Amazon Flex Taxes in Nebraska - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in Nebraska

The rolling hills and plains of Nebraska offer a diverse delivery landscape for Amazon Flex drivers, but navigating the tax implications of independent contracting requires careful planning. As an Amazon Flex driver in Nebraska, understanding your tax obligations is crucial to avoid surprises during filing season.

The IRS considers Amazon Flex drivers independent contractors, meaning income earned through the platform is subject to self-employment tax. All income must be reported on Schedule C (Profit or Loss From Business) with your Form 1040. Furthermore, earnings exceeding $400 necessitate the payment of self-employment taxes, covering both Social Security and Medicare contributions.

How Nebraska Handles Gig Worker Taxes

As a resident of Nebraska, you are required to file a state income tax return, even if no Nebraska income tax is due. Nebraska utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, self-employed individuals will primarily use Nebraska Form 1040N, with Schedule I (Adjustments to Income) to report business income and deductions. Nebraska also requires you to calculate and pay estimated taxes quarterly if you expect to owe $1,000 or more in state income tax. This is because no taxes are withheld from your Amazon Flex earnings. The Nebraska Department of Revenue offers resources and tools to help with estimated tax calculations. It's important to note that Nebraska allows a deduction for the federal income tax paid, which can reduce your state tax liability. Additionally, Nebraska conforms to many federal deductions, but it's essential to verify specific rules as they can change annually. Keep meticulous records of all income and expenses to accurately report your earnings and maximize your deductions. Failing to properly report income or pay estimated taxes can result in penalties and interest.

For more information and resources, please visit the Nebraska Department of Revenue: https://revenue.nebraska.gov/

Top Tax Deductions for Nebraska Drivers

• Standard Mileage: The most popular deduction for Amazon Flex drivers. The 2025 rate is 70 cents per mile. Given Nebraska’s relatively stable gas prices, the standard mileage rate is often a beneficial and simplified method for calculating vehicle expenses.
• Tolls & Parking: While Nebraska 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 is deductible. Keep a log of business usage to support your claim.
• 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 tax year. Choose the method that yields the greater deduction.

Understanding the 15.3% Self-Employment Tax

This tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Unlike traditional employment, Amazon and other gig 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 both the IRS and the Nebraska Department of Revenue.