DoorDash gives people the opportunity to deliver food as a part or full-time job, which is convenient if you need some extra money. If you’re unemployed, DoorDash can be an excellent opportunity to put some money in your pocket while you job search.
But if you lost your job and are considering DoorDashing, you might be asking, does DoorDash report to the unemployment office? And do you have to report your DoorDash earnings? I was curious about the same questions, so here’s everything I discovered about the matter!
Does DoorDash Report To Unemployment In 2023?
DoorDash payments are reported to the official unemployment office if the earnings reach a certain threshold, which varies depending on location as of 2023. Also, you can DoorDash part-time and still collect unemployment benefits as long as your DoorDash earnings are a quarter of what you used to make at your full-time job.
If you want to learn more about DoorDash and unemployment, whether or not you have to report your DoorDash earnings, and much more, keep on reading! I’ve looked into everything you need to know!
Does DoorDash Report To Unemployment?
Yes, DoorDash payments are reported to the official unemployment office, but only when they reach a certain threshold.
That said, DoorDash provides each of its drivers with a 1099 tax form at the end of the tax year.
Naturally, the tax form provides a complete listing of a driver’s earnings and what they need to report on their taxes.
Still, DoorDashers say that you can usually do deliveries part-time and still receive your unemployment benefits.
But, if you earn a certain amount during the year, you may have to return some of your unemployment payments once you file your taxes.
Can You Collect Unemployment While DoorDashing?
Yes, you can DoorDash part-time and receive unemployment benefits at the same time. Remember, you need to report your DoorDash earnings to the official unemployment office.
With that, depending on the amount you earn while DoorDashing, the unemployment office may adjust the benefits you receive.
How Often Can You DoorDash And Still Collect Unemployment Benefits?
Typically, the number of hours you DoorDash won’t affect your unemployment benefits, but the income you earn will.
Also, the amount you can earn on DoorDash while collecting unemployment varies depending on your location.
Still, if you DoorDash part-time and make a quarter of what you used to make at your full-time job, you can receive unemployment benefits.
Can You Be Charged With Unemployment Fraud?
Yes, you can certainly be charged with unemployment fraud if you fail to report your earnings from DoorDash while collecting unemployment benefits.
Therefore, it is critical to report how much money you make as a DoorDasher to avoid getting in trouble with the law.
Further, if you don’t report your earnings while collecting unemployment, you may have your benefits revoked forever, regardless of what happens in your future.
Does DoorDash Withhold Taxes From Your Earnings?
No, DoorDash does not automatically withhold taxes from your earnings.
Instead, the company calculates the subtotal of each DoorDasher’s earnings based on the date the money was deposited.
Also, DoorDash provides its delivery drivers with a form that shows how much they’ve earned throughout the year.
Do You Have To Pay Taxes If You DoorDash?
Yes, you are required to pay taxes if you earn more than $600 during the year from DoorDashing.
With that, if you meet the earnings requirements, DoorDash will send you a 1099-NEC tax form, indicating your earnings and the amount you owe in taxes.
What Is A 1099-NEC Tax Form?
A 1099-NEC form is a federal income tax information document that contains earnings and proceeds other than wages, salaries, and tips.
Essentially, this form summarizes delivery drivers’ earnings because they work as independent contractors for the company.
That said, the information on the 1099 form is then reported on the federal W-2 form.
Like other tax information, the W-2 is eventually filed with the federal Internal Revenue Service and state tax departments if necessary.
Remember, DoorDashers only receive a 1099 form if they earn $600 or more during the year.
How Do You View Your DoorDash Earnings?
Fortunately, as a DoorDasher, you do not need to keep track of your earnings on your own.
Rather, DoorDash will clearly indicate how much you made throughout the year on the 1099-NEC form.
If you do not receive a 1099 form, you didn’t make over $600 on DoorDash throughout the year.
Additionally, DoorDash notes that reimbursements are not included as part of your earnings on the 1099 form because they are not taxable.
If you receive unemployment benefits, you can still DoorDash part-time and not have to worry about not getting that money.
However, it’s critical to report how much you earn on DoorDash to the unemployment office.
With that, if you fail to report your DoorDash earnings, you may be charged with fraud and lose your unemployment benefits forever.
Typically, if your DoorDash earnings are a quarter of what you made at your full-time job, you can still receive unemployment benefits.