Amazon Flex Taxes in Oregon - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in Oregon

Navigating the scenic byways of Oregon 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, as these are not automatically withheld from your Flex earnings.

How Oregon Handles Gig Worker Taxes

As a resident of Oregon, filing a state income tax return is mandatory, even if no federal tax is owed. Oregon utilizes a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Amazon Flex drivers reporting self-employment income will primarily use Form OR-40, the Oregon Individual Income Tax Return, along with Schedule OR-I, which is used to calculate income from sources other than wages. It's important to accurately report your net earnings from Schedule C on Schedule OR-I. Oregon also has a minimum tax calculation that may apply, particularly if you have significant deductions. The state offers various credits and deductions, so exploring these options is recommended. Oregon’s Department of Revenue provides resources and tools to help navigate these complexities, including online filing options. Keep meticulous records of all income and expenses to ensure accurate reporting and maximize potential deductions. Remember to consider any estimated tax payments made throughout the year to avoid penalties. Oregon’s tax laws are subject to change, so staying updated with the latest information from the Department of Revenue is vital.

For more information, visit the Oregon Department of Revenue: https://www.oregon.gov/dor/Pages/index.aspx

Top Tax Deductions for Oregon Drivers

• Standard Mileage: The most popular deduction for Amazon Flex drivers. For the 2025 tax year, the rate is 70 cents per mile. Given Oregon's diverse terrain and potential for longer delivery routes, this can significantly reduce your taxable income.
• Tolls & Parking: While Oregon doesn't have widespread toll roads, any parking fees incurred directly for deliveries are deductible. Keep receipts!
• Phone & Data Plan: You can deduct the percentage of your phone and data plan attributable to your Amazon Flex work. If you use your phone solely for Flex deliveries, you can deduct the entire cost.
• Vehicle-Related Costs: Expenses like car washes (to maintain a professional appearance), phone mounts, dash cams, and insulated hot bags used exclusively 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 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 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 and the State of Oregon.