Amazon Flex Taxes in Idaho - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in Idaho

The Gem State’s wide-open roads offer flexibility for Amazon Flex drivers, but navigating tax season requires careful planning. As an independent contractor delivering packages across Idaho, understanding your tax obligations is crucial to avoid surprises.

The IRS considers Amazon Flex drivers self-employed. This means income earned through the platform must be reported on Schedule C (Profit or Loss From Business) with your Form 1040. Furthermore, because no taxes are withheld from your Flex earnings, you are responsible for paying self-employment taxes, which cover both Social Security and Medicare.

How Idaho Handles Gig Worker Taxes

As a resident of Idaho, you are required to file a state income tax return, even if your only income is from Amazon Flex. Idaho operates under a flat income tax rate, meaning everyone pays the same percentage of their taxable income, regardless of income level. For the 2025 tax year, the Idaho income tax rate is 5.8%. Self-employed individuals utilize Form 40 to report their income and calculate their tax liability. Idaho also requires you to pay estimated taxes quarterly if you expect to owe $1,000 or more in state income tax. This prevents penalties at the end of the year. Idaho’s tax system is administered by the Idaho State Tax Commission, which provides numerous resources for self-employed individuals. Remember to keep accurate records of all income and expenses related to your Amazon Flex work, as these will be essential when filing your state return. Idaho also allows for certain business expense deductions that can reduce your taxable income, mirroring many of the federal deductions available to self-employed individuals. It’s important to note that Idaho’s tax laws can change, so staying updated through the Idaho State Tax Commission is vital.

You can find more information and resources on the Idaho State Tax Commission website: https://tax.idaho.gov/

Top Tax Deductions for Idaho Drivers

• Standard Mileage: The most popular deduction for Amazon Flex drivers. The 2025 rate is 70 cents per mile. Given Idaho’s relatively moderate gas prices compared to states like California or Washington, the standard mileage rate is often a very advantageous option.
• Tolls & Parking: While Idaho doesn’t have extensive toll road systems, any tolls incurred during deliveries are deductible. Parking fees directly related to deliveries are also deductible.
• Phone & Data Plan: You can deduct the percentage of your phone and data plan that is used for business purposes. Keep a log of business-related calls and data usage to support your deduction.
• Vehicle-Related Costs: Expenses like car cleaning supplies, 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 yields the larger deduction.

Understanding the 15.3% Self-Employment Tax

This tax covers both Social Security and Medicare taxes. Unlike traditional employment where your employer withholds these taxes, as an Amazon Flex driver, you are responsible for paying both the employer and employee portions, totaling 15.3% on net earnings over $400. You will calculate this tax on Schedule SE (Self-Employment Tax) and include it with your Form 1040.