Instacart Taxes | How Taxes Work For Instacart Shoppers - 1099 Cafe

Federal quarterly tax payment due dates

State deadlines may vary slightly from these dates, but are generally close. Be sure to check with your state’s tax authority for precise due dates.

Necessary Tax Forms for Instacart Shoppers

In addition to either the W2 or 1099 (most likely 1099) you receive from Instacart, you’ll also need the following forms, which you have access to when filing with a tax software:

• Form 1040, this is your standard tax return form. It summarizes all your income and deductions

• Schedule C, this is a detailed breakdown of things you are claiming as deductions (expenses). So your car, phone, and supplies deductions will show up here.

• Schedule SE, this is a detailed breakdown of calculating Self-Employment Tax, which we explored above. It’s actually the same thing, just in IRS format.

• Form 1040-ES, this is a detailed breakdown of any quarterly tax payments you may have made, or will make. As freelancers, taxes are not withheld from your paychecks, so you’re responsible for not accumulating a huge tax liability over the year and must pay “estimated” amounts in quarterly periods.

When Should I File My Taxes?

Everyone generally files their taxes before the annual deadline, which falls in mid April around the 15th. As long as you file your taxes before the deadline, it doesn’t matter when you file it.

We recommend getting prepared to file taxes by mid February, so you have time to gather documents or correct any mistakes.

If you need more time, don’t just skip over the deadline. You can request an extension for filing taxes relatively easily. Here’s how:

• Go to the IRS website and E-File portal

• Download, fill out and send Form 4868

What Happens if I Don’t File Instacart Taxes?

If you don’t file Instacart taxes, you’re actually avoiding taxes which is a crime. Even though the IRS may not act right away, you will eventually be caught. Your 1099 is not only sent to you, but also sent to the IRS–so everything you’ve made with Instacart, the IRS is well aware.

If you don’t file and pay your taxes, expect penalties, fines, and potentially legal action against you.

No, you probably won’t get away with it.

FAQs:

Do you have to pay taxes on Instacart?

Yes–everyone who makes money needs to pay taxes, Instacart shoppers are no exception. Generally you will receive a 1099 from Instacart at the end of the year, use that to file your taxes on form 1040.

Will I get a 1099 from Instacart?

Yes–if you’ve made over $600 in a year with Instacart, they should send you a 1099 to the address on file. You can also download your 1099 electronically.

Will Instacart send me a W2?

Generally no–unless you are an in-store ONLY shopper. Most people who work for Instacart also do deliveries and don’t only shop in-store. Thus, you are treated as a freelancer and will receive a 1099 instead of a W2.