Instacart Shopper Taxes in Wisconsin - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Instacart Shopper income taxable in Wisconsin?

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

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 calculates your net profit – your earnings minus your business expenses. Only the net profit is subject to income tax.

Wisconsin Requirements: Wisconsin also has a graduated income tax system, meaning the tax rate increases as your income increases. Your net profit from Schedule C will be included in your Wisconsin taxable income (reported on Form 1040-WI). You'll use the Wisconsin tax brackets to determine your state income tax liability. Wisconsin’s tax rates for 2024 (filing in 2025) will be available on the Department of Revenue website (dor.wi.gov) closer to filing season, but they follow a progressive structure.

Top Tax Write-offs for Instacart Shoppers

As a self-employed Instacart shopper, you can significantly reduce your tax liability by claiming eligible business expenses. Here are some 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 shopping (from leaving to pick up the order to delivering it). You can use apps to track this automatically.
• Hot Bags & Equipment: The cost of insulated bags, phone mounts, car chargers, and other equipment used specifically for Instacart shopping are deductible.
• Smartphone & Data Plan (Partial): If you use your personal smartphone and data plan for Instacart, you can deduct the percentage of the expense attributable to business use. For example, if you use your phone 75% for Instacart, you can deduct 75% of your monthly bill.
• Instacart Shopper Software/Apps: Any subscription fees or costs associated with apps or software used to manage your Instacart business (beyond the standard smartphone OS) are deductible.

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). 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, which further reduces your overall tax liability.

Closing Tip for Wisconsin Residents

Don't wait until the last minute! Keeping accurate records of your income and expenses throughout the year will make filing your taxes much easier and help you maximize your deductions. The Wisconsin Department of Revenue (dor.wi.gov) is an excellent resource for state-specific tax information and forms. Consider using tax software designed for self-employed individuals or consulting with a qualified tax professional to ensure you're taking advantage of all available deductions and complying with all applicable tax laws.