Gig Tax Guide
Shipt Taxes: A Shopper's Guide
Shipt shoppers are independent contractors, so Shipt withholds no taxes from your pay. You owe your own federal, state, and self-employment taxes — and because you both shop and drive, tracking your working miles matters. Here's how Shipt taxes work.
How Shipt taxes work
You're an independent contractor
No taxes are withheld from your pay. You owe federal and state income tax plus self-employment tax on your net earnings.
Self-employment tax is 15.3%
That's 12.4% Social Security + 2.9% Medicare on your net earnings — on top of regular income tax. It funds the benefits an employer would normally split with you.
Deductions lower your taxable income
Mileage, phone, and supplies reduce the net earnings you're taxed on. Tracked properly, they often save more than any other single move.
You pay as you go, quarterly
Instead of one April bill, the IRS expects estimated payments four times a year. Paying quarterly avoids an underpayment penalty.
Do Shipt shoppers get a 1099?
Shipt shoppers who earned $600 or more in a year receive a 1099-NEC reporting their nonemployee compensation, typically delivered through Shipt's payment processor by the end of January.
If you earned less you may not get a form, but you still have to report the income. The IRS expects you to report all earnings whether or not a 1099 was issued.
What Shipt shoppers can deduct
Business mileage
Every mile driven while online or on a delivery, at the IRS standard mileage rate. Usually the single largest deduction.
Phone & data
The business-use percentage of your phone bill — you cannot work without it.
Tolls & parking
Tolls and parking paid while working are fully deductible (commuting tolls are not).
Hot bags & equipment
Insulated bags, phone mounts, chargers, and other gear bought for the work.
Insulated bags & coolers
Cooler bags and equipment you buy to keep groceries fresh are deductible.
You can deduct the IRS standard mileage rate or your actual vehicle expenses — not both. For most drivers the standard mileage rate is simpler and larger. Keep a contemporaneous mileage log either way.
Frequently asked questions
Does Shipt take out taxes for me?
No. Shipt pays shoppers as independent contractors and withholds nothing. You're responsible for setting aside and paying your own income tax and the 15.3% self-employment tax.
How much should I set aside for Shipt taxes?
A common rule of thumb is to set aside 25–30% of your net earnings (what's left after mileage and other deductions) to cover self-employment tax (15.3%) plus federal and state income tax. Your exact rate depends on your total household income and state. Use the Tax Set-Aside calculator to get a number for your situation.
Do I get a 1099 from Shipt?
Shipt shoppers who earned $600 or more get a 1099-NEC, usually delivered through Shipt's payment processor by late January. Below that threshold you may not get a form but must still report the income.
Can Shipt shoppers deduct mileage?
Yes. Shipt shoppers can deduct business mileage at the IRS standard mileage rate for miles driven while working — typically the largest deduction. Track every working mile, since Shipt doesn't report your mileage for you.
When do Shipt shoppers pay taxes?
Independent-contractor shoppers generally make quarterly estimated payments — around April 15, June 15, September 15, and January 15 — and file an annual return by April 15. Quarterly payments avoid an IRS underpayment penalty.
Authoritative IRS resources
Free calculators for Shipt shoppers
Stop guessing what you owe
UnifyOne tracks your grocery shopping and delivery earnings, mileage, and tax set-aside automatically — so quarterly taxes are never a surprise.
This guide is educational information, not tax advice. Tax rules, thresholds, and the IRS standard mileage rate change yearly — confirm current figures with the IRS or a qualified tax professional for your situation.