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Instacart & Amazon Flex Mileage Deduction

Updated September 2, 2026

Instacart batches and Amazon Flex blocks pay by the job, and the car quietly eats a big share of every one. Both platforms treat you as an independent contractor, which means the miles are deductible on Schedule C — 72.5¢ per business mile at the 2026 IRS rate. A shopper's 9,600 miles are worth $6,960; a Flex driver's 11,200 route miles are worth $8,120. The two jobs have different shapes, and different commute traps, so this guide takes them one at a time.

First check: are you a contractor? Instacart full-service shoppers (shop and deliver) and Amazon Flex drivers are 1099 contractors and can deduct mileage. Instacart in-store shoppers are W-2 employees who don't drive for the job — and W-2 employees can't deduct unreimbursed work mileage on the federal return at all. If you get a W-2, this guide isn't for you (see the employee vs. contractor rules in the home health guide).

Instacart: which batch miles count

  • Store to customer — the delivery leg, including every stop on a multi-order batch. Business.
  • Customer to the next store — repositioning to the next batch while you're active in the app. Business.
  • Between stores on one batch — a batch that sends you to two retailers is business driving the whole way.
  • Waiting near a busy store — driving to the area where batches appear, while genuinely available for orders. Business.

Time spent inside the store is not mileage — it's labor — so a two-hour batch with a three-mile delivery is three business miles, not two hours of driving. Shoppers with very local stores often find their deduction is smaller than a delivery driver's; the trade is fewer miles per dollar earned.

Amazon Flex: blocks, stations, and the commute trap

Flex blocks start at a delivery station, and that's where the commuting rule bites. Under the IRS's general rule, driving from home to your regular place of work — and home again — is personal commuting, even for a contractor. Applied conservatively:

  • Home to the station — commuting. Not deductible.
  • Station to every stop on the route — business. This is the bulk of a block.
  • Last stop back to the station (to return undelivered packages) — business.
  • Last stop straight home — the conservative reading is commuting, since it's the trip that ends the workday at home.

The exception for both jobs: if your home is your principal place of business — a space used regularly and exclusively to run the delivery business — then trips from home to any work location, including the station or the first store, are business miles. Many gig workers don't meet the exclusive-use test; some do. It's worth a conversation with a tax professional, because it can move 1,500–3,000 miles a year from "personal" to "business."

Which miles never count

  • Personal errands woven into a batch or block — your own groceries, the school run.
  • Warehouse-store "personal shopping" trips with no active batch.
  • Miles the app was open for but you weren't working — the purpose of the trip decides, not whether the app was running.

Worked example — Instacart shopper, 2026

Priya shops five days a week around three suburban stores: 9,600 business miles for the year (store-to-customer legs plus repositioning between batches), and no parking costs.

9,600 × 72.5¢ = $6,960 off her Schedule C profit. At a combined ~30% income + self-employment tax rate, about $2,100 kept.

Worked example — Amazon Flex, 2026

Marcus runs four 4-hour blocks a week. Station-to-route-to-station driving: 11,200 miles for the year; his 14-mile home-to-station commute (about 5,800 miles) is excluded. He also paid $60 in parking on downtown routes.

11,200 × 72.5¢ = $8,120, plus $60 = $8,180 total vehicle deduction — roughly $2,450 kept at a ~30% combined rate. If a qualifying home office let him treat the station legs as business, the deduction would grow by another $4,205.

Standard mileage vs. actual expenses

The standard rate (72.5¢) covers fuel, maintenance, insurance, depreciation, and registration; parking and tolls add on top. Actual expenses deducts real costs times a business-use percentage you prove with — a mileage log. For most delivery setups the standard rate wins and is the safe first-year choice (using it in year one keeps both methods available later). The gig-driver guide covers the switching rules.

The paperwork: 1099-NEC from both platforms

Instacart and Amazon Flex report contractor pay on Form 1099-NEC; the federal filing threshold is $2,000 for payments made in 2026, and everything is reportable whether or not a form arrives. The form shows gross pay — tips included where they run through the platform — and your mileage comes off on Schedule C before income tax and ~15.3% self-employment tax. Working both platforms? Two 1099s, one Schedule C, and a business mile counts once no matter which app generated it.

The IRS substantiation checklist

  • ☐ Every batch or block logged with date, miles, destinations, and purpose ("Instacart deliveries", "Amazon Flex block")
  • ☐ Records created at or near the time — that day or that week; a log rebuilt in April from app history "generally has less value"
  • January 1 odometer for each car, every year
  • ☐ Commuting miles tracked too — Schedule C Part IV asks for total / business / commuting / other, and a credible commute figure supports the business one
  • ☐ Platform earnings statements kept as corroboration of the days and hours worked
  • ☐ Parking and toll receipts kept separately

How Mile handles batches and blocks

The shape of this work — many short drives, a store or station as the hub, a commute to separate out — is what Mile is built around. Drives are captured automatically as they happen; name your home and the station (or your regular stores) as places and Mile labels every drive between them, so classifying a whole shift is one swipe. A commute adjustment subtracts your home-to-station legs so the business total stays honest, and a work session keeps recording across every stop of a block. The export lists each trip with the four fields the IRS wants, the rate applied, per-vehicle business-use percentage, and the January 1 odometer block. Free for 40 automatic drives a month, ad-free on every plan.

Sources

Instacart and Amazon Flex are trademarks of their owners, used for identification only; this guide is not affiliated with or endorsed by either company.

This guide is general information about U.S. federal taxes, not tax, legal, or accounting advice. Rules change and individual situations differ — confirm current figures on IRS.gov and talk to a qualified tax professional about your own return.

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