Instacart Shopper Taxes in Missouri - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Instacart Shopper income taxable in Missouri?

Yes, absolutely. Income earned as an Instacart shopper is taxable at both the federal and Missouri 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 Missouri.

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 taxable profit. Keep detailed records of all income received from Instacart (typically found in your Instacart earnings summary).

Missouri Requirements: Missouri has a graduated income tax system, meaning 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 Missouri income tax brackets for the 2024 tax year (filing in 2025). You'll use Missouri Form MO-1040 to calculate your state income tax liability. The Missouri Department of Revenue website (dor.mo.gov) will have the most up-to-date tax brackets and forms.

Top Tax Write-offs for Instacart Shoppers

As a self-employed Instacart shopper, you can significantly reduce your tax burden by claiming eligible business deductions. Here are some key write-offs:

• Mileage: This is often the largest deduction! For 2024, the standard mileage rate is 67 cents per mile for business use of your vehicle. Keep a detailed mileage log (date, destination, business purpose, miles driven). You can use apps to help track this.
• Phone Expenses: If you use your personal phone for Instacart work (scheduling, communicating with customers, using the app), you can deduct the percentage of the phone bill attributable to business use.
• Hot Bags & Shopping Equipment: The cost of insulated bags, carts, or other equipment specifically used for Instacart shopping is deductible.
• Software & App Fees: Any fees you pay for tax preparation software or other software directly related to managing your Instacart business are deductible.

Important Note: Keep receipts and documentation for all expenses you claim!

The 15.3% Self-Employment Tax Surprise

Being self-employed means you're responsible for both the employer and employee portions of Social Security and Medicare taxes. This combined tax is called Self-Employment Tax and is currently 15.3% (12.4% for Social Security up to the annual wage base, and 2.9% for Medicare). You'll calculate this on Schedule SE (Self-Employment Tax).

The good news is you only pay self-employment tax on your profit (income minus expenses). Also, you can deduct one-half of your self-employment tax from your gross income on Form 1040, which reduces your overall tax liability.

You won't owe self-employment tax until your net earnings from self-employment are $400 or more.

Closing Tip for Missouri Residents

Tax laws can be complex, and this guide provides general information. I strongly recommend keeping meticulous records throughout the year – income statements from Instacart, mileage logs, and receipts for all business expenses. Consider using accounting software designed for freelancers or consulting with a qualified tax professional (like myself!) to ensure you're taking all eligible deductions and complying with both federal and Missouri tax laws. Filing accurately can save you money and avoid potential issues with the IRS or the Missouri Department of Revenue.