Everlance’s Instacart mileage deduction guide for shoppers

Business

Managing taxes as an Instacart shopper can feel overwhelming, but tools like Everlance’s Instacart mileage deduction guide make it easier to save money and stay compliant. Since shoppers are independent contractors, they must track their own expenses, including vehicle mileage.

By properly recording miles and using Everlance to simplify the process, Instacart shoppers can maximize their deductions and lower their taxable income.

Why Mileage tracking matters for Instacart shoppers

Driving is one of the biggest expenses for Instacart shoppers. Every trip to pick up groceries, deliver to customers, or travel between batches adds up in mileage. The IRS allows drivers to deduct these business miles, reducing taxable income and ultimately saving money at tax time.

Key Reasons to Track Mileage

• Lower Tax Bills: Every deductible mile reduces taxable income.
   For 2025, the IRS business mileage rate is 70¢ per mile, which adds up quickly.
  
• Accurate Records: Good logs prevent issues during IRS audits.
   A detailed record is your proof that claimed miles were legitimate business expenses.
  
• True Profitability: Knowing your mileage costs helps you understand real earnings.
   Without tracking, it’s easy to overestimate income by ignoring hidden expenses.
  

Understanding the 2025 mileage rate

The IRS sets standard mileage rates each year. For 2025, the official business mileage rate is 70¢ per mile. This rate includes the cost of fuel, insurance, maintenance, and depreciation.

Why the Mileage Rate Is Important

• Fair Deduction: Instead of tracking every single car expense, shoppers use the standard rate.
   This simplifies tax filing and ensures consistent deductions.
  
• Applies to All Vehicle Types: Gas, hybrid, and electric cars all qualify.
   The IRS doesn’t differentiate — miles are miles, no matter what you drive.
  
• Flexible Use: Shoppers can choose between the standard mileage rate or actual expenses.
   Most find the mileage method simpler and often more profitable.
  

How Everlance simplifies mileage tracking

Everlance is a mobile app designed to automate mileage logging and expense tracking. For Instacart shoppers, it removes the hassle of manual logs and ensures accuracy.

Everlance Features for Instacart Shoppers

• Automatic Trip Detection: The app uses GPS to record drives in the background.
   This eliminates forgetting to log a trip, which can cost money in missed deductions.
  
• One-Swipe Classification: Trips can be marked as business or personal with one swipe.
   This makes separating work miles from personal miles quick and easy.
  
• Tax Reports: Everlance generates IRS-ready reports.
   These summaries simplify tax filing and give clear proof of mileage.
  
• Expense Tracking: Beyond mileage, the app can track gas, tolls, parking, and other costs.
   This creates a full picture of your gig work expenses.
  

Steps to use Everlance for Instacart mileage deduction

Getting started with Everlance is straightforward. Here’s a step-by-step breakdown:

1. Download the App
    Install Everlance on your smartphone to begin automatic mileage tracking.
    It’s available for both iOS and Android, making it accessible to most shoppers.
   
2. Enable GPS Tracking
    Allow the app to run in the background so trips are automatically recorded.
    This ensures every business mile is logged without effort.
   
3. Classify Trips
    After driving, mark each trip as business or personal with a swipe.
    This prevents confusion at tax time and ensures only eligible miles are deducted.
   
4. Add Extra Expenses
    Enter receipts for fuel, parking, or tolls into the app.
    This helps capture all possible deductions, not just mileage.
   
5. Download Reports
    At tax time, generate a mileage report directly from Everlance.
    These reports can be given to an accountant or used to file taxes independently.
   

Example of mileage deduction for Instacart shoppers

Let’s see how deductions can look in practice.

• 12,000 business miles in 2025
  
• IRS mileage rate = 70¢ per mile
  
• Deduction = 12,000 × 70¢ = $8,400
  

If the shopper earned $30,000 during the year, this deduction alone lowers taxable income to $21,600, resulting in major tax savings.

Common mistakes Instacart shoppers make with mileage

Even with apps like Everlance, shoppers sometimes lose money by making simple errors.

• Not Logging Every Trip: Forgetting to record miles leads to smaller deductions.
   Missing just a few trips per week can reduce yearly savings by hundreds of dollars.
  
• Mixing Business and Personal Miles: Failing to separate trips confuses records.
   Only business-related mileage qualifies for deductions, so accuracy matters.
  
• Relying on Estimates: Guessing miles at year’s end is risky.
   Without precise records, deductions may be disallowed during an audit.
  
• Ignoring Other Expenses: Some shoppers forget parking fees or tolls.
   These are deductible in addition to mileage, increasing total savings.
  

Tips to maximize your mileage deduction

Everlance helps, but smart habits ensure maximum savings.

• Always Classify Trips Immediately: Don’t wait until tax time.
   Classifying as you go ensures accuracy and reduces stress later.
  
• Review Weekly Reports: Check logs for missed or misclassified trips.
   A quick review prevents costly mistakes.
  
• Combine Trips: Plan routes to reduce unnecessary personal driving.
   This saves both time and money, while increasing the business mileage percentage.
  
• Keep Fuel Receipts: Even if you use the mileage rate, receipts help verify use.
   Backup documentation strengthens your records in case of IRS review.
  
• Use Categories in Everlance: Mark expenses like gas, parking, and phone bills.
   Organized categories make tax reporting smoother and deductions easier to claim.
  

Taxes and mileage for Instacart shoppers

Since Instacart shoppers are independent contractors, their taxes are different from traditional employees.

• Self-Employment Tax: Covers Social Security and Medicare contributions.
   Mileage deductions help reduce the income subject to this tax.
  
• Quarterly Payments: Contractors must pay estimated taxes throughout the year.
   Mileage logs make estimating tax liability more accurate.
  
• 1099 Reporting: Instacart issues a 1099 form at year-end.
   This form shows gross income, but deductions like mileage reduce taxable profit.
  

Common questions about Everlance and Instacart mileage

Do I need to track personal miles too?

Yes, separating personal and business miles shows the IRS you’re only deducting eligible trips.

Can I switch between actual expenses and mileage?

You can choose each year, but certain depreciation methods may limit switching. Most shoppers stick with the mileage method.

Is Everlance free?

Everlance has both free and premium versions. The free plan allows limited trip tracking, while the premium version offers automatic logging and advanced reports.

Do I still need odometer readings?

Everlance automatically tracks mileage, but starting and ending odometer readings at the year’s beginning and end provide extra verification.

Make the process stress-free, accurate, and IRS-compliant

For Instacart shoppers, mileage is often the single largest deductible expense. Using Everlance’s Instacart mileage deduction guide makes the process stress-free, accurate, and IRS-compliant. With automatic tracking, easy trip classification, and ready-to-use reports, shoppers can claim the full value of their miles and avoid costly mistakes.

By combining Everlance with smart tax habits, Instacart shoppers in 2025 can keep more of what they earn and approach tax season with confidence.