Amazon Flex Taxes in New York - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in New York

Navigating the bustling streets of New York City 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 earnings as self-employment income on Schedule C (Profit or Loss From Business) when filing their federal income tax return. Earnings over $400 necessitate the payment of self-employment taxes, which cover both Social Security and Medicare contributions. Accurate record-keeping throughout the year is essential for maximizing deductions and minimizing tax liability.

How New York Handles Gig Worker Taxes

As a resident of New York, filing a state income tax return is mandatory, even if no federal tax is owed. New York utilizes a graduated income tax system, meaning the tax rate increases as your income rises. This means your tax bracket, and therefore your tax rate, will depend on your total taxable income for the year. 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 IT-201. New York also requires you to file a Schedule B-1, which is used to calculate your share of self-employment tax. Unlike traditional employment, no taxes are automatically withheld from your Amazon Flex earnings, so quarterly estimated tax payments are often required to avoid penalties. These payments are due April 15, June 15, September 15, and January 15 of the following year. New York also offers various credits and deductions that may reduce your overall tax burden, so exploring these options is highly recommended. The New York State Department of Taxation and Finance provides comprehensive resources and guidance for self-employed individuals. You can find more information at https://www.tax.ny.gov/.

Top Tax Deductions for New York 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. This rate covers wear and tear on your vehicle, oil changes, and other related expenses.
• Tolls & Parking: New York City drivers frequently encounter tolls and parking fees. These expenses are deductible as business expenses, and can significantly reduce your tax liability. Keep detailed records of all toll receipts and parking payments.
• Phone & Data Plan: If you use your phone and data plan for business purposes (navigation, communicating with Amazon, etc.), you can deduct the percentage of the bill attributable to business use.
• 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, repairs, insurance) in the same tax year. Choose the method that yields the greater deduction.

Understanding the 15.3% Self-Employment Tax

The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Unlike traditional employment where your employer withholds these taxes, as an Amazon Flex driver, you are responsible for paying both the employer and employee portions. This tax is calculated on your net earnings – your gross income minus your business deductions – exceeding $400.