Paying taxes as a subcontractor?

[intransit]

I will be driving for a fleet owner as a subcontractor. I understand I will not be listed as an "employee," therefore I will have to take out my own taxes. How does all that work? Are there quarterly payments, how do you know how much to reserve for tax time, etc..?! Thanks in advance.

 

[TruckingSurv]

Yes you have to pay, best advice I can give is consult a tax professional, will be worth it in the long run.

 

[vandriver2]

Find yourself a Tax Preparer who's familiar with Trucking Deductions and Per Diem.
Highly Recommend you do some Google Searches on the above for yourself.
Eventually you'll be better at knowing what to expect and what you need to gather and retain.
Don't count on anyone else to do your deduction numbers, you're your best advocate.

 

[Dynamite 1]

Go see some of the trucking companies in the town you live in and ask them who they use and if they are happy and have been with them for awhile. Best way to find a good tax person that knows trucking.

 

[ATeam]

It is a big, big jump to move from employee to self-employed; not so much because the driving is any different, but because of the many business aspects of the work. You are wise to ask questions. ATBS is a large company that serves thousands of truckers with tax preparation. They have some good business education resources that you may find helpful.

OOIDA, is a professional organization that serves owner-operators. They have a lot of good resources also. Join OOIDA, then give them a call and ask them your questions. Ask especially for the names of books or seminars that will help you successfully make the transition.

The learning curve is steep but once you figure out how to be successfully self-employed, the benefits make the effort you put into learning this way of life well worth the trouble.

 

[Fkatz]

Hi All,

This is Frank, from Frank's Tax & Business Service, in Kings Mountain, NC, It seem that this post is in my Formun, and as you all know i do Truck Driver Taxes for all who want.

Yes you are considered a Contractor, and you will have to pay based on the profit between the Gross and the net income that you report on your Schedule "C", Profit and Loss from Business and Profession.
All expenses are allowed against your Gross, including but not limited to the Per Diem Deduction and what your Fuel cost you are the biggest ones.
Everything, that you spend in or on truck are allowable deductions. Since you are a Sub Contractor you are going to receive a 1099 Misc. which would be shown on Line 7 of that form.as Non-Employee Compensation and is reportable on line 1 of your Sch C.
There are deductions that a truck driver can take as compared to the standard over the road salesman.
Showers. laundry, and supplies, insurance (Liability/Collision) Occupational Insurance, Qual-Com Satellite for your load posted for you, plus Dot Physicals, Drug Tests, there is a listing available on my website
www.frankstaxbusiness.com, check it out and it will give you a list of everything that is deductible.

If you also need any addtitional information please do not hesitate to ask!

Thank you
Franklin Katz, ATP, PA, Pb
Frank's Tax & Business Service
315 E King St
Kings Mountain, NC 28086
704-739-4039
fax: 704-739-3934
e-mail: [email protected]
and of course my website,
www.frankstaxbusiness.com