Amazon Flex Taxes in Massachusetts - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in Massachusetts

Navigating the historic streets of Massachusetts 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 income on Schedule C (Profit or Loss From Business) with Form 1040. Furthermore, earnings exceeding $400 necessitate the payment of self-employment taxes, covering both Social Security and Medicare contributions, which are not automatically withheld from your Flex earnings.

How Massachusetts Handles Gig Worker Taxes

As a resident of Massachusetts, filing a state income tax return is mandatory, even if no state income tax is owed. Massachusetts operates under a flat income tax rate, currently at 5.0%. This means all income is taxed at the same percentage. 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 1 (Massachusetts Form 1, Income Tax Return). Massachusetts also requires the filing of Schedule SE (Self-Employment Earnings) to calculate your self-employment tax liability, mirroring the federal calculation. It's important to note that Massachusetts allows for a deduction for the federal self-employment tax paid, which can reduce your overall state tax burden. Additionally, Massachusetts has specific rules regarding estimated tax payments. If your tax liability is expected to be $1,000 or more, you are generally required to make quarterly estimated tax payments to avoid penalties. Resources and further information can be found on the Massachusetts Department of Revenue website: Massachusetts Department of Revenue. Keep meticulous records of all income and expenses throughout the year to ensure accurate reporting and maximize potential deductions.

Top Tax Deductions for Massachusetts 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: Massachusetts drivers frequently encounter tolls, particularly on the Massachusetts Turnpike. These toll expenses, 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, you can deduct the percentage of the bill attributable to business use. Keep detailed records of how the phone is used for work.
• Vehicle-Related Costs: Expenses like car washes, 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 tax year. Choose the method that yields the greater deduction.

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Unlike traditional employment, Amazon and other delivery platforms do not withhold these taxes from your earnings. Therefore, it’s your responsibility to calculate and pay this tax, typically through quarterly estimated tax payments to both the IRS and the Massachusetts Department of Revenue.