Amazon Flex Taxes in Iowa - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in Iowa

Delivering smiles across the Hawkeye State with Amazon Flex offers flexibility, but it also comes with tax responsibilities. As an independent contractor, understanding these obligations is crucial for a smooth tax season.

The IRS requires Amazon Flex drivers to report their earnings on Schedule C (Profit or Loss From Business) with Form 1040. Because you are self-employed, no taxes are automatically withheld from your earnings. This means you are responsible for paying both income tax and self-employment tax – covering Social Security and Medicare – on any net earnings over $400. Accurate record-keeping throughout the year is essential to properly calculate these taxes.

How Iowa Handles Gig Worker Taxes

As a resident of Iowa, you are required to file an Iowa state income tax return, even if your only income is from Amazon Flex. Iowa utilizes a graduated income tax system, meaning the tax rate increases as your income increases. For the 2025 tax year, Iowa’s tax brackets are expected to remain similar to prior years, though official rates will be released by the Iowa Department of Revenue. Self-employed individuals will primarily use Iowa Form 1040 and Schedule A (Iowa Adjustment to Income) to report their income and calculate their state tax liability. It’s important to note that Iowa does not offer a specific form solely for gig workers; the standard individual income tax forms are used, with Schedule A allowing for adjustments related to self-employment income. Iowa also allows for a deduction for federal income tax paid, which can help reduce your state tax burden. Furthermore, Iowa requires you to pay estimated taxes quarterly if you expect to owe $1,000 or more in state income tax. Failing to do so may result in penalties. For the most up-to-date information and forms, please visit the Iowa Department of Revenue website: https://tax.iowa.gov/. Remember to consult with a tax professional if you have complex tax situations or are unsure about your obligations.

Top Tax Deductions for Iowa Drivers

• Standard Mileage: The most popular deduction for Amazon Flex drivers. The 2025 rate is 70 cents per mile. Given Iowa’s generally moderate gas prices, the standard mileage rate is likely to be a beneficial option for most drivers.
• Tolls & Parking: While Iowa doesn’t have extensive toll roads, any tolls incurred while making 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 you use for business purposes. Keep a log of your business 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, and insurance) 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 where your employer withholds these taxes, as an Amazon Flex driver, you are responsible for paying the full 15.3% on your net earnings exceeding $400. You will calculate this tax on Schedule SE (Self-Employment Tax) and include it with your Form 1040.