![]() ![]() Option 1 involves tracking all the expenses you put toward your vehicle throughout the year and keeping track of a lot of receipts. Your actual car expenses, like the cost of gas, maintenance, insurance, car payments, and depreciation, orĪ standard amount for every mile you drive. You have two options when it comes to this 1099 deduction: Get it today!) Top 1099 Tax Write-Offsįirst on the 1099 deduction list for self-employed workers: Mileage. (Don't forget, the FREE Stride app can help you save thousands of dollars on your tax bill and hours of tax prep time by automatically tracking your miles and expenses, surfacing money-saving deductions, and getting your forms IRS-ready. If you use software like TurboTax, the software will prompt you for the expense category totals and input them into the Schedule C for you. When you file in April, you’ll total these expenses per category and list them on your Schedule C (the Stride app does this math for you). From how much money you owe to all the write-offs you can save on, you're in good shape to get your Amazon Flex taxes right this year.Tip: As you track business expenses, make sure you keep proof in the form of receipts, bank statements, and mileage logs (or a tracking app like Stride). But now, you're ready to deal with them all -and avoid expensive mistakes in the process. Gig worker taxes have their share of quirks. These start at 0.5% of what you originally owed and can go all the way up to 25%. If you miss a deadline by a single day, penalties begin to rack up. Remember, the IRS is pretty rigid about their deadlines. (It'll even tell you if your delivery income is low enough to get away with not paying quarterly.) The easiest way to plan for your quarterly payments is to use Keeper's estimated tax calculator. But you don't have to figure it out by yourself. It can be a pain to budget out how much you should pay each quarter. These payment are due on the following days: To make sure they're still getting paid at regular intervals, the IRS asks you to make estimated tax payments, a requirement that kicks in as long as you expect to owe them more than $1,000. Unlike a W-2 employee, your taxes aren't withheld automatically - meaning the IRS doesn't receive them in a steady drip throughout the year. Why aren't your taxes just due in April, exactly? Once again, it's because you're self-employed. Now you just need to figure out when to pay your newly lowered tax bill: once a year, or once a quarterly? Once you've figured out all the write-offs you can take, you should see your taxable income start to shrink. And it never costs extra to file in more states. Our tax filing app shows you the exact forms you'll need as a self-employed worker, no matter where you're based. To simplify things, try filing your taxes through Keeper. ![]() (Some states, like Alaska and Florida, don't collect any at all!)Īll this can be a lot to keep track of. State income taxes, meanwhile, vary widely depending on where you live. The amount of federal income tax you'll pay depends on which tax bracket you fall in. On top of your self-employment tax, you still have to file your own federal and state income taxes. To make sure you're prepped for it, try using a self-employment tax calculator so you know how much to save up. If this is your first year as a Flex driver, that 15.3% can land you with a tax bill much heavier than you're used to seeing. They come to 15.3% for you, compared to the 7.65% paid by traditional employees. When people talk about "self-employment tax," they're referring to this doubled payment of Medicare and Social Security taxes. That makes you responsible for paying both shares of tax. ![]() But you're legally considered both the employee and the employer here. But their employers give them a hand here, matching all of their tax payments. There are two parts to self-employment tax: Medicare taxes and Social Security taxes. These fall into two major categories: self-employment taxes and income taxes. (Hint: It involves tax write-offs!) But for now, let's talk about the not-so-fun stuff: all the taxes you'll have to pay. As far as taxes go, you're on your own - which comes with some major headaches and some perks. For one thing, Amazon won't take care of withholding for you. Independent contract work means a lot of freedom on the job, but things can get tricky when finances come into play. Like rideshare drivers, real estate agents, and even small business owners, you belong to a growing part of the US labor force: people who want to set their own hours and be their own boss. If you drive for Amazon Flex, you're classified as an independent contractor - not an Amazon employee. The taxes you have to pay as an Amazon Flex driver ![]()
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