1099 tax question

Discussion in 'Ask An Owner Operator' started by nikomartinez, May 13, 2022.

  1. nikomartinez

    nikomartinez Bobtail Member

    May 13, 2022
    I'm a non owner operator getting paid on a 1099. Anyone got any tax tips? Last year I worked 6 months on a 1099 and made $42,000 then maybe 7k more on on W2. I ended up paying $5,700 in taxes. Is there any way to make that less next year? Let me know, thanks!
    tscottme Thanks this.
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  3. Eddiec

    Eddiec Road Train Member

    Feb 2, 2015
    Yes. Find an employer who pays on a W - 2!
  4. Terlingua

    Terlingua Medium Load Member

    Oct 24, 2021
    No, if you don't own the equipment, don't pay for maintenance and fuel, your potential deductions are very limited. Also, since this is your second year on 1099, if you don't start making quarterly payments, you'll be hit with an additional penalty at the end of the year. Most I've seen on 1099 really don't make any more than w2 after taxes, insurance, etc.
    wis bang, tscottme and MOBee Thank this.
  5. 062

    062 Road Train Member

    Oct 20, 2013
    Hmmm... two new accounts and the second one just happens to come up with a “helpful” link. Nothing suspicious here
    MOBee, God prefers Diesels and ZVar Thank this.

    DRTDEVL Road Train Member

    Jan 27, 2013
    Austin, MN
    Hmm... $42k on 1099... less payroll taxes ($6426), less workman's comp ($504)... just those alone made your income only $35,000.

    I bet company drivers on W2 made more than $36k for that same work.

    So tax advice? Go to a company not making you pay THEIR taxes for them.
    tscottme and MOBee Thank this.
  7. tscottme

    tscottme Road Train Member

    Jul 25, 2008
    Nashville, TN
    When you work on 1099 you get to pay all the taxes. That is why your "boss" illegally pays you 1099. Congratulations on making it through one tax year. Most of the new 1099 drivers spend every penny of their checks, like an employee, and only learn they need to pay taxes when they fill out their first tax return and are shocked to learn how many thousands they owe. Some drivers then "go underground" and hide from the IRS. DO NOT HIDE FROM IRS. They will find you.

    80-90% of 1099 drivers in trucking are illegally classified as independent contractors according to the IRS. If you were given a truck, told when and where yo work, couldn't pull loads for other companies you were likely misclassified and you get to pay the big tax bill your "boss" is avoiding.
  8. ProfessionalNoticer

    ProfessionalNoticer Road Train Member

    Apr 25, 2021
    You're getting screwed. Get a w2 job unless you have to stay 1099 due to garnishments or whatever.
  9. CamryXSE

    CamryXSE Bobtail Member

    Jul 2, 2021
    I think the big one is per diem. You can't deduct that on a W2.

    Trump made it easier to do taxes by jacking up the standard deduction but per diem can make it better to itemize, it does for me.

    You need discipline, you need to learn how to pay quarterly taxes. March and June, I pay the IRS $4,000 (and September and December).
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