Instacart Shopper Taxes in Wyoming - 2025 Guide

Updated for 2025 (Filing 2024 Taxes)

Is Instacart Shopper income taxable in Wyoming?

Yes, your income as an Instacart shopper is taxable, but the situation is simpler in Wyoming than in most states. The federal government considers you self-employed, meaning you're essentially running your own small business. 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 is where you’ll detail your income and expenses.

Wyoming-Specific Rule: Wyoming is one of the few states with no state income tax. This means you won’t file a state income tax return and won’t owe any income tax to the state of Wyoming on your Instacart earnings. However, you are still responsible for paying federal income and self-employment taxes.

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 the Instacart app, communication with customers, and navigation. 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). Don't worry, you get to deduct one-half of your self-employment tax from your adjusted gross income on Form 1040, which helps reduce your overall income tax liability. This tax applies to net earnings over $400.

Closing Tip for Wyoming Residents

As a Wyoming Instacart shopper, you benefit from the lack of state income tax. However, diligent record-keeping is crucial to maximize your deductions and minimize your federal tax bill. Consider using accounting software or a tax professional to ensure you're taking advantage of all eligible write-offs. Start tracking your mileage and expenses now – it will save you a lot of headaches when tax season arrives! Disclaimer: I am an AI chatbot and cannot provide financial advice. This information is for general guidance only. Consult with a qualified tax professional for personalized advice.