Amazon Flex Taxes in Mississippi - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in Mississippi

Delivering smiles across the Magnolia 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. Proper record-keeping throughout the year is essential to accurately calculate your tax liability.

How Mississippi Handles Gig Worker Taxes

As a resident of Mississippi, you are required to file a state income tax return, even if your federal tax liability is zero. Mississippi operates under a flat income tax rate, currently at 5%. This means all taxable income is taxed at the same percentage. Amazon Flex earnings are considered taxable income and must be reported. The primary form for self-employed individuals to report income and calculate tax liability is Form 83-101, Mississippi Individual Income Tax Return. Mississippi also allows for itemized deductions similar to the federal level, which can help reduce your overall tax burden. It's important to note that Mississippi does not have a separate self-employment tax like the federal government; your self-employment tax is calculated on your federal return and impacts your Mississippi taxable income. Mississippi’s Department of Revenue offers resources and guidance for self-employed individuals, including information on estimated tax payments to avoid penalties. Accurate record-keeping of all income and expenses is vital for filing a correct return. Remember to consider any credits you may be eligible for, such as those related to education or childcare, to further minimize your tax liability.

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

Top Tax Deductions for Mississippi Drivers

• Standard Mileage: The most popular deduction for Amazon Flex drivers. The 2025 rate is 70 cents per mile. Given Mississippi’s generally moderate gas prices, the standard mileage rate is likely to be a beneficial option for most drivers.
• Tolls & Parking: While Mississippi doesn’t have extensive toll road systems, any tolls incurred during 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 is used for business purposes. Keep a log of business usage to support your 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, or repairs) in the same year. Choose the method that yields the larger 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. This is calculated on Schedule SE (Self-Employment Tax) and filed with your Form 1040.