How to File Taxes with Instacart

When tax season arrives, Instacart Shoppers have to figure out how to file their Instacart taxes. Find out which type of shopper is considered self-employed, what tax forms to fill out, and tax write-offs you can claim. 

Am I self-employed with Instacart? 

When you join the Instacart Shopper platform, there are two categories of shoppers: In-Store Shoppers and Full-Service Shoppers. If you’re an In-Store Shopper, you’re a full-time employee, and your taxes are withheld from your paychecks. Instacart will send you a W2 form to file your taxes. 

On the flip side, if you’re a Full-Service Shopper, you are an independent contractor. So that means you’ll report this as self-employment income. You must set aside your own taxes to pay the Internal Revenue Service (IRS) during tax time. Your role involves shopping in-store and delivering the orders to customers. Various tax forms are needed, which we’ll cover below. 

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Minimum earning amount to file taxes with Instacart 

If you earned $600 or more through Instacart, the company will issue you a 1099-NEC form. You’ll need to fill out this tax form to report your earnings. You should receive it by January 31 of the following year. 

If you earned less than $600 during the year, Instacart isn’t required to send you a 1099-NEC. But just because they don’t send you one doesn’t mean you’re off the hook from filing your Instacart taxes. You’ll need to report this side gig income on your tax return. Be sure to review your earnings report to verify the amount you made on the platform. 

Instacart W-2 vs 1099 form

If you’re an In-Store Shopper, you’ll need to file the W-2 form. It shows your annual wages and taxes withheld from the company.  

As a Full-Service Shopper with Instacart, here’s the list of tax forms you’ll need to complete:

• Form 1099-NEC: Instacart will send you this form to show your yearly earnings.
• Schedule C: Determine your net profit or loss by reporting your earnings and expenses. 
• Schedule SE: Use this form to calculate your self-employment taxes, which combine Social Security and Medicare taxes (15.3%). 
• Form 1040: This is the individual tax return for all tax filers.
• Form 1040-ES: If you anticipate owing $1,000 or more in taxes, you’ll need to fill out this form to make quarterly payments. 

Check out our Small Business Tax Guide for self-employed individuals.

Important tax deadlines and dates

As you calculate your Instacart Shopper taxes, you’ll need to keep in mind the following tax deadlines:

• Annual tax return deadline: April 15, 2025.

If you expect to earn $1,000 or more as a self-employed individual during the year, you’ll need to pay your taxes in quarterly installments. They are due on the following dates: 

• 1st quarter of 2025: April 15, 2025
• 2nd quarter of 2025: June 15, 2025
• 3rd quarter of 2025: September 15, 2025
• 4th quarter of 2025: January 15, 2026

If you miss these deadlines, you may have to pay penalties or fees. So, make sure to mark them in your calendar. 

Tax deductions

One of the best perks of being a self-employed gig worker is that you can take advantage of Instacart tax write-offs. Doing so can help you lower your tax bill and keep your hard-earned money in your pocket.  

Here are the most common tax deductions you can claim: 

• Vehicle: gas, mileage, insurance, registration, maintenance, parking, and tolls.
• Home office expenses: paper, pens, and stationery.
• Cell phone: mobile and data plan and accessories.
• Delivery equipment and supplies
• Health insurance premiums
• Platform commission and fees

You can learn more about tax write-offs in our article here.

5 tips to organize your tax return

To ensure a stress-free tax filing process, here are some ways you can stay organized:

1. Record your expenses in a logbook or spreadsheet. 
2. Keep all your receipts.
3. Track your mileage when you drive for Instacart - an automatic mileage tracking app can come in really handy as an alternative to pen and paper. 
4. Set aside 20% to 30% of your earnings to pay for Instacart taxes.
5. Seek professional advice from an accountant or tax expert. 

If you’re ready to sign up to become an Instacart Shopper, you can find more information in the Instacart Shopper Requirements article.

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