When you began driving a truck for yourself you didn’t realize that going into business for yourself meant having your own business. The choices you make may be dependent on the financial advice you get. A huge concern for a lot of long haul truckers is taxes. In the next three issues we will explore the many ways truckers can help reduce their tax burdens, sometimes substantially, with reliable financial advice from the pros. Do you want your money to pay the Obama administration or do you want to keep it in your own pocket?
Tax season is upon us again so we wanted to start a monthly column that discusses certain areas that are specific for the trucking industry. This month we’re focusing on Per Diem. Per Diem is by far the most misunderstood deduction available. Don’t be discouraged if you don’t understand Per Diem, as a very large percentage of tax preparation firms don’t know how to calculate Per Diem properly.
A truck driver is entitled to a per diem deduction any time he/she is away from home long enough to be required to take a rest break. The deduction is taken on Form 2106 for Company Drivers or on a Schedule C for Owner/Operators. For every day the driver is on the road, he/she can deduct for tax purposes $59 a day for meals and incidental expenses. For the days leaving and arriving home the deduction is ¾ of the daily rate. After the total amount allowed is calculated, it is adjusted by 80% for the tax deduction because you are in the transportation industry, (otherwise it is adjusted by 50%). So on the tax return, the deduction for meals is $47.20 for every day he/she is away from home. Do not forget to take this deduction along with other truck driver allowed deductions. The reason a company pays a driver Per Diem is too avoid paying him taxes on his full daily wage. It’s a nice break in the amount of taxes a company typically has to pay out per driver. Normally it works on a per mile basis, i.e. $.08 per mile. If an employee drives an average of 500 miles per day, the company pays him $40 Per Diem. This is still a wage; it simply does not have any taxes removed up front. The driver pays the tax at the time he files his taxes. The company can still claim this Per Diem expense, as it is a percentage of the drivers total labor wage. The driver receives a Per Diem deduction of $59 per day, (net $47.20), from the IRS. If the driver receives $40, ($.08 x 500), per day in Per Diem from his company, you take the $47.20 less the $40 to calculate his net deduction. So in turn, both the company and the driver are receiving deductions for the same paid out per diem.
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Trucker Tax Service, Inc. is proud to announce an exclusive contest for Benton and Parker e-magazine subscribers. If you have your taxes done by Trucker Tax Service, the experts in trucker’s taxes, you will become eligible for a drawing of 5 individual prizes worth $200 each! This is a double dip opportunity! Not only will you receive the best trucker tax representation available, you will also become eligible to put an additional $200 in your pocket!
The rules are simple. Have your taxes completed by Trucker Tax Service and you automatically receive an entry to win one of 5 – $200 cash awards! Please call or e-mail Trucker Tax Service and we’ll be happy to forward you one of our Trucker Tax Organizers to get you started. We look forward to first saving you hundreds, (possibly thousands), of dollars and then awarding 5 lucky recipients with Two Hundred Dollars in CASH!
Please contact us via our financial services e-mail address: email@example.com
Or please feel free to give us a call at anytime. We look forward to hearing from you soon.
Trucker Tax Service, Inc. (888)-799-1099 / office (888)-750-7557 / fax
Trucker Tax Service was created to service the truck driving community with a fast and secure method for filing taxes while on the road. Trucker Tax Service provides a streamlined approach to tax preparation, including electronic filing and direct deposit of all refunds. Our goal is to provide the most convenient method of filing taxes for everyone affiliated within the trucking industry.
Jim O’Donnell, President of Trucker Tax Service, spotted this unique opportunity while working for a tax service company. “With my previous experience dealing with the truck stop industry”, says Jim O’Donnell, “and my meetings and conversations with truckers, trucking company owners and truck stop operators, I confirmed the need for a virtual tax service for the drivers. Most people don’t realize how much time a typical driver spends on the road at terminals and at truck stops. They also don’t grasp how difficult it is for a driver to simply prepare their receipts prior to sitting down with a qualified tax preparer.”
Jim has over 28 years of experience in several industries, including the truck stop industry, Wi-Fi operations, franchise ownership and management, as well as owning his own technology company.
Jim realized the importance of providing a comprehensive tax preparation business to the trucking industry. He understands the needs of the driver and set out to design a company to meet those needs by offering a streamlined, convenient service.
Trucker Tax Service is very fortunate to have the highest level of experience managing their tax preparation and financial services departments. Jim Yergens is our Vice President of Operations. Jim is a CPA and has been in the accounting and tax field for over 20 years. He has extensive experience in preparing individual, corporate and partnership tax returns. Jim is also a QuickBooks ProAdvisor and can help in setting up QuickBooks for easy tracking of income and expenses for truck drivers.
Please feel free to contact us at anytime with any tax questions or concerns. We will be happy to help you through this tax season and make it a much easier and more gratifying experience.
TRUCKER TAX SERVICE, INC. – How We Can Help You
State and Federal Tax Preparation – Trucker Tax Service (TTS) will file all of your applicable state and federal taxes. If you’re married, TTS will file a joint return for you and your spouse.
Other Industries – Although TTS specializes in the trucking industry, our state of the art software, plus the years of experience of our tax professionals provides the ability to service any tax preparation need. Trucker Tax Service is a full service tax preparation company.
Quarterly Estimated Returns – Owner-operators are required to report their quarterly estimated taxes. TTS can file these quarterly returns on your behalf.
Profit and Loss Statements (P & L) – TTS provides monthly profit and loss statements for you to track your overall profitability.
Bookkeeping Services - TTS provides monthly bookkeeping services to maximize your time on the road and give you one less thing to worry about.
What else do you need? Talk to us! TTS would be happy to customize any part of the accounting process to help make your life easier.