Amazon Flex lets you deliver packages and other orders on your own schedule, using your own vehicle. The flexibility is a big draw, but there’s a catch at tax time: Amazon doesn’t withhold taxes from your payments, so you’re responsible for reporting your income, claiming deductions, and paying what you owe.
This guide explains the key tax points for Flex drivers. It is educational, not tax advice. Platform policies and tax rules change, so verify details on IRS.gov, in the Flex app, and with a tax professional.
Employee or Independent Contractor?
Amazon Flex drivers are generally classified as independent contractors. For tax purposes, that means:
- You’re self-employed.
- No income tax, Social Security, or Medicare is withheld.
- You pay self-employment tax.
- You can deduct business expenses, including vehicle costs.
This is different from being an Amazon employee, who receives a W-2 and has taxes withheld.
Tax Forms Flex Drivers May Receive
- Form 1099-NEC: commonly used to report contractor earnings. It’s generally sent by the end of January.
- Other forms, depending on the year and type of payment. Check your Flex account or the tax information in the app.
Reporting thresholds have been changing, so you may or may not receive a form even if you earned money. All income is taxable and must be reported either way.
Compare any form with your own earnings records, including your weekly payment summaries, to make sure everything is included.
What Counts as Income?
Generally, your taxable income includes:
- Block payments (the base pay for deliveries)
- Customer tips, which Amazon may pay separately
- Surge or incentive payments
- Other bonuses or promotions
Keep your own records, because not every item may appear on a single form.
How Flex Drivers Are Taxed
As a contractor, you:
- Report income and expenses on Schedule C with your personal tax return.
- Pay income tax on your net profit.
- Pay self-employment tax. See Self-Employment Tax Explained.
- Generally make quarterly estimated payments. See our Freelance Tax Deadlines: 2026–2027 Calendar.
In general, if your net earnings from self-employment reach a small annual threshold, you must file and pay self-employment tax. Check the current rules on IRS.gov. You may also owe state income tax, depending on where you live. See our guides for California, Texas, New York, Florida, Illinois, and Washington.
A simple illustration
These numbers are rounded and for illustration only.
A driver earns $20,000 in a year and has $8,000 in deductible expenses, for a net profit of $12,000.
- Self-employment tax is roughly 15.3% of about 92.35% of net profit, which is about $1,700.
- Half of the self-employment tax is generally deductible when figuring income tax.
- Income tax is calculated separately, based on your total income, filing status, and deductions.
Your real numbers will differ. The point is that deductions reduce both income tax and self-employment tax, which is why tracking expenses matters so much.
The Biggest Deduction: Your Vehicle
For most Flex drivers, vehicle costs are the largest deduction. You generally choose between two methods:
| Method | How it works | Notes |
|---|---|---|
| Standard mileage rate | Multiply your business miles by the IRS rate for the year | Simple. Meant to cover gas, maintenance, insurance, depreciation, and similar costs, so you can’t deduct those separately |
| Actual expenses | Deduct the business-use percentage of the real costs of operating the vehicle | More recordkeeping. May be worth it for some vehicles |
Check the current rate on IRS.gov. The choice can have long-term consequences, and rules about switching methods can be strict. Ask a tax professional before choosing, especially if you’re buying a new vehicle for deliveries.
What counts as business miles?
Generally, miles you drive to deliver orders, such as driving between the delivery station or store, customer addresses, and returning undelivered packages. The tricky question for many drivers is the drive from home to the pickup location. In general, commuting between home and a regular workplace isn’t deductible, but the rules can be nuanced for gig workers with no fixed office. Ask a tax professional how this applies to you.
Keep your own mileage log. Amazon’s app may not provide a complete mileage summary for tax purposes. Record the date, starting and ending odometer readings or a tracked trip, and purpose. See How to Track Mileage for Freelance Tax Deductions.
Other Common Deductions
Whichever vehicle method you choose, other deductions may apply.
Available with either method
- Tolls and parking you pay while working
- Phone and data plan, for the business-use portion
- Phone mounts, chargers, and similar accessories
- Delivery supplies, such as insulated bags, hand trucks, straps, and flashlights
- Background check or onboarding fees
- Tax preparation fees or software
- Self-employed health insurance premiums, with conditions
- Retirement contributions to a SEP IRA or Solo 401(k). See SEP IRA vs. Solo 401(k).
With actual expenses only
- Gas or charging costs
- Repairs, maintenance, tires, and oil changes
- Insurance, for the business-use portion
- Registration fees
- Depreciation or lease payments, for the business-use portion
- Loan interest, for the business-use portion
- Car washes and cleaning, where applicable
Rental vehicles
If you rent a vehicle through a delivery partner or rental program, the business-use portion of the rental fees may be deductible. Keep your agreements and receipts.
For general rules, see IRS Publication 463 and Publication 535.
What You Can’t Deduct
- Personal driving and personal expenses
- Parking tickets and traffic fines
- Expenses without records
- Both mileage and actual expenses for the same vehicle and period
- Costs someone else reimbursed, unless properly accounted for
Insurance Matters
Insurance for delivery drivers can be confusing. Platform coverage may apply only during certain periods and may have conditions. Your personal auto policy may exclude delivery use. Ask your insurer directly about delivery driving, and read the current Amazon Flex insurance information. For a general explanation of how coverage gaps work in gig driving, see Rideshare Insurance for Uber/Lyft Drivers, which includes a section on delivery.
How Much to Set Aside for Taxes
Your tax rate depends on your total income, filing status, and state. A practical approach:
- Track your net profit after expenses throughout the year.
- Remember that you’ll owe self-employment tax of 15.3% (12.4% Social Security and 2.9% Medicare) on most of your net earnings, plus income tax.
- Set aside a percentage of every payment in a separate savings account.
- Make estimated tax payments if you expect to owe enough.
If Flex is a side job and you also have a W-2 job, you might adjust your W-4 withholding at your main job to cover part of the extra tax. A tax professional can help you calculate it.
Keeping Records
- Save your weekly payment summaries and tax forms.
- Use a mileage tracker or a manual log.
- Keep receipts for supplies, tolls, parking, repairs, and phone bills.
- Use a separate bank account for Flex income and expenses.
- Use an expense tracking app and a simple bookkeeping system.
If you also drive for other platforms, keep each platform’s income and mileage separate. See Lyft Driver Taxes: What You Can Deduct and How to File Taxes as an Instacart Shopper.
Steps to File
- Gather your forms and payment summaries.
- Total your income, including tips and bonuses.
- Choose your vehicle deduction method and calculate it.
- List your other expenses.
- Complete Schedule C to find your net profit.
- Complete Schedule SE for self-employment tax.
- Add state tax information, if applicable.
- File and pay by the deadline, even if you request an extension to file.
- Set up estimated payments for the new year.
Common Mistakes
- Not tracking mileage from the start.
- Deducting both mileage and gas or repairs.
- Ignoring tips and incentives.
- Not setting aside money for taxes.
- Skipping quarterly payments.
- Mixing personal and gig money.
- Not understanding which miles count.
- Assuming no form means no income to report.
Frequently Asked Questions
Do Amazon Flex drivers have to pay taxes?
Yes. Earnings are generally taxable, whether or not you receive a form.
Does Amazon withhold taxes from Flex pay?
No. Drivers are generally independent contractors and must handle their own taxes.
Can I deduct my mileage?
Yes, business miles can be deducted using the standard mileage rate or actual expenses, with records.
Are tips taxable?
Yes. Tips are generally part of your taxable income.
Do I need to make quarterly estimated payments?
Often yes, if you expect to owe enough.
Is the drive from home to the delivery station deductible?
It depends on the facts. Commuting is generally not deductible, but there are nuances. Ask a tax professional.
Can I deduct my phone bill?
You can generally deduct the business-use portion.
Final Thoughts
Amazon Flex can be a flexible way to earn money, but the tax side requires attention. Track every business mile, keep records of expenses, set money aside from each payment, and make estimated payments. Good habits during the year make filing much easier.
Disclaimer: This article is for informational and educational purposes only and does not constitute tax, legal, or financial advice. Platform policies, tax rules, and reporting thresholds change and depend on your situation. Verify current information at IRS.gov and in the Amazon Flex app, or consult a licensed tax professional.
Last Update: October 19, 2026