Question about 1099 as a company driver

Never had an audit in 8 years, however I do keep every single receipt for at least 3 years. Legally you’re allowed for good amount t of deductions. Your cellphone and cell phone plan is a tool that you use for gps and eld. You can write off $50 of food per day when you’re on the road if you eat that much lol I know what you mean “nature of industry” however keep in mid about “nature of reality” if it makes sense on paper and it’s backed up by paper trail than it flies in my books. nobody is perfect in this industry and I promise you every single driver bent the rules of service or more.

 

We read horror stories here on a daily basis, how drivers were taken advantage of. Find a company driver job with Benefits, retirement and good pay.

 

Not being argumentative but my advice to anyone is to engage an accountant that knows their way around the laws, more important to find an EA.

See I know what is and isn’t permissible, I’ve been through a couple of audits as an o/o. I’ve been in one or another business for the last 40 years and have faces disallowed deductible items and played the game with the agent.

while there are a lot of things you can deduct, there are super fine lines between acceptable and unacceptable deductions in the eyes of the tax man.

it comes down to how you do your taxes, itemized or standard deduction, what your situation is, there is no blanket answer, so every o/o and independent contractor driver is different and need to have someone who knows business - not trucking to guide the person.

 

I always thought the 1099 loophole always had to include some type of equipment lease to be legal. Basically the same things that the Megas do. I know a few Drivers who will only work 1099. I’m sure they have a good reason. Maybe they’re very creative on taxes. I don’t really see any difference for myself as a 1099 or an Independent O/O leased to a Carrier. Basically write off everything possible. Possibly an advantage if deductions are over the standard 27k for Married filing jointly. The other stuff, workman’s comp, unemployment insurance, and other so called benefits health insurance is just a way of keeping workers trapped IMO. I’m tempted to work 1099 myself right now. Filing taxes won’t be any different than being an O/O. Of course I won’t get any tax refund. Bottom line, either way the standard deduction has been raised so high to discourage itemizing, I can see a benefit if deductions are high enough. Can write off meals, unlike Company Drivers. Especially if you have a mortgage. Can’t write off the interest unless you itemize.