Instacart Shopper Taxes in Kansas - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Instacart Shopper income taxable in Kansas?

Yes, absolutely. Income earned as an Instacart shopper is taxable at both the federal and Kansas state levels. Because Instacart treats you as an independent contractor, not an employee, you are considered self-employed by the IRS and the State of Kansas.

Federal Requirements: You'll report your Instacart earnings 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, ultimately determining your net profit (or loss). This net profit is then added to your other income and taxed accordingly.

Kansas Requirements: Kansas has a graduated income tax system, meaning the tax rate you pay increases as your income increases. Your Instacart net profit (from Schedule C) will be added to your other income sources, and Kansas income tax will be calculated based on the applicable tax brackets for the 2024 tax year. You'll use Kansas Form K-40 to file your state income tax return. Kansas also allows for itemized deductions, which may further reduce your taxable income.

Top Tax Write-offs for Instacart Shoppers

As a self-employed Instacart shopper, you can significantly reduce your tax liability by claiming eligible business 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 accepting batches to delivery). You can use apps or a simple notebook. You cannot include commuting miles.
• Smartphone & Data Plan: If you use your smartphone for Instacart (accepting batches, navigating, communicating with customers), you can deduct the portion of your phone bill and data plan that relates to business use. For example, if you use your phone 75% 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 shopping is deductible. If the item has a useful life of more than one year (like a cart), you may need to depreciate it over several years.
• Instacart Shopper Software/Apps: Any subscription fees or costs associated with apps or software used to help manage your Instacart business (mileage trackers, expense trackers, etc.) are deductible.

The 15.3% Self-Employment Tax Surprise

Many independent contractors are surprised to learn about self-employment tax. As 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. This combined tax is 15.3% (12.4% for Social Security and 2.9% for Medicare) on your net earnings.

You'll calculate this tax on Schedule SE (Self-Employment Tax). However, you don't pay self-employment tax on the entire net profit from Schedule C. You first get to deduct one-half of your self-employment tax from your gross income on Form 1040. Also, self-employment tax only applies to earnings over $400.

Closing Tip for Kansas 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 Kansas tax regulations. Don't wait until the last minute – proactive tax planning can save you money and stress.