Amazon Flex Taxes in Maryland - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in Maryland

Navigating the historic streets of Baltimore and the suburban routes of Montgomery County 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 earnings as self-employment income on Schedule C (Profit or Loss From Business) when filing their federal income tax return. Earnings over $400 necessitate the payment of self-employment taxes, which cover both Social Security and Medicare contributions. Accurate record-keeping throughout the year is essential for maximizing deductions and minimizing tax liability.

How Maryland Handles Gig Worker Taxes

As a resident of Maryland, filing a state income tax return is required, even if no federal tax is due. Maryland utilizes a graduated income tax system, meaning the tax rate increases as your income rises. This means your tax bracket, and therefore your tax rate, will depend on your total taxable income for the year. Amazon Flex earnings are considered taxable income in Maryland. The primary form for self-employed individuals to report income and calculate tax liability is Form 502, Maryland Income Tax Return. You will likely also need to file Schedule 1, Maryland Adjustments to Federal Adjusted Gross Income, to report any relevant state-specific adjustments. Maryland also offers various credits and deductions that may reduce your tax burden; exploring these options is highly recommended. Furthermore, Maryland has specific rules regarding estimated tax payments. If your tax liability is expected to be $100 or more, you are generally required to make quarterly estimated tax payments to avoid penalties. The Maryland Comptroller's Office provides detailed information and resources for self-employed individuals. You can find more information at Maryland Comptroller's Office.

Top Tax Deductions for Maryland 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. This simplifies expense tracking significantly.
• Tolls & Parking: Maryland drivers frequently encounter tolls, particularly when delivering in the Baltimore-Washington Metropolitan area. These tolls, along with any business-related parking fees, are deductible.
• Phone & Data Plan: If you use your personal phone and data plan for Amazon Flex deliveries (which is common), you can deduct the percentage of the bill attributable to business use. Keep a log of the time and purpose of business calls and data usage.
• Vehicle-Related Costs: Expenses like car washes, phone mounts, dash cams, and insulated hot bags used specifically for deliveries are deductible. Maintain receipts for these purchases.

Key Warning: You cannot deduct both the standard mileage rate and actual car expenses (like gas, oil changes, repairs, insurance) in the same 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 is your responsibility to calculate and pay this tax, typically through quarterly estimated tax payments to the IRS and the State of Maryland.