Yearly 1099.

You are taxed on your net profit, so that's gross receipts minus your expenses. I can understand that you don't want to spend money on a CPA but in the long run, that could cost you dearly. What makes you think you are qualified to meander through the complicated tax code to successfully file your taxes and cover every little nuance of tax deducts etc etc. ??
There is much more to accounting and the tax situation that you would ever imagine.
You should leave it to a qualified tax professional to solve and take care of all of your accounts. That leaves you free to get on with making money. Just keep a log of your daily expenses and retain all relevant receipts.
Good luck.

 

You'll come out alot better using a CPA.ATBS costs me $75 a month and they take care of everything.They give me a P&L every month and my estimated taxes every quarter and file at the end of the year so I have almost zero headaches.

 

You pay taxes on your net profit. The 1099 will only show whatever deductions the carrier takes out per your lease but you will have a lot of other deductable expenses. If you're buying a truck you can probably take a 179 deduction on the entire cost even if you're financing it plus the interest expense. The per diem expense is another big one if you're running OTR. Fuel, tools, light bulbs, repairs, anti freeze, oil, anything you spend to keep tour truck running, legal and comfortable is a business expense. Save every receipt.
There is no law requiring quarterly payments (they can't criminally prosecute you) but there are financial penalties if you don't do it. The rule of thumb is pay in 100% of last year's liability or 90% of this year's. The penalties are not huge but you don't want to find yourself scrambling to come up with the money in April. And don't forget your state quarterlies.

As you will soon find out, the biggest hit is the "self employment tax" fica and medicare. It's 15.3% of whatever your net profit is on your schedule C and you can only deduct half of it on your 1040. If you're young, say 30's or 40's, you should use every legal means to reduce that liability. For instance, if you own your truck lease it to yourself and write off the lease payments. If you own a building where you park and work on your truck you should be paying yourself top dollar rent on it. Consider organizing as an S Corp, pay yourself a salary and take the rest in dividends. Remember, lease income and dividend income are subject to income taxes but not fica. Employment income is subject to both. If you're older you may want to bite the bullet and show a higher income so your payments will be higher when you get on the S.S. gravy train. And don't feel guilty about not paying these parasites the maximum. They create this stuff we call "money" out of thin air. You need it a lot more than they do.
I've been self employed for 30 years and I haven't paid an accountant for the last 25. A leased o/o is a micro business. Once you figure it out it's really not very complicated. You may want to use a CPA while you learn the game but you can do this yourself for free.

 

Your weekly statement helps you keep track of your income. Keep all your receipts. I file mine by month and category. Download a schedule C from the IRS website. It will give you a good idea of how to organize your expenses (especially by looking at the Part II Expenses section). If you don't see a category for your expense, you'll be able to write it in as long as the expense is deductible. The income from your 1099 is your gross receipts or sales (provided you have no other source of income). Then you start deducting from there by using your receipts. How much to put aside is tricky since it is your first year, but at a minimum you'll need 20% of your gross put aside just to pay self-employment taxes (sad I know). Hopefully, since you have expenses that make your taxable income less, you will end up with a refund and not owing. If you make a lot of money you may want to pay quarterly to avoid penalties and surprises. If you don't make quarterly payments you may be able to avoid penalties as long as you owe less than $1,000. You are supposed to pay as you earn. I usually pay at the end of the year and send it in with a request for an extension. I hope this helps.