Instacart Shopper Taxes in Connecticut - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Instacart Shopper income taxable in Connecticut?

Yes, absolutely. Income earned as an Instacart shopper is taxable at both the federal and Connecticut state levels. Because Instacart treats you as an independent contractor, not an employee, you are responsible for reporting your earnings and paying all applicable taxes.

Federal Requirements: You'll report your Instacart income on Schedule C (Profit or Loss from Business) as part of your Form 1040. This form allows you to deduct business expenses (more on that below) to arrive at your taxable profit. You'll need to track all income received from Instacart – typically found in your Instacart earnings summary.

Connecticut Requirements: Connecticut has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your Instacart profit (after deducting business expenses on Schedule C) will be added to your other income, and then taxed according to the Connecticut income tax brackets for the 2024 tax year (filing in 2025). You'll use Form CT-1040 to file your Connecticut state income tax return. Connecticut also requires you to pay a tax on your federal self-employment tax (explained below).

Top Tax Write-offs for Instacart Shoppers

As an Instacart shopper, you can significantly reduce your tax liability by taking advantage of eligible deductions. Here are some key write-offs:

• Mileage: This is often the biggest deduction! For 2024, the standard mileage rate is 67 cents per mile for business use. Keep a detailed log of all miles driven for Instacart shopping – from leaving to pick up the order, to delivering it to the customer, and returning home. Apps like Stride Tax or Everlance can help with this.
• Hot Bags & Shopping Equipment: The cost of insulated bags, shopping carts, phone mounts, or any other equipment specifically used for Instacart shopping is deductible.
• Phone Expenses: If you use your personal cell phone for Instacart (which is likely!), you can deduct the percentage of the phone expense that relates to your Instacart work. This can be calculated based on usage time or a reasonable estimate.
• Software & Apps: Fees paid for apps or software used to track mileage, income, or expenses (like Stride Tax, QuickBooks Self-Employed, or similar) are deductible.

The 15.3% Self-Employment Tax Surprise

Many independent contractors are surprised by self-employment tax. When you're an employee, your employer pays half of your Social Security and Medicare taxes. As a self-employed individual, you're responsible for both the employer and employee portions – a total of 15.3%.

You'll calculate this tax on Schedule SE (Self-Employment Tax). However, you only pay self-employment tax on your profit (income minus expenses from Schedule C) and only if that profit is over $400. The good news is that half of your self-employment tax is deductible from your gross income on Form 1040, reducing your overall tax burden.

Closing Tip for Connecticut Residents

Don't wait until tax season to get organized! Keep meticulous records of your income and expenses throughout the year. Consider making estimated tax payments quarterly to avoid penalties. Connecticut also requires you to pay estimated taxes if you expect to owe more than $1,000. Consulting with a qualified tax professional (like myself!) can help you navigate the complexities of self-employment taxes and ensure you're taking advantage of all available deductions. Good luck, and happy shopping!