Instacart Shopper Taxes in Idaho - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Instacart Shopper income taxable in Idaho?

Yes, absolutely. Income earned as an Instacart shopper is taxable at both the federal and Idaho 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). This form allows you to deduct business expenses, reducing your taxable income. You’ll then use the profit (or loss) from Schedule C to calculate your Adjusted Gross Income (AGI) on Form 1040.

Idaho Specific Rules: Idaho has a flat income tax rate for 2024, currently at 5.8%. This means regardless of your income level, you’ll pay 5.8% of your taxable income to the state. You’ll report your federal AGI on Idaho Form 40, and then calculate your Idaho taxable income and tax liability. Idaho also allows for deductions similar to the federal level, which can further reduce your state tax bill.

Top Tax Write-offs for Instacart Shoppers

As an Instacart shopper, you have several opportunities to reduce your tax burden by claiming legitimate business expenses. Here are a few key deductions:

• 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 to pick up the order to delivering it). You can use apps or a simple notebook.
• Smartphone & Data Plan: If you use your smartphone for Instacart (and most shoppers do!), you can deduct the portion of your phone bill and data plan that relates to your work. For example, if you estimate 75% of your phone use is for Instacart, you can deduct 75% of the cost.
• Hot Bags & Shopping Equipment: The cost of insulated bags, shopping carts, or other equipment specifically used for Instacart deliveries is deductible.
• Instacart Shopper App Fees/Software: Any fees paid directly to Instacart for access to the shopper app or any subscription-based software used to track income/expenses can be deducted.

The 15.3% Self-Employment Tax Surprise

Many independent contractors are surprised to learn about 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 you can deduct one-half of your self-employment tax from your gross income on Form 1040, which helps reduce your overall tax liability.

Closing Tip for Idaho Residents

Tax laws can be complex, and it’s easy to miss deductions. I strongly recommend keeping meticulous records of all your income and expenses throughout the year. Consider using accounting software designed for freelancers or consulting with a qualified tax professional (like myself!) to ensure you’re maximizing your deductions and complying with all federal and Idaho state tax requirements. Don't wait until the last minute – proactive tax planning can save you time, money, and stress.