Tax Guide for Walmart Spark Drivers

The Walmart Spark Driver Program is a gig-economy platform that allows individuals to deliver Walmart orders directly to customers. As a Spark driver, you have the flexibility to set your own schedule and accept delivery requests through the Spark Driver app. This independence makes it a popular choice for individuals seeking supplemental income or a full-time gig.

However, with this flexibility comes the responsibility of managing your own taxes. Unlike traditional employees, Spark drivers are classified as independent contractors, meaning you must handle your tax reporting, payments, and deductions on your own.

In this guide, we'll cover everything Spark drivers need to know about being tax ready

Are Spark Drivers Self-Employed?

Yes, Spark drivers are considered 1099 contractors or self-employed for tax purposes. This classification means Walmart does not withhold taxes from your payments. Instead, it’s your responsibility to:

• Report your earnings to the IRS.
• Track and deduct eligible business expenses, such as mileage and phone bills.
• Pay self-employment taxes, which include Social Security and Medicare contributions.
• Pay quarterly estimated taxes, if applicable

Spark Driver Tax Forms

As a Spark driver, staying on top of your tax forms is essential to ensure compliance with IRS requirements. Here are the key forms you need to be aware of for tax season:

1099-NEC: Nonemployee Compensation

If you earned $600 or more from Walmart Spark, you will receive Form 1099-NEC. This form reports all income paid to you as an independent contractor. Since Walmart Spark does not withhold any taxes from your earnings, it’s your responsibility to report this income on your tax return.

Who sends it? Walmart Spark or their payment partner will send this form directly to you

What does it include? It details the total amount you were paid for your services throughout the year.

1099-K: Payment Card and Third-Party Network Transactions

The 1099-K is another tax form you may receive if you were paid through a third-party payment network like PayPal, Venmo, or other digital platforms. For 2025, the IRS threshold for receiving a 1099-K remains $600 in total earnings, regardless of the number of transactions.

Who sends it? The third-party payment processor (e.g., PayPal) that issued your payments.

What does it include? It lists all payments processed through their platform, even if you received payments for other work unrelated to Spark driving.

What If I Don’t Receive a 1099 Form?

Even if you don’t receive a 1099-NEC or 1099-K, you are still required to report all income earned as a Spark driver. The IRS expects you to track your income independently and include it on your tax return.

• Keep your records: Use a mileage and expense tracker app like Everlance to ensure you capture all income and expenses accurately, or use a spreadsheet if you prefer to do this by hand
• Track all payments: This includes earnings deposited directly into your bank account, cash payments, or other forms of compensation.

Walmart and other platforms distribute 1099 forms by January 31st of the following year.

Other Forms to Consider

In addition to the 1099 forms, here are some other documents you may need for filing your taxes:

Schedule C (Profit or Loss from Business):

Used to report your income and deduct business expenses, such as mileage, vehicle maintenance, and phone bills.

Schedule SE (Self-Employment Tax)

Used to calculate your self-employment taxes, which cover Social Security and Medicare contributions.

Pro-tip: Tax season doesn’t have to be stressful if you stay organized. Keep your earnings, expenses, and mileage records in one place, and use tools like Everlance to automate your tracking. This will ensure you’re prepared, even if a 1099 form doesn’t arrive or if you’re audited.

Spark Driver Tax Deductions: What You Can Claim

It's important to note that the IRS doesn't tax your earnings, they tax your profits. The IRS understands it costs money to run a business, this is where your deductions come in. Your deductions are the expenses you incur throughout the year to support your business. Many of these are tracked by simply having an expense, but others like depreciation, happen in the background. We put together a guide explaining in detail the top tax deductions for Spark drivers. Here are some of the highlights:

How to File Spark Driver Taxes

Filing taxes as a Spark driver may seem complex at first, but with proper preparation, the process can be straightforward. Here’s a step-by-step guide to ensure compliance and maximize your deductions:

Gather Your Necessary Documents

To file your taxes as a Spark driver, you’ll need the following:

• Form 1099: Walmart provides this form if you earned $600 or more in Spark delivery income. It reports your total earnings for the year.
• Expense Records: Include receipts for expenses like gas, maintenance, insurance, delivery accessories, and parking fees.
• Mileage Log: Accurate records of your business miles are crucial if you plan to use the IRS standard mileage deduction.
• Previous Year’s Tax Return (Optional): This can help you identify carryover deductions or credits.

Choose Your Tax Filing Method

Filing taxes as a Spark driver can feel complicated, but the right tools make it simple. Everlance offers a 1099 tax filing solution designed specifically for self-employed individuals like you.

With Everlance tax filing you can:

• Automatically import your mileage and expense data.
• Quickly and accurately calculate your tax deductions, and let us show you any you may have missed.
• File both federal and state taxes in one seamless process, with no extra fees.

Other Filing Options

DIY Filing: Use online tax software, many of which includes tools for self-employed individuals for additional cost
Hire a Tax Professional: Work with an advisor experienced in gig economy taxes for tailored advice.

Complete Key Tax Forms

When filing taxes, you’ll need to fill out these essential forms:

• Schedule C (Form 1040): This is where you report your income and business expenses. It determines your net profit or loss.
• Schedule SE: Use this to calculate your self-employment tax, which includes Social Security and Medicare contributions.

File on Time

Submit your tax return by the April 15 deadline. Filing late can result in penalties and interest on unpaid taxes. If you need more time, file Form 4868 for a six-month extension, but remember to pay any owed taxes by the original due date to avoid penalties.

Avoiding Common Tax Mistakes

Misconceptions About Spark Driver Taxes

There are some common misconceptions that Spark drivers should be aware of to avoid potential tax pitfalls:

• Believing you don't have to pay taxes: As a self-employed individual, you are responsible for paying taxes on your Spark driver income.
• Not tracking expenses: Failing to keep accurate records of your business-related expenses can result in missed deductions and higher tax liability.
• Overlooking estimated tax payments: Quarterly estimated tax payments are essential to avoid underpayment penalties.

It's crucial for Spark drivers to understand the tax implications of their self-employment status. While the flexibility and independence of being a Spark driver are appealing, it also comes with the responsibility of managing your taxes diligently. By staying informed and proactive, you can navigate the tax landscape more effectively and prevent costly mistakes.

Tips to Avoid Tax Errors and Penalties

To avoid tax errors and potential penalties, consider these helpful tips:

• Keep detailed and organized records of your earnings and expenses throughout the year. We recommend using a mileage and expense tracking app, like Everlance, to keep track of all your potential deductions.
• Set aside a portion of your earnings for quarterly estimated tax payments.
• Stay informed about changes in tax laws and regulations that may impact Spark drivers.

Furthermore, seeking guidance from a tax professional who specializes in self-employment taxes can provide valuable insights tailored to your specific situation. They can help you maximize deductions, ensure compliance with tax laws, and optimize your tax strategy for long-term financial success. Remember, proactive tax planning is key to minimizing tax liabilities and avoiding potential penalties.