Question:
How will this affect my taxable income, refund, or overall tax situation, especially considering I didn’t make much from either my W-2 or 1099 income?
- The affect could be wrong and create reconciliation in the future. It's important to record all of the expenses attributable to allowing you to make the money from Instacart. You will be taxed on the full amount of net profit including self employment tax (social security-12.4% and medicare-2.9%). And as noted by xmasbaby0, you are required to include expenses necessary to produce that income. You cannot inflate or deliberately reduce your income without expecting an IRS review.
Absolutely your credits and tax are directly affected by the income and expenses. You need to complete Schedule C for self employment income and arrive at your true net profit. This will reduce your self employment tax and will either increase or decrease your credits depending on the results. The key is you want to be prepared should you be called into question later on.
@acabrales98
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