Amazon Flex Taxes in San Diego, California - 2026

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in San Diego, California

Navigating the vibrant streets of San Diego as an Amazon Flex driver offers flexibility, but also introduces unique tax considerations. As an independent contractor, understanding these obligations is crucial for a smooth tax season.

The IRS requires all Amazon Flex drivers to report their income on Schedule C (Profit or Loss From Business) with Form 1040. Furthermore, earnings exceeding $400 necessitate the payment of self-employment taxes, covering both Social Security and Medicare contributions, which are not automatically withheld from your Flex earnings.

How California Handles Gig Worker Taxes

As a resident of California, a state income tax return is required even if your federal tax liability is zero. California employs a graduated income tax system, meaning the tax rate increases as your income rises. This means your tax bracket, and therefore your tax rate, will depend on your total taxable income for the year. The primary form for self-employed individuals to report income and calculate tax liability is Form 540. California also has specific schedules for self-employment income, such as Schedule CA (540), which is used to calculate adjustments to your federal adjusted gross income.

California’s Franchise Tax Board (FTB) actively monitors gig economy income. It’s important to accurately report all earnings received through Amazon Flex. San Diego drivers should be particularly mindful of potential income fluctuations due to seasonal demand, such as increased deliveries during the holiday season or around events like Comic-Con, which can impact overall tax liability. Parking costs in popular San Diego areas like Gaslamp Quarter or La Jolla while on deliveries are potentially deductible (see section below). Keep detailed records of all income and expenses. California also offers various credits and deductions that may be applicable to self-employed individuals, so exploring these options is recommended. The FTB website (https://www.ftb.ca.gov/) provides comprehensive information and resources for California taxpayers.

Top Tax Deductions for San Diego, California Drivers

• Standard Mileage: The most common and often simplest deduction. The 2025 rate is 70 cents per mile. Given California’s consistently higher gas prices, especially in San Diego County, carefully consider if tracking actual expenses might yield a larger deduction.
• Tolls & Parking: San Diego doesn’t have extensive toll roads, but parking fees incurred directly while actively working (making deliveries) are deductible. Keep receipts!
• Phone & Data Plan: You can deduct the percentage of your phone and data plan attributable to business use. If you use your phone 70% for Flex deliveries, you can deduct 70% of the bill.
• Vehicle-Related Costs: Expenses like car washes to maintain a professional appearance, phone mounts, dash cams, and insulated hot bags used specifically for deliveries are deductible.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses like gas, oil changes, or repairs in the same year. Choose the method that results in the largest deduction.

Understanding the 15.3% Self-Employment Tax

This tax covers both Social Security and Medicare taxes. Unlike traditional employment, Amazon Flex and other gig platforms do not withhold these taxes from your earnings. Therefore, it’s your responsibility to calculate and pay this tax, typically through estimated quarterly tax payments to the IRS.