organized, you can streamline the filing process and minimize your tax liability.
TurboTax and DoorDash’s partnership offers a unique advantage for Dashers, combining intuitive tax software with exclusive savings. Whether you’re filing a simple return or navigating complex deductions, TurboTax provides the tools you need to succeed this tax season.