Amazon Flex Taxes in Indiana - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in Indiana

The rolling hills and bustling cities of Indiana offer a diverse landscape for Amazon Flex drivers, but navigating the tax implications of independent contracting requires careful planning. As an Amazon Flex driver in Indiana, understanding your tax obligations is crucial to avoid penalties and maximize your earnings.

The IRS considers Amazon Flex drivers independent contractors, meaning income earned through the platform is subject to self-employment tax. This necessitates reporting earnings on Schedule C (Profit or Loss From Business) with your Form 1040, and paying both income tax and self-employment tax (Social Security and Medicare) on net earnings exceeding $400.

How Indiana Handles Gig Worker Taxes

As a resident of Indiana, you are required to file a state income tax return, even if no Indiana income tax was withheld. Indiana operates under a flat income tax rate, currently at 3.15% for the 2025 tax year. This means all taxable income is taxed at the same rate. Amazon Flex income is considered taxable income and must be reported. The primary form for self-employed individuals to report income and calculate tax liability is Form IT-1040, Indiana Resident Income Tax Return. You will likely also need to file Schedule IN-1040, which is used to report business income and expenses. Indiana also allows for itemized deductions, which can potentially lower your tax liability. It's important to accurately track all income and expenses throughout the year to ensure proper reporting. Indiana’s Department of Revenue offers resources and guidance for self-employed individuals, including information on estimated tax payments, which may be required if you anticipate owing more than $1,000 in state income tax. Failure to pay estimated taxes can result in penalties. Keep thorough records of all mileage, expenses, and income to support your tax filings.

For more information and resources, please visit the Indiana Department of Revenue: https://www.in.gov/dor/

Top Tax Deductions for Indiana Drivers

• Standard Mileage: The most popular deduction for Amazon Flex drivers. For the 2025 tax year, the standard mileage rate is 70 cents per mile. Given Indiana’s relatively stable gas prices, the standard mileage rate is often the most advantageous method for calculating vehicle expenses.
• Tolls & Parking: Indiana has several toll roads, including the Indiana Toll Road. Keep records of all toll fees and parking expenses incurred while actively delivering for Amazon Flex, as these are deductible.
• 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 business-related calls and data usage to support this 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, repairs, insurance) in the same tax year. Choose the method that yields the larger deduction.

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment 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 tax payments made quarterly to the IRS.