Managing expenses and taxes can be stressful for gig workers, but Everlance’s Instacart mileage deduction guide helps simplify the process. Since Instacart shoppers are classified as independent contractors, they are responsible for their own taxes. One of the biggest deductions available is mileage. In 2025, the IRS business mileage rate is 70¢ per mile, meaning that every trip made for Instacart can reduce taxable income and save money. With Everlance, drivers can automatically track these miles and avoid missing valuable deductions.
Why Mileage Deduction Is Critical for Instacart Shoppers
The cost of driving for Instacart adds up quickly — fuel, maintenance, insurance, and depreciation all eat into earnings. Mileage deductions offset these expenses, making them essential for accurate financial planning.
Key Reasons Mileage Deductions Matter
- Significant Tax Savings: Every business mile lowers taxable income by 70¢ in 2025.
For example, 15,000 miles = $10,500 deduction. - Covers Multiple Costs: The rate includes more than fuel — it accounts for wear and tear, insurance, and depreciation.
This saves time compared to itemizing each expense. - Boosts Net Pay: Deductions reduce how much you owe in taxes.
The result is higher true earnings at the end of the year. - Protects Against Overpayment: Without deductions, many shoppers pay more tax than necessary.
Mileage ensures you only pay what’s fair.
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The IRS Mileage Rate for 2025
The IRS revises its mileage rates annually to reflect real-world vehicle expenses.
Current Rates for 2025
- Business Use: 70¢ per mile
- Medical Travel: 21¢ per mile
- Moving (Active-Duty Military Only): 21¢ per mile
- Charitable Driving: 14¢ per mile
For Instacart shoppers, the business mileage rate is the one that applies.
How Everlance Makes Mileage Tracking Easy
Everlance is a mileage and expense tracking app that helps gig workers stay organized year-round.
Core Features of Everlance
- Automatic GPS Logging: The app records trips in real time without manual input.
This ensures that no miles are forgotten. - Swipe to Classify: Easily mark trips as business or personal.
Quick classification keeps your records IRS-compliant. - Expense Recording: Log fuel, parking, and tolls alongside mileage.
This creates a complete record of gig-related costs. - Tax-Ready Reports: At the end of the year, Everlance generates IRS-approved reports.
These simplify filing and provide strong backup documentation.
Step-by-Step Guide to Using Everlance for Instacart
Everlance streamlines mileage tracking with just a few steps.
- Download the App
Available on iOS and Android, installation takes just a few minutes.
Once installed, the app begins automatic tracking. - Enable Background Tracking
Keep GPS tracking on while working.
This ensures every Instacart trip is logged automatically. - Classify Trips
After each shift, mark trips as business or personal.
This prevents confusion later and ensures clean reports. - Add Extra Expenses
Enter fuel receipts, parking costs, and tolls.
These deductions add up and boost savings. - Generate Tax Reports
Download IRS-ready mileage and expense reports.
These can be given to accountants or used for self-filing.
Example: Instacart Shopper Using Everlance
Here’s a practical breakdown of how mileage adds up with Everlance.
- Total miles in 2025: 18,000
- IRS rate: 70¢ per mile
- Deduction = 18,000 × 70¢ = $12,600
Without Everlance, even missing 2,000 miles would reduce the deduction by $1,400, costing hundreds of dollars in extra taxes.
Common Mileage Tracking Mistakes Instacart Shoppers Make
Even with high mileage, many shoppers lose money by mishandling their deductions.
- Not Recording Every Trip: Skipping miles means losing deductions.
Over time, missed entries can equal thousands in lost savings. - Mixing Personal and Business Driving: Failing to separate trips leads to messy records.
Only business-related miles qualify for deductions. - Estimating at Tax Time: Guesswork doesn’t hold up with the IRS.
Inaccurate logs can result in denied deductions. - Overlooking Parking and Tolls: Many shoppers forget these extras.
They are deductible in addition to mileage.
Tips to Maximize Deductions with Everlance
To get the most out of mileage deductions, follow these best practices.
- Enable Always-On Tracking: Keep Everlance running during shifts.
This prevents missed trips that reduce savings. - Classify Trips Daily: Mark them as business or personal right away.
Daily classification prevents errors at tax time. - Review Reports Weekly: Double-check for missing trips or incorrect entries.
Weekly reviews ensure accurate records. - Include All Deductible Expenses: Don’t forget parking, tolls, and supplies.
Adding these increases total deductions. - Export Reports Monthly: Keep reports organized throughout the year.
This makes quarterly tax payments easier and year-end filing simple.
How Mileage Deductions Affect Instacart Taxes
Mileage deductions play a major role in reducing taxes for shoppers.
- Self-Employment Tax: Shoppers must pay both sides of Social Security and Medicare.
Mileage deductions reduce the income subject to this tax. - Quarterly Payments: Independent contractors pay estimated taxes every quarter.
Mileage logs provide accurate numbers for these payments. - 1099 Income: Instacart issues 1099 forms showing gross pay.
Mileage deductions reduce taxable net income. - Audit Protection: IRS-compliant reports from Everlance help protect deductions.
Proper logs prevent disputes or penalties.
FAQs About Everlance’s Instacart Mileage Deduction Guide
Is Everlance free to use?
Yes, Everlance has a free version. The premium plan includes unlimited trip tracking and advanced features.
Can I use Everlance for other apps too?
Yes, it works with DoorDash, Uber Eats, Lyft, and other gig platforms.
Does the IRS accept Everlance reports?
Yes, the reports are formatted to IRS standards and are audit-ready.
Do I need odometer readings?
It’s recommended to log start and end-of-year odometer readings for backup verification.
Final Thoughts on Everlance’s Instacart Mileage Deduction Guide
With Everlance’s Instacart mileage deduction guide, gig workers no longer have to stress about tracking miles or losing valuable deductions. The IRS business mileage rate of 70¢ per mile in 2025 provides one of the biggest tax breaks for Instacart shoppers, but only if those miles are properly logged. Everlance ensures that every trip is tracked automatically, reports are accurate, and taxes are easier to file. For any Instacart shopper who wants to keep more of their hard-earned income, Everlance is the best tool to maximize savings.
