What can 1099 truck drivers can deduct?

Discussion in 'Questions From New Drivers' started by rt92, Feb 4, 2020.

  1. theSoz

    theSoz Light Load Member

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    Just gonna toss my two cents into the mix... I think you're walking a very fine line. If you take these deductions, while you might get away with it, you are still filing a false tax return. You might also raise some red flags if you file these deductions without all the appropriate tax payments like self employment tax and state and federal income tax. You might also raise some red flags by filing for some of the deductions and not all of them. For example you take a deduction for food, hotels, fuel but nothing for lease payments or depreciation, insurance, etc

    I say all of that to say while it really sucks to be in your situation, and even though common sense says you might "deserve" these deduction, legally you do not. You have to decide if it's worth taking the chance of getting caught. There's nothing saying if you get caught, that you'd be in the free and clear and they'd just go after the company, especially when you knowingly and willfully filed a false tax return.

    If you want to get more into the weeds, this LINK may offer some help.
     
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  3. Moose1958

    Moose1958 Road Train Member

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    That link is to a webpage I looked at last night. I would suggest going back and looking at it again. The IRS is providing someone that was misclassified what steps they need to follow to get their tax business fixed. They start with that SS-8 form then go into the 8919 that helps determine what FICA taxes you now owe if any. If you look very closely you will see the IRS is more concerned about FICA taxes being paid. Once you get these forms right you can now do a regular 1040 and list these deductions. Also, take note most of the warnings were directed to the employer not the employee. There was a reason I also said the tax laws in the US have exceptions on the exceptions. I think the manual is close to a foot thick. These audits are going to go to how an auditor interprets the law. Granted, file a 1040 as a misclassified person and you will get into trouble mostly because you have not paid the FICA taxes. However, that misclassification can be fixed and you can then file. What happens next will be between that company and the IRS.

    Your logic is good just as @runningman0661 , it's good to make sure people understand going in that there are some crooks out there that will do anything they can to avoid regulatory compliance with Titles 26 USC and Title 29 USC you also have the right to file lawsuits against them too. People are winning fair labor standards act lawsuits all the time. If my memory serves Walmart lost a big FLSA lawsuit several years ago. Something about forcing employees to work through their unpaid breaks or ends of shifts.
     
  4. wis bang

    wis bang Road Train Member

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    The states are looking to catch miss-classified employees and want to use them to solve current budget issues.

    NJ passed the 3 lesser laws that codify onerous fines for employers that miss-classify employees...just not he one that would codify all owner operators as employees...

    I just had a call form the Workmen's Comp person at our PEO as he is working on the renewal. He was asking questions to complete the insurance companies questions regarding the new state 'Truckers survey' THEY need to complete as part of the renewal of our comp plan.

    They needed a list of the owner operators and copies of certificates of insurance which yielded a 'redacted' copy of a 'typical' certificate.

    The PEO guy thought they were playing CYA over the possibility of an owner operator being hurt and trying to claim on my company W/C policy BUT having been on the edge of the fight to keep 'real' owner operators from being 'classified' as employees, I have to be suspicious of the state's intentions.

    OP needs to realize that he may get away claiming those expenses but should be very careful doing his state returns...Since Cali started things the list of states looking at Miss-classification of employees is rapidly growing.

    Who knows what may, eventually, be levied against the employees who were 'willingly' miss-classified...

    Funny part of all this, personally I have seen numerous individuals who WERE miss-classifying drivers as 1099 BUT all of the ones knew I knew have all retired out...

    I do remember one 1099 driver quitting because 'after 15 years the percentage never changed' but not realizing how various price concessions had his boss eating those concessions, and rising operational costs, by keeping the price paid the driver the same dollar amount over time as he was such a good 15 year employee....
     
  5. spyder7723

    spyder7723 Road Train Member

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    For clothing the rule of thumb my accountant always preached to me was either uniforms or up to 300 bucks a year. Plus stuff I wouldn't otherwise need, such as insulated carhartt winter gear, steel toed boots, long John's and work gloves. And also literally anything with your company logo on it.
     
  6. Moose1958

    Moose1958 Road Train Member

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    As they should. The Feds also need to do a better job with enforcing US Code too. California has its motivations. Most of all this boils down to those FICA payroll taxes.

    A driver can fix this problem though. By the time you are filing it's too late for that tax year, but stop allowing yourself to be taken advantage of this way, by either demanding that carrier clean up its act, or QUIT. Then file those forms linked to in post #21. This will fix your federal adjusted income, show payments of the FICA taxes, and if you are owed any money by the carrier you can file a lawsuit. Then hopefully the state will allow you to also legally file with them. Best though to go get professional tax help as you go through all this.
     
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  7. Moose1958

    Moose1958 Road Train Member

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    When I was doing 1099 work I was doing things like drive-a-way and doing "repos". I could legally file my forms because in these things I was a true contractor. I don't know how this new California law will affect this practice now.

    I deducted all my fuel purchased "some contracts they provided fuel". If I had to buy my airline tickets I deducted them. "75% of the time my ticket was given to me". If I had someone 'chase" me I deducted those miles. Hotels. Then my days on the road deductions. As a company driver, I did not deduct much. By the time I applied my standard deduction on my 1040 I was OK. Also in my case going back for years I have ( and still do) get several 1099s a year from interest income.
     
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  8. spyder7723

    spyder7723 Road Train Member

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    I stated in that post you quoted that I was specifically talking about clothing, not any other type of deduction. Obviously there are more legit deductions than clothing.
     
  9. Moose1958

    Moose1958 Road Train Member

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    I quoted not to be critical. I just wanted to expand on your topic and add some personal experiences of mine! Mind you, there are two places where you can do deductions. As a "legal" contractor you have Schedule C along with the general deductions on your 1040. For several years I filed both.
     
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