Amazon Flex Taxes in Vermont - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in Vermont

The Green Mountain State offers a unique backdrop for the flexibility of Amazon Flex deliveries, but navigating the tax implications requires careful attention. As an independent contractor delivering for Amazon Flex in Vermont, understanding both federal and state tax 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. Because you are self-employed, Amazon will not withhold taxes from your earnings. This means you are responsible for paying both income tax and self-employment tax – covering Social Security and Medicare – on any net earnings over $400. Proper record-keeping throughout the year is essential to accurately calculate your tax liability.

How Vermont Handles Gig Worker Taxes

As a resident of Vermont, you are required to file a Vermont state income tax return, even if your only income is from Amazon Flex. Vermont operates on a graduated income tax system, meaning the tax rate increases as your income increases. This necessitates careful calculation of your adjusted gross income (AGI) and taxable income. The primary form for self-employed individuals to report income and calculate Vermont income tax is Form INC-100, Individual Income Tax Return. Vermont also requires Schedule IN-100, Adjustments to Income, to report certain deductions and adjustments.

Vermont treats Amazon Flex income as business income, subject to the state's income tax rates. It's important to note that Vermont does not have a separate self-employment tax like the federal government. Instead, your share of Social Security and Medicare taxes (calculated on your federal Schedule SE) is factored into your overall Vermont income tax calculation. Vermont also offers various credits and deductions that may reduce your tax liability, such as those related to business expenses. Staying current with Vermont tax law changes is vital, as regulations can evolve. For the most up-to-date information and forms, please visit the Vermont Department of Taxes website: https://tax.vermont.gov/.

Top Tax Deductions for Vermont Drivers

• Standard Mileage: The most popular deduction for Amazon Flex drivers. The 2025 rate is 70 cents per mile. Given Vermont's rural areas and potential for longer delivery routes, maximizing this deduction can significantly reduce your tax burden.
• Tolls & Parking: While Vermont doesn't have extensive toll roads, 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 your 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

The 15.3% self-employment tax covers both Social Security and Medicare taxes. Unlike traditional employment, Amazon and other delivery platforms do not withhold these taxes from your earnings. You are responsible for calculating and paying this tax, along with your income tax, when you file your annual tax return. This tax applies to your net earnings – your income after deducting business expenses – exceeding $400.