As an Instacart shopper, you’re running your own business in the eyes of the IRS, which means you’re responsible for managing your own taxes. Unlike traditional employees who have taxes automatically withheld from each paycheck, you receive your full earnings and must handle your tax obligations yourself.
This independent contractor status brings flexibility, but it also adds responsibility. You control when you work and how much you earn, but you also need to track income, save for taxes, and file correctly.
Let’s break down everything you need to know about filing taxes as an Instacart shopper, starting with the most important tax form you’ll receive.
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How to Find Your Instacart 1099
Instacart issues tax forms to shoppers who meet certain earning thresholds, and understanding which form you’ll receive depends on how much you earned during the year. These forms report your income to both you and the IRS, making them essential for accurate tax filing.
Instacart’s $600 Threshold and Form 1099-NEC
If you earned $600 or more as a full-service Instacart shopper (i.e. shopping and delivering with your car) during the tax year, Instacart will send you Form 1099-NEC. This form reports your total Instacart earnings and serves as your official documentation for tax purposes.
This form 1099-NEC should arrive by January 31st, giving you time to prepare your tax return before the April deadline. Instacart typically delivers this form via email, so check your inbox around late January.
If you earned less than $600, Instacart isn’t required to send you a 1099-NEC form. However, you’re still legally obligated to report all income you earned from Instacart on your tax return regardless of whether you receive official documentation from Instacart.
Where to Find Your 1099 on Instacart
Instacart will email you your 1099 form directly. They do offer the option to receive a physical copy if you prefer.
If you haven’t received your 1099 by early February, check your spam or junk folder. You should also verify that the email address in your Shopper account matches the inbox you're checking.
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You can also access your tax forms through the Instacart Shopper app or their website. Log into your account and you should be able to find downloadable copies of all of your forms.
If you still can’t locate your 1099 after checking your email and your account settings, contact Instacart directly for help.
In-Store vs. Full-Service Shoppers
Your tax form will depend on your shopper type. In-store shoppers are Instacart employees who receive W-2 forms with taxes already withheld, making their tax situation inline with traditional employment.
Full-services shoppers are independent contractors who shop for and deliver orders. You’ll receive 1099-NEC forms and are responsible for managing your tax obligations yourself, including income tax and self-employment tax.
This guide focuses on full-services shoppers since in-store employees follow standard W-2 tax processes.
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How Instacart Taxes Work
As an independent contractor, you’re responsible for two distinct types of taxes that traditional employees don’t typically worry about separately.
Income Tax and Self-Employment Tax
Income tax is the federal and state tax you pay based on your total taxable income for the year. Your rate depends on your overall income level and which tax bracket you fall into after accounting for deductions.
Self-employment tax covers your Social Security and Medicare contributions, totaling approximately 15.3% of your net profit. Traditional employees split these costs with their employers, but as an independent contractor, you pay both the employee and employer portions yourself.
This dual tax obligation is why gig workers often face higher tax bills than they expect. Your Schedule C calculates your net business profit (income minus expenses), which then gets taxed for both income tax and self-employment tax purposes.
You’ll use Schedule C to report your Instacart income and expenses, then Schedule SE to calculate your self-employment tax. Both schedules attach to your main Form 1040 when you file your annual tax return.
Quarterly Estimated Tax Payments
The IRS expects you to pay taxes throughout the year as you earn income, not just when you file your annual return in April. If you expect to owe more than $1,000 more in taxes, you’re generally required to make quarterly estimated payments.
These quarterly payments are due four times per year: April 15th, June 15th, September 15th, and January 15th of the following year. Missing these deadlines can result in penalties and interest charges, even if you pay everything when you file your annual return.
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Calculate your estimated payments based on your expected annual income and tax liability. Many tax professionals recommend setting aside 25-30% of your next earnings to cover both income tax and self-employment tax obligations.
A simple strategy is to transfer a percentage of each payment you receive into a separate savings account designated for taxes. This can help prevent you from spending money that you’ll owe to the IRS later and makes quarterly payments less painful.
If it’s your first year as an Instacart shopper, you might not owe penalties for underpayment as long as you pay your full tax bill when you file. However, starting in your second year, the IRS expects regular quarterly payments if you continue earning similar income.
Instacart Tax Deductions You Can Claim
One significant advantage of self-employment is the ability to deduct business expenses on your taxes. These deductions serve as a way to reduce your net profit, which means you pay less in taxes.
The IRS requires that your deductions must be directly related to your business activities and they are properly documented. Keep your receipts and create logs throughout the year rather than trying to reconstruct everything at tax time.
Mileage Deduction for Instacart Shoppers
Your vehicle mileage will represent easily the largest potential deduction as an Instacart shopper. For 2025, the IRS standard mileage rate is 70 cents per mile.
This rate is designed to cover all vehicle-related costs, including gas, maintenance, insurance, depreciation, etc. Rather than having you track and calculate each of these things individually, the IRS attempts to simplify this process with their mileage rate.
You can only deduct miles driven for business purposes. Things like driving from the store to your customers, going between stores for multiple orders, or picking up delivery supplies.
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However, things like your commute from home to your first store and from your last delivery back home are considered personal miles and aren’t deductible. The IRS requires detailed logs that show the date, starting point, destination, business purpose, and miles driven for each trip.
To make this easy, you can use an automatic mileage tracker app like TripLog. Just start driving, and TripLog will automatically start tracking your mileage, and stops when you stop. All necessary information will be captured, and you can easily download IRS-compliant reports come tax time.
If you drive 1,000 business miles monthly, that’s a $700 monthly deduction at the 2025 rate, which adds up to $8,400 annually back into your pocket!
Other Deductible Expenses
Things that you use for your Instacart work can also be deducted on your taxes. For example, your cell phone bill is partially deductible based on the percentage that use it for business purposes.
If you use your phone (and can prove it) 50% of the time for Instacart-related activities like communicating with customers, shopping, and navigation, you can deduct 50% of your monthly phone bill.
Insulated bags, coolers, and other equipment purchased specifically for deliveries are fully deductible as business supplies. Keep receipts for these items and deduct them in the tax year that they were purchased.
Parking fees and tolls that you incur while making deliveries are also deductible as long as they are directly related to your business activities. You can’t deduct the cost of groceries that you buy for your customers since Instacart provides a payment card for customer orders.
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Instacart Shopper Taxes FAQ
Q: How much should I set aside for Instacart taxes?
A: A general rule of thumb is to save 25-30% of your net earnings to cover your taxes. Your specific percentage may depend on your total income, filing status, and available deductions, but this range provides most shoppers with a safe buffer.
Q: Can I deduct gas for Instacart?
A: You can either deduct your actual vehicle expenses (which would include things like gas), or use the standard mileage rate (currently 70 cents per mile in 2025). Most shoppers find the standard mileage rate to be faster and easier since it covers all vehicle costs without requiring you to keep extremely detailed expense records.
Q: What if I earned less than $600 from Instacart?
A: You must still report all income earned through Instacart on your tax return, even if you don’t get a 1099-NEC form from them. Check your earnings in the Shopper app to determine your total income for the year.
Q: Do I need to make quarterly tax payments?
A: If you expect to owe $1,000 or more in taxes for the year, you’re generally required to make quarterly estimated payments.
Instacart Shopper Taxes - Conclusion
Filing taxes for gig economy work like Instacart does require more work than traditional forms of employment, but proper planning can make the process much more manageable. Track your mileage and expenses throughout the year, set aside money for quarterly payments, and take advantage of all of your available deductions.
Remember that you’re running a business and that you should treat your Instacart work professionally. Keep good records and use any and all tools at your disposal.
One of the most powerful tools you can use is an automatic mileage tracker app like TripLog. You can download TripLog and start tracking unlimited miles automatically for free on iOS and Android today!
