Filling Your Taxes as a Spark Driver

Spark drivers are independent contractors who file self-employed tax returns and qualify to write off business expenses. This means you won’t get a W-2 form if you deliver for the platform, but you may receive a 1099 from Spark. 

Here’s what you should know about handling taxes as a Spark driver, filing your return and claiming deductions.

Get your Walmart Spark driver 1099 form

If you earn at least $600 as a Spark driver during the tax year, you’ll be sent a Form 1099-NEC by January 31 of the following year. This document shows your total earnings, including tips.

You’ll receive your Spark driver tax form through the mail unless you request electronic delivery by January 1 of the following year. Opting in requires logging in to the Spark Driver platform, selecting “Settings” from the profile menu and choosing “Yes” for the electronic delivery option.

Filing requirement if you don’t get a 1099 form

You must report earnings of $400 or more on your tax return and pay self-employment taxes even if you don’t get a Walmart Spark driver 1099 form. You can check the app’s “Earnings” tab or your payment account records to find your earnings.

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Process for filing Spark driver taxes

Here are the steps for preparing and filing your tax return.

Gather the necessary documents

Once you have your Spark driver 1099 form, look for any tax forms received for other income sources. For example, you might get a W-2 form for your regular job or a 1099 form for another side gig. Use documents like bank records, account records, and canceled checks if you have reportable income that isn’t shown on tax forms.

Also, gather documents that prove your Walmart Spark driver expenses. You may qualify for delivery driver tax deductions that lower your tax liability.

Pick a filing method

When filing your Spark driver taxes, you’ll typically use Form 1040 (Individual Tax Return) and Schedule C (Profit or Loss From Business). Here are the options for filing your tax return:

• Hiring a tax professional 
• Using IRS Free File
• Paying for online tax preparation software 
• Filling out and mailing paper forms

If you owe any taxes when you file, you must pay them by the tax filing deadline. 

Complete your tax return

When completing Form 1040, you’ll use Schedule C to report your Spark driver earnings and expenses. 

You’ll provide your gross earnings in Part I, list your eligible business expenses in Part II and Part V and calculate your business profit or loss on Line 31. Plus, Part IV asks for information to determine your business mileage and eligibility for vehicle deductions.

The IRS requires other documents for the self-employed, including Schedule SE (Self-Employment Tax) and Schedule 1 (Additional Income and Adjustments to Income). Items from these schedules transfer to other forms, and you must attach the schedules to your 1040.

See our self-employed tax guide for more details on completing your tax return.

Important tax deadlines

Annual tax return filing

You have until April 15 to file your annual tax return, but the IRS gives you until the next business day when the deadline falls on a federal holiday or weekend. You can get a six-month filing extension automatically by filing Form 4868 before the normal deadline. However, this doesn’t provide an extension for tax payments.

Quarterly estimated tax payments

If you expect to owe $1,000 or more in Spark driver taxes, the IRS requires making estimated quarterly payments that include your self-employment and regular income taxes. You can use Form 1040-ES to calculate the amounts due and learn about payment options.

Here are the typical quarterly payment deadlines, which move to the next business day for weekends and federal holidays:

• Quarter 1 (January through March): April 15
• Quarter 2 (April through May): June 15
• Quarter 3 (June through August): September 15
• Quarter 4 (September through December): January 15 of the next year

Potential IRS tax penalties

The IRS may charge a failure to file penalty of 5% per month (up to 25% of your unpaid taxes) if you don’t file on time or request an extension. If you’re more than 60 days late, that penalty increases to your entire unpaid tax amount or $485, whichever is smaller.

Even if you file on time, you may incur a monthly failure-to-pay penalty of 0.5% (up to 25% of your unpaid taxes) for not paying your taxes on time. You’ll also pay interest on the amount.

Potential tax write-offs for Spark drivers

Since Spark drivers are independent contractors, you may deduct various expenses related to your driving and deliveries. To qualify, you must keep detailed records that accurately document your expenses and only deduct the portion of each expense related to business use.

Vehicle expenses

As a Spark driver, you’ll likely get the biggest tax break for your vehicle expenses. You can pick one of these options for deducting them:

• Standard mileage rate: This simple method doesn’t involve figuring out individual vehicle expenses, and it often provides the biggest deduction for the average Spark driver. You’d just multiply your business miles by the IRS standard mileage rate of $0.67 in 2024 or $0.70 in 2025. So, if your Spark driving totaled 3,000 miles in 2024, your deduction would be $2,010.
• Actual expenses method: You can choose to deduct the business portion of each eligible vehicle expense. While this method is more complex, it may provide a bigger tax break if you’ve incurred high expenses. For example, if you used your car 50% of the time for Walmart Spark and had $10,000 in expenses, your deduction would be $5,000.

Calculate your tax deduction both ways to find out which saves you the most. Also, keep in mind the IRS has rules for qualifying for these methods. Learn more in our guide to claiming mileage on your taxes.

Other business expenses

Here are more business expenses that Spark drivers might deduct:

• Tolls and parking
• Cell phone, data plan, accessories
• Delivery equipment, such as insulated bags and coolers
• Platform and payment fees
• Self-employed health insurance
• Business insurance premiums
• Professional service fees, such as legal advice and bookkeeping
• Pre-tax retirement savings contributions 

Note: Only deduct the business portion if there’s any personal use. So, if your cell phone expenses were $1,000 and you used your phone 30% of the time for Spark, $300 would be deductible.

Recordkeeping 

Your Spark driver tax form won’t list your business expenses, so you must track them throughout the year and have documents ready in case you’re audited. The IRS recommends holding onto all tax documentation for at least three years.

You’ll need to create a mileage log that shows important business trip details, including the purpose, distance, time and date. Consider using a mileage tracker app to accurately track your personal and business mileage. 

Invoices, bank statements, credit card statements and receipts can also help prove your expenses. Make a log with the following information for each expense: 

• Business purpose
• Purchase date
• Amount
• Personal versus business use
• Location (for business meals and lodging)
• Other participants (for business meals)

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