Shopping for Instacart means flexible hours and weekly payouts — but it also means you’re an independent contractor responsible for your own taxes. Unlike a W-2 job, Instacart doesn’t withhold anything from your earnings. No income tax, no Social Security, no Medicare. That bill comes due at tax time, and if you haven’t planned for it, it can be a shock.
This guide covers everything Instacart shoppers need to know: what tax forms to expect, which deductions to claim, how to handle mileage from store to customer, and when to pay quarterly estimated taxes.
1. Your Tax Status: Independent Contractor
Instacart classifies shoppers (both full-service and in-store) as independent contractors. You’ll receive a 1099-NEC if you earned $600 or more in a calendar year. This form reports your gross earnings — before Instacart’s service fees and before your expenses.
What this means for your taxes:
- You file using Schedule C (Profit or Loss from Business)
- You owe self-employment tax (15.3%) on your net profit
- No taxes are withheld from your pay — you’re responsible for paying everything
- You must file if your net self-employment earnings exceed $400
2. Mileage: Your Largest Deduction
For most full-service shoppers, mileage is by far the biggest deduction. The 2025 IRS standard mileage rate is $0.70 per mile.
Deductible miles for Instacart shoppers include:
- Driving to the store for a batch
- Driving from the store to the customer’s delivery address
- Driving between multiple deliveries in a single batch
- Driving back to a busy store zone after dropping off
Non-deductible miles:
- Commuting from home to your first store of the day
- Personal errands while the app is off
Example: 10,000 business miles × $0.70 = $7,000 deduction.
Instacart does not provide a mileage log. You must track independently using an app like Stride, Everlance, or MileIQ. Without a log, you cannot claim the deduction.
A note specific to Instacart: heavy grocery loads (cases of water, large orders) can increase fuel consumption and vehicle wear. If you use the actual expense method instead of standard mileage, these higher operating costs may make actual expenses more competitive than for rideshare drivers with lighter loads.
3. Other Deductions for Instacart Shoppers
These are deductible in addition to mileage (if using the standard mileage rate):
| Category | Examples |
|---|---|
| Insulated bags & equipment | Hot/cold bags, cooler bags, drink carriers, collapsible carts or wagons for heavy orders |
| Phone & data plan | Business-use percentage of your monthly bill — Instacart is app-dependent |
| Phone accessories | Car mount, portable charger, charging cables — essential for all-day shopping |
| Tolls & parking | While actively shopping or delivering (not parking tickets) |
| Car washes | Extra washes beyond personal use — groceries can leave messes |
| Roadside assistance | AAA or similar (business-use %) — especially important for shoppers driving high miles |
| Mileage tracking app | Stride, Everlance, MileIQ subscription |
| Health insurance premiums | 100% deductible if self-employed and not covered by a spouse’s plan |
| Car loan interest | Business-use % of interest — even with standard mileage |
If you use the actual expense method, you can also deduct: gas, oil changes, tires, repairs, insurance, depreciation, and lease payments — all multiplied by your business-use percentage.
What Instacart shoppers often miss:
- Those heavy-duty collapsible wagons for apartment deliveries are fully deductible
- If you buy extra phone batteries or a second phone for shopping, those are deductible
- The interest on your car loan is deductible regardless of your mileage method
- If you pay for premium Instacart features or analytics apps, those are deductible business expenses
4. How to File: Step by Step
Step 1: Get Your 1099-NEC
Instacart issues a 1099-NEC if you earned $600 or more. Access it through the Shopper app or Stripe Express (Instacart’s payment processor) by January 31. If you earned under $600, no form will arrive — but you must still report the income.
Step 2: Total Your Deductions
- Mileage log × $0.70 (or actual expenses)
- Insulated bags, carts, phone accessories (keep receipts)
- Phone bill × business-use percentage
- Tolls, parking, car washes
Step 3: Fill Out Schedule C
- Line 1: Total Instacart earnings (from 1099-NEC or bank statements)
- Line 9: Mileage deduction
- Line 22: Supplies (bags, cart, equipment)
- Line 25: Utilities (phone)
- Line 27a: Other expenses (tolls, parking)
- Line 31: Net profit
Step 4: Complete Schedule SE
Net profit × 92.35% × 15.3% = your self-employment tax.
Step 5: File Form 1040
Attach both schedules. Apply your standard deduction ($15,000 for single filers in 2025).
5. Multi-App Shoppers
Many shoppers also deliver for DoorDash, Uber Eats, Shipt, or Amazon Flex. If the work is all delivery driving with the same vehicle, you can combine all income and expenses on a single Schedule C. Add up all your 1099s for Line 1. Your mileage deduction applies across all platforms combined.
6. Quarterly Tax Reminder
Instacart doesn’t withhold taxes. If you expect to owe $1,000+, make quarterly payments. 2025 deadlines: April 15, June 16, September 15, January 15. Set aside 25–30% of your net earnings. Use our Quarterly Tax Calculator for a precise estimate.
7. Common Instacart Tax Mistakes
- Not tracking miles. Instacart doesn’t track them for you. Start a mileage tracker today.
- Forgetting equipment deductions. Your insulated bags, cart, and phone mount are all deductible — save those Amazon receipts.
- Not reporting income under $600. All income is taxable, even without a 1099.
- Missing the self-employment tax. Your total tax bill includes both income tax AND 15.3% SE tax.
- Ignoring quarterly payments. Full-time shoppers can easily owe $5,000+ at year-end. Pay quarterly to avoid penalties.
Disclaimer: This guide is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Consult a qualified CPA or tax professional for advice specific to your situation.