Tax Information for Shipt Shoppers

As an independent contractor, how you decide to operate your business is up to you. Shipt doesn’t automatically withhold independent contractor earnings, and as an independent contractor, it’s your responsibility to file and pay your taxes.

A best practice is to aim for setting aside 25-30% of each paycheck for taxes.

Consulting a local tax professional about tax deductions, including which expenses can be written off and how to track those expenses, can be very helpful and is recommended.

Helpful Tax Information and Resources:

  • Independent contractors are subject to paying the self-employment tax
  • In general, you’ll be required to file an income tax return if your net earnings from self-employment are $400 or more, and you can deduct certain expenses from your taxes 
  • If you have earned $600 or more, Shipt will provide you with a 1099-MISC at the end of the year in which you will report your income
  • You can use a mileage tracking tool to record your mileage during shops for tax purposes. Check out apps like Everlance, which automatically detects mileage. Sign up with Everlance and get your first 3 months free!
    Note: After going to this link, tap "Get Everlance", sign up or log in, and then tap "Shipt" or "Premium/Upgrade" and the price will show as $0 for the first 3 months

Additional Resources:

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