tax info for truck drivers

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Presentation Description

Information on the difference between an employee and an independent contractor, how to keep track of expenses, and what deductions a truck driver can take.

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Tax Info For Truck Drivers Who Are Self-employed : 

Tax Info For Truck Drivers Who Are Self-employed Presented by: David A. Perez Liberty Tax Service 810 N 13th St Harlingen, TX DPerez835@aol.com 956-365-4TAX

Employee vs. Independent Contractor : 

Employee vs. Independent Contractor Employees receive a Form W-2, Wage and Tax Statement Independent contractors receive a Form 1099-MISC, Miscellaneous Income

Department of Transportation – “Hours of Service” Worker : 

Department of Transportation – “Hours of Service” Worker If your meals are during any period that you are subject to the DOT “hours of service” limits while trucking, you can deduct 80% (instead of the usual 50%) of your meals. A higher standard meal rate also applies. These are periods away from your tax home that limit your driving time, based on time off duty or allowed sleep time, in order to maintain alertness and road safety.

Per Diem – Meals & Lodging : 

Per Diem – Meals & Lodging Standard meal allowance (M&IE) is $52/day for transportation workers (DOT “hours of service”) Deduction for M&IE is 80% of amount claimed on tax return NO standard rate for lodging so must claim actual expenses paid. Keep all receipts!!!

Keeping Records : 

Keeping Records Keep a notebook or ledger to track M&IE as well as required rest periods. Every time you stop your rig, write down: Date Time Odometer reading Where you are Why you stopped

Expenses You Need to Track : 

Expenses You Need to Track Telephone calls to locate a terminal or get directions Truck washes Lodging – actual expenses ONLY Showers (if tractor is self-contained sleeper) CDL renewals Locks, straps, bungee cords, work gloves, etc. Lumpers Fax, Fed Ex, or other shipping costs. Taxi rides if related to M&IE Truck repairs and maintenance Tires, oil, fluids, etc.

Sample Travel Log : 

Sample Travel Log 6/1 8:20 307829 Waffle House Orlando, FL Eat($10.35) 6/1 8:45 307830 Shell Orlando, FL Fuel($183.50) 6/1 12:30 308124 Rest Area Macon, GA required 6/1 15:15 308390 Terminal Name Atlanta, GA Receive load Lumpers $200 6/1 20:45 308610 Exxon Montgomery, AL Fuel($153.50) 6/2 11:15 308902 Terminal Name Biloxi, MS Deliver load Lumpers $215 6/2 15:20 309220 Circle K Biloxi, MS Fuel($190.23) 6/2 15:40 309230 Terminal Name Memphis, TN Receive load Lumpers $200 6/2 19:50 309503 Terminal Name Nashville, TN Deliver load

Tax Forms : 

Tax Forms Form 1040, U.S. Individual Income Tax Return Schedule C, Profit or Loss from Business Form 4562, Depreciation and Amortization

Operating Expenses : 

Operating Expenses Fuel Oil & other fluids Repairs, Tires Loan Interest Paid Lease Payment Taxes Paid Weight Ticket Transfer Costs

Depreciation** : 

Depreciation** Tractor rig original cost Improvements to the tractor Tools Class Lives Keep These Expenses Separate ** Refer to Publication 946, How to Depreciate Property

Questions? : 

Questions? Liberty Tax Service has 3,300 offices in the U.S. and 250 in Canada. 866-871-1040 rings into nearest office from a landline phone. Visit www.libertytax.com for the latest company news. Liberty Tax is a National Sponsor of the Relay for Life, Cell Phones for Soldiers, and Stop Hunger Now.

Slide 12: 

Thank You Presented by: David A. Perez Liberty Tax Service 810 N 13th St Harlingen, TX 956-365-4TAX e-mail

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