What Does 1099 Income Mean?

Gross pay that you will recieve from that carrier. That also means if he pays out any other expenses including permit's, licensing, fuel, insurance, trailer rentals(if required) etc...., thats included as a 1099, so by the time all monies are paid out to you, you might end up with half that amount. Don't forget you have to file taxes on that 1099.

 

And 130k is nothing special . Certainly not OTR income, more like 26' bobtail or contract home delivery.

 

Read up on the 1099.

http://www.irs.gov/Businesses/Small...ndent-Contractor-(Self-Employed)-or-Employee?

 

Means you make 130k before any expenses are deducted. The highest expense, of course, being fuel. Do not forget to deduct full and partial days away form home and any expenses related directly to doing business.

 

Thats what you'll make for the year on average according to others they pay. And the 1099 means they don't take anything out of your pay. You will have to pay taxes after your deductions if owed.

 

That's the gross amount you were paid during the year and required by the IRS to be issued if amount exceeds $600. IRS gets a copy and will include this as taxable income.

There's no deductions on a 1099 like someone mentioned. Deductions are shown on your weekly settlements.

BTW if y'all think it would be fun to issue a 1099 to everyone for you paid over $600 to during the year. xxxxxxxxxxxxxxxxxxxxxxxxxx. Why wouldn't he try this crap a second time?

 

Depends. How many miles did that truck operate to get the $130k? ... if the truck ran 90,000 miles, that's one thing, but if the truck run 130,000 miles, that's another thing. Is it a new truck with a $3,000/month note payment or an old truck, paid for, in reasonably good mechanical condition? There are so many variables involved. Plus, there are costs involved to an owner-operaror that you probably have never even thought about ... yet. But you need to figure IT ALL out before you consider running your own truck where the game is rigged to financially benefit the carrier, not the driver/operator.

 

$130,000... Drop that number just a little and you have my net.

 

1099?

Take at least 25% of that and pay Federal, Social security out of the gross, plus state income taxes if your state collects. You will have to file quarterly taxes, no workman's comp either. You get injured pretty much screwed.

Cliffs notes, you are being screwed