How to Be a Shipt Shopper and Manage Your Finances Effectively
Learn how to become a Shipt Shopper while effectively managing your earnings, expenses, and taxes to maintain financial stability and organization.
Earning money as a Shipt Shopper offers flexibility and the ability to work on your own schedule, making it an appealing option for those looking to supplement their income or transition into gig work full-time. However, managing finances effectively is necessary to maximize earnings and avoid financial pitfalls. Tracking income, handling taxes, and budgeting expenses can make a significant difference in long-term profitability. Understanding how payments work and keeping accurate records helps shoppers stay financially stable and prepared for tax obligations.
Application Steps
Becoming a Shipt Shopper starts with an online application that evaluates whether an applicant meets the company’s requirements. Applicants must be at least 18 years old, have a valid U.S. driver’s license, and own a reliable vehicle from 1997 or newer. A smartphone capable of running the Shipt app is also necessary, as all orders, payments, and communications occur through the platform.
After submitting the application, applicants consent to a background check that reviews driving history and criminal records. This process typically takes a few days. If approved, they watch onboarding videos explaining how to navigate the app, fulfill orders efficiently, and provide high-quality service.
Once onboarding is complete, new shoppers can start accepting orders. The app allows them to select delivery windows that fit their schedule. Many shoppers focus on high-demand times, such as weekends and evenings, when more customers place orders, leading to higher earnings.
Compensation Details
Shipt Shoppers earn money on a per-order basis, meaning income fluctuates depending on the number and size of completed orders. Base pay is determined by estimated shopping and delivery time, item count, and order complexity. Larger or more time-consuming orders generally result in higher payouts.
Customer tips significantly impact total earnings. Shoppers keep 100% of tips, and providing excellent service—such as clear communication, accurate item selection, and timely delivery—can encourage better gratuities. Some experienced shoppers prioritize orders from repeat customers or high-value neighborhoods where tipping tends to be more generous.
Earnings vary by location and demand. In busy metropolitan areas, shoppers often see higher pay due to a greater volume of orders. In lower-demand regions, order availability may be less frequent, requiring careful scheduling. Shipt occasionally offers promotional pay incentives, such as bonuses for completing a set number of orders within a specific timeframe, which can further boost earnings.
Tax Classification
Shipt Shoppers are independent contractors, meaning they handle their own taxes. Unlike traditional employees, they do not have taxes withheld from each paycheck. Instead of receiving a W-2, Shipt Shoppers receive a Form 1099-NEC if they earn $600 or more in a calendar year. Even if Shipt does not issue a 1099, all earnings must still be reported to the IRS.
Independent contractors must account for self-employment tax, which covers Social Security and Medicare contributions. In 2024, this tax rate is 15.3%—12.4% for Social Security and 2.9% for Medicare—on net earnings. Traditional employees split this tax with their employer, but independent contractors pay the full amount. If net earnings exceed $200,000 for single filers or $250,000 for married couples filing jointly, an additional 0.9% Medicare surtax applies.
To avoid penalties, many Shipt Shoppers make estimated quarterly tax payments using Form 1040-ES. These payments are due on April 15, June 15, September 15, and January 15 of the following year. Some states also require estimated tax payments, so checking local regulations ensures compliance.
Tracking and Deducting Expenses
Reducing taxable income requires careful tracking of business-related expenses. Since independent contractors are taxed on net earnings, deducting allowable expenses can lower tax liability. The IRS permits deductions for costs that are both ordinary and necessary for conducting business. Keeping clear records ensures compliance in case of an audit.
One of the most significant deductions is vehicle-related expenses, as driving is central to the job. Shoppers can choose between the standard mileage deduction—set at 67 cents per mile for 2024—or actual expense deduction, which includes fuel, maintenance, insurance, and depreciation. The standard mileage method is simpler, but calculating actual costs may be more beneficial for those with high vehicle expenses. Accurate mileage logs, using apps like MileIQ or Everlance, help substantiate these deductions.
Other deductible expenses include insulated delivery bags, phone plans used for work, and fees associated with maintaining a business bank account. If a portion of a home is used exclusively for business purposes, a home office deduction may apply, calculated using either the simplified method ($5 per square foot, up to 300 square feet) or actual expense allocation.
Maintaining Financial Records
Accurate financial records help Shipt Shoppers track earnings, monitor expenses, and prepare for tax filing. Since income is not automatically reported like traditional employment, maintaining organized documentation ensures all financial information is readily available.
Digital tools such as QuickBooks Self-Employed, Wave, or FreshBooks simplify financial tracking by categorizing income and expenses automatically. These platforms allow users to link bank accounts, generate reports, and estimate quarterly tax payments. For those who prefer manual tracking, maintaining a spreadsheet with columns for date, order earnings, tips, mileage, and business-related purchases can be an effective alternative. Retaining receipts for deductible expenses, whether in physical form or through apps like Expensify, provides supporting documentation in case of an IRS audit.
Separating personal and business finances by using a dedicated bank account or credit card for Shipt-related transactions streamlines record-keeping. Reviewing financial records regularly—such as on a weekly or monthly basis—helps identify discrepancies, track income trends, and ensure all deductions are properly documented before tax season.
Payment Schedules
Shipt operates on a weekly payment cycle, depositing earnings directly into a shopper’s bank account. Payments typically reflect earnings from the previous Monday through Sunday and are processed the following Friday. This schedule allows shoppers to plan for recurring expenses.
For those who need quicker access to their earnings, Shipt offers an Instant Pay option, allowing transfers to a linked debit card for a small fee. While useful for covering immediate expenses, frequent use of Instant Pay can reduce overall earnings due to transaction fees. Many shoppers use Instant Pay only when necessary while relying on the standard weekly deposit for regular budgeting.