Instacart Shopper Taxes in Connecticut - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Instacart Shoppers in Connecticut

Navigating the charming towns and cities of Connecticut as an Instacart shopper offers flexibility, but also brings tax responsibilities. As an independent contractor, earnings from Instacart are subject to both federal and state taxes, requiring careful record-keeping throughout the year.

The IRS requires all Instacart shoppers to report their income on Schedule C (Profit or Loss From Business) with Form 1040. Crucially, because no taxes are withheld from your Instacart payments, you are responsible for paying self-employment taxes – Social Security and Medicare – on any net earnings exceeding $400.

How Connecticut Handles Gig Worker Taxes

As a resident of Connecticut, filing a state income tax return is mandatory, even if no Connecticut income tax was withheld. Connecticut operates on a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Connecticut residents earning income as independent contractors will primarily use Form CT-1040, Connecticut Resident Income Tax Return, to report their earnings. Self-employment income reported on your federal Schedule C must also be reported on Schedule CT-1040, Schedule SE (Self-Employment Earnings). Connecticut also requires the payment of a self-employment tax, mirroring the federal requirement, to cover Social Security and Medicare contributions. Unlike some states, Connecticut does not offer a specific deduction for the federal self-employment tax paid. However, you can deduct one-half of your self-employment tax from your gross income when calculating your Connecticut adjusted gross income (AGI). Connecticut also allows for various other deductions and credits that may reduce your overall tax liability. It is important to note that Connecticut’s tax laws can be complex, and consulting with a tax professional is recommended, especially if you have significant self-employment income or other complex tax situations. For detailed information and forms, please visit the Connecticut Department of Revenue Services website: https://portal.ct.gov/DRS.

Top Tax Deductions for Connecticut Drivers

• Standard Mileage: The most popular deduction for Instacart shoppers. The 2025 rate is 70 cents per mile. Given Connecticut’s relatively high cost of living and fuel prices, utilizing the standard mileage rate is often the most beneficial approach.
• Tolls & Parking: Connecticut has toll roads, particularly on I-95. Keep detailed records of all toll expenses and parking fees incurred while actively shopping or delivering for Instacart. These are deductible in addition to the standard mileage rate.
• Phone & Data Plan: If you use your personal phone for Instacart, you can deduct the percentage of your monthly bill that corresponds to business use. Maintain a log of the time spent using your phone for work-related activities.
• Vehicle-Related Costs: Expenses like car washes, phone mounts, insulated bags (hot bags/coolers), and dash cams used specifically for Instacart deliveries are deductible.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses like gas, oil changes, or repairs in the same year. Choose the method that yields the larger deduction.

Understanding the 15.3% Self-Employment Tax

This tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Instacart and other gig platforms do not withhold these taxes from your earnings. Therefore, it’s your responsibility to calculate and pay this tax, typically through estimated tax payments made quarterly to the IRS. Failure to do so may result in penalties.