Instacart Shopper Taxes in Georgia - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Instacart Shopper income taxable in Georgia?

Yes, absolutely. Income earned as an Instacart shopper is taxable at both the federal and Georgia 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) when you file your federal income tax return (Form 1040). Schedule C allows you to deduct business expenses, reducing your taxable income. Instacart will send you a Form 1099-NEC detailing your earnings for the year. Keep this form with your tax records.

Georgia Specific Rules: Georgia has a flat income tax rate of 5.49% for the 2024 tax year (filing in 2025). This means all of your taxable income (after deductions) will be taxed at this single rate. You will report your income on Form 500, Georgia Individual Income Tax Return. Like the federal government, Georgia also requires you to report self-employment income.

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 deliveries (from leaving home to picking up the order, to delivery, and returning home). Apps like Stride Tax or Everlance can help with this.
• Phone Expenses: You likely use your phone for accepting batches, navigating, and communicating with customers. You can deduct the percentage of your phone bill that relates to business use. If you use your phone exclusively for Instacart, you may be able to deduct the entire cost.
• Hot Bags & Shopping Equipment: The cost of insulated bags, shopping carts, or other equipment used specifically for Instacart shopping is deductible.
• Software & App Fees: Any fees you pay for tax preparation software (like TurboTax Self-Employed) or apps that help manage your Instacart business 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 business expenses). Also, you don't pay self-employment tax on any earnings below $400. The good news is that you can deduct one-half of your self-employment tax from your adjusted gross income on Form 1040, which can lower your overall tax bill.

Closing Tip for Georgia Residents

Tax laws can be complex, and this information is for general guidance only. I strongly recommend keeping meticulous records of your income and expenses throughout the year. Consider using accounting software or consulting with a qualified tax professional (like myself!) to ensure you're maximizing your deductions and complying with all federal and Georgia tax regulations. Don't wait until the last minute – proactive tax planning can save you time, money, and stress.