If you make $40k as an O/O, you have to pay 10k in federal income tax?

I doubt that it was just 10,000 in income tax. There would have been self employment taxes and they would have a major impact on the tax total.

Some preparers always refer to the combined amounts as income tax.

 

to start.....get a real accountant, theres a firm up in denver who i hear are good...and what you pay them is a deduction next year!
get your own personal accountant, one who knows YOU, not someone who you just met

next gather up all reciepts (you do keep them all right?)
go thru your logs, different cities have different rates of per diem...it adds up to a good sum
all interest, depreciation and down payments are deductible
you can even deduct your home office!
cell phone (used for business), landline and faxes....
fuel, repairs, parts, hotels, tolls and any other "trucking" expence...all deductable

now some bad news....if you owe now i assume you probally didnt make your quarterly "estimetes"...your now gonna owe late charges

the time to get prepared is not the time they are due

or get in touch with roadmedic....hes an accountant on the side and he might know someone to refer you too


neevrmind he found you

 

i have been using the "blockheads" for at least 10 yrs now.
last year i had the owner of that particular franchise do my taxes, she knew her stuff! this year someone else did them (with help from a colleague) they kept refering to the tax code book LOL
although, as a Co. driver i have FAR less reciepts ETC to sort through)

 

My wife has an accounting degree and she does taxes part time for a local Tax Prep. business during tax season. They have ONE GUY in their office of 6 preparers that specializes in Trucker's returns. She does not like doing them because she knows that a person doing these needs to know their stuff!

You would be amazed at the amount of drivers(and others) that end up here after having H&R Block do their stuff. Just because they have a big name does not mean they're any good. If your gut was telling you that the lady was not too familiar, you should trust your judgement. Dig around a find a PROVEN tax person that knows their stuff about driver's returns. That's my 2 cents. Good luck.

 

BTW, you can go to google "daveramsey" and click on "endorsed local provider" for CPA's to find a good one reccomended by dave

 

Seems wrong to pay any tax that is not required whether trying to buy a house or not.

The bank needs to understand the per diem deduction and should be well versed on depreciation costs. These two items are considered non cash expenses on the profit and loss and are to be added to the profit.

In a down year like the last one, they should also understand the business fluctuations.

As far as whether it is the right amount, too many variables.

Do not know if you are married or single.

WIthout looking at a tax return, I do not comment on another person's work.