Amazon Flex Taxes: What Delivery Partners Owe
Amazon Flex pays by the block with nothing withheld, which makes the hourly rate look better than it is. You are an independent contractor, and self-employment tax plus income tax come out of that block pay afterwards.
A driver earning $24,000 across the year who drove 20,000 business miles deducts $14,885 in mileage, leaving about $8,515 of profit and a $1,203.13 federal bill — all self-employment tax.
How it's calculated
Amazon Flex reports delivery partner earnings on Form 1099-NEC. For 2026 the IRS raised the filing threshold from $600 to $2,000, so occasional drivers may get no form. As always, the form is the payer's obligation and not the trigger for your tax: yours starts at $400 of net self-employment earnings.
Block pay is the thing to think clearly about. A three-hour block advertised at $60 is $20 an hour before anything. Once self-employment tax and vehicle costs come out, the real figure is materially lower — and the mileage deduction is precisely the mechanism that recognises this, because it estimates what driving the route actually costs you in fuel, wear, and depreciation.
Mileage is therefore the deduction that matters most, and Flex routes generate a lot of it. Twenty thousand business miles, split 9,000 before July and 11,000 after, deducts $14,885 at the 2026 rates of 72.5 and 76 cents. Business miles include driving to the delivery station at the start of a block, the entire route, and driving between stops. The one leg that does not count is arguably arguable and worth being careful about: the IRS treats travel from home to a regular workplace as commuting, and if you consistently pick up from the same station, that first leg looks a lot like a commute. Drivers who work multiple stations or whose station varies have a stronger case for counting it. When in doubt, log it separately so you can decide with a preparer rather than losing the whole record.
Flex delivery is hard on a vehicle — constant stop-start driving, frequent short trips, heavy loads — so the actual expense method is worth comparing more often here than in rideshare, particularly for a newer vehicle where depreciation is large. Enter both in the mileage deduction calculator before choosing. Remember that if you want the option of the standard mileage rate later, you must use it in the first year the vehicle goes into business service.
Other deductions: the business share of your phone plan, a phone mount and charger, a hand truck or dolly, and parking or tolls on route. With mileage removed, most part-time Flex drivers fall under the $16,100 standard deduction and owe only self-employment tax at 14.13% of profit.
A worked example
A Flex driver completes blocks worth $24,000 across the year and drives 20,000 business miles, 9,000 through June and 11,000 after. The mileage deduction is $14,885 at the 2026 split rates.
Another $600 covers a dolly, a phone mount, and the business share of their phone plan. Net profit is $8,515.
Self-employment tax is $1,203.13, income tax is zero because profit is below the $16,100 standard deduction, and the total works out at about $301 a quarter. Judged on block pay alone, the year looked like $24,000 of income; after mileage it is $8,515 of profit — which is also the honest measure of what the work paid.
Common mistakes to avoid
- Assuming no 1099 means no tax. For 2026 a payer only files a 1099-NEC at $2,000 (up from $600) and a payment app only files a 1099-K above $20,000 and 200 transactions. Those are the payer's filing rules. Your own obligation starts at $400 of net self-employment earnings, and the IRS says to report gig income whether or not a form arrives.
- Paying nothing until April. Self-employment income has no withholding, so the IRS expects quarterly estimated payments. Waiting until you file can add an underpayment penalty on top of a bill you already were not expecting.
- Not tracking miles or expenses from day one. You are taxed on profit, not on what the platform paid you — but only for the expenses you can actually document. A mileage log reconstructed in April from memory is the single most commonly disallowed deduction.
- Judging a block by its advertised hourly rate. Block pay is gross, before self-employment tax and before the real cost of the miles the route puts on your car.
- Not comparing actual expenses against the mileage rate. Flex driving is stop-start and hard on a vehicle, so a newer car with heavy depreciation can beat the standard rate.
- Assuming the drive to the delivery station always counts. If you use the same station consistently, that leg resembles a commute — log it separately rather than folding it into your route miles.
Frequently asked questions
Does Amazon Flex take out taxes?
No. Amazon Flex pays delivery partners as independent contractors, so block pay arrives gross with no income tax, Social Security, or Medicare withheld. You owe self-employment tax of 15.3% on 92.35% of your profit and pay it in quarterly estimated instalments. This is also why an advertised block rate overstates what the work actually pays.
Will I get a 1099 from Amazon Flex?
Only if Amazon paid you $2,000 or more in 2026 — the Form 1099-NEC filing threshold rose from $600 this year. Drivers who take occasional blocks may receive nothing. That has no effect on your liability: you owe self-employment tax once net earnings reach $400, and the IRS requires gig income to be reported regardless of whether a form was issued.
How many miles can Amazon Flex drivers deduct?
All the miles driven on the route and between stops, at 72.5 cents through June 30, 2026 and 76 cents from July 1. Twenty thousand business miles split across the two periods deducts $14,885. The drive from home to the delivery station is less clear-cut — if you use the same station every time it resembles a commute, which is not deductible. Log that leg separately so you can decide it with a preparer.
Should Flex drivers use mileage or actual expenses?
Compare them, because Flex is one of the cases where actual expenses can win. Constant stop-start driving with heavy loads is unusually hard on a vehicle, and if your car is newer, depreciation and insurance may exceed the mileage deduction. Be careful with the order, though: to keep the standard mileage rate available for a vehicle in future years, you must use it in the first year you put that car into business service.
Is Amazon Flex worth it after taxes and mileage?
The block rate is not the answer to that question. Subtract the real cost of the miles — the IRS rate of roughly 74 cents blended for 2026 is a reasonable proxy for fuel, wear, and depreciation — then subtract 14.13% self-employment tax on what remains. A $24,000 year with 20,000 miles nets around $8,515 of profit before tax. Whether that is worth it depends on your hours, but it is the number to judge, not the block rate.
Sources
We prioritize primary sources for rules, formulas, rates, limits, and definitions. See our calculator methodology and editorial policy.