04 Nov How Truck Drivers Can Get Their Taxes Done On Time
On top of spending weeks on the road, finding time to learn how to file your taxes as a truck driver and send them at the right time to the proper destinations can be challenging. But let’s face it – it’s important. So, what tax forms you need to fill out and when? What tax deductions can you claim as a truck driver? Here are some helpful tips and tricks to make this process as straightforward as possible:
1. Filing Forms
Truck drivers working under a company will receive a W-2 form. This form reports a trucker’s annual wages and income and should be presented to employees by the end of January. Truckers then have to take this form and report their taxes on the standard 1040 or 1040A federal income tax form. However, if you are an owner-operator truck driver, you have a couple of options for reporting income. First, you can choose to report your income using your personal detailed records, but this can be difficult, confusing, and time-consuming. Instead, you can opt to file Form 1099, used to report miscellaneous annual income.
2. Tips for Filing Forms
If you are new to the trucking industry, you may not be aware of what expenses can be deducted. A simple way to discover what expenses are deductible is to do your research. For example, small expenses, such as protective gloves, logbooks, cell phones, cleaning supplies, clipboards, and boots can be deductible.
Additionally, truckers can claim mileage as a deduction, so make sure to keep a track of your gas expenses. Actually, in the list of ‘big’ deductions, there are things such as fuel, insurance, health insurance, license fees, repairs and maintenance, tires, or even food and veterinary bills for a truck dog, a guard dog that acts as a security for the truck.
3. Filing Your Taxes via an Online Service or Through a Professional
When you work hard and spend a lot of time on the road, it’s comforting to know that you can do your taxes via an online service or even through a hired professional.
Completing your taxes through an online service is simple, and it saves time. However, if you notice your tax bracket increasing over the last couple of years, you should consider hiring a tax professional. This will help you ensure that you are properly reporting your earnings and filing your deductions correctly.
Lastly, make sure to keep your paperwork organized. The best thing to do is to designate a small area of your personal space for keeping your tax files. The more organized and prepared you are for the upcoming tax season, the less stressful it will be.
Remember that if you don’t pay your quarterly tax estimates on time, the IRS will charge underpayment penalties and interest for the tax not paid. If you still need some additional tips or information that wasn’t covered in this blog, make sure to check our other blogs or contact Golden Tax Relief directly – we want to hear from you!