What taxes Amazon Flex drivers owe
Amazon classifies all Flex drivers as independent contractors. There's no W-2, no withholding, and no employer contribution to Social Security or Medicare. You're running a delivery business, and the IRS treats you that way.
| Tax | Rate | What it covers |
|---|---|---|
| Self-employment (SE) tax | 15.3% | Social Security (12.4%) + Medicare (2.9%) — replaces payroll tax |
| Federal income tax | 10%–37% (marginal) | Applied to taxable income after standard deduction ($15,000 single in 2025) |
| State income tax | 0%–13.3% | Varies by state — nine states have no income tax |
All three taxes apply to your net profit — what's left after your deductible business expenses. For most Flex drivers, the mileage deduction alone takes a massive chunk out of that number. You'll also get to deduct half the SE tax you pay when calculating adjusted gross income, which provides a small additional reduction.
Does Amazon send a 1099?
Yes. Amazon sends a 1099-NEC to every Flex driver who earns $600 or more in a calendar year. Unlike gig apps that use Stripe (which sends a 1099-K), Amazon handles its own 1099 reporting. You'll see it in the Amazon Flex app under "Tax Information" and it arrives by mail by January 31 of the following year.
The $600 threshold for a 1099-NEC has been the standard for years and is not subject to the phase-down changes affecting 1099-K thresholds. If you earned $600 or more, you will receive a form.
Important: Even if you earned less than $600 and Amazon does not send a 1099-NEC, you are still required to report every dollar of Flex income on your return. The IRS threshold for reporting is $1 of self-employment income — not $600.
The mileage deduction — the most important section
This is where most Flex drivers either save a lot of money or leave it on the table. The standard mileage rate for business driving is 70 cents per mile in 2025. Every business mile you drive reduces your taxable income by 70 cents.
Which miles count for Amazon Flex?
For a traditional employee, the drive from home to work is a non-deductible commute. But Amazon Flex drivers are self-employed, and your home is your principal place of business — it's where you manage your schedule, accept blocks, and operate your delivery business from. That changes the math significantly.
- Drive from home to the first pickup location: Deductible
- All driving during the delivery block (pickup to drop-offs): Deductible
- Drive from the last delivery back home: Deductible
- Personal errands tacked on to the route: Not deductible
This is a significant advantage over traditional employee drivers. Your entire delivery block, start to finish including the drive from your driveway, is business mileage.
The numbers in practice
| Annual business miles | Mileage deduction (@ $0.70/mile) | Tax savings (est. 25% rate) |
|---|---|---|
| 8,000 miles | $5,600 | ~$1,400 |
| 12,000 miles | $8,400 | ~$2,100 |
| 15,000 miles | $10,500 | ~$2,625 |
| 20,000 miles | $14,000 | ~$3,500 |
A full-time Flex driver doing 4–5 blocks per week easily logs 15,000+ business miles per year. At that volume, the mileage deduction alone can wipe out nearly half of gross earnings.
How to track your miles
The IRS requires a mileage log with: date of the trip, the starting point, the ending point, the business purpose, and the total miles. You have a few options:
- Mileage tracking apps: MileIQ, Everlance, and Stride automatically detect when you're driving and log trips. MileIQ integrates with the Amazon Flex schedule. These are worth the few dollars per month — they pay for themselves quickly.
- Manual log: A simple spreadsheet with the fields above works fine and is fully IRS-compliant.
- Amazon Flex app data: The app records your blocks but does not produce a complete mileage log. You still need a separate record.
Tip: Start tracking mileage on day one. You cannot reconstruct months of trips from memory later. Even a rough log is better than nothing, but a complete log is best.
Amazon Flex vs. DoorDash: how the tax treatment compares
Flex and DoorDash drivers are taxed identically in terms of the rates that apply — both owe SE tax plus federal and state income tax as independent contractors. The business model differs: Flex pays by the block (typically 2-hour blocks at $18–$25/block), while DoorDash pays per delivery. Flex income also tends to be more predictable because you're accepting scheduled blocks in advance.
Both platforms issue 1099s (DoorDash uses 1099-NEC for earnings over $600, same as Flex). Both allow the same set of deductions. If you drive for both platforms, all the income and deductions go on a single Schedule C — you don't file separate returns for each platform as long as you're doing similar delivery work.
Other deductions for Flex drivers
Phone
The Amazon Flex app is required to complete every block. Your smartphone is a business tool. Deduct the percentage of your phone bill and the original device cost that corresponds to business use. If you use your phone 70% for delivery work and personal use, deduct 70% of your monthly bill and 70% of the phone's cost (or depreciation).
Actual vehicle expenses (alternative to mileage rate)
Instead of the standard mileage rate, you can deduct your actual vehicle expenses — gas, insurance, registration, oil changes, tires, repairs — multiplied by the business-use percentage of the vehicle. For most Flex drivers, the standard mileage rate produces a larger deduction and is much simpler to track. But if you have a gas-guzzler or unusually high maintenance costs, run both calculations to see which comes out ahead.
Note: You cannot switch from actual expenses to the standard mileage rate after you've already used actual expenses in year one for a given vehicle. Choose carefully.
Insulated delivery bags
Amazon Flex includes Amazon Fresh grocery and Whole Foods delivery blocks. If you purchase insulated bags to handle these blocks, they're a deductible supply expense.
Tolls and parking
Tolls and parking fees paid during delivery blocks are deductible on top of your mileage deduction. Save receipts or use your bank/card statement as documentation.
All Flex earnings are fully taxable
Amazon Flex has several pay components, and all of them count as self-employment income:
- Base block pay: The flat rate per delivery block
- Surge pay: Additional pay during high-demand periods
- Tips: Customer tips passed through by Amazon
There is no special tax treatment for tips on Amazon Flex. Everything Amazon deposits to your account is gross self-employment income from which you subtract expenses to arrive at taxable net profit.
Quarterly estimated taxes
Amazon withholds nothing from your block pay. If you expect to owe $1,000 or more in federal taxes for the year, the IRS requires quarterly estimated payments. Missing these payments can result in an underpayment penalty even if you pay the full amount by April 15.
| Quarter | Income period | Due date |
|---|---|---|
| Q1 | January – March | April 15 |
| Q2 | April – May | June 15 |
| Q3 | June – August | September 15 |
| Q4 | September – December | January 15 |
A practical approach: set aside 25–30% of every Flex deposit into a dedicated savings account the moment it hits your bank. After the mileage deduction, your actual effective tax rate will likely be lower than that, meaning you'll have money left over come April.
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Check my hustle →Frequently asked questions
Does Amazon send a 1099 to Flex drivers?
Yes. Amazon sends a 1099-NEC to any Flex driver who earns $600 or more in a calendar year. You'll receive it in the Flex app and by mail by January 31. Even if you earn under $600, you must still report all income on your return.
How does the mileage deduction work for Amazon Flex?
You can deduct 70 cents per business mile in 2025. Because your home is your business base as a Flex driver, miles driven from home to the first pickup and from the last delivery back home are fully deductible. Keep a mileage log with date, starting point, destination, and miles for every block.
How much self-employment tax do Amazon Flex drivers owe?
Flex drivers owe 15.3% SE tax on net profit after deductions. This covers Social Security (12.4%) and Medicare (2.9%). You can deduct half of the SE tax paid when calculating adjusted gross income.
Are Amazon Flex tips taxable?
Yes. All Flex earnings are taxable — base pay, surge pay, and tips. There is no separate tax treatment for tips on the platform. Everything Amazon deposits to your account counts as gross self-employment income.
Should I use the standard mileage rate or actual expenses?
Most Flex drivers benefit most from the standard mileage rate of 70 cents per mile. It's simpler to track and typically produces a larger deduction. If you have unusually high vehicle costs, run both calculations to compare — but note that you cannot switch methods for a given vehicle after using actual expenses in year one.