Are you driving a big truck already and do you have the itch to get out on the road and drive for yourself? You may never have the desire to leave your cushy company driver job, but it does happen to many drivers. How long did it take you to get proficient enough to drive a big rig and drive confidently? In most cases it doesn’t happen overnight.
How about doing your own tax return each year, that is a fairly easy task and you can usually do it yourself. As a trucker your tax situation is a little different. If you don’t have much experience with filing truckers or quarterly taxes then you could leave some money on the table for Uncle Sam to take without you being able to stop them.
Well, how about a tax accountant for your trucking business. A good accountant can help save you a ton of money each and every year. Do you know about depreciation tables and how to figure for the depreciation of your equipment? Over time you might figure it out and do as good as an accountant, but you are a driver and you can make a lot more money driving your truck than you will spend on an accountant that will charge you a fee to do your taxes for you.
Having someone do your accounting can and will save you time and money. There are trucker programs to help you do your International Fuel Tax or IFTA. The programs are well worth it and depending on how many trucks you have on the road the benefit you will get from a tool like an IFTA program is great.
Each State has its own IFTA tax rate and it varies by a lot between the States. Fuel in one place may appear to be cheaper at the pump, but due to taxes it could actually be higher per gallon than the one you think is cheaper. An explanation of this may bore too many of you and it would be lengthy so please check that out by studying the quarterly IFTA charts.
A tax accountant wouldn’t get involved with your IFTA except when calculating your costs that you incurred when running your business.
Hiring a good qualified person or firm will go a long way to helping you understand how to operate your business to the best of your ability. With the data you gain from them you can make better and sounder judgment calls.
When you employ a trucker’s tax accountant you will need to package up all of your receipts for all of the repairs, fuel, taxes, parts and all of the miscellaneous items that you purchase for your truck during probably a 3 month period and then send a package into your accountant, who will in turn calculate your quarterly earnings so you can file the return with the IRS.
Did you know that some of the States even have a tax to drive on their roads? You have to calculate the miles driven in a year and then pay a tax on that. There are two that come to mind and they are Kentucky and Kansas. The first time you find out about them is when you get stopped for a routine stop at a scale house and they shut you down for past due taxes that you didn’t even know about.