Instacart Shopper Taxes in Wisconsin - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Instacart Shoppers in Wisconsin

Navigating the scenic routes and delivering groceries across Wisconsin as an Instacart shopper offers flexibility, but also comes with tax responsibilities. As an independent contractor, earnings from Instacart are considered self-employment income, requiring careful attention during tax season.

The IRS requires all self-employed individuals, including Instacart shoppers, to report their income and pay taxes. This is primarily done using Schedule C (Profit or Loss from Business) when filing your federal income tax return (Form 1040). Furthermore, earnings over $400 necessitate the payment of self-employment taxes, covering both Social Security and Medicare contributions, which are not automatically withheld from your Instacart payouts.

How Wisconsin Handles Gig Worker Taxes

As a resident of Wisconsin, you are required to file a state income tax return, even if your only income is from Instacart. Wisconsin utilizes a graduated income tax system, meaning the tax rate increases as your income rises. This means the amount of tax you owe depends on your total taxable income and filing status. The primary form for self-employed individuals to report income and calculate tax liability is Form 1040-ES, along with Schedule 1 and Schedule SE (for self-employment tax calculation). Wisconsin also requires you to file Form ST-1040, Wisconsin Income Tax Return. It's crucial to understand that Wisconsin's tax laws closely follow federal guidelines regarding self-employment income, but there can be state-specific adjustments and credits available. Wisconsin also offers a deduction for qualified business income (QBI), potentially reducing your state tax liability. Estimated tax payments are generally required quarterly if you expect to owe $1,000 or more in Wisconsin income tax. Failing to make timely estimated payments can result in penalties. Wisconsin's Department of Revenue provides comprehensive resources and tools for self-employed individuals; you can find more information at the Wisconsin Department of Revenue website.

Top Tax Deductions for Wisconsin Drivers

• Standard Mileage: The most popular deduction for Instacart shoppers. For the 2025 tax year, the standard mileage rate is 70 cents per mile. Given Wisconsin's variable weather conditions and potential for significant mileage, this rate can result in substantial savings.
• Tolls & Parking: While Wisconsin doesn't have extensive toll roads, any tolls incurred during deliveries are deductible. Parking fees directly related to Instacart deliveries are also deductible.
• Phone & Data Plan: You can deduct the percentage of your phone and data plan that is used for business purposes. Keep a log of business-related calls and data usage to support your deduction.
• Vehicle-Related Costs: Expenses like car washes (to maintain a professional appearance), phone mounts, insulated hot/cold bags, and dash cams used for safety are deductible.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (like gas, oil changes, repairs, insurance) in the same tax year. You must choose the method that yields the greater deduction.

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment tax covers both Social Security and Medicare taxes. Unlike traditional employment where these taxes are withheld from your paycheck, as an Instacart shopper, you are responsible for paying both the employer and employee portions. Instacart does not withhold these taxes from your earnings, so it’s vital to factor this into your tax planning and potentially make quarterly estimated tax payments to avoid penalties.