Full-service shopper vs. in-store only
If you shop and deliver (full-service), you drive your own car for batches and your mileage deduction matters a lot. If you're in-store only, you won't have much mileage to claim, but you still owe self-employment tax on every dollar of net profit — the calculator above works either way, just leave miles at 0 if you're in-store only.
Deductions Instacart shoppers often miss
- Mileage for full-service batches, from accepting the batch to drop-off.
- Insulated bags, coolers, and totes bought for keeping orders fresh.
- Phone plan business-use percentage — the app runs the whole shift.
- Hand sanitizer, gloves, reusable bags if you supply your own.
- Parking fees at stores that charge for it.
- Car maintenance tied to mileage if you go the actual-expense route instead of standard mileage (pick one, not both).
FAQ
Does Instacart take out taxes for me?
No. As an independent contractor you get paid in full, and you're responsible for setting aside and paying both income tax and self-employment tax yourself.
I also shop for Shipt or Walmart Spark. Do I combine income?
Yes — all gig shopping income gets combined into one self-employment total when you estimate your taxes.
What's the cutoff for owing self-employment tax?
If your net profit from self-employment is $400 or more in a year, you owe self-employment tax on it.