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.

You may find it beneficial to set 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 Information:

• 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-NEC at the end of the year in which you will report your income.
• If you would prefer to use an EIN/LLC, you can fill out a blank W-9 form here with your information and email the form to shoppers@shipt.com. 
• You can use a mileage tracking tool to record your mileage during orders for tax purposes. 
• Apps such as Everlance automatically detect mileage. 
  • To sign up with Everlance and get your first 3 months free, click here.
  • 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:

• IRS: Self-Employed Individuals Tax Center
• IRS: Self-Employment Tax
• Everlance Tax Academy for Shipt Shoppers
• Everlance: Taxes for Self-Employed Individuals
• Everlance: The Self-Employment Tax

Tax Forms

At the end of each year, shoppers will receive an email from Shipt with their tax information. Shipt partners with Stripe to file 1099 forms, and it's important to ensure your name, address, and tax ID number are up to date. This confirms that your 1099 form will be accurate and sent to the right place. 

If you need to confirm your information is up to date but you don't have an existing account with Stripe, you will need to create an account. Opting for e-delivery will help expedite your 1099 form when it is issued next year.* 

*Note: Tax forms will not be issued to shoppers who earned less than $600 between 12/26/22 - 12/24/23. 

FAQ

What is a 1099-NEC form?

• A 1099-NEC form summarizes your earnings as an independent contractor. It’s provided to you, the IRS, as well as some U.S. states if you earn more than $600 between 12/26/22 - 12/24/23. You’ll need this form to file your taxes. 
• Your 1099 total earnings include any order pay, special pay, tips, incentives, and any instant pay withdrawn between 12/25/2023 and 11:59 p.m. EST on 12/31/23.

Why is Stripe requesting personal information like my Social Security Number? 

• Your Social Security Number is required to get your 1099 filed with the IRS.
• If you have earned enough to qualify for a 1099 form, the IRS requires your full details to be verified ahead of 1099 filing. 
• We understand you may have concerns about providing your full SSN during onboarding given the sensitivity of this identifier. We take your privacy seriously and have enabled technical solutions to ensure that your personal information is always secure. 

When can I expect my 1099 form? 

• Shipt will file your tax forms by January 31, 2024, at which time Stripe will email you with instructions for how to access and download your 1099 form. Below is a general timeline of what to expect this tax season: 
  • End of January - Shipt files 1099 with IRS. 
  • January 31 - Filed 1099 form is downloadable via Stripe Express. 
  • Post filing - If needed, request 1099 corrections through Shipt. 
• In January, we strongly suggest that you ensure all of your tax filing details and delivery preferences are up to date in Stripe Express. Your name, address, and Social Security Number (SSN) are of primary importance. 

Why haven't I received a Stripe Express invitation? 

• We understand your concern over not yet receiving an invite you may be expecting. Please make sure to check your spam/junk mail folder in case your invitation landed there. 
• You may not receive an invitation if Shipt does not have your most current email address on file. You will need to either update the email address on your account or check your other email addresses for an invitation. 
• You may not have received an invitation for other reasons such as:
  1. You earned less than the threshold for your form type. 
  2. Your email address on file is incorrect, missing, or unable to receive email.
  3. Your specific account is unsupported by Stripe Express (in uncommon situations where multiple users are sharing the same account, or the same email address is being used on more than 20 accounts).

How will I receive my 1099?

• After you login to your Stripe Express account, you will be able to consent to e-delivery of your 1099 forms. If you do not consent to e-delivery, you will not be able to view or download your 1099 forms in the Express Dashboard Tax Form page. If you opted for e-delivery, your 1099 form will be delivered electronically near the end of January. 
• If you would like to receive a paper copy of your 1099 form, please reach out to your platform for assistance. 

How can I validate my earnings for the year?

• To help you better prepare for tax season, you can download an end-of-year pay statement directly in the shopper app. For more information, click here. 

I didn’t receive an email from Stripe—what should I do?

• Please double check your spam or junk mail folder for an email with the subject line “Confirm your tax information with Shipt.” If you haven’t received this email from Stripe, please visit https://support.stripe.com/express or email us at shoppers@shipt.com with any questions.