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.

a stack of coins

Take Advantage of Holiday Order Surges

As customers purchase gifts and household items, November and December see increased Shipt order volume. Be sure to take advantage by:

  • Maximizing your availability to handle the uptick in orders. Offer as much flexibility as possible.
  • Closely monitoring promotions to identify and accept holiday bonuses and incentives. Limited-time peak pay can boost earnings.

Going above and beyond in the coming holiday months will allow you to maximize income while order activity surges.

IRS compliant report

Review Your Tax Situation and Obligations

Now is the ideal time to assess your 2023 Shipt earnings and expenses to forecast tax obligations. Connect with a tax professional to:

  • Estimate any quarterly tax payments required before December 31, 2023 to avoid underpayment penalties.
  • Determine if you will owe penalties for inadequate estimated quarterly payments in 2023. The deadline for Q4 payments is January 15, 2024.
  • Identify potential deductions you may be eligible for but are not currently claiming to reduce your taxable income.

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.

A wallet with a credit card coming out

Organize Your Records and Receipts

Collect, digitize, and organize all tax-related documentation for 2023, including:

  • Mileage logs recording business miles driven for Shipt orders.
  • Delivery summaries and weekly payout statements within the Shipt Shopper app.
  • Receipts for equipment, supplies, accessories, and any other items purchased for delivery purposes.
  • Income documentation like 1099s and records of earnings.
  • Expense receipts and records both digital and physical.

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.

A car driving earning money

Maximize Your Mileage Deductions

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.

a report that requires review

Review Insurance, Benefits, and Protections

Since independent shoppers lack employer safety nets, verify you have appropriate:

  • Health insurance providing adequate coverage for 2023 and beyond. Review plans and premiums.
  • Disability insurance to replace income if injured or sick.
  • Rideshare coverage for delivery driving if car insurance excludes commercial use.
  • Liability insurance protecting you if accidents occur while shopping in stores or delivering to homes.

Shipt has a phenomenal shopper and driver perks program that can be found here.

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Upgrade Your Delivery Tools and Gear

Investing in high-quality gear can boost efficiency while generating tax write-offs. Consider upgrading:

  • Insulated bags, coolers, and drink carriers to keep orders fresh and intact.
  • Carts, dollies, and other transport aids for heavy items or large orders.
  • Phone mounts to safely navigate the Shipt app while driving.
  • Portable chargers, cables, and car charging adapters to prevent phone failures.
  • Safety equipment like flashlights, reflective vests, gloves, or masks.
an expense tracking icon

Track Expenses Beyond Mileage

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:

  • Cell phone use attributable to Shipt activities
  • Data plans for smartphones used for work
  • Accounting, bookkeeping, tax prep fees (Like your Shipt Everlance subscription)
  • Equipment like printers, scanners, tablets
  • Home office utilities and expenses

Digitize receipts and keep thorough documentation by category. Every deduction adds up when reducing taxable income.

papers with a magnifying glass

Review Accounting Method

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!

piggy bank

Set Aside Funds for Quarterly Taxes

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!

goal setting

Set Goals for 2024

Close out 2023 strong by establishing revenue, savings, and growth objectives to strive for in 2024, such as:

  • Increasing average weekly Shipt earnings by 20%
  • Growing your savings account balance to $5,000
  • Achieving a 4.95 overall shopper rating
  • Expanding delivery areas or store availability

Define measurable targets to motivate success in the year ahead.

Everlance app

Let Everlance Help You Finish Strong!

Everlance Premium makes automated mileage tracking simple:

  • Automatic mileage tracking with GPS
  • Easy expense capture
  • Reports formatted for taxes and deductions

Shipt Shoppers get 15% off Everlance Premium

Get Started

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!

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