Just started car hauling and see that some companies require to submit W9 form, while others don't. My question is, how do I pay taxes at the end of the year? Will, for example, 40 companies send me separate 1099 forms or what? Can't really understand how that works. Thanks for the input
Payment and taxes?
Discussion in 'Car Hauler and Auto Carrier Trucking Forum' started by DriverLLC, Sep 18, 2014.
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It's best to apply for a tax ID number from the IRS if you're going to form a corporation or a partnership. It keeps your business interests separate from your personal affairs. Especially if some companies require it. Yes at the end of the year they are all going to send you a 1099 with the revenue you have created through the loads. It all depends on how many entities you're going to deal with and could become a nightmare if you have a lot. I've encountered situations where the companies have sent them to me late so I've had to file an extension. But you need those 1099 to file your taxes so that you have an accurate assessment of your gross income.
Hope you've got a good book keeper in place. With all the 1099 then you can complete your end of year tax filings taking into consideration all the expenses you will incur. Just don't miss any.
It's always a good idea to hire a knowledgable tax accountant to do your returns instead of doing it yourself.
Good luckheyns57 Thanks this. -
I'm not sure how a W-9 works, but if you are getting paid on a 1099, you have to submit quarterly taxes, even if it's an estimate, otherwise you'll get penalties and interest, and then, I believe, long form 1040 at the end of the year. Listen to the Doc, ^, get an accountant. It's a huge PITA.
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If you keep track of your revenue, you don't need to worry about the 1099's. Anyone who sends a 1099 should also send a report to the IRS, so they already know what you should be making. Get a bookkeeping program, spreadsheet or ledger and keep your records up to date. If you everything set up it is much easier to give it to your accountant or tax professional. You may want to check out Trucknpro or Truckers Helper. They are software programs specifically designed for the trucking industry. If you key in each load, fuel, miles, etc., all you will need to do is print out a report and give it to your tax preparer. Both will also do your IFTA. Trucknpro is a simpler program. They recently came out with a new version which works well with LTL freight, such as hauling cars where you have several pick ups and drops. Whatever you decide to do, make sure to keep your receipts and paperwork up to date. It is much easier to spend a little time each week to keep paperwork up to date than let it build up and have to do it all at one time. Besides, it is important to know whether you are profitable or not.
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