Instacart 1099 (how To Get One, Filling One Out + Other Faqs)

The gig economy is changing every aspect of our society, how we live, interact and spend our money.

Taxpayers often use Form 1099-MISC to report cash payments, such as tips, rebates and kickbacks. They do not need to send in Form 1099-NEC.

That means that each person who has shopped on an Instacart site for which Amazon is the marketplace is given their own 1099-K tax form.

What Is Instacart 1099 In 2022?

The Instacart 1099 is a document which independent contractors use to file their personal taxes. It contains their gross earnings, from which their federal, state and local taxes to be paid are calculated. They are emailed to shoppers by the end of January.

To learn more about how to receive 1099s from Instacart, 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?

The only time you’d have a 1099 is if you’re a vendor.

While shopper are classified as part-time independent contractors, they often must meet certain requirements before they can be classified as independent contractors — such as the requirement for businesses to make $25,000 in sales per year and the requirement for at least 20% of purchases to be for less than $500.

They are independent contractors of Instacart. They are not considered Instacart employees, therefore do not get any benefits, taxes, or other employment-related payments.

The 1099-NEC is the income tax form that is used to report to the IRS your total gross earnings.

You don’t have to pay taxes on the earnings you make via Instacart because the company sends you a 1099-NEC, a form that you must complete and send to the IRS.

If you earn too much money to pay this tax, you can pay lower taxes using a different method.

And that’s why it’s called the self-employment tax, because it’s taken out of your paycheck.

But it can also bring problems if you don’t understand the business side or don’t know how to navigate it.

So one way to get it is by putting the amount that you need into a tax-advantaged account like a money market account or a tax-free savings account.

How Do You Get Your 1099 From Instacart?

When you see an email from Instacart, you should download and print it.

Once the date starts, you’ll want to monitor your email for the email you are receiving. Some emails aren’t the best to start the year off on.

To send the email you need to have a valid phone number in your customer profile for the email and Stripe account to connect.

If you are getting a lot of spam, read the subject lines and senders to see if there is a common thread.

If by the end of January you haven’t received a 1099, then you’re in pretty good shape. We can do the paperwork in the first week of February and get paid at the same time. If the end of January passes and you don’t get paid, that gets a little tricky. In that case, it’s better to wait a few days before sending out a 1099.

I contacted the Instacart shopper support and they can actually send one even if I do not receive it.

If you missed out on a tax return, you can still ask the IRS to fill out your return for you. You then need to claim any income that you earned or have access to (such as Social Security).

Will Instacart Send You A W2?

If you are an employer of a “third party delivery driver”, the company will indeed issue you a W2. If you are the individual doing the delivery, or if the person is not your employer, you would not receive a W2 but instead would get an EIN to allow you to work legally in the U.S.

In-store shoppers are considered full-time employees, as they receive paid wages and are eligible for health benefits.

How Do You Fill Out An Instacart 1099?

I don’t have time to go to a government office and fill out a form and pay my tax and file a paper for the year.

Yes, I do need to get a 1099 to file taxes. I am officially an independent contractor now, and the 1099 would have been for the previous year (for a few days, until I filed taxes for the new year of 2018).

When you signed up to use the company’s services — which included a background check — their servers used the information they gathered from you to run a background check on you.

How Do You File An Instacart 1099?

You’ve used Instacart for a few years now and you’ve found a few bugs. You make a list of these bugs in the form of a ticket. A customer service person reviews your list, but no one is assigned your ticket. You start to wonder if there is a bug or if the system has been designed to be too complex.

File your taxes is something up to you. If you have a business you can use a lawyer, H&R Block or you can use a free tax program.

If you are going to give it to someone else to make sure you bring a 1099 copy.

If you are getting paid for your own service, keep the information right on the site so that it is easy to pull out.

It is important to file your tax return as soon as you receive your 1099.

Then make sure you 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?

If you have filed for a previous tax year, an Instacart form can be used to report your income for any previous tax year.

If you want to see what your earnings are per week, month, or year, you can download the app and go into the earnings section.

Find photos of your contract that clearly and unequivocally show that the institution is paying you through the month, and use that to your advantage in case you need to argue with the institution.
To prove that you’re the person who’s listed on the contract, simply use your passport, drivers license, work ID, student ID, library card, etc.

How Much Can You Make On Instacart Without Paying Taxes?

There is no way to pay less than 1099 taxes unless you file a tax return.

The federal minimum, if you are a business, $10,000, you may only have to withhold for the IRS on the first $10,000 of income.

If you are considering joining a gym or fitness center and need to figure out how much you can expect to earn, simply multiply your membership fee by three. That’s how much you can expect to make if you start working out.

To learn more about your experience with Instacart and what’s on your mind, you should read our posts about Instacart tips, does Instacart take out taxes, and Instacart guaranteed earnings.

Conclusion

Customers on Instacart get a 1099 every year, reporting the gross earnings from their orders.

Shoppers at Instacart should be aware to enter the correct amount of groceries.