Amazon Flex Taxes in South Carolina - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in South Carolina

The Palmetto State’s growing economy offers ample opportunities for Amazon Flex drivers, but navigating the tax implications of independent contracting requires careful planning. As an Amazon Flex driver in South Carolina, earnings are considered self-employment income, meaning both federal and state tax obligations apply.

The IRS requires all self-employed individuals, including Amazon Flex drivers, to report their income and expenses on Schedule C (Profit or Loss From Business) when filing their federal income tax return (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 South Carolina Handles Gig Worker Taxes

As a resident of South Carolina, a state income tax return is required, regardless of income level. South Carolina employs a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, South Carolina utilizes Form SC1040 to calculate state income tax liability. Self-employed individuals will also need to file Schedule SC-1040, which is used to report business income and deductions. It’s crucial to accurately report all Amazon Flex earnings as business income on this schedule. South Carolina also allows for a deduction for the federal income tax paid, which can help reduce your state tax burden. Keep detailed records of all income and expenses throughout the year to ensure accurate filing. South Carolina’s Department of Revenue offers resources and guidance for self-employed taxpayers, including information on estimated tax payments, which may be required if you anticipate owing more than $500 in state taxes. Failure to pay estimated taxes can result in penalties. The state also offers various credits and deductions that may be applicable to your specific situation, so exploring these options is recommended. Remember to consult the official South Carolina Department of Revenue website for the most up-to-date information and forms: South Carolina Department of Revenue.

Top Tax Deductions for South Carolina Drivers

• Standard Mileage: The most popular deduction for Amazon Flex drivers. The 2025 rate is 70 cents per mile. Given South Carolina’s relatively moderate gas prices, the standard mileage rate is likely to be a beneficial option for most drivers.
• Tolls & Parking: While South Carolina doesn’t have extensive toll road networks, 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 (tracking deliveries, communicating with Amazon, etc.) is deductible. Keep a log of business usage to support your claim.
• Vehicle-Related Costs: Expenses like car washes, phone mounts, dash cams, and insulated food delivery bags are deductible as business expenses.

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 gig platforms do not withhold these taxes from your earnings. Therefore, it’s your responsibility to calculate and pay this tax, typically through quarterly estimated tax payments to the IRS.