Many people in the United States and Canada are turning to the gig economy to help supplement their income. One of these jobs is becoming a Shipt Shopper, where you can make money by shopping for people at your local grocery store and delivering it within an hour. The question on many peoples’ minds is whether or not this makes them self-employed? They want to know if they will be able to claim deductions such as gas expenses, mileage, and depreciation on their taxes. Here we will look at some of the factors that determine whether or not Shipt shoppers are considered self-employed.
Short Answer To The Question Are Shipt Shoppers Considered Self Employed:
The short answer to the question of whether or not Shipt shoppers are considered self-employed is yes. As a Shipt shopper you are considered an independent contractor.
What exactly is an independent contractor?
An independent contractor is someone who provides services to others but are not employees of the company. They work for themselves, set their own hours and provide a service instead of doing manual labor or working in an office setting.
How Does Being a Shipt Shopper Affect Taxes?
You have to track your own taxes as a Shipt Shopper, meaning every time you get paid it doesn’t automatically get taken out of your check. You have to do this yourself, which can be a bit of a headache if you aren’t good at keeping track of your own money.
In addition as an independent contractor for Shipt, you will need to keep records and receipts just like any other self-employed individual would. This includes mileage and gas expenses that may come along with driving to the grocery store or shopping center where they want you deliver their groceries too.
As far as deductions go there is no difference between being employed by another person than someone who works independently such as a freelancer or consultant . The same rules apply in terms of getting reimbursed for business expenditures such as equipment purchased specifically for work purposes (iPhones). If these items are necessary then they can be deducted as well.
How much does a Shipt shopper pay in taxes?
This all depends on how much you work, how many miles you drive and many other factors . It is very difficult to make a good estimate on how much tax you will have to pay as an independent contractor.
Is Doing Shipt Worth It?
The question of whether or not Shipt is worth it for you to do will depend on your individual circumstances. If you are looking for a little extra income and don’t mind the added responsibility of doing taxes yourself, then yes it might be something that can help supplement your income .
However if this doesn’t sound like something that interests you at all, there are ways in which independent contractors can make money without having to go through an intermediary such as Shipt. This would include freelancing , consulting or working directly with companies instead of being employed by them.
What Other Jobs Are Out There For Independent Contractors?
There are many jobs out there besides being employed by someone else where people work independently! Some examples include: Freelancer , Consulting, Sales Agent/Representative.
Conclusion:
Now that you know you are considered self employed and the money you make is self employment income as a Shipt Shopper, you will now know how to handle your taxes accordingly. Be sure to contact a tax professional to make sure you are doing everything correctly.
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