Amazon Flex Taxes in District of Columbia - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in District of Columbia

Navigating the vibrant streets of the District of Columbia 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. Accurate record-keeping of mileage and expenses is paramount to maximizing deductions and minimizing tax liability.

How District of Columbia Handles Gig Worker Taxes

As a resident of the District of Columbia, you are required to file a District of Columbia individual income tax return, even if your only income is from Amazon Flex. The District utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, self-employed individuals will primarily use Form D-140, the District of Columbia Individual Income Tax Return, to report their earnings and calculate their tax liability. It's important to note that the District of Columbia also has a local equivalent of the federal Schedule C, Form D-140 Schedule C, which is used to detail income and expenses related to your Amazon Flex business. The District of Columbia Office of Tax and Revenue (OTR) provides resources and guidance for self-employed individuals, including information on estimated tax payments. Failing to pay estimated taxes throughout the year can result in penalties. The District also offers various credits and deductions that may be applicable to your situation, so thorough research is recommended. Keep in mind that the District of Columbia conforms to many federal tax provisions, but there can be differences, so relying solely on federal guidance is not sufficient. You can find more information and access forms on the OTR website: District of Columbia Office of Tax and Revenue.

Top Tax Deductions for District of Columbia Drivers

• Standard Mileage: The most popular deduction for Amazon Flex drivers. The 2025 rate is 70 cents per mile. Given the urban environment and potential for frequent stops in the District, this rate can significantly reduce your taxable income.
• Tolls & Parking: Drivers in the District of Columbia frequently encounter parking fees and may utilize toll roads in surrounding areas. These costs are deductible as business expenses. Keep detailed records of all parking receipts and toll charges.
• Phone & Data Plan: If you use your personal phone and data plan for Amazon Flex deliveries, you can deduct the percentage of the bill attributable to business use. Maintain a log of the time spent using your phone for work-related activities.
• Vehicle-Related Costs: Expenses like car washes, 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 or repairs in the same year. Choose the method that yields the greater deduction.

Understanding the 15.3% Self-Employment Tax

This tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Unlike traditional employment, Amazon Flex and other gig platforms do not withhold these taxes from your earnings. Therefore, it is your responsibility to calculate and pay this tax, typically through estimated tax payments made quarterly to the IRS.