1099-MISC but don't own a truck

Discussion in 'Trucker Taxes and Truck Financing' started by robrien, Mar 15, 2020.

  1. robrien

    robrien Bobtail Member

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    Mar 15, 2020
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    Greetings brothers and sisters.

    I have 5 years or so in the trucking industry with a CDL-A and a number of endorsements. I am a 1099 driver for a broker company. The broker contracts with their customers to use the customer's equipment, and the "broker" just supplies the driver. As I am retired (Social Security and Medicare), I CHOOSE to work when I want (usually a couple of days a week). The broker will text me each week and ask if I want to drive that week, and if I do, what days I want. I am NOT required to drive anytime I do not want. Again, it is my choice if I drive or not. I may also refuse to drive for a company that the broker needs a driver for if I so desire.

    I have not obtained any Workman's Comp, as with my Social Security I can do without it. What I do pay for is a $5.00 a trip fee to the broker for an Accidental Occupational Insurance policy that is only in effect when I am in an on-duty or driving status. This does not cover my trips in my POV to/from the broker's client. Just when I am hands-on with the end-customer's truck and trailer. The end-customers have blanket insurance that covers the truck liability/collision (not the broker).

    I drive for several different end-customers of my broker, in a variety of the customer's equipment. I would guess that I am considered a driveaway driver, although I transport either U.S. Mail or other things.

    Questions:

    1. May I take the mileage between my home and the end-customer's location to pick up their truck and trailer? As I drive for multiple end-customers, they are located in several different cities.
    2. May I deduct the $5.00 per trip Accidental Occupational Insurance from my taxes?
    3. As all of the trips are just daily trips, may I deduct the meals (or meal allowance) as I buy breakfast on the way to the end-customer, and lunch while on the road? All of the equipment I drive is slip-seat, and the maintenance and fees are paid for by the end-customers.

    Help please?
     
    Last edited: Mar 15, 2020
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  3. Judge

    Judge Road Train Member

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    1. Could be Iffy, they could say it is travel to and from work which everyone has, but I think I read somewhere if it was over 45 mile one way you could deduct mileage/fuel. Someone else may know more, or check with CPA, they’ll do 1099s and file for about $350/and thats deductible the next year, again with receipt or not if you use same accountant, because they’ll have it on file.
    2.Yes, all expenses and tax you are charged, helps with receipts, though/paystub that shows etc.
    3.Per diem on anytime 24/hours away from your home zipcode.
    Logs/receipts would again help confirm
     
  4. Ridgeline

    Ridgeline Road Train Member

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    Sorry for the caps but this is important.

    YOU ARE AN EMPLOYEE.

    BECAUSE YOU ARE A TEMP DRIVER AND NOT AFFORDED THE CHOICE OF HOW YOU WORK.

    THERE ARE OTHER LEGAL REQUIREMENTS ABOUT THE WORK AND YOUR STATUS THAT PUT THE LIABILITIES ON YOU.

    NEVER DEPEND ON MEDICARE TO COVER THE WORKERS COMP INJURIES OR AUTO ACCIDENT INJURIES.

    AND IF YOU HAUL ANY US MAIL, THEN YOU HAVE TO BE PAID HOURLY AT THE SAME RATE AS THEIR CONTRACT REQUIREMENTS STIPULATE.
     
    brian991219 Thanks this.
  5. Eddiec

    Eddiec Road Train Member

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    I would consult the advice of a CPA or tax attorney. On the surface your situation is very complex and you need solid answers and not opinions.
     
  6. Judge

    Judge Road Train Member

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    Mar 19, 2014
    Arkansas
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    I mentioned to check with cpa.
    I don’t haul mail, so I know nothing about it except they all seem to be in a hurry with a 66 mph truck, and will pull out infront of you in half a heartbeat.
     
  7. x1Heavy

    x1Heavy Road Train Member

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    Mar 5, 2016
    White County, Arkansas
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    You will want to have that Social Security.

    One day after the Administrative Judge ruled in the early 2000's Social Security pulled out a very special fat folder. In it contains every. single. Penny. I. was. paid. in my life. Ever. (Not counting under the table...)

    They had a particular system of building your benefits from those earnings. Today you might not give a fig about SSA. But at some point in your future you will want that nice fat folder with your name on it and all of your earnings inside of it. Trust me. It will come for us all sooner or later.

    Im just happy I am allowed to work and after a certain earnings the benefits are cut two to one anyway for the month. So all legal and proper. Those lifetime earnings MATTER.

    Workman's comp on the other hand Ive used it twice in my lifetime when I got hurt bad. Actually three times but the Grand Union in Albany picked up every penny of my injury costs in medical billing and a few dollars besides when I got hurt bad there. (Their janitor did not clear a puddle of water. I was tugging two ton of eggs on a jack when I lost traction under it. Hospital sees bone damage but thinks amazing I did not bust them. Good thing too, that would have been a problem in the Troy ER that day.

    Story telling aside, you are reponsible for everything under 1099. If there is a hitch in your get up and go the IRS can take everything. Even the house and bank accounts etc. You would be rendered destitute. If there is some screw up somewhere. Even worse, if you were at retirement age, you will not get a penny in SSA checks or any check until Uncle Sam is paid.
     
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