For many people looking for part-time work or a side gig, the Amazon Flex delivery service is an attractive option. If you’re looking at signing up for Amazon Flex, you will want to first research all kinds of details about timings, pay, and more.
You may also want to find out if Amazon Flex takes out taxes. We looked it up and found all the answers for you. Read on for all the details!
Does Amazon Flex Take Out Taxes In 2024?
Amazon Flex drivers are self-employed independent contractors in 2024. This is a 1099 position and Amazon will not take out or withhold taxes for you. In this position, you are responsible for calculating, reporting, and paying your taxes in accordance with IRS regulations. You can get advice on how to estimate and pay taxes from the IRS and qualified tax professionals.
To find out how to estimate and pay taxes as a self-employed independent contractor, read on for more information. We did some digging and have all the useful details you need!
Are Amazon Flex Drivers Self-Employed?
Amazon Flex delivery drivers use their own vehicles to make deliveries for Amazon. They also set their own timings and pick whichever deliveries they want to do.
Legally, Amazon defines Flex drivers as independent contractors, which means that they are self-employed. Being self-employed, you will have to be responsible for your own taxes.
Does Amazon Flex Withhold Taxes?
Amazon Flex does not take out taxes. As independent contractors, Amazon Flex drivers are responsible for their own taxes.
Keep in mind that paying taxes as a self-employed person is different from having an employer withhold taxes for you.
According to US tax regulations, self-employed contractors who do not have taxes withheld must make quarterly payments of estimated taxes to avoid penalties.
Further, keep in mind that you may have to pay the estimated tax on self-employed income in four quarterly payments during the current year instead of as a lump sum on April 15 the following year.
You can find out more information about how to calculate and pay your estimated taxes at the IRS website.
Do I Have to File a Tax Return If I’m on Amazon Flex?
You will have to file a tax return if you’re working on Amazon Flex, provided your annual income is over the minimum level required to file taxes.
Amazon Flex will not withhold taxes for you or file for you.
As a self-employed independent contractor, you will have to set aside your taxes, report your income on the tax forms, and pay any amount that is due.
Even if you haven’t done this before, it’s easy to learn how to manage your own taxes. You can even learn how to reduce your tax burden.
Is Amazon Flex a W2 or 1099?
Since Amazon Flex drivers are considered independent contractors, you will be issued a Form 1099 each year at the end of January.
Like all employers, Amazon is required to issue a Form 1099 to all independent contractors who earned more than $600 through their employment in the previous tax year.
The 1099 shows your total income. Your taxable income is your total income minus business expenses.
How Much Tax Will I Pay on Amazon Flex?
The amount of taxes you will pay working on Amazon Flex will depend on your taxable income, which is broadly defined as your total income minus business expenses.
Is There a Tax Guide for Self-Employed Amazon Flex Drivers?
You can find help online when dealing with taxes as a self-employed Amazon Flex driver.
Further, you can look at the IRS website for information on how to calculate and pay estimated taxes as a self-employed person.
However, keep in mind that the only tax advice you can rely on should come directly from the IRS or a qualified tax professional.
You can call the IRS for help with tax questions, though it can be difficult to get through since the phone lines are always busy.
How Do I Get My Tax Form From Amazon Flex?
You can get your available annual tax forms at the Amazon website after logging in to your account.
The Tax Central page has a Find Forms button that lets you view and print all available year-end tax forms.
The page also gives you the choice to Go Paperless and get electronic delivery of all your tax forms.
As independent contractors, Amazon Flex drivers have a great deal of freedom to set their own schedules and make the deliveries they want.
You are also responsible for your own taxes, and Amazon will not withhold taxes. You can get a lot of help online from bloggers, law firms, and the IRS website to understand how to estimate and pay your taxes.