Taxes as company driver

I suggest you find a good CPA/tax attorney who knows the transportation sector/ tax laws.

 

Maybe you do need a tax guy...

-the higher rate only applies to the amount over that point, not to the whole amount from dollar one.
- taxes are calculated on TAXABLE INCOME, that is after your deductions, not on your entire income.

You could also become a real estate baron in your spare time during the winter and pay no income taxes at all like the really really smart guys. Buy everything under a Delaware or Nevada corporation and remain anonymous.

 

I use HR block for my trucking taxes as a company driver. We were out until 2001. So perdiem was the biggest benefit against say 67000 gross income, perdiem itemized on 1040 standard daily rate came out to 13700 in our favor and so forth.

The state stuff takes care of itself. The fed stuff is the biggie but ususually we get our money back.

Usually on W2 we specify that a extra 100 go to the state and extra 75 to uncle sam in addition to the normal weekly withholding from the both of us (Wife and I team...) So there is a hell of alot of money coming back to us in the new year by mid march or so direct deposit which forms a foundation for the new trucking year savings in 5 figures.

Years later we had to cutback work earnings until we made together about 18000 dollars in wages. Once we hit 18000 gross for the year we told our employer see you next year. That created a tax situation where we broke even flat. No taxes owed and a like a hundred dollars back to us. Which in those days was a good situation financially during our Cancer fight. It was a workaround for it's day.

They have increased the deduction, eliminated the perdiem and made other changes designed to increase cash flowing to Uncle Sam Treasury by about 8 to 12%. Then they also started sort of making you think you take home more money each week. But that only camouflages the increased cash going Uncle Sam's way at tax time in the form of lower refunds.

IF anyone wants to argue with me about interest lost in paying W2 money to Uncle Sam and state? Save it our interest earnings have been very close to 0% at the bank for about 12 years now. I think they pay around 1.1% today, but frankly we dont even notice or care. Not like back about 1983 when banks paid 15 to 25% Cert of deposit rates up to 10 years on 5000 dollars deposit.

Those banks failed into the early 90's so that would have been a bad investment.

 

Heres the KEY- Does that 12% include social security tax? If so, Your better off going up to 22%
Without any kind of retirement plan (Which many truckers dont have) Your ss check come time to retire will be nothing!

I pay nearly 30% every year in taxes on less than six figure income- But my SS checks will be well over $2200 a month once I hit 65.....Plus my personal IRA I have.

Go the Whole year- Youll regret it later in life

 

There is precious little tax magic to be done with a single earner employee. How much extra income would you earn working all year? Better to pay Uncle Sam $5k if you keep more than that.

No disrespect, but it serms similar to the poor people I've known who's highest priority was keeping their benefits at the current level. That made those people lock themselves into a poverty trap. Besides if you and I dont work who will pay for all of the slackers watching Price Us Right every day?

 

You only pay 22% on anything over 40,000