Amazon Flex Taxes in Montana - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in Montana

The Big Sky Country offers wide-open roads, and for Amazon Flex drivers, a flexible earning opportunity. However, navigating the tax implications of independent contract work requires careful attention, especially when factoring in both federal and Montana state requirements.

As an Amazon Flex driver, the IRS considers you an independent contractor. This means income earned through deliveries is considered self-employment income and must be reported on Schedule C (Profit or Loss From Business) with your Form 1040. Crucially, this also means you are responsible for paying self-employment taxes – both the employer and employee portions of Social Security and Medicare – on net earnings exceeding $400.

How Montana Handles Gig Worker Taxes

Montana, known for its stunning landscapes and independent spirit, requires residents to file a state income tax return, even if federal taxes aren't owed. As a self-employed individual earning income through Amazon Flex, you'll need to report your earnings and calculate your Montana income tax liability. Montana operates on a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Montana’s income tax brackets will likely be adjusted for inflation, but understanding the current structure is a good starting point. The primary form for self-employed individuals to report income and calculate tax liability is Form 17, Montana Individual Income Tax Return. You will also likely need Schedule 17-A, Adjustments to Income, to report deductions related to your Amazon Flex business. Montana also allows for itemized deductions similar to the federal level, which can further reduce your taxable income. Remember to keep meticulous records of all income and expenses throughout the year to ensure accurate filing. Montana’s Department of Revenue provides comprehensive resources and guidance for self-employed individuals; you can find more information at Montana Department of Revenue. It's important to note that Montana does not have a separate self-employment tax like the federal government, but your federal self-employment tax will impact your Montana adjusted gross income (AGI) and therefore your state tax liability.

Top Tax Deductions for Montana 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. Given Montana’s vast distances and potential for significant mileage, this deduction can substantially reduce your tax burden.
• Tolls & Parking: While Montana 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: 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 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 yields the larger deduction.

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment tax covers both Social Security (12.4%) and Medicare (2.9%) taxes. 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 estimated tax payments made quarterly to the IRS. Failing to do so can result in penalties.