Taxes as company driver

We have a progressive tax rate. Only the portion of the income over each threshold is taxed at the higher rate. Your entire income is not suddenly taxed at the new rate.

 

Your math error in this scenario just cost you more than you would pay a good CPA to do your taxes.

 

Much confusion and disinformation s

Your tax deductions are based on what you make after the per diem deduction. Then they add the per diem back in. This lowers your taxes and puts more money in your pocket.

For example, and the numbers are only for example
Wages $1,000
Per diem $450
Taxable income $550
Income tax 10% $55
Per diem payment $450
Net pay $945

Without per diem
Wages $1000
10% tax $100
Net pay $900

See how that works?

 

You can deduct a lot and pretty much everything , BUT don't forget that government giving you 12k tax deduction. Now if you spend more then that on meal, gas etc ... Have fun with itemized in it, cause in the end you will need if IRS will want they will ask for every freaking recipe that you will need to prove it. I am just stick with regular dedication and leaving my brain in peace ^_^

 

The new tax code eliminated non-reimbursed employee business expense. For the vast majority of jobs, actually nearly all but one, the doubling of the standard deduction more than made up for it. The company otr driver was the only one who really got hurt. However your company can take it and reimburse you. This is a non-taxable addition to your wages.

 

Get a tax guy! Pay the professional who does it for a living. (at least till your sure you no what your doing) Let the Dr do medicine, the tax man do taxes, you drive the truck. And by professional I DO NOT mean Hr Block, liberty tax, or the other franchises that hire and train part time people 3 weeks before tax sesson. Or else you will have some housewife, retired door man, who has only been trained to do what the computer program says.

 

Why are you guys making this so hard? An employee driver no longer needs a “tax guy” since they can no longer itemize job related expenses and the meal allowance for days away from home has gone away. An employee driver can use Turbo Tax themselves and come out perfectly fine. An employee driver’s taxes are no different than someone slinging burgers at McD’s these days.

 

I asked HR BLOCK about stocks.

They wanted to tax me on all my sales. TOTAL sales.

Profit and loss meant nothing to them.

Haven't bothered with them since.