Instacart currently has two different types of shopper jobs, one of which involves in-store shopping and no delivery, and the other which does both.
While shopping for Instacart can be a fun and flexible gig, around tax time things can start to get pretty confusing for their network of associates.
Does Instacart Provide W2 forms to their employees? What about for their full-service shoppers? It can seem confusing, but I’ve got the breakdown in my answer below.
Does Instacart Provide W2 In 2023?
Part-time in-store shoppers and corporate staffers are both considered employees of Instacart, and they, therefore, do receive W2 tax forms from Instacart. However, the bulk of Instacart’s shoppers are full-service, and they are thus considered independent contractors. These gig workers are “self-employed,” and receive 1099-NECs. Employees have taxes taken out; independent contractors do not.
For more information on filing taxes with Instacart via the different forms, how you can expect to receive your tax forms from the company, and other common Instacart/tax-related questions, keep going!
Do You Have To File Taxes For Instacart?
If you are working for Instacart as a full-service shopper and you make more than $600 in a calendar year, you will receive a 1099-NEC and you must report your earnings to the IRS.
If you a part-time in-store shopper, you are considered an employee of the company, and no matter how much you make or how long you were with them, you will receive a W-2.
You’ll then use that W-2 form to report your earnings when you file your taxes.
Don’t worry, you won’t have to bug your manager or contact the company for these forms. Instacart automatically emails them out by the end of January.
Full-service shoppers, if you’re not sure how much you earned and you don’t receive a 1099, you may not have made $600.
But you equally could have missed the email.
If you’re on the fence, I’d reach out to Instacart support and ask, because if you get caught not reporting by the IRS, you could be in deep trouble.
Equally, if you contract workers think you’ll just not file your taxes, I wouldn’t recommend that course of action.
When Instacart sends out the tax forms to their workers, they also send them to the IRS.
How Do You Get Your Tax Form From Instacart?
Shoppers don’t have to do anything in particular to get their tax forms from Instacart.
The company sends them out via email by the end of January. If you aren’t sure what to look for in your inbox (or spam box), reach out to Instacart Support.
If January goes by and you’re into February and you haven’t received your tax form, whether it’s 1099-NEC or W2, you should reach out to Instacart support.
They can send you a paper form if you missed the email version.
Just don’t forget about these forms, because February and March can fly by, and before you know it – your filing is due.
How Do You File A 1099 On Instacart?
Because the bulk of Instacart’s workers are independent contractors, most shoppers will have to file a 1099-NEC come tax season.
Doing this is very simple, even if you have multiple 1099s from various gigs.
You will have to decide which tax filing system you want to use – a program/software, an accountant or the free federal online system (but don’t forget state and local, too).
Then you simply use the information, the most pertinent of which will be the amount you have earned, and add it in.
When you are filing a 1099-NEC, there is always the chance that you will have some work-related tax deductions.
This might include a cell phone that you use exclusively for Instacart; or it could be an oil change for your vehicle that you use to deliver.
It could be the insulated bags you purchased to keep food at a safe temperature during transport; or it could be fuel expenses.
Whatever it is, you will need proof in the form of receipts, notes, charts or logs tracking your data, invoices or bills.
It really does help to begin as you mean to go on; that is, start keeping records for taxes as soon as you begin shopping for Instacart.
The gig is certainly fun and flexible, but the downside to gig work is how complicated taxes can be each year when you file a 1099-NEC.
Can You Get Pay Stubs From Instacart?
One thing people often need along with W2s, especially if they’re providing proof of income, is pay stubs.
If you get a W2 from Instacart, because you are an employee of the company, you should be able to have access to a record of your pay stubs.
That’s if you don’t hold onto them yourself (which you probably should).
But what if you’re a full-service shopper – and therefore an independent contractor – and you need proof of income?
Though slightly trickier, you can still provide the information desired.
For starters, the organization of institution requiring proof of income should be aware that, as a gig worker, you won’t have any official pay stubs to present.
The next best thing is going to be proof from the company itself, so anything with its logo or that comes directly from them.
The Shopper app has an “Earnings” section where you can go and view all your past income from Instacart.
You should be able to screenshot the dates needed, with the amounts earned, and use that as proof.
You might also cross-reference that with screenshots from your checking account, showing that the same amount from the Shopper app went into your bank account.
In the future, you might consider setting up an Excel spreadsheet, as well; you can also use this to easily estimate how much you owe in taxes at any given point.
To know more, you can also read our posts on whether or not Instacart take out taxes, does Instacart hire felons, and what is Instacart.
Instacart provides W2s and 1099s for its workers, depending on whether they are considered Instacart employees or independent contractors.
These should arrive in shoppers’ email inboxes by the end of January, as they are legally bound to do; if a shopper doesn’t receive theirs, they should message Instacart Support for help.