Amazon Flex Taxes in Virginia - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in Virginia

The Commonwealth of Virginia offers a vibrant landscape for delivery drivers, but navigating the tax implications of independent work with Amazon Flex requires careful planning. As an Amazon Flex driver, earnings are considered self-employment income, meaning both federal and Virginia state taxes 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. Proper record-keeping throughout the year is crucial for accurate tax filing.

How Virginia Handles Gig Worker Taxes

As a resident of Virginia, a state income tax return is required, regardless of income level. Virginia operates on a graduated income tax system, meaning the tax rate increases as your income rises. For the 2025 tax year, Virginia utilizes Form 540, the Individual Income Tax Return, as the primary form for reporting income, including self-employment earnings. Amazon Flex income is reported on Schedule C, and the net profit is then transferred to Form 540. Virginia also allows for a standard deduction, which can reduce your taxable income.

Virginia does not have a separate self-employment tax like the federal government. However, the federal self-employment tax is fully deductible on your Virginia return. Additionally, Virginia offers several credits and deductions that may benefit self-employed individuals. It's important to explore these options to minimize your tax liability. The Virginia Department of Taxation provides detailed information and resources for self-employed individuals, including guidance on estimated tax payments. Failing to pay estimated taxes throughout the year can result in penalties. Virginia’s estimated tax due dates generally align with the federal schedule (April 15, June 15, September 15, and January 15 of the following year).

For more information and resources, please visit the Virginia Department of Taxation: https://www.tax.virginia.gov/

Top Tax Deductions for Virginia Drivers

• Standard Mileage: The most popular deduction for Amazon Flex drivers. The 2025 rate is 70 cents per mile. Given Virginia’s moderate gas prices, the standard mileage rate is often the most advantageous method.
• Tolls & Parking: Virginia drivers frequently encounter tolls on I-95 and other major highways. These tolls, along with any parking fees incurred while actively working, are deductible business expenses.
• Phone & Data Plan: If you use your phone for navigation, communicating with Amazon, or tracking deliveries, you can deduct the percentage of your monthly bill attributable to business use.
• 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

The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. Unlike traditional employment, Amazon Flex and other gig platforms do not withhold these taxes from your earnings. Therefore, it is your responsibility to calculate and pay this tax, typically through quarterly estimated tax payments to the IRS.