Amazon Flex Taxes in Michigan - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in Michigan

Navigating the roads of Michigan as an Amazon Flex driver offers flexibility, but it also introduces unique tax considerations. Understanding these obligations is crucial for avoiding penalties and maximizing potential savings.

As an independent contractor for Amazon Flex, the IRS considers earnings from deliveries as self-employment income. This means income must be reported on Schedule C (Profit or Loss from Business) with your federal income tax return (Form 1040). Furthermore, because no taxes are withheld from your Flex earnings, drivers are responsible for paying both income tax and self-employment tax on net earnings exceeding $400.

How Michigan Handles Gig Worker Taxes

As a resident of Michigan, filing a state income tax return is required, even if no Michigan income tax was withheld. Michigan operates under a flat income tax rate, currently at 4.05% for the 2025 tax year. This means all taxable income is taxed at the same rate. Amazon Flex drivers will report their self-employment income on Schedule SE (Self-Employment Tax) at the federal level, and then transfer the relevant net profit figure to Michigan Form MI-1040, Individual Income Tax Return. Self-employed individuals in Michigan may also need to file Form MI-1040ES to make estimated tax payments throughout the year to avoid underpayment penalties. Michigan also offers various credits and deductions that may be applicable to self-employed individuals, such as the Earned Income Tax Credit. It's important to accurately track income and expenses throughout the year to ensure proper tax filing. The Michigan Department of Treasury provides comprehensive resources and forms online, including detailed instructions for self-employed individuals. Remember to keep meticulous records of all income and expenses related to your Amazon Flex work, as these will be essential when preparing your state and federal tax returns.

For more information and resources, please visit the Michigan Department of Treasury: Michigan Department of Treasury

Top Tax Deductions for Michigan Drivers

• Standard Mileage: The most popular deduction for Amazon Flex drivers. The 2025 rate is 70 cents per mile. Given Michigan's diverse terrain and potential for winter driving conditions, the standard mileage rate often provides a substantial deduction.
• Tolls & Parking: While Michigan doesn't have extensive toll roads, any tolls incurred during deliveries are deductible. Parking fees directly related to deliveries are also deductible.
• Phone & Data Plan: The portion of your monthly phone and data plan used for business purposes (tracking deliveries, communicating with Amazon, using navigation apps) is deductible.
• 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 Social Security and Medicare taxes. Unlike traditional employment where these taxes are withheld from your paycheck, as an Amazon Flex driver, you are responsible for paying both the employer and employee portions of these taxes. This is calculated on your net earnings (income minus business expenses) exceeding $400. Paying estimated taxes quarterly can help avoid penalties.