Gig work has presented numerous opportunities for driven people to earn outside the confines of traditional employment. While rideshare and delivery businesses like Uber, Lyft, and DoorDash have innovated in this space, the Walmart Spark Driver platform and Amazon Flex have risen in prominence over the last few years.

Amazon, one of the largest e-commerce platforms in the world, launched Amazon Flex in 2015 to support its operations. To begin delivering Amazon packages, eligible workers need only the Amazon Flex app and their own vehicle. Like all gig work, drivers can perform duties based on their needs and capacity, providing flexibility and a sense of entrepreneurship.

While many self-employed workers enjoy the flexibility of Amazon Flex, there are increased tax responsibilities associated with being your own boss.

Key takeaways for Flex drivers include:

• Learn about the taxes you'll have to pay in connection with your gig work

• How to keep proper records in support of your finances

• Discover the top expense deductions for Flex drivers

• Determine the tax forms and information required to file

Some of this guidance applies to other gig work you might perform outside of Amazon Flex.  

What Taxes Do Amazon Flex Drivers Pay?

Whether part-time or full-time, gig workers, including Amazon Flex drivers, must pay taxes and file a tax return if their net earnings are $400 or more annually.

Self-Employment Taxes

Amazon Flex gig workers will be responsible for paying a self-employment tax, which funds federal Medicare and Social Security programs. The Internal Revenue Service (IRS) set the self-employment tax rate at 15.3%, which is the sum of two parts: a 12.4% Social Security tax rate and a 2.9% Medicare tax rate. 

Employers pay for Medicare and Social Security through FICA for their W-2 employees. They withhold wages to pay half of the tax and are obligated to pay the other half themselves. 

Federal Income Tax

Amazon Flex drivers must pay federal income tax, which is done via your Schedule C form to report profits and losses. Schedule C consists of five parts: 

• Income. List all business income, including gross receipts or sales, returns and allowances, and federal and state fuel tax credits. This calculates your gross profit and gross income.

• Expenses. Report business expenses such as cost of travel, utilities, insurance, and advertising. Subtract your total expenses from your gross income to find your net profit or loss. Report this result on IRS Form 1040.

• Cost of Goods Sold. If your business doesn't require you to purchase inventory or sell products, this section doesn't apply to you.

• Vehicle Expenses. Complete this section if claiming deductions for car or truck expenses related to your Amazon Flex work. Keep detailed records of your mileage and vehicle expenses during the tax year.

• Other Expenses. Report any expenses that weren't listed above in the second part. Some of these expenses can include education or costs related to your industry.

You will attach your completed Schedule C to IRS Form 1040 and file your taxes by April 15, 2025. 

State and Local Income Tax

Applicable state and local income taxes that Amazon Flex drivers are responsible for can vary by location. Because Flex drivers are self-employed independent contractors, they must also make quarterly estimated tax payments to the IRS four times per year. Many states that require quarterly tax payments adhere to the same schedule as federal estimated tax payments.

If you have questions, contact relevant authorities or seek the advice of a qualified tax professional for expert guidance on your state and local tax responsibilities.

What Expenses Can I Deduct From My Amazon Flex Income?

Claiming tax deductions is an excellent way of reducing your tax liability (what you owe to the IRS) by lowering your total taxable income. There are several deductions that drivers who work with Amazon Flex and other platforms can take advantage of. Here are some of the top Amazon Flex deductions you should use: 

• Depreciation Expense. You can deduct the cost of business assets, including the vehicle you use as an Amazon Flex driver, over time via depreciation. You must follow IRS depreciation rules if the business assets you're writing off exceed $2,500. Numerous factors dictate the amount and duration of your depreciation expense, including the depreciation method you apply. 

• Fees. You can write off the fees related to professional services you rely on to complete deliveries for Flex and manage your self-employed independent contractor business. Fees that qualify include mileage tracking software, navigation app subscriptions, bookkeeping software, and virtual accounting costs. 

• Tolls and Parking. You can deduct the tolls and parking fees you paid while delivering for Amazon. Keep receipts from parking lots, garages, and tolls related to your deliveries.

• Phone and Internet. You need your phone to use the Amazon Flex mobile application to access deliveries and navigate to your destination. You can deduct part of your phone bill since your service and data costs represent necessary business expenses. Track the portion of your cell phone and data usage related to your deliveries so you can deduct the business-related cost on your tax return.

• Fuel and Maintenance. You can deduct fuel and maintenance costs for your delivery vehicle. 

Keeping receipts and other supporting documentation is essential, as is virtually every deduction. 

How to Keep Records of Your Amazon Flex Expenses

Keeping accurate records of your Amazon Flex expenses will help you prepare your tax return and select eligible deductions, lowering your tax liability. Maintain your Amazon Flex records with the following information: 

• Amazon Flex delivery earnings

• Vehicle and transportation costs, in addition to other necessary expenses

• Business mileage log

Accurate recordkeeping is time-consuming, but it is essential to maintaining your operations and minimizing your tax bill at tax time. 

How to File Taxes for Your Amazon Flex Earnings

Review the following forms, processes, and deadlines you'll need to be familiar with to file your Amazon Flex taxes successfully. Portions from this guidance may apply to other gig work you perform throughout the year. 

Required Forms

If you've made $600 or more with Amazon Flex in a year, Amazon will send you IRS Form 1099-NEC, Nonemployee Compensation. This form summarizes earned Flex wages and is essential to filing your taxes. Contact Amazon Flex or download the forms directly on Amazon Tax Central if you do not receive this form by the end of January.

If you have eligible sources of income beyond Amazon Flex, you will also need to report it. If your additional gig work qualifies, you will receive multiple 1099-NEC forms. You might also receive IRS Form 1099-K, Payment Card, and Third Party Network Transactions for this line of gig work. If your gig work is a side hustle in addition to more traditional employment, you will also receive IRS Form W-2, Wage and Income Statement.

Claiming Your Tax Deductions

Use IRS Form 1099-NEC and other relevant forms as supporting documentation for your tax return. Forms you may use to file your taxes and claim tax deductions include: 

IRS Form 1040

Individual taxpayers file IRS Form 1040, U.S. Individual Income Tax Return. Form 1040 calculates your federal taxable income and tax liability.

You should also file schedules to report independent contractor income: Form 1040 Schedules C and SE.

Form 1040, Schedule C

Amazon Flex drivers work as independent contractors and represent sole proprietors for federal income tax purposes. To report business income and expenses, you should file IRS Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship). Schedule C calculates your business income or loss from self-employment.

Form 1040, Schedule SE

Amazon Flex drivers must pay self-employment tax on their freelance income. Independent contractors must calculate self-employment tax liability using IRS Schedule SE (Form 1040), Self-Employment Tax.

When to Pay Your Taxes

Self-employed individuals, including Amazon Flex delivery drivers, must estimate and pay quarterly estimated taxes throughout the year. Quarterly estimated tax payment due dates for 2025 include the following: 

• April 15, 2025

• June 16, 2025

• September 15, 2025

• January 15, 2026

Form 1040, Schedule SE

Use IRS Form 1040-ES, Estimated Taxes for Individuals, to calculate and pay your quarterly estimated taxes. The form includes payment vouchers and instructions for filing online.

If you struggle to make accurate calculations by each deadline, our full-service quarterly estimated tax solution can help.

Get Expert Help Flexing Your Tax Muscles

Efficiently addressing your tax responsibilities while delivering for Amazon Flex can be challenging. As your delivery business matures and grows, avoiding costly tax mistakes that invite penalties and unwanted scrutiny from the IRS is a critical practice. That's why many drivers, gig workers, and entrepreneurs trust 1-800Accountant, America’s leading virtual accounting firm for small businesses, to deliver maximum tax savings.

Whether you need personal income tax preparation, tax advisory, or any of our professional accounting services, we have the affordable solutions you need to ensure your self-employed delivery business continues driving forward. Schedule a quick consultation–usually 30 minutes or less—to learn more.