The holidays are fast approaching, meaning it's time for Shipt Shoppers and Drivers to implement strategies to wrap up 2023 successfully. Whether you deliver full-time or occasionally, taking steps now will set you up for a great tax season and strong start to 2024.
This article covers tips to maximize your income, savings, and deductions as you close out 2023 with Shipt.
As customers purchase gifts and household items, November and December see increased Shipt order volume. Be sure to take advantage by:
Going above and beyond in the coming holiday months will allow you to maximize income while order activity surges.
Now is the ideal time to assess your 2023 Shipt earnings and expenses to forecast tax obligations. Connect with a tax professional to:
Even if you don't file quarterly, this will be helpful as annual filing typically opens up midway through January. Proactive planning will prevent stressful, last-minute tax preparation and issues with the IRS down the road.
Collect, digitize, and organize all tax-related documentation for 2023, including:
Comprehensive documentation makes filing taxes a breeze. Store records securely but accessibly in case of an audit. An app like Everlance will help automatically log all of these trips and expenses for you, just leaving the requirement of a simple swipe for work or personal.
As an independent contractor, mileage is typically one of your largest write-offs. Be extra thorough tracking every business mile driven for Shipt orders in Q4 of 2023. Don't let any potential deduction go unclaimed!
Leverage tools like the Everlance app to eliminate manual tracking hassles. Remember that business miles aren't just while you're on a delivery. Any trip that you take for business, excluding commutes, can be considered a tax deduction, including trips between deliveries, trips after the delivery is done back to the store, running errands to pick up supplies, etc.
Since independent shoppers lack employer safety nets, verify you have appropriate:
Shipt has a phenomenal shopper and driver perks program that can be found here.
Investing in high-quality gear can boost efficiency while generating tax write-offs. Consider upgrading:
You followed the advice in the point above, that's great! If you're sensing a theme here, you know the next point is going to be to use Everlance to log these expenses for you by simply linking your card to your account. Not only expenses like the above, but also expenses related to your business such as:
Digitize receipts and keep thorough documentation by category. Every deduction adds up when reducing taxable income.
Meet with an accounting advisor to determine whether the cash or accrual method is optimal for recording Shipt income and maximizing write-offs.
Cash basis books income when received and deducts expenses when paid. Accrual basis accounts for income earned and expenses incurred.
Choosing the best approach reduces taxes owed. Don't leave savings on the table!
Evade underpayment penalties by setting aside an adequate percentage of Shipt earnings to cover estimated taxes. Open a dedicated savings account and automate recurring monthly or weekly transfers.
The fourth quarter rush can make tax obligations feel distant. But preparing now prevents major headaches when payments come due in 2024!
Close out 2023 strong by establishing revenue, savings, and growth objectives to strive for in 2024, such as:
Define measurable targets to motivate success in the year ahead.
Everlance Premium makes automated mileage tracking simple:
Shipt Shoppers get 15% off Everlance Premium
The holidays will be here before you know it. Implement these success strategies now to ensure you ring in 2024 on a strong financial footing!