A well-known grocery delivery service called Instacart links clients with personal shoppers who bring their groceries right to their door. The Internal Revenue Service (IRS) has given Instacart as a business a federal employment identification number (FEIN), a special nine-digit identifier used to identify firms for tax purposes. But what does this figure imply for people who are self-employed and work for Instacart, and how does it affect their tax liabilities? Is an EIN number accepted by Instacart?
You might be wondering whether you need to get an EIN number or whether you can utilize Instacart’s FEIN instead if you work as a self-employed customer. The FEIN issued to Instacart is exclusively used for the company’s tax purposes and cannot be used by individual contractors, thus you must apply for your own EIN number. Through the IRS website, you may apply for an EIN number. It’s a quick and easy process that only takes a few minutes to finish. What Is a Self-Employed FEIN Number?
Independent contractors are self-employed people who work for Instacart, and as such, they are in charge of filing and paying their own tax returns. Getting their own FEIN number is a crucial element of this because the IRS mandates it for self-employed people who have workers, file specific tax forms, or conduct business as a partnership or corporation. However, you might be able to utilize your Social Security number (SSN) instead of an EIN number if you run a sole proprietorship and have no workers. Is it Possible to Use an EIN for Doordash? The well-known food delivery service Doordash also links clients with independent contractors who carry out their orders. You will also require your own EIN number if you are a self-employed employee of Doordash for tax purposes. It is not possible to use the company’s FEIN number because it may only be used by Doordash for its own tax purposes and cannot be used by independent contractors.
Instacart will give you a Form 1099-MISC at the conclusion of every tax year that details how much money you made using the service. This form must be submitted with your tax return in order to declare your income to the IRS. The Instacart Shopper app allows you to obtain your 1099 form by heading to the “Earnings” section and choosing “Tax documents.” You can ask the Instacart support staff for help if you have any queries or problems with your 1099 form.
In conclusion, it’s critical to comprehend how FEIN and EIN numbers relate to your tax duties whether you work as a freelancer for Instacart or another delivery service. Individual contractors are unable to utilize Instacart’s FEIN, but you can quickly get your own by visiting the IRS website. To prevent any penalties or fines, you should also maintain track of your income and expenses throughout the year and file your tax forms on time.