Taxes can be overwhelming for gig workers, but tools like the Instacart mileage deduction guide by Everlance make the process easier. Since Instacart shoppers are independent contractors, they must track and deduct their own vehicle expenses to maximize savings. The IRS standard mileage rate for 2025 is 70¢ per mile, and with Everlance automatically tracking trips, shoppers can ensure every mile is properly logged and deducted. This guide explains how to use Everlance to simplify tax reporting, avoid mistakes, and keep more of your earnings in 2025.
Why Mileage Deduction Is Essential for Instacart Shoppers
Driving is the core of Instacart work, and it represents the largest expense for shoppers. Without mileage deductions, taxable income would be far higher, resulting in bigger tax bills.
Benefits of Claiming Mileage
- Significant Tax Savings: Each mile driven at 70¢ reduces taxable income.
For example, 12,000 miles in a year equals an $8,400 deduction. - Covers All Major Car Costs: The IRS rate includes depreciation, insurance, fuel, and repairs.
Shoppers don’t need to collect endless receipts for these expenses. - Protects Profitability: Mileage deductions reveal true take-home pay.
This prevents overestimating income and helps with financial planning. - Simplifies Recordkeeping: With Everlance, deductions are automated.
This removes the burden of manually writing down trips.
Understanding the IRS Mileage Rate in 2025
The IRS updates mileage rates annually to reflect real-world vehicle costs.
2025 Official Mileage Rates
- Business Travel: 70¢ per mile
- Medical Travel: 21¢ per mile
- Moving (Military Only): 21¢ per mile
- Charitable Work: 14¢ per mile
For Instacart shoppers, the business rate of 70¢ per mile is the most important.
How Everlance Simplifies Mileage Tracking
Everlance is designed to automate one of the hardest parts of gig work — tracking miles.
Features of Everlance
- Automatic Trip Detection: The app uses GPS to log trips in real time.
This ensures no mile is missed, even on short drives. - Easy Trip Classification: Swipe to label trips as business or personal.
This keeps your logs IRS-compliant and organized. - Expense Tracking: Beyond mileage, you can log fuel, tolls, and parking fees.
Having everything in one place provides a complete expense picture. - Tax-Ready Reports: At year-end, Everlance generates reports formatted for IRS use.
These can be sent directly to accountants or used when filing taxes yourself.
Step-by-Step Guide to Using Everlance
Getting started with Everlance for Instacart mileage tracking is simple.
- Download the App
Install Everlance on your smartphone.
It’s available for both iOS and Android. - Enable GPS Tracking
Allow background tracking so trips are automatically logged.
This eliminates the need to write anything down. - Classify Trips Daily
Review your trips and mark them as business or personal.
Doing this daily ensures accuracy and prevents confusion later. - Add Extra Expenses
Input receipts for gas, parking, and tolls.
These are deductible in addition to mileage. - Export Reports at Tax Time
Download IRS-ready summaries from the app.
These reports make filing quick and accurate.
Example: Instacart Mileage Deduction with Everlance
Let’s see how an Instacart shopper benefits from using Everlance.
- Total business miles in 2025: 15,000
- IRS rate: 70¢ per mile
- Deduction = 15,000 × 70¢ = $10,500
Without Everlance, many of those miles might go untracked. Missing just 2,000 miles would reduce the deduction by $1,400 — a costly mistake.
Common Mileage Mistakes Instacart Shoppers Make
Even with tools available, many gig workers lose money by mishandling mileage deductions.
- Not Tracking Every Trip: Missing miles equals smaller deductions.
Forgetting just a few deliveries each week can cost hundreds annually. - Mixing Personal and Business Use: Not separating trips may cause IRS issues.
Only work-related mileage qualifies, so clear records are required. - Waiting Until Tax Season: Guessing mileage at year-end isn’t accurate.
The IRS requires detailed, contemporaneous records. - Ignoring Other Expenses: Parking and tolls are deductible too.
Many shoppers focus only on miles and forget about these additional savings.
Tips to Maximize Instacart Mileage Deductions with Everlance
Pairing good habits with Everlance ensures the best results.
- Turn on Tracking at All Times: Let the app run in the background.
This ensures no business trips are missed. - Review Weekly: Check your logs for errors or missing entries.
A quick review avoids problems later. - Separate Personal Trips: Mark personal drives clearly.
This prevents confusion and protects IRS compliance. - Track Supplies Too: Enter expenses like insulated bags or phone mounts.
These are deductible alongside mileage. - Export Monthly Reports: Don’t wait until April to organize records.
Monthly summaries make year-end filing faster.
Taxes and Mileage for Instacart Shoppers
Mileage deductions are a key part of managing Instacart income.
- Self-Employment Tax: Shoppers pay both employer and employee portions of Social Security and Medicare.
Mileage deductions lower the income subject to these taxes. - Quarterly Estimated Payments: Independent contractors must pay taxes quarterly.
Mileage logs help calculate accurate estimates. - 1099 Forms: Instacart issues 1099 forms showing gross income.
Mileage deductions reduce the net income reported on tax returns. - Audit Protection: IRS-ready reports from Everlance safeguard deductions.
Accurate documentation prevents disputes.
FAQs About the Instacart Mileage Deduction Guide by Everlance
Can I use Everlance for multiple gigs?
Yes, Everlance can track trips across multiple platforms like DoorDash, Uber Eats, and Instacart.
Do I need odometer readings?
It’s recommended to record beginning and end-of-year odometer readings for backup.
Is the mileage rate always better than actual expenses?
For most Instacart shoppers, yes. The mileage rate is simple and usually results in larger deductions.
Does Everlance cost money?
Everlance has free and premium plans. The premium plan includes unlimited tracking and advanced features.
Final Thoughts on the Instacart Mileage Deduction Guide by Everlance
The Instacart mileage deduction guide by Everlance gives shoppers a simple, reliable way to track and deduct business miles. With the IRS business rate set at 70¢ per mile for 2025, even moderate driving adds up to thousands of dollars in deductions. Everlance automates the process, reduces stress, and ensures IRS compliance. For Instacart shoppers who want to maximize earnings and minimize taxes, pairing mileage deductions with Everlance is the smartest move in 2025.
