$10,000 owed in fed and state tax too much?

I get a laugh at most of you. There is no such thing as paying too much in taxes. It is all relative to net income. The more you make the more you pay. Anyone who wants to lower there tax bill just send me your extra money. I will gladly pay 30 cents in taxes for every dollar you send me. It is true that many deductions get over looked but don't go out and buy things you don't need. Why give someone 10000 bucks just to keep from giving the government 3000.

 

We operated at a loss, until the bank turned us down for a house loan. I opted to ignore our depreciation, for 2011, just to show a profit. It was the first time to owe taxes. We owed $2000 on $165,000. Our bank guy said the bank should have considered our depreciation as income, so we need to do our taxes, again.

In my opinion, either your tax guy sucks, or you didn't give him enough information. You have a mortgage, 2 kids and truck deductions. You probably made a whopping $40K and owe 25%? Or more?

Fuel would probably cut that in half. Truck expenses, cleaning materials...our little receipts add up thousands of dollars. Are you paying for a truck and a trailer? How much did you pay the bank?

Do you keep a diary for how much you spend on laundry? Tide, Bounty and Bounce are tax deductible. Every quarter you pump into a machine, counts. I've cooked for an agent's office. I deduct that cost. That's advertisement/entertainment to get us more business. (It works, too.)

Keep all receipts and ask yourself if they fit into a category, for deductions. Even entertainment is allowed. Did you buy dinner for someone? That's allowed. Go grocery shopping and cook for other drivers? That's allowed.

Deduct everything!

Rethink your taxes and redo them. You'll owe less. I wish you the best.

 

How much money do you think drivers actually make? Half of our gross goes to fuel. How much do fuel companies pay in taxes, after tax credits?

I could buy a better trailer, get better jobs, invest the money, take the tax deduction for the investment, take the depreciation on the trailer, make more money and not owe taxes. If we had better equipment, we would make more money, have a depreciation for 5 years and pay less in taxes. I would invest the money I saved, and make more.

I get 5-14% on my investments. Why wouldn't I lower my tax bill? I can use 3k to make $500-$800.

Why would you give the government $3000, for free? Send me $0.30, for every dollar you pay in taxes. I'll make that money work!

 

I feel sorry for you. Once again in order to save in tax you had to spend money. You aren't just giving the money away.

 

You probably owed self employment tax in addition to income tax.

 

As an owner operator are you leased on to a company?

 

If you paid interest, did you take a qualified depreciation? Frankly, we've grossed a similar amount and our taxes are no where near yours. I would do them again and get it lowered. We don't have kids, or a mortgage, and owed much less, even on the federal. Good Luck!

 

Nope, now we have two trailers and I can rent one out. I charge rent and make money. I still have depreciation, so I can write it off. I also have bills on the trailer, those are write-offs, as well. Where do you think people make money?

 

We are owner/ops. I'm not sure who you were asking.

 

He is asking if You lease to a carrier or have own authority.