Full-service Instacart shoppers are independent contractors who receive a 1099-NEC and must file Schedule C. In-store shoppers are W-2 employees — Instacart withholds taxes on their behalf, so they do not file Schedule C. This distinction is critical: full-service shoppers owe self-employment tax (15.3%) on net profit and must make quarterly estimated payments.
ExpenseBot helps full-service Instacart shoppers in three ways. First, it scans your Gmail inbox for Instacart weekly earnings summaries and automatically logs batch pay, tip income, and bonuses — no manual entry. Second, since Instacart does not provide a per-delivery mileage CSV (unlike Uber), ExpenseBot's GPS-based mileage tracker builds an IRS-compliant mileage log at the 2026 standard rate (76 cents per mile from July 1; 72.5 cents before that). Third, it generates a Schedule C-ready deduction report covering vehicle expenses, phone, insulated bags, cart fees, and other qualifying costs.
Key 2026 facts for Instacart shoppers: the 1099-NEC reporting threshold for the 2026 tax year is $2,000, raised from $600 by the One Big Beautiful Bill Act and indexed to inflation from 2027 — so Instacart sends a 1099-NEC once you cross $2,000 for the year. Below that no form is issued, but the income is still fully taxable and must be reported on Schedule C. The 1099-K threshold has been restored by the One Big Beautiful Bill Act to more than $20,000 AND more than 200 transactions — both conditions must be met, and not receiving a form never makes the income non-taxable. App-based delivery workers may qualify for the new No Tax on Tips deduction (up to $25,000, phasing out at MAGI above $150,000 single); it is a deduction from taxable income, not an exemption — self-employment tax still applies to tip income. Quarterly estimated tax deadlines are April 15, June 15, September 15, and January 15, 2027. Self-employment tax is 15.3%, of which 50% is deductible on Schedule 1 Line 15.
The current year is a split-rate year for mileage: 72.5 cents per mile for miles driven January 1 through June 30, 2026, and 76 cents from July 1 onward (IRS Announcement 2026-11, modifying Notice 2026-10). A mileage log kept as a single annual total cannot be split correctly across the two rates — another reason the IRS expects a contemporaneous log with dates rather than a figure reconstructed at filing time. These are estimates — confirm with your tax professional.