Amazon Flex Taxes in New Jersey - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in New Jersey

Navigating the Garden State’s roadways 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 New Jersey Handles Gig Worker Taxes

As a resident of New Jersey, filing a state income tax return is mandatory, regardless of income level. New Jersey operates under a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, self-employed individuals will primarily utilize Form NJ-1040, New Jersey Resident Income Tax Return, and potentially Form NJ-1040-ES for estimated tax payments throughout the year. It’s important to note that New Jersey also has a separate Earned Income Tax Credit (EITC) which may benefit lower-income Flex drivers. New Jersey also requires reporting of business income, similar to the federal Schedule C, but on the NJ-1040-IC form. Accurate record-keeping of all income and expenses is vital, as New Jersey closely scrutinizes self-employment income. Estimated tax payments are generally due quarterly, and failing to meet these obligations can result in penalties. New Jersey’s Division of Taxation provides comprehensive resources and guidance for self-employed individuals; further information can be found at New Jersey Division of Taxation.

Top Tax Deductions for New Jersey Drivers

• Standard Mileage: The most popular deduction for Amazon Flex drivers. The 2025 rate is 70 cents per mile. Given New Jersey’s relatively high cost of living and frequent traffic congestion, the standard mileage rate often provides a substantial deduction.
• Tolls & Parking: New Jersey drivers frequently encounter tolls on the New Jersey Turnpike and Garden State Parkway. These tolls, along with any parking fees incurred while actively delivering, are deductible business expenses.
• Phone & Data Plan: The portion of your monthly phone and data plan directly related to your Amazon Flex work is deductible. Keep detailed records of business usage.
• Vehicle-Related Costs: Expenses like car washes to maintain a professional appearance, phone mounts for safe navigation, and insulated hot bags for food deliveries are all potentially 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 larger 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 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 both the IRS and the New Jersey Division of Taxation.