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Filin Taxes for a Lease Truck Driver!?
My husband is about to file his taxes and we are wondering what we are going to have to pay taxes on. This is the first year he is filing as truck driver. He worked for CR England and got a profit and loss ytd comparison every month. It shows how much he made overall and then everything he paid for through the year and then what he actually brought home. Over all he made around $125,000 but paid out $89,000 in expenses and actually brought home around $38,000. So which do we pay taxes on $125,000 or $38,000. He has all of his receipts and everything else we need to file taxes but we just don't know which amount we will be paying on. We are hoping it will be $38,000 and that would make since anyway, right? Could someone please help????
Also Opportunity Financial Services, which is affiliated with Cr England, Where my husband no longer works says that they will file his taxes. Now if he gets anything back can they keep it, is that legal? He has reciepts for eveything and I do mean everything and he had monthly reports done so everything is accounted for.
8 Answers
- Lyrics QueenLv 41 decade agoFavorite Answer
My husband is also a truck driver and we are going through some crap with IRS because he grossed over $100,000 last year and he had to dig up every little receipt he could find. Is your husband and owner operator? If so, he needs all his receipts for fuel, food, truck repairs, oil changes, ANYTHING that has to do with his job. My advice, DO NOT GO TO H&R BLOCK. That is why we are in the situation we are in now. Take everything to a CPA and they will do everything correctly.
- Bostonian In MOLv 71 decade ago
If he was driving a leased rig he was paid as an owner-operator and is self-employed. NOBODY is going to "file his taxes." That's entirely up to you two!
His income and expenses will go on Schedule C or C-EZ. Expenses include the lease payments on the rig, fuel, maintenance, repairs, tolls, permits, taxes, lumpers' fees, hotels, lot fees, meals (50%), etc. The net profit then goes to line 12 of Form 1040 and also to Schedule SE to calculate the self-employment tax.
None of this goes on Schedule A -- that's for personal itemized deductions like mortgage interest, charitable donations, etc., not business expenses. And you can't use Form 1040-A as another seems to think since you cannot file self-employment income on that form.
- karibaLv 51 decade ago
This is not as simple as might be assumed. You first need to file a form 1040A in order to claim all deductions. If he is an owner operator he will be able to claim more deductions, if he is a driver it will be less. Either way he will be able to claim days out (per diem). I suggest, if you are not confident in filing taxes, than you hire a tax preparer for this year. If you husband is a driver, a simple college class on taxes will enable you to be able to file next year. If he is an owner operator it will take a few advanced accounting classes to have the necessary knowledge to file and benefit. Remember that not all expenses can be claimed either way. Let me know if I can help with any questions on this!
They cannot keep any refunds. I would not have them file as they could manipulate the refund in their best interest. By being a lease truck driver is he paid as an owner operator or as a driver? This is the main question in your tax filings.
Source(s): Husband owned a truck for 10 years and is now a Safety Supervisor for a trucking company. I have a business/accounting degree. - How do you think about the answers? You can sign in to vote the answer.
- Anonymous1 decade ago
If you can properly document the expenses, you can deduct them.
If he is paid as an employee, the expenses flow through the W-2 and there is a limit to how much you can claim (Alternative Minimum Tax kicks in).
I suspect you will be paying on more like $50,000.
- The gr8t alienLv 51 decade ago
You will pay taxes on everything he made but you will pay less if you Itemize. Why didnt he pay his estimated taxes every quarter in the long term he would have been better of. I leased a truck for a while and found out it was not for me. The more loss you can show in your business the better.
- JssLv 71 decade ago
You are self employed or independent contractor. You will report your income and expenses on schedule C or C-EZ (Form 1040). This income is subject to SE tax at 15.3%. Read about self employed (or independent contractor) tax filing and payment of estimated taxes: http://taxipay.blogspot.com/2008/04/tax-filing-by-...
- 1 decade ago
He can claim meals while working, clothing for work, phone used while gone for work, lots and lots of things, check with your tax rep and make sure you have the reciepts for anything you think might be a write off.
