26 Dec 4 Documents All Truckers Should Prepare Before Doing Their Taxes
Doing taxes is different for each profession, but it’s always complicated no matter what. That is the same for truckers, who might even have a harder time doing taxes than other occupations. In one part, that’s due to the many documents you need to prepare to finish your taxes.
We wanted to make this easier for you, which is why this article will cover all the information you need to prepare before you do your taxes.
1. 1099 or W-2
The most important documents every trucker has to fill in are the 1099s or W-2s. Now, the first thing you need to know here is that you will need only one of these, which is why it’s vital to know the difference.
The 1099 form is made for independent contractors, while the W-2 is made for employees in firms. The W-2 automatically deducts payroll taxes, but if you are an independent contractor and you need 1099, you’ll have to have the additional trouble of calculating your payroll taxes.
2. Per Diem
If you are a trucker working for a trucking company, you also need to prepare your per diem, which is the daily allowance your organization provides for you for all of your on-the-road expenses.
You should know that it depends on the company what working expenses are considered to be expenses and included in the per diem. For example, some companies exclude accommodations and cover meals only. You will have to check with your employer to see what is covered.
3. 1040 or 1040A
If there are any tax deductions that you can claim, then you also need the 1040 form or the 1040A form. The first is a detailed form while the latter version is a shorter one. 1040 covers everything, while the 1040A is used only for claiming certain tax credits and not for itemizing deductions.
There is another document – the 1040EZ is a form you need to avoid because it doesn’t cover deductions for the trucking industry.
4. Additional Information You Need
As the rest of the documents require no description, we’ll list them all here.
- Personal information (social security number)
- Personal tax information
- Bank information
- Information on the truck you drive
- Deductible items (depends on which things you use and the ones which can be deducted)
- Information on the days and nights you’ve worked on and the off days you’ve had
So that about covers everything you need to prepare before you embark on the tiresome adventure of doing the taxes! While it might seem complicated, once you have a checklist like this one and start crossing things off item by item, you’ll be done in no time.
If you want to make this even more relaxed and get some useful advice for taxes in the trucking industry, contact Golden Tax Relief whenever you want. We are tax resolution professionals, but we also specialize in taxes for truckers, which is why we can provide you with all the information and help you need.