Instacart Expenses and Tax Deductions

Instacart shoppers are independent contractors. You owe self-employment tax and can deduct business expenses including mileage, phone, and equipment.

$10,875

Deduction at 15,000 miles (72.5¢/mi)

$14,500

Deduction at 20,000 miles

Deductible Instacart Expenses

Mileage: 72.5 cents/mile for all driving to/from stores and customer deliveries
Phone: Business-use percentage of your phone and data plan
Bags: Insulated bags and coolers for grocery transport
Parking: Business-related parking and tolls
Tax prep: Accountant fees or tax software

Quarterly Tax Payments

If you expect to owe $1,000+ in taxes, make quarterly estimated payments (April 15, June 16, September 15, January 15) to avoid IRS penalties. Set aside 25-30% of your net Instacart earnings.

Track Instacart Mileage and Expenses

ShiftTracker generates IRS-compliant mileage reports for Instacart shoppers.

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