Instacart does not give you a W-2. Shoppers are classified as independent contractors, so if you earned enough during the year, Instacart issues a Form 1099-NEC instead. No taxes are withheld from your pay, which means you are responsible for reporting the income and paying both income tax and self-employment tax yourself.
Why It’s a 1099-NEC and Not a W-2
A W-2 goes to employees whose employer withholds income tax, Social Security, and Medicare from every paycheck. Instacart shoppers do not fit that description. You pick which batches to accept, set your own hours, and use your own car and phone. Under federal rules, that pattern points to an independent contractor rather than an employee.1eCFR. Part 795 Employee or Independent Contractor Classification Under the Fair Labor Standards Act
Because of that classification, Instacart is not required to withhold taxes or pay the employer share of Social Security and Medicare on your behalf.2Internal Revenue Service. Independent Contractor (Self-Employed) or Employee? A traditional employee splits those payroll taxes 50/50 with their employer. You pay the full amount as self-employment tax.
What the 1099-NEC Shows
Your 1099-NEC lists total gross pay from Instacart for the year, including tips processed through the app. It shows a single figure in Box 1 for non-employee compensation and does not report any withheld taxes, because none were taken out. The IRS receives its own copy and matches it against what you report.3Internal Revenue Service. Instructions for Forms 1099-MISC and 1099-NEC
For the 2026 tax year, the reporting threshold for information returns is $2,000 in annual payments.4Office of the Law Revision Counsel. 26 USC 6041 Information at Source Earn less than that and Instacart may not send you a form at all. Every dollar is still taxable and must be reported on your federal return, whether or not a 1099-NEC arrives.5Internal Revenue Service. IRS Announces Form 1099-K Reporting Threshold Delay
You might also hear about Form 1099-K. For 2026, that form is only required when a payment settlement entity processes more than $20,000 across more than 200 transactions.6Internal Revenue Service. Form 1099-K FAQs Most shoppers will only see a 1099-NEC. If you happen to receive both, do not count the same income twice.
How to Get Your Form
Instacart delivers tax documents through Stripe Express. Watch for an email invitation sent to the address on your shopper profile, and use it to create or log into your Stripe account. Opt in to electronic delivery to download the form as a PDF once it is available, rather than waiting on paper mail.
Instacart must furnish the 1099-NEC by January 31 of the year after the tax year.7Internal Revenue Service. Employment Tax Due Dates If nothing has landed by mid-January, check your spam folder, confirm the email on file, and request a fresh invite link through Stripe support.8Stripe. How Do I Get a New Invite Link to Set Up My Stripe Express Account to Access My Tax Forms Contact Instacart directly if that still does not resolve it.
What You File With It
Filing as a shopper involves more paperwork than a W-2 return. You report your earnings and business expenses on Schedule C (Profit or Loss from Business), which attaches to your Form 1040. The net profit from Schedule C then flows in two directions: onto your 1040 as income, and onto Schedule SE to calculate self-employment tax.
Schedule SE and the self-employment tax kick in once your net self-employment earnings hit $400 for the year.9Internal Revenue Service. Instructions for Schedule SE (Form 1040) That threshold is separate from regular income tax. You can owe self-employment tax on Instacart earnings even when your total income is too low to owe any income tax.10Social Security Administration. If You Are Self-Employed
Self-Employment Tax and Quarterly Payments
Self-employment tax covers Social Security and Medicare. The combined rate is 15.3% of your net self-employment earnings: 12.4% for Social Security on earnings up to $184,500 for 2026,11Social Security Administration. 2026 Cost-of-Living Adjustment (COLA) Fact Sheet and 2.9% for Medicare on all earnings with no cap.10Social Security Administration. If You Are Self-Employed An additional 0.9% Medicare tax applies to self-employment income above $200,000 (or $250,000 for married filing jointly).12Internal Revenue Service. Topic No. 560, Additional Medicare Tax
The 15.3% does not apply to your full net profit. You first multiply net earnings by 92.35% to get the taxable base, and you can deduct half of the resulting self-employment tax as an adjustment to income on Schedule 1, which lowers your adjusted gross income (though not the self-employment tax itself).13Internal Revenue Service. Topic No. 554, Self-Employment Tax
Since nothing was withheld, the IRS expects payment as you earn. You generally owe quarterly estimated payments if you expect to owe $1,000 or more in federal tax after credits and any other withholding.14Internal Revenue Service. Form 1040-ES, Estimated Tax for Individuals The 2026 quarterly deadlines are:15Internal Revenue Service. Estimated Tax
- April 15, 2026, for income earned January through March
- June 15, 2026, for income earned April through May
- September 15, 2026, for income earned June through August
- January 15, 2027, for income earned September through December
Underpaying or skipping installments triggers an underpayment penalty tied to the current interest rate, which is 7% per year as of early 2026.16Internal Revenue Service. Interest Rates Remain the Same for the First Quarter of 2026 A common rule of thumb is to set aside 25 to 30% of each Instacart payment to cover income tax and self-employment tax combined.
Deductions That Cut the Bill
Contractor status has a real upside: you can deduct ordinary business expenses on Schedule C, which directly reduces the income you pay tax on. Vehicle mileage is usually the biggest deduction. For 2026, the IRS standard mileage rate is 72.5 cents per business mile.17Internal Revenue Service. IRS Sets 2026 Business Standard Mileage Rate at 72.5 Cents Per Mile, Up 2.5 Cents Keep a log recording the date, destination, business purpose, and miles for each trip. Without documentation, the IRS can disallow the deduction entirely.18Internal Revenue Service. Publication 463, Travel, Gift, and Car Expenses
Other common deductions for delivery work:
- Supplies used on deliveries, such as insulated bags, phone mounts, and hand warmers19Internal Revenue Service. Instructions for Schedule C (Form 1040)
- The business portion of your cell phone bill (the base cost of a primary phone line is not deductible, but extra charges tied to business use are)19Internal Revenue Service. Instructions for Schedule C (Form 1040)
- Health, dental, and vision insurance premiums if you show a net profit on Schedule C and are not eligible for coverage subsidized through a spouse’s employer, claimed on Form 720620Internal Revenue Service. Instructions for Form 7206
- Half of your self-employment tax, taken as an adjustment on Schedule 1 rather than on Schedule C13Internal Revenue Service. Topic No. 554, Self-Employment Tax
You may also qualify for the qualified business income deduction, which lets eligible self-employed filers deduct up to 20% of their net business income.21Internal Revenue Service. Qualified Business Income Deduction It’s calculated on your return, not on Schedule C, and reduces your taxable income separately.
If Your 1099-NEC Is Wrong or Missing
Compare the form against your own earnings records. If the amount is off, contact Instacart and ask for a corrected 1099-NEC. Typical problems are double-counted payments, missing adjustments, or incorrect tip totals. If a corrected form has not arrived by the end of February, call the IRS at 800-829-1040 for help. Have your personal information and Instacart’s details ready.22Internal Revenue Service. What to Do When a W-2 or Form 1099 Is Missing or Incorrect
If the deadline is bearing down and no corrected form has arrived, file using Form 4852 (Substitute for Form W-2, Wage and Tax Statement) with your best estimate based on your own records.22Internal Revenue Service. What to Do When a W-2 or Form 1099 Is Missing or Incorrect If the corrected 1099-NEC eventually shows different numbers, submit an amended return using Form 1040-X.