The gig economy has changed the world: how we receive goods, how we spend our money and, for all the workers, how taxes get filed.
Of course, they still go through the IRS, but a new generation of workers is discovering the 1099-NEC (formerly the 1099-MISC).
That includes most Instacart shoppers, who receive their tax forms by the end of January. What is an Instacart 1099? I’m glad you asked, because I have your answer below.
What Is Instacart 1099 In 2023?
The Instacart 1099 is a tax form, formally known as a 1099-NEC (and previously known as the 1099-MISC) which independent contractors use to file their taxes. It contains their gross earnings, from which their federal, state and local taxes to be paid are calculated. Instacart emails 1099s to their shoppers by the end of January.
To learn more about Instacart shoppers receiving 1099s, how you can get it from Instacart if you missed the email and how you use it to file, plus many more FAQs, read on! I’ll detail everything you need to know.
Do Instacart Shoppers Get 1099?
Many Instacart shoppers do get 1099 tax forms.
The vast majority of Instacart shoppers are full-service shoppers, which are classified as independent contractors.
They are not considered employees of Instacart, and as such, they do not get taxes taken out of their earnings.
The 1099-NEC (formerly the 1099-MISC) is the form that contains their gross earnings, which is then used to report to the IRS.
Instacart sends a copy of the 1099-NEC to the shopper, via email, as well as to the IRS. So no fibbing about your earnings.
From that gross total, the IRS calculates how much you owe in federal taxes – in general, about 25 to 30 percent of the total.
That percentage is driven up by the FICA tax, or self-employment tax, which comes to a little over 15 percent on its own.
Being an independent contractor is great in a lot of ways, especially when you get to set your own schedule, as Instacart shoppers do.
But getting that tax bill is not great if you haven’t been setting money aside all year.
How Do You Get Your 1099 From Instacart?
As I mentioned above, Instacart sends out the 1099s each year by email.
It’s important, once January starts, to monitor your inbox for the email.
Instacart partners with the third-party company Stripe to send out the emails, so look for that name: Stripe or Stripe Express.
You should also keep an eye on your spam box, and resist the urge to do a mass clean-out without looking at least at the subject lines and senders.
If the end of January passes and we’re into February, and you don’t think you received a 1099 (but you know you should have), no worries.
Contact Instacart shopper support and they can actually mail one to you if necessary.
For more in-depth information on receiving your 1099 tax form, check out this handy guide here.
Will Instacart Send You A W2?
Instacart will indeed send you a W2 if you are an Instacart employee and not an independent contractor.
In-store shoppers are considered full employees, as they receive waged pay and are eligible for benefits.
How Do You Fill Out An Instacart 1099?
You don’t actually fill out an Instacart 1099 – it comes to you filled out with your gross earnings for the year.
You do have to give Instacart some information in order to receive a 1099, however; that would have been when you were officially brought on.
You gave Instacart your social security number, which is also most people’s tax ID number, when you gave them permission to run a background check during the onboarding process.
How Do You File An Instacart 1099?
You use the Instacart 1099 to file your taxes during tax season.
How you file your taxes is up to you: you might have a private practice attorney, use a company like H&R Block or use paid or free software to do it at home.
If you’re giving it to someone else to prepare, simply make sure you have brought the 1099 document with you.
If you are doing it yourself, keep it on hand and nearby so that when you are prompted to enter your earnings, you have the information right there.
If you receive your 1099 well ahead of when you plan to file, keep it somewhere safe.
Download it and save it somewhere where you can find it easily, or wait to print it out until you actually need it.
How Do You Prove Your Income For Instacart?
For some institutions, your 1099-NEC or most recent tax filing can be used to prove or report your income for Instacart for a calendar year.
If you need proof of income for a specific timeframe, you could try going into the earnings section of the Shopper app.
Screenshot the appropriate weeks and use that as proof; if you describe yourself as an independent contractor, the institution should recognize that you don’t have pay stubs.
How Much Can You Make On Instacart Without Paying Taxes?
You will receive a 1099-NEC to pay taxes on any earnings $600 and over.
That is the federal minimum and has been for years.
Any earnings $599 and under are considered not taxable income. You’re in the clear!
To learn more, you can also read our posts on Instacart bots, Instacart guaranteed earnings, and does Instacart take out taxes.
Instacart 1099s get emailed to shoppers by the end of January of each year, reporting the gross earnings for the previous year.
Instacart shoppers are advised not to try and fudge the amount – the company also sends the IRS a copy!