Amazon Flex Taxes in Wisconsin - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for Amazon Flex Drivers in Wisconsin

Delivering smiles across the Badger State as an Amazon Flex driver offers flexibility, but it also comes with tax responsibilities. Understanding these obligations is crucial for a smooth tax season.

As an independent contractor for Amazon Flex, the IRS considers earnings from deliveries as self-employment income. This means income must be reported 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, drivers are responsible for paying self-employment taxes, which cover both Social Security and Medicare.

How Wisconsin Handles Gig Worker Taxes

As a resident of Wisconsin, you are required to file a state income tax return, even if your only income is from Amazon Flex. Wisconsin utilizes a graduated income tax system, meaning the tax rate increases as your income rises. This means the amount of tax you owe depends on your total taxable income and filing status. The primary form for self-employed individuals to report income and calculate tax liability is Form 1040-ES, along with Schedule 1 and Schedule SE (for self-employment tax calculation). Wisconsin also requires you to report your federal adjusted gross income (AGI) on Form 1.

Wisconsin treats Amazon Flex income as business income, and you'll need to accurately report your earnings on your state return. Estimated tax payments are generally required if you expect to owe $1,000 or more in Wisconsin income tax. These payments are typically made quarterly. Failing to make sufficient estimated tax payments can result in penalties. Wisconsin also offers various credits and deductions that may reduce your tax liability, so it's important to explore all available options. The Wisconsin Department of Revenue provides detailed information and resources for self-employed individuals; you can find more information at the Wisconsin Department of Revenue website.

Top Tax Deductions for Wisconsin Drivers

• Standard Mileage: The most popular deduction for Amazon Flex drivers. For the 2025 tax year, the standard mileage rate is 70 cents per mile. Given Wisconsin's varied terrain and potential for winter driving conditions, accurately tracking mileage is essential.
• Tolls & Parking: While Wisconsin 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: If you use your personal phone for Flex work (navigation, communicating with Amazon, etc.), you can deduct the percentage of your monthly bill attributable to business use.
• Vehicle-Related Costs: Expenses like car cleaning supplies (especially important during Wisconsin winters!), 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 tax 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 where these taxes are withheld from your paycheck, as an Amazon Flex driver, you are responsible for paying both the employer and employee portions. This tax is calculated on your net earnings (income minus business expenses) exceeding $400. Remember to factor this into your tax planning throughout the year.