Does Instacart send a 1099?

Instacart sends a 1099-NEC to Full-Service Shoppers who earn $600 or more. You must report all income even if you earn less and don't receive a form.

Can I deduct a bike or e-bike for delivery?

Yes — a bicycle or e-bike used exclusively for delivery is deductible equipment. The standard mileage rate only applies to cars; bike expenses are deducted as actual equipment and maintenance costs.

What if I use my personal car — do I need a commercial policy?

Check your auto insurance policy — most personal policies exclude commercial delivery use. A rideshare or delivery endorsement is typically required and the additional premium is deductible.

Is the cost of a phone mount deductible even if it's small?

Yes — small items like mounts, chargers, and holders are deductible supplies. Save the receipt and include them in your total supply deduction.

Schedule C · Self-Employed

Tax Write-Offs for Food Delivery Drivers

Instacart shoppers, Uber Eats couriers, Grubhub drivers, and Amazon Flex delivery partners are all independent contractors. Whether you deliver food, groceries, or packages, your mileage deduction alone can offset a large portion of self-employment tax.

Avg. annual savings$2,200

Track My Food Delivery Driver Write-Offs — $14/mo

Top 5 Tax Write-Offs for Food Delivery Drivers

Vehicle Mileage

100% deductible

The 2025 IRS standard mileage rate is $0.70/mile. For food delivery drivers, this covers miles driven while the app is active — including time en route to pick up an order and between orders.

Schedule C, Line 9

Phone & Data Plan

100% deductible

Delivery apps require a smartphone with a reliable data connection. Deduct the business-use percentage of your phone and monthly plan — most delivery workers can justify 70%+ business use.

Schedule C, Line 25

Insulated Bags & Carriers

100% deductible

Hot bags, insulated backpacks, pizza carriers, and drink holders purchased to maintain food temperature during delivery are 100% deductible supplies.

Schedule C, Line 22

Phone Mount & Accessories

100% deductible

Dashboard phone mounts, car chargers, and power banks that keep your phone running during long delivery shifts.

Schedule C, Line 22

Parking Fees & Tolls

100% deductible

Parking meters and tolls incurred during active deliveries are deductible in addition to the standard mileage rate.

Schedule C, Line 9

Common Mistakes to Avoid

Tracking only the miles from restaurant to customer — also deduct miles from your starting point to the first pickup and miles between deliveries while online.
Forgetting that each platform issues a separate 1099 — if you drive for multiple apps, you may receive several 1099s and must report income from all of them.
Claiming gas as a deduction if you're already using the standard mileage rate — gas is included in the per-mile rate and cannot be deducted separately.
Not paying quarterly estimated taxes — delivery income has no withholding and penalties apply for underpayment.

Recordkeeping Tips

Run a mileage tracking app (Stride is free and popular with delivery workers) every time you go online.
Download annual tax summaries from each platform you use (Instacart, Uber Eats, Grubhub) in January.
Photograph bag and equipment receipts and keep them in a tax folder organized by year.
Track which platform generated each income source to reconcile with 1099s at tax time.

Frequently Asked Questions

Related Professions

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This content is for informational purposes only and does not constitute tax advice. Consult a qualified CPA or tax professional for guidance specific to your situation.