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

sounds to me like yer paying to much

i know what i grossed this year and what i payed myself, and once again i didnt owe (i have kids...read deductions...

o/o friend grossed 130k....paid about 6k
anouther grossed 175k....owes about 10k

but i dont know....im not a cpa

get a good one, get them now and start sending everything in once a month

 

How much was business income?

That is where you calculate the Self employment tax at 15.3 %

Then you need to know the taxable income to get the tax and add them together.

It is not that I want to know these. I am sure that H&R is able to do that much. But I lack confidence in their ability to properly do returns for truckers. There are things that we can and should write off due to the type of work we do and they have not clue.

 

I have a question you say you made 164K and after everything you were left with 40k is that including after you paid all of youre house or appartment bills or how does this whole owner operator thing go.

 

Your first mistake was going to H&R for taxes as an o/o. They are not geared for all the deductions you are qualified for. Find a good accountent who does other truck drivers. for instance last full year as o/o, I grossed $140,000 after all deductions my taxable income was $14,000 of which I paid $4,200 in on ny state and federal combined. And that was with my truck paid for.(but had some major repairs) You need to save the reciepts on anything and everthing, it can be used, also if you own any property that has mortgage, home repairs, claim you have one room in your house(even if you rent) that you use as an office. Anything, a good accountant who knows her business can get your taxes down. Also when I first started out, you could claim $0 for the first three years in a new business, wether that has changed I do not know. But never use H&R block or any other chain tax prepairer(they hire people off the street during tax time who really do not know what they are doing)

 

Even if you have already filed, you have three years to get them redone then resubmitted, which I recomend, however if you contantly do that then they might flag you for an audit(BRrrr) but doing it once should not hurt, especially if it saves you a couple grand. The Gov. gets way to much of our money as it is.

 

It Was$14,000 on paper. I save everything. If I see a reciept laying in an ashtray for $.99 in paperclips, I snach that sucker up. Also any day you mark on your logbook as away from home, even if you spend half hour running over to repair shop for a part, that can be used for the daily deduction, I think this year its either $48 or $56 a day you can claim