Instacart

[glboro]

I was wondering if I can file my instacart earning separate from my regular job earning? Also I am married and we usually file married jointly, can we just put my W2 earnings along with my husband's earnings? I'm not sure of the best way for us to file our taxes. I could really use some help on the matter cause I'm so confused.

[Bsch4477]

It’s almost always better to file jointly where the income from both of you is reported on the same return. Your Instacart earnings represent self employment income and is reported on Schedule C. You will pay both income and self employment tax on that income but can deduct from that income any expense that you made related to the production of that income. 

[Opus 17]

Assuming you are a sole proprietor/independent contract (and did not organize your Instacart business as something more complicated), then you must include your instacart income on your tax return along with your other wages and income.  You will file a schedule C for your business, listing your gross income and deducting any ordinary and necessary expenses you can prove (probably just mileage).  You pay income tax and self-employment tax on the net profit.  Here is a blog article to get you started.

https://turbotax.intuit.com/tax-tips/self-employment-taxes/filing-taxes-for-on-demand-food-delivery-...

It is almost always better for a married couple to file jointly, in this case with all your wages, side jobs, dependents, deductions and credits on one tax return.  Even if you have a side job.  

[DavidD66]

Yes, you can file your Instacart income separately from your regular job earnings. If fact, you have to report them separately.  Unlike your regular job, for which you receive a W-2, your Instacart income should have been reported on a Form 1099-NEC.  Income reported on a 1099-NEC is self-employment income and is reported on Schedule C of your tax return.  For more information see the following TurboTax article:  How to File Taxes with IRS Form 1099-NEC 

 If you are married, you almost always pay less tax if you file jointly, as opposed to married filing separately.  Here is another TurboTax article on that subject:  Is it better for a married couple to file jointly or separately?

[Opus 17]

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@DavidD66 wrote:

Yes, you can file your Instacart income separately from your regular job earnings.

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This is extremely confusing.

"Yes, you can file your Instacart income separately from your regular job earnings."

Instacart earnings (or other independent contractor work) is reported in a different way than W-2 wages, but it must be reported on the same tax return.  You file one tax return for the year listing all your income.  If you decide to file married filing separately, then you file one return listing all your income and deductions, and your spouse files a separate return listing all their income and deductions.  If you file jointly, you combine all your income and deductions on one return.  

But your side job is reported on the same tax return as your W-2 wages, just using an extra form.  Not on 2 different tax returns. 

[glboro]

Still a little confused by all the different resposes from my post. To clarifiy I have to file both my W2 and 1099-NEC on the same tax return or can I file a seperate tax return with just my 1099-NEC form?

[Bsch4477]

@Opus 17 @Explained that clearly. 

[Opus 17]

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@glboro wrote:

Still a little confused by all the different resposes from my post. To clarifiy I have to file both my W2 and 1099-NEC on the same tax return or can I file a seperate tax return with just my 1099-NEC form?

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You file one tax return (form 1040) that reports all your income, deductions and credits.  If you have a side gig, that is reported on schedule C that is attached to your main return, just like child care credits, energy credits, and other items are reported on extra forms that are attached to the main return.