First time O/O. Tax questions

um, try irs's website, or call em....you want it from the horses mouth

 

First you'll need a good accountant. I use ATBS out of Colorado. They are very affordable, easy to reach and talk to and do a fine job.

Yes taxes can be paid either, quarterly or even annually. They try and break it up in quarters so you don't get hit with a huge bill come tax time. But, when I was paying off my trk, I figured my tax base after it was all said and done, was about 12%, maybe even less.

Along with fuel, and other mesc expenses. Even your phone, internet, new computers, other things. You'll have your trk pymt to write off, and deprecation on your trk. That's huge! Believe me, the problem comes in when you pay off your trk and you no longer have those deductions, OOOOH, oh yes, your daily 'per diem", something like $54 /day that your out, that will save you a small fortune. How it works is, that money comes off your taxable gross, lowering it, so you pay less tax. An example, 7 days X $54 = $378, so minus that from your other expenses for the week, and that will leave your net that is taxable. So in a weeks deductions, Fuel, Trk Pymt, Mesc and Per diem, you should clear a nice check. But remember, it will be totally up to you to save what ever money you may need to pay your quarterly or annual taxes when they come do. You'll be a 1099, independent contractor.

There are several trucking tax places you can use. I talked to the one CREngland uses, BS! They do very little, and charge you for everything.

ATBS, is a great company, and I have been with them for years now and never had a problem.

Here's a link for their website, its for truckers, lots of mom and pop accountants want to think they can handle anyones taxes, maybe so. But ATBS is trade specific, meaning its us truck drivers they specialize in helping.

http://www.atbsshow.com

I wish you well, but getting expert advice is the only way to go.

don b

 

Quarterly is alot better it's easier to keep up with

 

Yes quarterly is easy. Taxes can range a lot. Last year I paid around 1200 each quarter.

 

If you end up owing more than $1000 at the end of the year, they can hit you with an additional penalty for not filing quarterly. I'd you owe less than $1000 or they owe you, there is no penalty, the IRS couldnt care less how you file.

 

I never pay quarterly, the penalty difference was $42/142 something like that. Worth not paying every quarter in advance.

 

I never pay quarterly either, was just letting the OP that they do charge a penalty if you dont.

 

Here we go again.

First off don't worry about it, the IRS will tell you if you need to file quarterly, chances are you won't.

Second get an accountant. I would not use ATBS even if my life depended on it. I've got a driver who used them and he got royally screwed, they didn't file right and he ended up paying a crap load of fines. Get someone who you can talk to, someone who can see your revenue and make suggestions to lessen your tax liability. AND someone who can help you setup your record keeping without boiler plate forms.

Third and more important keep really good records. When it comes to taxes, there are one type of records but when it comes to everything, all records count. Also if you are on elogs, get a copy of your logs monthly - why? to build a habit of correlating your away time for your taxes. it is much easier that way - good habits are good to have. Things like laundry and so on, do a petty change receipt and put that into your receipt collection. AND what we have done this year is to use NEAT scanners and software in the trucks to cut down on the clutter and postage. Maybe look at those.

Fourth you get audited, you get audited. IF you have records, have a reason for everything and a good accountant, then you have nothing to worry about. The key is the right tools to do the job and chances are you won't ever get audited.

Fifth don't worry about per diem, don't worry about much of anything like that, it will be taken care of later. The thing you need to worry about is getting the right stuff to do the job, taxes are not important right now.

Sixth do not ... repeat DO NOT become an LLC and think that it will help you protect yourself, it won't. If you do it for taxes, then it may be better as an S corp or C corp.

Hope that helps.

 

Excellent post!

He's right, don't worry about per diem, it does come off at the end of the yr when you file, plus deprecation and other expenses. He mentioned laundry, and yes that, and so much else. He made some very excellent points.

But I disagree, ATBS for me has been great, no complaints. However, each to his own I suppose.

If one thing is becoming clearer to the poster of this thread, it should be how very complicated it can be to run a small business. And that is exact what you will be considered, a small business owner.

It add's an entirely new aspect to just being a trk driver. A lot more hassles, and problems, and yes the added time.

Getting all the advice you can, is great, and even necessary. But the greatest teacher is just living the experience yourself, day to day, month to month, and even yr to yr. The experience itself, is the best teacher, and sometimes the only way to learn, and really see what things are like.

Good luck to you,

don