Instacart 1099 is a tax form officially known as 1099-NEC (formerly known as 1099-MISC) used by independent contractors to file their taxes. It incorporates your gross earnings, which are used to estimate your local, federal, and state taxes. By the end of January, Instacart had sent 1099 emails to its subscribers.
Do Instacart Shoppers Receive 1099?
A good number of shoppers on Instacart get a 1099 tax form. The majority of Instacart buyers are full-service buyers classified as independent contractors.
They are not considered Instacart employees and therefore do not receive taxes withheld from their income. Your gross receipt is contained on your 1099-NEC (initially called 1099-MISC), which is utilized in reporting to the IRS.
Copies of 1099-NEC are sent to shoppers via emails and also forwarded to IRS.
IRS estimates the amount you owe in federal taxes out of this gross amount. Which is usually in the region of 25 to 30 percent in total.
This percentage is added to the FICA tax, or self-employment tax, which alone makes up more than 15 percent.
Freelancing is an awesome way, especially when like Instacart shoppers, you determine your schedule.
How Do I Obtain My 1099 From Instacart?
As earlier discussed, 1099 emails are sent out by Instacart yearly. It’s very important to keep an eye on your inbox email once January starts.
Instacart has collaborated with stripe (a third-party payment platform) to be in charge of the sending of emails. Therefore, the name, Stripe Express or Stripe should be on the lookout.
You should constantly check your spam messages and do not be hasty in mass-deleting items from your spam box without taking a thorough look at the sender and header.
If you are yet to receive a 1099 form and you are in late January or February, do not be disturbed.
Call Instacart customer service and they can ship it to you if needed.
Steps to Take If You Did Not Receive 1099
If you believe you’ve made over $600 on Instacart, you should earn 1099-NEC. Still, think you lost one in mid-February? You need to contact Instacart support.
On the other hand, you might make less than $600 on Instacart — perhaps because you drive part-time. In this case, it is normal that you do not receive 1099. The company does not need to send you at all if you are under the $600 threshold.
To be clear, not receiving a form does not mean that your income is tax-free. You only need to report it yourself, just like when you report cash receipts.
Ensure you put together the documentation of your income so that you can report the precise figure by viewing your bank statement or searching on the Instacart app.
How to Complete Instacart 1099 Form?
The Instacart 1099 form arrives pre-filled with your gross income for the year and there is, therefore, no need for you to fill in any other thing.
However, you need to give Instacart some information to get 1099. That’s when he officially gets involved.
You submit your Social Security Number (SSN), which most individuals use as their tax identification number. This will be carried out when you grant them permission to perform verification at the time of the application process.
Other Tax Forms Must Be Filled With Your Instacart 1099
When filing your taxes, you must complete List C, Schedule SE, and your 1040 tax form along with information from your 1099.
Schedule C
You use chart C to report wins and losses/earnings or expenses. First, fill in Chart C with the amount you earned (as shown in your 7 Instacart 1099 box).
Make sure you submit separate Schedule C forms for each freelance activity you undertake, e.g. when you’re driving as a Lyft 1099 artist, for other ride-sharing apps, or doing side concerts. The gains you calculate are taxed and you must report them on line 12 of your 1040 form.
Schedule SE
The SE schedule is for self-employed individuals applying as sole proprietors or considered contractors. You must complete this form and pay the appropriate Social Security and Medicare taxes, which you must do even if your Instacart income isn’t enough to trigger it.
1040
Form 1040 is required for all taxpayers. This tax form summarizes all your income plus tax deductions and self-employed loans. This information is needed to calculate what taxes you have to pay. The categories of income, deductions, and credits you wish to claim are broken down using information from many other forms. Here are some instructions from Form 1040 for contractors.
Do You Report Instacart for Unemployment?
While you can work as an Instacart shopper or do other odd jobs and get unemployment benefits, you must report all the money you make from Instacart to the unemployed.
Depending on your Instacart income, your unemployment benefits will be adjusted accordingly.
Instacart will not report your income or employment status to government agencies.
Conclusion
Instacart 1099 is emailed to shoppers at the end of January each year, based on the previous year’s gross sales.
Instacart shoppers are advised not to try to make the numbers – the company will also send a copy to the IRS!
How much tax do you pay for Instacart?
Answer: The self-employment tax rate is 15.3% of the first 92.35% of your net self-employed income. More specifically, you must pay 12.4% Social Security tax and 2.9% Medicare tax on your 1099 income.
Do you need to seek tax advice?
Answer: For Instacart shoppers, tips are an important part of their income. If you’re wondering if tips are taxed, the answer is yes. If you already know how tipping works on the Instacart platform, you know that customers can tip you in the app or cash. Tips are taxable income. This means you must report your tips, even tips received while working with Instacart.
