Does DoorDash or Uber take out taxes?
No. Gig apps treat you as an independent contractor, so they do not withhold income tax or Social Security and Medicare. That is why many drivers owe at tax time. Self-employment tax is 12.4 percent for Social Security (up to a yearly limit) plus 2.9 percent for Medicare on most of your net earnings, on top of income tax.
Your miles are your biggest deduction
For most drivers, business miles are the largest deduction. Keep a log or use the app’s mileage report. Every business mile you can document lowers your taxable income.