Updated for 2026 (Filing 2025 Taxes)
The Sunshine State’s vibrant economy and bustling cities offer ample opportunities for Amazon Flex drivers, but navigating the tax implications of gig work requires careful attention. As an independent contractor delivering packages across Florida, understanding your tax obligations is crucial for a smooth tax season.
The IRS requires all Amazon Flex drivers to report their earnings as self-employment income on Schedule C (Profit or Loss From Business) when filing your federal income tax return. This means not only paying income tax on your profits, but also self-employment tax, which covers Social Security and Medicare contributions. Platforms like Amazon Flex do not withhold these taxes, making proactive tax planning essential.
Florida stands out as one of the few states with no state income tax. This means Amazon Flex drivers in cities like Jacksonville, Tampa, and Tallahassee won’t need to file a state income tax return. However, this doesn’t mean you’re entirely free from tax considerations. While you get to skip filing a state income tax return, remember that Florida's high tourism can lead to more aggressive federal audits for cash-based gig work, especially in cities like Miami and Orlando. The IRS often focuses on areas with significant cash flow, and independent contractors are frequently scrutinized. Maintaining meticulous records of mileage, expenses, and income is paramount. Accurate record-keeping demonstrates compliance and can significantly reduce audit risk. Furthermore, even without state income tax, you are still responsible for paying federal self-employment taxes. It’s also important to note that Florida does require sales tax collection for certain types of businesses, but this generally doesn’t apply to standard Amazon Flex delivery services. For business registration and information regarding Florida business regulations, visit the Florida Department of State, Division of Corporations (Sunbiz.org): https://dos.myflorida.com/sunbiz/.
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 yields the larger deduction.
The 15.3% self-employment tax is comprised of two parts: 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. You are responsible for calculating and paying this tax, along with your income tax, typically through estimated quarterly tax payments to the IRS. Remember, this tax applies to your net earnings – your income after deducting business expenses.
Estimate your taxes using current IRS rules.
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*Disclaimer: This is a simplified estimate. Includes SE Tax, State Tax, and QBI Deduction impact. Consult a CPA.
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