As a Spark driver, you receive a Form 1099-NEC each January reporting the gross amount Walmart’s payment processor paid you during the prior calendar year. Because Spark treats drivers as independent contractors, nothing was withheld from that pay, so you’re responsible for the income tax and self-employment tax on it. The number on the form goes on Schedule C, where you subtract your business expenses to arrive at the net profit that actually gets taxed.
What the Form Reports
The 1099-NEC (Nonemployee Compensation) shows one figure: your total gross pay from the platform for the year, before any expenses.1Internal Revenue Service. About Form 1099-NEC The IRS gets an identical copy, so the income on your return needs to match. The form replaced the 1099-MISC for reporting contractor payments starting with the 2020 tax year.
Spark only has to issue the form if you earned $600 or more from the platform during the year.2Internal Revenue Service. Am I Required to File a Form 1099 or Other Information Return Under that threshold, no form arrives, but the income is still taxable and still belongs on your return.3Internal Revenue Service. 1099-NEC and 1099-MISC Income Treatment Scenarios If your total net self-employment earnings across all gig platforms reach $400, self-employment tax also applies.
Where to Find Your 1099-NEC
Payment processors have to deliver the form by January 31.4Internal Revenue Service. Form W-2 and Other Wage Statements Deadline Coming Up for Employers Most Spark drivers pull it digitally from the DDI Work portal or the Stripe Express dashboard, depending on which processor handles their account. Log in and look for a Tax Documents or Earnings tab. If you chose paper delivery, it goes to whatever mailing address is on file, so update that before year-end if you’ve moved.
Watch your email in late January for a notification that the document is ready. Digital access is worth setting up even if you also get a paper copy — you can download the PDF immediately and send it straight to a tax preparer.
If Your Form Doesn’t Show Up
If February arrives without a 1099-NEC, contact the payment processor first through the portal. If that goes nowhere, call the IRS at 800-829-1040 with your name, address, Social Security number, and the payer’s information ready.5Internal Revenue Service. What to Do When a W-2 or Form 1099 Is Missing or Incorrect
Don’t wait for the form to file. The IRS still expects a timely return. You can use Form 4852 as a substitute, estimating your earnings from your bank statements and app records. If the real form arrives later showing different numbers, file an amended return on Form 1040-X.
Reporting Spark Income on Your Return
The gross amount from the 1099-NEC goes on Schedule C (Profit or Loss from Business), attached to your Form 1040.6Internal Revenue Service. About Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship) You enter total Spark income at the top, then subtract every allowable business expense. The net profit that comes out the bottom is what actually gets taxed and what flows to your 1040.
If you also drove for other gig platforms, you can combine everything under one delivery services business on a single Schedule C. And if you earned under $600 from Spark and got no form, the income still goes on Schedule C.
Self-Employment Tax on Top of Income Tax
Once your Schedule C net profit is $400 or more, you owe self-employment tax in addition to regular income tax. This is the Social Security and Medicare tax that a W-2 employer would normally split with you. On your own, you cover both halves: 15.3% total, made up of 12.4% for Social Security and 2.9% for Medicare.7Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes)
You calculate it on Schedule SE. Two mechanics soften the hit. The tax applies to only 92.35% of your net earnings, not the full amount.8Internal Revenue Service. 2026 Form 1040-ES And you deduct half of the self-employment tax you paid from your adjusted gross income on Schedule 1, which reduces your income tax.9Internal Revenue Service. Topic No. 554, Self-Employment Tax You get that deduction whether you itemize or not.
Quarterly Estimated Payments
Nothing was withheld from your Spark pay, so the IRS wants tax paid as you earn it. You generally need to make quarterly estimated payments if you expect to owe at least $1,000 for the year after any other withholding and refundable credits.8Internal Revenue Service. 2026 Form 1040-ES
The 2026 deadlines:8Internal Revenue Service. 2026 Form 1040-ES
- April 15, 2026, covering January through March
- June 15, 2026, covering April and May
- September 15, 2026, covering June through August
- January 15, 2027, covering September through December
You can skip the January payment if you file the full 2026 return and pay any balance by February 1, 2027. Use Form 1040-ES vouchers, or pay online through IRS Direct Pay or the Electronic Federal Tax Payment System.
Miss a deadline and the IRS charges an underpayment penalty based on its published quarterly interest rates.10Internal Revenue Service. Underpayment of Estimated Tax by Individuals Penalty You avoid it entirely by paying at least 90% of your current year’s tax or 100% of your prior year’s tax during the year — 110% if your prior-year adjusted gross income was above $150,000. A common first-year approach is to divide last year’s total tax by four and send that amount each quarter.
Deductions That Actually Move the Number
Your net profit is what gets taxed, so every legitimate deduction directly cuts what you owe. Mileage is almost always the biggest one for delivery drivers.
Vehicle Mileage
The 2026 IRS standard mileage rate is 72.5 cents per mile for business use.11Internal Revenue Service. IRS Sets 2026 Business Standard Mileage Rate at 72.5 Cents per Mile, Up 2.5 Cents It applies to gas, electric, and hybrid vehicles. You can claim every mile driven for Spark deliveries, including the drive to the store for a pickup and the drive back from a drop-off. Miles from your home to the store where your first delivery starts are generally commuting miles and not deductible.
The alternative is the actual expenses method, where you deduct the business-use percentage of gas, oil changes, repairs, tires, insurance, registration, and depreciation.12Internal Revenue Service. Topic No. 510, Business Use of Car Standard mileage is simpler and usually more generous, but if you drive an older car with high repair costs, run both. Pick one method per vehicle each year.
Parking fees and tolls paid during deliveries are deductible on top of either method.
Other Deductions
Smaller expenses add up across a full year:
- The business-use percentage of your phone bill and the device itself. If Spark accounts for 60% of your phone use, deduct 60%.
- Insulated hot bags, drink carriers, and similar delivery gear.
- Car mounts, chargers, and cables you use while driving.
A home office deduction exists, and the simplified method allows $5 per square foot up to 300 square feet, capped at $1,500.13Internal Revenue Service. Simplified Option for Home Office Deduction Most delivery drivers don’t qualify — the space has to be used regularly and exclusively for the business.
Records That Hold Up if the IRS Asks
The IRS can disallow deductions you can’t back up, and mileage draws the most scrutiny. A valid log gets recorded at or near the time of each trip, not reconstructed months later. Each entry should show the date, starting and ending locations, business purpose, and miles driven. Note your odometer at the start and end of the tax year too.
Save receipts for every deductible purchase. A folder for digital receipts and a phone photo of each paper one works fine. Track your phone’s business-use percentage, keep records of equipment purchases, and download your Spark earnings summaries from the app or portal on a regular schedule.
Penalties for Filing Late or Underreporting
The failure-to-file penalty is 5% of unpaid tax for each month your return is late, capped at 25%.14Internal Revenue Service. Failure to File Penalty The failure-to-pay penalty runs separately and also caps at 25%.15Internal Revenue Service. Failure to Pay Penalty They can stack, and interest accrues on the unpaid balance from the original due date. Filing on time, even without full payment, at least kills the larger of the two penalties.