Tax Caution For Employee Drivers

Discussion in 'Trucker Taxes and Truck Financing' started by STexan, Aug 1, 2018.

  1. STexan

    STexan Road Train Member

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    I have a feeling I’m going to be one of these people, too (having to write a significant check to the IRS) because too little was withheld

    Auditors: 30M taxpayers will owe more due to low withholding

    If you can find a way to do an estimated tax liability on your current situation and discover your withholding may not adequately cover it, you can have your employer take out an additional set amount each pay check, over and above the tax table computation amount.
     
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  3. tucker

    tucker Road Train Member

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    I love it,
    #winning LOL
     
  4. STexan

    STexan Road Train Member

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    Longview, TX
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    For me, it may be a triple blow
    1. Loss of daily meal allowance deduction that was more than new standard deduction
    2. Too little withheld
    3. Lowered real income status due to participation in employer per diem plan

    This tax change may have been “good” for most but it will suck for many, but it will be tax season of 2019 before they figure it out and they’re going to be pissed.
     
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  5. x1Heavy

    x1Heavy Road Train Member

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    What we did for decades was take out 100 for Uncle Sam and 75 to the state every pay period. That money goes out after witholding and before any left over net pay hits the payroll deposit on our end.

    The usual annual result of this outflow in extra withholding is that we do not pay taxes and we usually form a foundation of a new trucking year of savings of some good amount in the thousands.

    We know it's zero interest, which is exactly what everything has been for a long time anyway.
     
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  6. STexan

    STexan Road Train Member

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    Longview, TX
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    I don’t mind paying a few hundred dollars. That’s the way I try to manage my tax situation in the past, but having to pay a few thousand will be a real hardship for many.

    I don’t like the idea of the government accumulating a lot of cash on my behalf. I want that money throughout the year to spend or invest as I see fit.

    One of these days, some future government administration is going to decide to KEEP that money instead of refunding it. So let me worry about me, and maybe I’ll be gracious and pay any additional tax I may still owe, and the government can send me a thank you card.
     
  7. chalupa

    chalupa Road Train Member

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    While no longer a driver I can tell you the tax overhaul chingaleyed many folks. Employee business expenses are eliminated for 18 so my daughter in law ( a teacher ) cant deduct the crayons and paper she buys for the classroom and I can no longer take a depreciation on my pick up and RV in the oilfield along with the meals etc BECAUSE I'm W2 to get the health insurance.

    Now Donald has signed a bill allowing health carriers to offer a 12 month policy that excludes pre existing conditions that you can buy for 3 consecutive years. This is for me.

    I don't dare be without health insurance for fear of being wiped out should something happen.......and they would......wipe me out given the chance. A hospital or a medical group wouldn't think twice about it.

    Being said, the minute I can get a reasonable health plan I'll go I/C....and I won't think twice about it either .

    JMO
     
  8. MysticHZ

    MysticHZ Road Train Member

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    Since Obama Care you can't afford to be with insurance.

    Our insurance payments - through my wife's employer - doubled under OC.

    Before OC I fell off my truck. Trip to the ER, x rays, examination and prescriptions ... $20 out of pocket.

    Before OC, I had a kidney stone. Trip to ER, over night in the hospital, outpatient surgery and prescriptions ... $300 out of pocket.

    After OC, threw out my back. Trip to the ER, x rays, examination and prescriptions ... $3500 out of pocket.

    Since OC, employer provided insurance costs more and provides less.
     
    Oxbow, Coover, Aamcotrans and 5 others Thank this.
  9. longhairdontcare

    longhairdontcare Light Load Member

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    Jokes on uncle sam. When tax season comes, he wont be getting one red cent. Not only will he be getting anything from me, HE'LL BE PAYING ME. Sure im most likely having too low of fed tax taken out, but i have uncle sams kryptonite. Just one word......

    DEPENDENTS
     
  10. STexan

    STexan Road Train Member

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    Oct 3, 2011
    Longview, TX
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    But the jist of the story is, you may not be getting back as much as you think if you’re employer is using a flawed withholding calculation module.
     
  11. 06driver

    06driver Road Train Member

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    That is why I always withhold at a higher rate. Between their bad math and some stuff on the side I end up cutting a check every year.

    I try and make it around $1000. I never want to give the government an interest free loan like the people trying for big tax return checks though.
     
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