Do yall pay every year?

Do a search on this and check the IRS site on what constitutes a sub contractor.


This poster is providing a truck to have driven. The sub contractor is providing only labor of which is restricted to the owner of the truck.

He is told when to work, what to do and etc. He is an employee who is then subject to employee and employer relationship and workmen's comp and ss taxes.

After you search and cannot find the link, I will more than gladly show the places where I have posted this in the past.


Here is the previous posting on this:

IRS would be a starting point.
http://www.irs.gov/pub/irs-pdf/p1779.pdf

Here is a reply made to someone on this before.


First. You are not a sub contractor. The "company" is not properly handling the payment to the "employee". An illegal transaction to say the least.

A sub contractor provides their equipment for the operation. You are nothing more than a driver who is using their truck. If the truck dies, you are not responsible to fix it. You cannot take the truck and go somewhere else.

You do not license the vehicle, nor insure it.

As an employee, the law requires him to provide the employer share of Social Security and Medicare taxes.

It also can require the owner to have workmen's compensation insurance. I assure you, he most likely has none since he does not comply with the law.

Your choice to work for him is not in your best interest.

Link to a comment on the subject made previously

http://www.thetruckersreport.com/tru...ee#post1551681

 

I would get a new accountant than whoever you are currently using. Find someone who knows trucking, have never used H&R but remember their rep from years ago. Of course it is probably too late to get in with anybody decent at this point of the year...

I would also look into what RM is telling you about the driver, probably better to get it corrected now than later. I saw a company hiring out of IL that was doing the same thing, just have never looked into how all that works.

 

I do not know how you are deducting half your house either. Since even listing as a home office it is nowhere near that much.
I made the initial comment about the driver because I had a feeling that you were 1099 ing the guy.
It is an old practice, and it is illegal. The IRS is really big on busting people for it right now also. It is one of the things they hired thousands of new auditors to catch.
Your tax actually sounds fairly cheap since you are not paying quarterlies.
Have to remember that you are also paying all the late payment fee's too, since you are not paying them ontime.

 

since 1997 i have paid uncle sam from 2600-3500.......until this year...we had alost of 3900....no refund what that means is when we do our 2011 return we start and deduct that amount

 

I used H&R Block one time, when my ex was in the military. They knew nothing about military deductions and it cost me money.

I wouldn't let H&R Block touch our truck taxes with a 10 foot pole. They would have us paying 10 grand, when we pay very little in Self-Employment tax. My husband has used other people. That was fine, until the state told him he failed to file taxes in 2005. The accountant didn't have records and neither did hubby. I had to get files from the IRS and we had to pay the state. The accountant fooked up and it was still on us.

I don't trust anyone to do our taxes. I keep everything.

My father was a trucker and messed up his taxes when I was a kid. The IRS audit was a nightmare. They froze my parents accounts and garnished my mom's paycheck.

I learned early that the IRS doesn't play and ultimately, it's on us. I do our taxes and I file, even if we don't owe anything. I never want to see another letter saying we owe thousands in taxes.

 

The past two years we have bought a trailer and ended up receiving a refund, prior to that we had owed a small amount

 

I would go to someone else. I have heard of this happening before. A buddy of mine had alot of repairs 2 years ago and also tried to claim everything for an expense. He ended up owing $2100. His tax guy said he loss more than he made so he wasn't entitled to money back...

 

no matter what you must pay social security taxes of 15% (i think the minimum is somewhere around $2100) of what ever your income is after expenses ...you can not deduct that away....to anybody that says they paid zero, if that's the case sooner or later the irs will come after you and it will effect your paid amount at retirement time.....it is also sometimes called the "self employment tax"