Instacart Shopper Taxes in West Virginia - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Instacart Shopper income taxable in West Virginia?

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

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). It’s crucial to keep accurate records of all income and expenses.

West Virginia Requirements: West Virginia has a graduated income tax system, meaning the tax rate increases as your income increases. You will report your net profit from Schedule C on your West Virginia income tax return (Form WV-1040). The graduated rates mean you'll need to calculate your tax liability based on your total taxable income, including your Instacart profit. Current WV tax brackets can be found on the West Virginia Department of Revenue website (tax.wv.gov).

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 biggest deduction! For 2024, the standard mileage rate is 67 cents per mile for business use. Keep a detailed mileage log (date, destination, business purpose, miles driven). You can use apps to help with this.
• Smartphone & Data Plan: If you use your smartphone for Instacart (scheduling, communication, navigation), you can deduct the portion of the cost attributable to business use. If you use it 100% for Instacart, you can deduct the full cost. Otherwise, calculate the percentage of 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 apps or software that help you manage your Instacart business (e.g., mileage tracking apps, expense trackers) 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%. This is calculated on Schedule SE (Self-Employment Tax). However, you only pay self-employment tax on profits over $400. The good news is you can deduct one-half of your self-employment tax from your adjusted gross income on Form 1040, which reduces your overall income tax liability.

Closing Tip for West Virginia 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 or a spreadsheet to stay organized. If you're unsure about any aspect of your tax situation, consulting with a qualified tax professional in West Virginia is always a wise investment. The West Virginia Department of Revenue website (tax.wv.gov) is also a valuable resource. Wishing you a successful and tax-efficient Instacart experience!