Instacart full-service shoppers are independent contractors who receive a 1099-NEC. Instacart withholds zero taxes. But you can deduct mileage, bags, phone, and other business expenses to reduce your taxable income. This guide covers every IRS Schedule C deduction available to Instacart shoppers in 2026.
| Gross Instacart income | $35,000 |
| Mileage deduction (11,000 mi) | − $7,700 |
| Bags + phone + parking | − $1,100 |
| Health insurance | − $3,200 |
| Net profit (Schedule C) | $23,000 |
| SE tax (15.3% on 92.35%) | − $3,248 |
| SE tax deduction (50%) | − $1,624 |
| Federal income tax (est.) | − $2,200 |
| IL state tax (4.95%) | − $1,050 |
By claiming $12,000 in deductions, this shopper reduced taxable income by $12,000 — saving approximately $3,000–$4,500 in combined taxes.
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I have been 1099 for 4 years and never fully understood what I could deduct until I found this site. The home office, internet, and software deductions alone saved me over $3,800 on my 2025 return. Way better than anything my accountant explained.
Switched from W-2 to 1099 last year and had no idea what I was doing. This site taught me about QBI deduction, SE tax deduction, and health insurance write-off. Filed my first Schedule C with confidence. No paywall, no upsell, just real information.
Good reference for quarterly estimated taxes. The state-by-state breakdown is useful — Florida has no state income tax which this confirmed. Bookmarked for Q3.