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If you shop for Instacart, congratulations — you’re a small business owner. That comes with some perks (tax deductions!) and some responsibilities (filing your own taxes). Whether this is your first year or your fifth, this guide walks you through everything you need to know about filing taxes as an Instacart shopper in 2026.

Understanding Your 1099 Forms

Instacart doesn’t withhold taxes from your pay the way a traditional employer does. Instead, they report your earnings to the IRS, and you’re responsible for paying taxes on them. Here’s what to expect:

1099-NEC (Non-Employee Compensation)

If you earned $600 or more from Instacart during the year, you’ll receive a 1099-NEC. This reports your total earnings from batch payments, tips, and any bonuses. Instacart typically makes this available in your Shopper account by late January.

1099-K (Payment Card Transactions)

Starting in 2026, third-party payment platforms must issue a 1099-K if you received more than $600 in payments processed through their platform. You may receive both a 1099-NEC and a 1099-K — but don’t panic. This doesn’t mean you owe double the tax. The IRS uses these forms to cross-reference your reported income.

Step-by-Step: Filing Your Instacart Taxes

Step 1: Gather Your Documents

Before you start, collect the following:

• 1099-NEC and/or 1099-K from Instacart
• Mileage log for the year (total business miles driven)
• Receipts for business expenses (bags, supplies, phone, etc.)
• Records of any estimated tax payments you already made

Step 2: Fill Out Schedule C (Profit or Loss from Business)

Schedule C is where you report your Instacart income and deduct your business expenses. You’ll enter your gross income from your 1099, then subtract your deductible expenses to arrive at your net profit. This is the amount you actually pay taxes on.

Step 3: Calculate Self-Employment Tax (Schedule SE)

As a self-employed shopper, you pay 15.3% self-employment tax on your net earnings. This covers Social Security (12.4%) and Medicare (2.9%). You’ll calculate this on Schedule SE and include it on your Form 1040.

The silver lining: you get to deduct half of your SE tax as an above-the-line deduction, which reduces your adjusted gross income.

Step 4: Pay Any Remaining Tax Due

If you made quarterly estimated payments throughout the year, those get credited against your total tax bill. If you didn’t, you’ll owe the full amount when you file — plus potential underpayment penalties.

Instacart-Specific Tax Deductions

Here’s where things get good. As an Instacart shopper, you can deduct a wide range of business expenses to lower your taxable income.

Mileage

This is your biggest deduction. The 2026 IRS standard mileage rate is $0.70 per mile. Deductible miles include driving to the store, between batches, and home after your last batch. Instacart shoppers typically drive 15,000–25,000 business miles per year.

Insulated Bags and Hot/Cold Bags

Instacart requires insulated bags for certain deliveries. Whether Instacart provided them or you purchased your own, any bags you bought out of pocket are deductible. This includes cooler bags, thermal bags, and insulated totes.

Hand Carts and Wagons

If you use a folding hand cart or wagon to haul heavy orders, that’s a deductible business tool. A solid folding cart runs $30–$80 and pays for itself quickly.

Phone and Data Plan

Deduct the business-use percentage of your cell phone bill. If 50% of your phone use is for Instacart, deduct 50% of your monthly bill.

Other Deductible Expenses

• Parking fees at stores during batches
• Tolls paid during deliveries
• Hand sanitizer, gloves, and cleaning supplies for your vehicle
• Comfortable shoes purchased specifically for shopping (yes, really)
• Expense tracking software and tax prep fees

In this example, deductions cut the shopper’s taxable income by more than half. The self-employment tax on $11,150 would be approximately $1,577, and federal income tax would be minimal after the standard deduction.

Common Mistakes Instacart Shoppers Make

1. Not tracking mileage. Without a mileage log, you can’t claim the deduction. Start tracking now, even if you haven’t been.
2. Forgetting to deduct the employer half of SE tax. This above-the-line deduction is easy to miss if you’re filing by hand.
3. Reporting gross income instead of net income. If you receive both a 1099-NEC and a 1099-K, make sure you’re not accidentally doubling your reported income. Your Schedule C should show your actual total earnings, not the sum of both forms.
4. Skipping quarterly estimated payments. If you owe more than $1,000 at filing time, the IRS charges underpayment penalties. Pay estimated taxes quarterly to avoid this.

Should You Hire a Tax Professional?

If Instacart is your only gig and your situation is straightforward, you can absolutely file on your own using tax software. Just make sure it supports Schedule C and Schedule SE (most do).

If you have multiple income sources, complex deductions, or you’re unsure about anything, a tax professional who specializes in self-employment can save you time and money. Their fee is also tax-deductible.

The Bottom Line

Filing taxes as an Instacart shopper doesn’t have to be intimidating. The process boils down to: report your income, subtract your deductions on Schedule C, calculate self-employment tax on Schedule SE, and file everything with your Form 1040. The biggest mistake you can make is not tracking your expenses — because those deductions are what keep your tax bill manageable.