Tax Deductions for Truckers
A lot of truck drivers that operate and own their trucks believed that they are experienced enough in filing taxes. They also think that they know all of those factors to be deducted off their tax bills. But, since memories fade and tax laws change, it is still a good idea to review the expenses allowed by the government.
If you are a novice to this business of being a trucking owner-operator, you need to get a good understanding on how it affects you during the tax time. You must take a look at the process of filing your taxes.
Truck Drivers are treated differently than the Normal Employees
One of the significant things to understand about truck driver tax deductions is that truck drivers are treated differently than the normal employees. If you are a truck driver, you need to know if you will receive a 1099 or a W-2 at the end of the year. If you get W-2s, your taxes will be withdrawn from your paychecks on a weekly basis. If you also receive 1099S, the operator will be responsible in paying their taxes from their pocket.
Owner Operators Must File Another Form of Taxes Known as Schedule C
On the part of owner operators, they are still required to file another form of taxes known as Schedule C. This is the document that emphasizes the report on 1099 income and other truck driving income. For those novice truck drivers, they may not welcome the idea of filing another tax document or tax form. But, they actually have an advantage from other employees. As per the schedule C, it mainly considers their income as if it is sourced out their business. This only means that they are permitted to deduct their expenses dollar for dollar. Apart from it, they can also further deduct their expenses. It is just that the government only makes it difficult for them to do it.