About Instacart and 1099 Income
Instacart shoppers and drivers are classified as independent contractors. Full-service shoppers (who both shop and deliver) receive 1099-NEC forms. In-store shoppers are typically W-2 employees.
Instacart shoppers often face grocery store parking challenges that can result in parking fees. These are deductible. Also, if you shop at multiple stores in a single batch order, you can deduct all mileage between stores.
What Tax Form Does Instacart Send?
Instacart issues 1099-NEC (for shoppers/drivers earning over $600). As an independent contractor, you are responsible for reporting this income on Schedule C (Profit or Loss from Business) attached to your federal Form 1040. You are also responsible for paying self-employment tax (15.3%) on your net earnings.
Top Tax Deductions for Instacart Workers
Reducing your taxable income through legitimate deductions is one of the most effective ways to lower your tax bill:
- Standard mileage deduction (for every mile driven to and from stores and deliveries)
- Insulated grocery bags and packing supplies
- Phone and data plan (business portion)
- Reusable shopping bags required by some stores
- Qualified Business Income (QBI) deduction — up to 20% of net business income for eligible freelancers
- Health insurance premiums if you're self-employed with no other employer coverage
- Retirement contributions (SEP-IRA contributions up to $69,000 or Solo 401k)
Quarterly Estimated Tax Payments
As a Instacart independent contractor, no taxes are withheld from your earnings. If you expect to owe more than $1,000 in federal taxes for the year, you must make quarterly estimated payments to the IRS using Form 1040-ES. The 2026 payment deadlines are April 15, June 16, September 15, and January 15, 2027. Use the calculator above to estimate your exact quarterly amount.