Instacart Shopper Taxes in Nevada - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Instacart Shopper income taxable in Nevada?

Yes, your income as an Instacart shopper is taxable at the federal level. The IRS considers you a self-employed individual, not an employee of Instacart. This means you're responsible for reporting your earnings and paying taxes on those earnings. You’ll report your income and expenses on Schedule C (Profit or Loss From Business), which is filed along with your Form 1040.

Nevada-Specific Information: Fortunately, Nevada is one of the states with no state income tax. This means you won’t need to file a state income tax return or pay state income tax on your Instacart earnings. However, your federal tax obligations still apply.

Top Tax Write-offs for Instacart Shoppers

• 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 delivery, and returning to availability). Apps like Stride Tax or Everlance can help with this.
• Phone Expenses: You likely use your phone for accepting orders, navigating, and communicating with customers. You can deduct the percentage of your phone bill that relates to your Instacart work. If you use your phone exclusively for Instacart, you can deduct the entire bill.
• Hot Bags & Shopping Equipment: The cost of insulated bags, shopping carts, or other equipment you purchase specifically for Instacart shopping is deductible.
• Software & App Fees: Any fees Instacart charges you, or the cost of tax preparation software used to file your self-employment taxes, are deductible business expenses.

The 15.3% Self-Employment Tax Surprise

Because you're self-employed, 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 profits over $400. You do get to deduct one-half of your self-employment tax from your gross income.

Closing Tip for Nevada Residents

As a Nevada resident, you benefit from not having state income tax. However, diligent record-keeping is crucial to maximize your deductions and minimize your federal tax liability. Consider using accounting software or a tax professional to ensure you're accurately reporting your income and expenses. Don't wait until the last minute – start organizing your records now for a smoother tax filing experience in 2025!