Amazon Flex Taxes in Rhode Island - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in Rhode Island

Navigating the scenic routes of Rhode Island as an Amazon Flex driver offers flexibility, but also introduces unique tax considerations. Delivering packages from Providence to Newport means keeping meticulous records for tax time is crucial.

As an independent contractor for Amazon Flex, the IRS considers earnings from deliveries as self-employment income. This necessitates reporting this income on Schedule C (Profit or Loss From Business) with your federal income tax return (Form 1040). Furthermore, because no taxes are withheld from your Flex earnings, you are responsible for paying self-employment taxes, which cover both Social Security and Medicare.

How Rhode Island Handles Gig Worker Taxes

Rhode Island, known as the Ocean State, requires all residents with taxable income to file a state income tax return. As an Amazon Flex driver earning income within Rhode Island, you will need to report your earnings to the Rhode Island Division of Taxation. Rhode Island operates on a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, the primary form for self-employed individuals to report income and calculate tax liability is Form RI-1040NR (Nonresident Income Tax Return) or RI-1040 (Rhode Island Resident Income Tax Return), depending on your residency status. It's important to note that Rhode Island also has a minimum tax calculation that may apply, even if your total tax liability calculated using the graduated rates is zero. Rhode Island allows for itemized deductions similar to the federal level, which can potentially reduce your state tax burden. Remember to keep accurate records of all income and expenses to ensure accurate filing. The state also offers various credits and deductions that may be applicable to self-employed individuals; exploring these options can lead to further tax savings. Filing deadlines generally align with the federal deadlines, but it’s always best to confirm the current year’s dates on the Division of Taxation website.

For more information and resources, please visit the Rhode Island Division of Taxation: https://www.ri.gov/taxation/

Top Tax Deductions for Rhode Island Drivers

• Standard Mileage: The most popular deduction for Amazon Flex drivers. The 2025 rate is 70 cents per mile. Given Rhode Island's relatively smaller geographic size and moderate gas prices, the standard mileage rate is often the most advantageous method.
• Tolls & Parking: Rhode Island doesn't have extensive toll roads, but any tolls incurred during deliveries are deductible. Parking fees directly related to deliveries are also deductible.
• Phone & Data Plan: You can deduct the percentage of your phone and data plan that is used for business purposes. Keep a log of business usage to support this deduction.
• 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, or repairs in the same 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. Amazon Flex, 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 the IRS. The 15.3% applies to your net earnings – that is, your gross income from Amazon Flex minus your business expenses (like those deductions mentioned above) – exceeding $400.