Amazon Flex has now extended to more than 50 cities in the U.S., and the program is actively recruiting delivery partners in various municipalities from coast to coast. With most Amazon Flex drivers earning $18–$25 per hour, according to the company, you might jump at the chance to deliver Amazon.com, Prime Now, and Amazon Fresh orders for some more pocket money.
So, what’s the story with Amazon Flex tax forms?
Amazon Flex drivers receive 1099-NEC forms from the company, according to online reports. The forms are also sent to the IRS, so take note if you’ve made more than $600 in the relevant tax year.
We have more information on paying taxes for Amazon Flex income below. The information is just a starting point and doesn’t constitute tax or legal advice. You should consult a tax professional for guidance as needed.
Does Amazon Flex report taxes?
According to Keeper Tax, Amazon will send both you and the IRS a 1099-NEC form if you make more than $600 in a tax year. You can expect the forms by Jan. 31 of the year after the tax year in question.
Keeper Tax also reports that you will use the IRS Schedule C form to deduct your business expenses from your gross income. You will also fill out the Schedule SE form to calculate the self-employment tax you owe.
How do I get my 1099 from Amazon Flex?
You can download a digital copy of your 1099-NEC form from taxcentral.amazon.com, according to Keeper Tax. The YouTube channel Gig Nation tells Amazon Flex drivers that they will also receive a physical version of the form in the mail.
The IRS re-introduced the 1099-NEC for the 2020 tax year when the form replaced the 1099-MISC form as the paperwork for business taxpayers to report non-employee compensation, as TurboTax reports.
Do you have to declare Amazon Flex income?
According to Ridester, all Amazon Flex income is taxable—including tips—and it all needs to be reported. Ridester also warns that Amazon doesn't withhold taxes and advises Amazon Flex drivers to save a portion of their paychecks for tax.
In its FAQ for Flex drivers, Amazon says that it has partnered with Stride to give drivers access to tax tools. To access these tools, Amazon says that you need to create an account on the Stride app. See the FAQ for more information. Alternatively, Amazon says that you can contact Stride support at firstname.lastname@example.org or at (415) 223-242.
Can I get tax deductions for being an Amazon Flex driver?
Stride, the aforementioned company with which Amazon Flex has partnered, says in a blog post that Amazon Flex drivers can deduct certain business expenses from their delivery income.
For example, you can deduct your non-commuting business mileage, unreimbursed tolls, city parking costs (but not parking tickets), vehicle inspections, roadside assistance during working hours, and health insurance premiums (if you meet certain requirements).
You can also deduct the “percentage of business use” for the cost of cell phones, data plans, phone accessories, and even insulated bags and courier backpacks.