Expenses incurred while operating as an independent delivery contractor for Amazon’s Flex program may be deductible from taxable income. These potential deductions pertain to the necessary and ordinary costs associated with conducting business, such as vehicle maintenance, fuel, and a portion of mobile phone expenses directly related to delivery activities. For example, if a driver spends $500 on vehicle repairs and $200 on fuel solely for delivery purposes, these costs could be considered eligible deductions.
The ability to deduct business-related expenses offers a significant financial advantage to Flex drivers. It reduces their overall tax liability and increases their net earnings. The Internal Revenue Service (IRS) provides guidance and regulations regarding deductible business expenses, which have evolved over time to reflect changes in the gig economy and the increasing prevalence of independent contractor work. Accurate record-keeping is critical to substantiate these deductions and ensure compliance with tax laws.