One of the biggest issues when working as a Shipt shopper is the delivery part of the job, mostly because you have to use your vehicle in order to make all the orders that you take.
As an independent contractor, you are not provided with a vehicle for the company. This leads a lot of people to wonder if Shipt helps in any way to pay for gas for their shoppers. Well if you want to know all about it then you’ve come to the right place!
Does Shipt Pay For Gas?
No, Shipt does not pay for the gas of any of their shoppers. Since Shipt doesn’t reimburse shoppers for gas and the wear and tear of the car comes out of Shipt Shoppers pockets, whether the job is worth it or not will be up to each individual worker.
If you are still interested in working for Shipt or you are just curious to find out about how they deal with gas issues, then keep reading there might still be some hope for those hard-working Shipt shoppers.
Does Shipt Reimburse For Gas?
Unfortunately, you won’t be able to get help from Shipt when it comes to mileage deduction. However, being an independent contractor will allow you to get a few perks that will help you during your shifts.
In order to avoid your business expenses eating your earnings, the IRS will allow Shipt shoppers to deduct mileage and more to make it a fair job.
Let’s review some of the things you can do as a Shipt shopper in order to avoid spending more than you can earn.
As a Shipt shopper, your biggest worry should be mileage, as it will be the highest cost as an independent contractor, however, you will be able to deduct 57.5 cents per mile by using the Standard IRS Mileage Rate.
In order to do so, you need to track your mileage and distinguish your mileage from your business mileage, while also proving that you are indeed an independent contractor. Once you jump all the hurdles, you will be able to save some money and make more from your job as a Shipt shopper.
While this is not something you need to be checking every few hours, you can still get some deduction for it, but you should make sure that your state’s regulations allow it.
As a Shipt shopper, you’ll have to deliver orders to a lot of different places, which may include, places with a parking fee. Since no one will be paying these for you, it could become a problem. Thankfully you can keep track of your parking fees and tolls to deduct some of them after claiming them on your taxes.
Do keep in mind to always follow the rules, as parking tickets and traffic infractions will not be included.
If you are planning on buying a new car as a Shipt shopper, you will be able to deduct some of the payment as long as you keep track of your work and mileage.
This is one of the best benefits you can get, as you won’t have to worry at all about health insurance. You will be able to get 100$ deducted from your health insurance and even write off a few extra expenses.
While gas is the most talked about topic for Shipt shoppers, vehicle maintenance is also a big part of maintaining a steady job as an independent contractor.
Thankfully this will also be deductible.
Can Shipt Shoppers Write Off Gas?
You can but not through Shipt. The IRS allows two methods to deduct mileage for every independent contractor.
Standard Mileage Method
This is the easiest way to work out deductions. You just have to multiply your total deductible mileage with the IRS rate for the year.
Actual Expense Method
This method is a bit more complicated but it’s also more accurate, as you will track every expense including gas, insurance, maintenance, and more.
After that multiply the amount by the percentage for use of your vehicle, which is your business mileage for the year divided by the total miles.
How Much Does a Shipt Shopper Make Per Delivery?
Shipt shoppers make from $15 to $20 per order but it’s very common for Shipt shoppers to make most of their money through tips, so earnings can vary a lot depending on how good they perform and how many tips they receive from customers.
Want to learn more about Shipt? Check out our related articles:
- Do I Have to Wear My Shipt Shirt? (What To Know!)
- Why Can’t I Withdraw From Shipt? (& How To Fix It!)
- How Much Money Do Shipt Shoppers Make? (Updated!)
Working with Shipt can be hard but the biggest problem will be with the vehicle used to complete orders. Gas, maintenance, and more will be the responsibility of the shopper and Shipt won’t pay for any of those expenses.
Thankfully the IRS will allow shoppers to get mileage deductions and other benefits that will allow them to keep steady earnings that won’t go straight to keeping the vehicle alive.