Instawork Taxes: Complete Guide for Gig Workers
As an Instawork worker picking up shifts in hospitality, warehousing, events, and other industries, you're an independent contractornot an employee. This means you're responsible for your own taxes, including self-employment tax and quarterly estimated payments. But it also means you can deduct business expenses like mileage, phone bills, and work supplies to significantly reduce your tax bill.
This comprehensive guide covers everything Instawork workers need to know about taxes in 2026: how to report income, what expenses you can deduct, how much to set aside, quarterly tax requirements, and strategies to maximize deductions and minimize your tax burden.
Tax Calculator for Instawork Workers
Use this calculator to estimate your tax liability based on your Instawork earnings and deductible expenses:
Understanding Your Tax Status as an Instawork Worker
Independent Contractor Status
Instawork classifies you as an independent contractor, not an employee. This means:
- You receive Form 1099-NEC (not W-2)
- No taxes are withheld from your earnings
- You pay self-employment tax (15.3%) on net profit
- You're responsible for quarterly estimated tax payments
- You can deduct business expenses on Schedule C
- You don't receive employee benefits (health insurance, paid time off, etc.)
? Advantages
- Deduct business expenses (mileage, phone, supplies)
- Flexible schedulechoose your own shifts
- Work for multiple platforms simultaneously
- Potential for higher earnings with deductions
?? Responsibilities
- Pay self-employment tax (15.3%)
- Make quarterly estimated tax payments
- Track mileage and expenses yourself
- No employer-provided benefits
Form 1099-NEC for Instawork Workers
If you earned $600 or more from Instawork in a calendar year, you'll receive Form 1099-NEC.
When You'll Receive It
- Mailed by: January 31, 2026 (for 2025 tax year)
- Available in app: Check your Instawork app for digital copies
- If not received: Contact Instawork support by mid-February
What's on the Form
Box 1 (Nonemployee Compensation): Total amount Instawork paid you in 2025
This is your gross income before any expenses. You'll report this on Schedule C and deduct your business expenses to calculate net profit.
?? Important: Even if you don't receive a 1099-NEC (earned less than $600), you must still report ALL Instawork income on your tax return.
Top Tax Deductions for Instawork Workers
As an independent contractor, you can deduct ordinary and necessary business expenses. These deductions reduce your taxable income and save you money.
1. Mileage Deduction
2026 Standard Mileage Rate: 67 per mile
Deductible miles include:
- Miles from home to the shift location
- Miles from the shift location back home
- Miles between multiple shifts in one day
- Miles to pick up supplies or uniforms
Example Calculation
You drove 10,000 business miles in 2025:
- 10,000 miles $0.67/mile = $6,700 deduction
- Tax savings (at 30% rate): $2,010
?? Track Automatically: Use apps like Stride (free), MileIQ, or Everlance to automatically log miles. The IRS requires contemporaneous records you can't recreate logs months later from memory.
2. Phone & Data Plan
Deduct the business-use percentage of your phone bill and data plan. If you use your phone 50% for Instawork (checking shifts, communicating with businesses), deduct 50% of the cost.
Example: $80/month phone bill 50% business use 12 months = $480 deduction
3. Work Clothes & Uniforms
Deductible: Uniforms or specialized clothing required for work that aren't suitable for everyday wear.
- Chef's uniforms and aprons
- Safety gear (steel-toed boots, hard hats, gloves)
- Branded clothing required by the business
NOT Deductible: Regular clothes like black pants and white shirts that you could wear anywhere.
?? IRS Rule: The clothing must be required for work AND not suitable for everyday use. Both conditions must be met.
4. Supplies & Equipment
Deduct the full cost of supplies and equipment used for Instawork shifts:
- Phone mounts and chargers
- Cleaning supplies (sanitizer, wipes)
- Tools specific to your work (if required)
- Pens, notepads, bags
5. Parking & Tolls
Deduct parking fees and tolls incurred while driving to/from shifts. These are deductible even if you use the standard mileage rate. Keep receipts!
6. Commercial Auto Insurance
If you have commercial auto insurance or additional coverage for gig work, deduct the business portion of premiums.
Note: Personal auto insurance isn't deductible if using standard mileage rate, but commercial coverage is.
7. Tax Preparation & Professional Fees
Deduct fees paid to CPAs, tax preparers, or accounting software (TurboTax, H&R Block, QuickBooks Self-Employed) used for your Instawork business taxes.
Self-Employment Tax for Instawork Workers
As an independent contractor, you pay self-employment (SE) tax in addition to income tax. This covers Social Security and Medicare taxes.
Self-Employment Tax Rate
15.3% of net profit
- 12.4% for Social Security (on first $168,600 in 2026)
- 2.9% for Medicare (no income limit)
- 0.9% Additional Medicare Tax (on earnings over $200,000 single / $250,000 married)
Example Calculation
Scenario: You earned $30,000 from Instawork with $8,000 in deductible expenses
1. Gross income: $30,000
2. Minus expenses: -$8,000
3. Net profit: $22,000
4. Self-employment tax: $22,000 92.35% 15.3% = $3,108
5. 50% SE tax deduction: $3,108 50% = $1,554 (reduces taxable income)
Quarterly Estimated Taxes
If you expect to owe $1,000+ in taxes for the year, you must make quarterly estimated tax payments. Don't wait until Aprilthe IRS charges penalties for underpayment.
2026 Quarterly Tax Deadlines
Q1 (Jan 1 - Mar 31)
Due: April 15, 2026
Q2 (Apr 1 - May 31)
Due: June 16, 2026
Q3 (Jun 1 - Aug 31)
Due: September 15, 2026
Q4 (Sep 1 - Dec 31)
Due: January 15, 2027
?? How Much to Set Aside
A good rule of thumb: set aside 25-30% of your gross Instawork earnings for taxes. This covers self-employment tax (15.3%) and federal income tax (10-22% depending on your bracket). Adjust based on your deductions and total household income.
Tax Tips for Instawork Workers
1. Track Mileage Automatically
Use Stride, MileIQ, or Everlance to automatically log every mile to/from shifts. The IRS requires contemporaneous recordsmanual logs created months later may be rejected in an audit.
2. Keep Digital Receipts
Photograph receipts immediately with your phone and store them in cloud storage (Google Drive, Dropbox). The IRS accepts digital copies as long as they're legible.
3. Separate Business & Personal
Use a separate bank account or credit card for Instawork-related expenses. This creates a clear paper trail and makes record-keeping much easier.
4. Pay Quarterly to Avoid Penalties
Don't wait until April to pay taxes. Make quarterly payments to avoid underpayment penalties and year-end tax shocks.
5. Consider Multi-Platform Strategy
If you also work for other gig platforms (Uber, DoorDash, TaskRabbit), combine all income and expenses on a single Schedule C. This simplifies filing and gives you a complete picture of your gig income.
Related Resources
Mileage Deduction Calculator
Calculate your mileage deduction based on business miles driven.
Calculate MileageRecord Keeping Guide
Learn how to track expenses and maintain audit-proof records.
View Record-Keeping GuideFrequently Asked Questions
Maximize Deductions, Minimize Taxes, Keep More Money
As an Instawork worker, you have significant tax advantages through deductionsespecially mileage, which can save you thousands of dollars. The key is tracking everything from day one: use automatic mileage apps, keep digital receipts, and separate business expenses.
Set aside 25-30% of your earnings for taxes, make quarterly payments to avoid penalties, and file Schedule C to report your income and expenses. With proper planning and record-keeping, you'll pay only what you oweand keep more of your hard-earned shift income.