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By: Mike Hosted, VP, ATBS From May 2020 until April 2022, we saw the biggest and longest freight boom in the history of trucking. Most great freight cycles are here and gone in 6 to 12 months, but because of many extraordinary factors like the COVID-19 Pandemic and government stimulus, this past booming freight cycle lasted two years! This caused an unprecedented number of ICs and trucking companies to obtain their own authority and move to the spot market to cash in on the record freight volumes and rates. However, as we stated in our article back in April, “the times were a changin”. Since April, we’ve seen: Fuel spike to nearly all-time highs. High volumes and rates in the spot market evaporate to pre-COVID levels. Maintenance costs continue to soar and parts remain scarce, which is causing much longer than normal downtime for repairs. Purchasing a new or used truck continue to be unbelievably expensive. AB5 became codified in California. Labor shortages causing headaches and delays at shippers and receivers. And now, contract rates are starting to drop. What a list of hurdles and changes! For the seasoned veterans out there, you know that trucking is cyclical and will always have its ups and downs. However, this last freight boom brought many new faces into the IC world of trucking. Those newer folks have never seen a downturn and therefore may not know how to manage their business in a down market. Yes, some will fail and go back to being a company driver or even leave the industry altogether. However, for those who want the American Dream of owning their own business… now is the time to dig in and make your business as efficient as possible while taking some extra steps to ensure success! It’s really time to get back to the basics. Any football fan can relate that it’s time to focus on “blocking and tackling” to push your business forward. Getting back to business fundamentals 101 will not only keep you afloat now, but set you up for even better success when freight gets back to great levels in the future! So what can you do right away? Don’t Panic, Rates are Down Everywhere The grass isn't greener on the other side and changing carriers is extremely expensive when you factor in downtime. Expand your area of operation and go places others don’t want to. A significant number of drivers now have the mindset that they won’t go to certain areas of the country. That can really shrink the availability of good-paying loads. Re-explore and be open to going into more difficult markets while having an understanding of your cost per mile and the time it takes to get in and out of there. Understand Your Profit Plan and Update Your Numbers. Now is the perfect time to take a step back and evaluate your profit plan. Putting together your revenue forecast, fixed costs, and variable expenses can help you identify where to make financial changes quickly. If it is done correctly, you can also understand your break-even point, or how much revenue you need to generate to pay your trucking and home bills. You can also identify your needed tax savings quickly to make sure you don’t fall behind with Uncle Sam. Reduce Your Biggest Cost Right Away! Fuel is the highest cost for almost every truck. Luckily, it’s also the cost you can control the most. Habits and the latest fuel technology are quick additions to reduce your biggest cost. Remember every dollar you save on fuel goes directly into your pocket! What do you need to set up for more long-term success? Monthly Financials (P&Ls) A good business always tracks its financials and monitors them at least monthly. Now that you’ve set up your new profit plan and know what it takes to be successful, make sure you have a scorecard to monitor your progress. A profit and loss statement can be compared to your profit plan to make sure you are reaching your revenue and expense goals to hit the bottom line you need to achieve your own personal success. Change Your Revenue Mindset Consider running lanes and routes you haven’t previously. Don’t just focus on the highest rate per mile; focus on generating the most revenue per day over a sustained number of days. This may include accepting some substandard rates that get you into a market where rates are higher. Don’t sit and wait (layover) hoping for a better rate the next day. The average O/O has business and personal fixed costs of $240/day. If you sit two days waiting for a load that pays more per mile, you’ve dug yourself a hole of $480 that is harder to get out of. Make Sure You are Saving Enough for Repairs Maintenance is the #1 reason for IC failure. It’s not always the cost of the repair itself that causes a business to fail, but often can be the extended downtime associated with the repair where you still have fixed costs and home bills to pay without generating revenue. You need to make sure you have an in-depth and personalized maintenance plan for your truck. Our average IC is saving between 12-14 cents per mile. Be More Frugal Sometimes the best way to have better cash flow in tough times is to really really watch your spending. Shop around for the best price on fuel. With a carrier, that is often what the fuel routing software tells you. Check on your insurances to make sure they are appropriately assessing the value of your truck. Most importantly, when times are tough, be frugal with personal spending on the road. Eating at restaurants has become very expensive and is a great way to increase spending quickly! The bottom line is that things in trucking took a major downturn here in the last six or seven months. For some of us, this is just another cyclical event that we’ve been through before, and we’ll survive this one too. For those of you who are newer to this world, we need to focus on getting back to the basics. Tighten your financial belt, start making changes today, have a more in-depth long-term plan, and work a little harder. Tough times can easily be defeated with hard work, and it will always set us up for better success when things turn around like they always do! At ATBS, we have worked with owner-operators for almost 25 years with the purpose of helping our clients become more successful business people and save money on taxes. If you feel alone and down about the market, give us a call and we will fight with you to come out of this stronger than ever. Ready to get started? Visit www.atbs.com or call (866) 920-2827.

Partnership with American Truck Business Services provides access to discounted services for truckers from the industry’s largest tax and accounting firm PHOENIX – December 5, 2022 – Trucker Path, the most comprehensive and most used mobile app for North American truckers, today announced a partnership with American Truck Business Services (ATBS), the provider of tax and business solutions for truck drivers and small fleets. Accessible via www.atbs.com/trucker-path, Trucker Path users can save money with discounted ATBS offerings. “Tax and business planning and reporting are often a challenge for drivers and small fleets,” said Chris Oliver, CMO at Trucker Path. “The services that we’re offering to the Trucker Path community through our partnership with ATBS will make it easier for them to manage their businesses. These discounted offerings from ATBS are the latest example of how we’re focused on delivering relevant and valuable solutions that help our community of truckers operate their businesses more efficiently and effectively.” The Trucker Path community of owner-operators, drivers and small fleets can now access the ATBS RumbleStrip series of services through a secure client portal: RumbleStrip Essentials—Bookkeeping and tax services, including profit and loss statements, estimated quarterly and year-end federal and state tax returns, and unlimited access for tax questions. RumbleStrip Professional—All RumbleStrip Essentials services and a deduction maximizer, detailed profit plans, business and personal budget plans, industry benchmarking, and unlimited tax and business consulting. ​ RumbleStrip Enterprise—A complete back-office solution that includes all RumbleStrip Essentials and RumbleStrip Professional services as well as corporate tax returns, bank and credit card statement reconciliation, business incorporation, and unlimited tax, business and payroll consulting. Payroll and entity formation services are also available to RumbleStrip Enterprise users for an additional fee. “With Trucker Path we can now bring our comprehensive and convenient tax and accounting services to their large audience of drivers,” said Todd Amen, President and CEO at ATBS. “Through our joint efforts, we can help the entire Trucker Path community balance the time it takes to meet business responsibilities with the very important need to have free time to spend with family, friends and on personal interests. We are excited to be working with Trucker Path.” About ATBS American Truck Business Services (ATBS), headquartered in Golden, Colorado, is the industry’s largest tax and accounting firm for owner-operators and truck drivers. Since its founding in 1998, the firm has helped over 150,000 truck drivers with their businesses. For more information, visit www.atbs.com. About Trucker Path Phoenix-based Trucker Path is the provider of a wide range of truck driver-centric mobility products. Its Trucker Path app is currently in use by over 1 million professional truck drivers. Offering best-in-class navigation with truck optimized routing, the Trucker Path app also provides access to vital up-to-date information about truck stops, real-time available parking, fuel prices, weigh station status, and truck scales and wash locations. The company also offers TruckLoads, a digital freight exchange that connects drivers, carriers and brokers; COMMAND™, the industry’s first and only Operations & Driver Relationship (ODR) platform that provides small to mid-size fleets with the necessary driver and TMS technologies to successfully run a fleet; and DISPATCH, a full-service dispatch service designed specifically to serve the back-office needs of small carriers and owner-operators. For more information, visit www.truckerpath.com.

Recently, I had the privilege of getting an inside look at how ATBS, a corporate tax and consulting company, functions. Being a truck driver, I definitely felt out of my element, however, I did see how this professional corporate atmosphere may appeal to certain people. Today, I will talk about these demographics and how they interact with each other. This is just a personal observation, but office workers are more likely to have a formal education, as opposed to drivers who usually don’t. Generally speaking, people who go to college tend to have more liberal/ progressive values, as do people who live in cities. This contrasts with the average driver, who tends to be blue-collar and holds traditional, conservative values. Why highlight these values? To better understand our coworkers and customers, we should acknowledge and celebrate our differences. This is what’s at the heart of the value of diversity. A shared goal we have is to grow together and create a thriving business that serves our community. Any feelings of animosity or disdain should be acknowledged and released, keeping in mind our shared goal of cooperation. Remembering that it’s “us versus the problem” helps reinforce this notion. To combat any team or tribal biases, it’s good to keep respect in mind. Specifically, respect for someone’s freedom to choose their values and beliefs without the need to persuade them otherwise. Respect and acceptance with a desire to serve is how I choose to show up for my customers. Genuinely empathizing with each other's values, will encourage a better relationship with everyone we do business with. I appreciate ATBS for making the effort to better connect with its customers. They play a vital role in ensuring the success of my business, so that I may continue to provide excellent service to my customers. Thank you for taking the time to read this and remember: United we stand, divided we fall. Sources: https://www.pewresearch.org/politics/2016/04/26/a-wider-ideological-gap-between-more-and-less-educated-adults/ https://www.zippia.com/professional-truck-driver-jobs/demographics/

El Per Diem (Por Día) es una de sus mayores deducciones fiscales como propietario-operador, pero ¿qué es exactamente? En los términos más simples, la deducción de Per Diem es una deducción de impuestos que el IRS, (El Servicio de Impuestos Internos,) permite para justificar los gastos ordinarios y necesarios de comidas de negocios y gastos incidentales pagados o incurridos, mientras se viaja fuera de casa. En este artículo, discutimos las reglas específicas sobre el uso de esta importante deducción fiscal. Como resultado del acto de Tax Cuts and Jobs, (La Ley de Recortes de Impuestos y Empleos), los empleados conocidos como conductores de empresa, ya no son elegibles para reclamar esta deducción. El IRS si permite que los contratistas y los trabajadores de transporte autónomos, sujetos a las normas de horas de servicio que viajan por negocios, deduzcan los gastos de comidas de sus ingresos. La cantidad diaria es fijada por el IRS. La cantidad actual para 2022, (última actualización el 1 de octubre de 2021) es de $69 por día en los EE. UU continentales. Es posible que escuche que la cantidad de la deducción es $55.20. Antes del 2021, el IRS permitía una deducción del 80%. Pero, temporalmente para 2021 y 2022, la Ley Federal de Asignaciones Consolidadas de 2021 (FCAA), aprobada el 27 de diciembre de 2020, permite una deducción del 100 % en Per Diem. ¿Necesita ayuda para calcular su deducción de Per Diem y declarar sus impuestos? ¡Llámanos al número 866-920-2827! Para tener derecho a estas deducciones, la publicación 463 del IRS establece que usted está viajando desde su casa si cumple los siguientes requisitos: Sus deberes le obligan a estar fuera del área general de su domicilio tributario mucho más tiempo por mucho más que un día de trabajo ordinario Y Necesita dormir o descansar para satisfacer las demandas de su trabajo, mientras esté fuera de casa. Las reglas además afirman que tomar una siesta no satisface el requisito. Sin embargo, "no es necesario estar fuera de casa durante todo el día, siempre y cuando su descanso de las responsabilidades sean suficientes para dormir o descansar lo necesario. " ¿Qué significa esto para un camionero? Si usted es un operador propietario, la regla es simple. Usted puede reclamar la deducción fiscal por cada día que usted está fuera de su "domicilio tributario". En los días que salga de la casa y los días que llegue a casa, usted debe reclamar un subsidio parcial por día. Eso es ¾ de la asignación estándar. Las cosas se vuelven un poco más complicadas si usted es un camionero local. ¿Sale de casa por muchas horas? Los conductores locales y regionales a menudo están fuera de sus hogares por mucho más tiempo que una jornada de ocho horas. Por lo tanto, cumplir con la primera parte de los requisitos es sencillo. Sin embargo, ¿se da cuenta del "Y" entre los dos requisitos? Esto significa que debe cumplir con ambas condiciones para poder reclamar la deducción. Otra forma de verlo es que los conductores que comienzan y terminan un viaje en casa el mismo día laboral del DOT HOS no pueden reclamar la deducción. Ahora puedes llevar un registro de tus días lejos de casa fácilmente con nuestro ATBS Per Diem Tracker! Además, la publicación IRS 463 establece que debe tener un " domicilio tributario". Hay tres pruebas para determinar su domicilio tributario. Para cumplir con los requisitos, debe cumplir al menos dos de las tres pruebas siguientes: Usted tiene gastos en su vivienda principal que sean duplicados debido a que su negocio requiere que usted esté alejado de esa casa. Usted no ha abandonado la zona en que se encuentran, tanto en el lugar histórico de su alojamiento y su vivienda principal; usted tiene un miembro o miembros de su familia que viven en su casa principal; o que utiliza, frecuentemente esa casa para su hospedaje. Realiza parte de su negocio en el área de su vivienda principal y usa aquel hogar para alojamiento al hacer negocios en la zona. Entonces, ¿qué significa todo esto? En pocas palabras: Debe estar fuera de casa durante "un tiempo sustancialmente más largo que un día de trabajo normal", según el IRS. Usted debe tener una casa de la que se aleje al viajar. Para 2021 y 2022, si cumple los dos requisitos anteriores, puede deducir $69 por cada día completo fuera de casa como conductor y como acompañante que ayuda en las funciones de la empresa. Puedes deducir $51.75 por cada día parcial como conductor y como acompañante que asiste a funciones empresariales. En ATBS, le recomendamos que mantenga un calendario para su Per Diem poniendo una "X" en los días fuera de casa, y un '/ ' en los días parciales. De esta manera, puede contar exactamente cuántos días de Per Diem tiene para su preparador de impuestos cuando llegue la temporada de impuestos. Para probar su Per Diem, tendrá que ser capaz de proporcionar los registros DOT ELD con la hora, la fecha, y la ubicación. Además, es una buena práctica guardar todos los recibos y documentación de los viajes durante al menos 3 años. El Departamento de Tesorería y el IRS siguen trabajando para clarificar varios asuntos fiscales que fueron afectados por el acto de Tax Cuts and Jobs. Si hay regulaciones en el futuro que sean publicadas, e impactan el Per Diem deducción, ATBS continuará actualizando esta información, y comunicará los cambios. Si usted tiene alguna pregunta sobre el Per Diem, por favor háblanos al número 866-920-2827.

As an owner-operator truck driver, your health is the most important thing when it comes to doing your job. If you become sick or injured, this could result in extended downtime as you may not be able to drive. While many company drivers are offered sick pay, owner-operators do not have this luxury. On top of this, not having health insurance could lead to additional costs in the long term. This is why truck drivers should consider the types of health insurance plans available to protect their future finances. If you have the right health insurance plan, it will go a long way toward ensuring that you get the affordable medical care you need quickly so you can get back on the road as soon as possible. Health Insurance Expenses Premiums As an independent contractor, you can seek a health insurance plan that offers individual or family coverage through the marketplace, a private insurer, or a trade association. When you sign up for a health insurance plan, you must pay your monthly premiums on time to keep your policy in effect. If you are late, your health coverage may be canceled. However, since you are self-employed, you can claim a 100% deduction of your health insurance premiums if your employed spouse doesn’t have access to company-offered insurance. If you have one or more employees who work for you, it might be possible for you to qualify for a small group coverage policy. The premiums you’ll pay for health insurance on behalf of your employees will be fully deductible. As an owner-operator, you are running your own small business, and the Affordable Care Act (ACA) defines a small business as a group of 50 or fewer full-time employees. Deductibles In general, the deductible refers to the amount of money an individual will be responsible to pay before significant health insurance benefits kick in. In general, the higher the deductible is the lower the monthly premium costs will be. Tax Tip - Use a health savings account (HSA) in combination with a high deductible health plan (HDHP) to save money tax-free. Grow the HSA balance by contributing frequently at hold a balance of at least your deductible. Think of this as a health escrow similar to your maintenance escrow. The HSA funds can be used to pay your deductible and other health-related costs. Bonus Tip - For 2022, the maximum contribution amounts are $3,650 for individuals and $7,300 for family coverage. If you're 55 or older, you can add up to $1,000 more as a "catch-up" contribution. HSAs have no use-it-or-lose-it provision. Any funds still in the plan at the end of the year can be rolled over indefinitely. People that are in good health may be more likely to choose this option. Copayments In general, individuals are responsible for paying for a portion of their health costs such as doctor visits or purchasing prescriptions. The amount paid by the individual will depend on the health insurance plan you choose. Coinsurance This is the percentage of the medical costs that you’ll have to pay after reaching your deductible and before reaching the max out-of-pocket amount. For example, if your plan offers an 80/20 policy, your insurance company will 80% while you’ll have to pay 20% of the cost incurred after you reach your deductible. Max out-of-pocket This is the total cost for an individual or family for medical costs. When medical costs, during the year, exceed the plan’s maximum out-of-pocket cost, the medical excess costs are covered by the insurance company. Insurance Options Federal or State Marketplace One option truck drivers have for health insurance is an individual or family plan through the Affordable Care Act (ACA). You can get these plans through government exchanges or through brokers. The federal government creates an “open enrollment period” where you may enroll for the first time or change your health insurance without a qualifying event. The open enrollment period typically runs from November 1st through December 15th each year. In most states, health insurance plans start on January 1st of the following year. These health plans are required to provide essential health benefits, cover pre-existing conditions, and have limits on deductibles, copayments, and out-of-pocket maximum amounts. These are policies that are similar to employer-sponsored insurance. It’s important to note that health insurance plans are typically available by the state and zip code in which you live. This is important to consider when dealing with health insurance as a truck driver because you’re constantly traveling. Some truckers travel over state lines which means their health insurance may not cover them if they need healthcare while on the road. You should also know that, depending on your income, you can get a subsidy to help afford your monthly health insurance premiums. When you apply for health insurance through the federal or state marketplace or exchange, you need to estimate your family income for the year. If your income is below a certain amount, you may be eligible to receive a subsidy to help you pay your monthly insurance premiums. At the end of the year, you need to calculate how much your household income actually turned out to be. If your income is above the amount you estimated, you may have to pay back some or all of the subsidized assistance you received back to the marketplace as part of your tax liability. These subsidies had been set to expire in 2023 but the Inflation Reduction Act has extended these subsidies through the end of 2025. Short-Term Health Insurance Plans Short-term health insurance plans are great for those who find ACA health insurance premiums unaffordable. This insurance helps provide an affordable health insurance coverage safety net for those who can’t afford individual or family insurance. It’s important to remember that short-term plans can deny you based on pre-existing conditions or can refuse to pay for medical conditions the policyholder had before the plan took effect. While these plans are cheap and can provide you with some health insurance coverage, they do not have the same comprehensive coverage as ACA-compliant plans. Though the benefits are not as robust as an ACA-compliant plan, Short Term Health Insurance can save you money in insurance premiums. These plans are recommended for drivers that are in relatively good health. If you are just getting started as an owner-operator, an affordable Short-Term Medical Policy may help control your costs. Organizational Insurance Through the Truckers Service Association (TSA) you can enroll in Independent Advantage Health Insurance Coverage. They have two options, Major Medical coverage, and Limited Medical coverage. Major Medical options are available for owner-operators through many of the nation's top major medical carriers. Limited Medical coverage is their lower-cost alternative that provides assistance with day-to-day medical expenses. Limited medical plans have an annual cap on the amount the insurer will pay for medical expenses and some benefits have a per-visit limit. Contact a TrueChoices advisor to learn more and enroll. Truckers also have the option to become members of the Owner-Operator Independent Drivers Association (OOIDA) and take advantage of their healthcare and life insurance for themselves and their families. There are several benefits of OOIDA health insurance. The medical benefits group offers different types of plans so that OOIDA health insurance costs can vary. There are, however, many discounts and rebates offered by their service providers, which will help to bring down OOIDA insurance payments. Another organization truckers can join is the National Independent Truckers Insurance Company (NITIC). They provide health insurance plans specifically designed for truck drivers. These can include protection in the case of damage or injuries caused by trucking accidents. Deductibles can vary according to location, your driving record, and the location of your company. Medsharing Plans Another option truck drivers have for health insurance is government-compliant medsharing plans. These plans are similar to traditional health insurance except your premiums are put into an escrow account. Apart from the Member’s Shared Responsibility Amount, claims are paid through the escrow account. Preventative care, doctor’s visits, and prescription discounts are all things you can expect to be included in a Medsharing plan. You can typically purchase coverage through these plans year-round. The best policy is one that strikes a balance among premiums, deductibles, and coverage that makes sense for the individual. So Should You Have Insurance as an Owner-Operator Truck Driver? Treat insurance as an investment in your financial well-being, not just your health. While the vast majority of uninsured U.S. adults cite high costs as the main reason for lacking coverage, out-of-pocket medical bills are the leading cause of American consumer bankruptcy. Of course, not paying for insurance can be less expensive in the short term, but uninsured people are just an illness or injury away from catastrophic health and financial consequences. Sources https://ratings.freightwaves.com/best-health-insurance-for-owner-operators/ https://www.forbes.com/advisor/health-insurance/best-health-insurance-for-self-employed-people/ https://www.ehealthinsurance.com/resources/individual-and-family/how-to-find-health-insurance-for-truck-drivers https://americanhealthplansinsurance.com/health-insurance-for-truck-drivers/ https://www.nonforceddispatch.com/healthcare-coverage-options-owner-operators/ https://www.warriorlogistics.com/health-insurance-for-truck-drivers/

Everyone wants to have a successful tax filing season and we’re here to help you with the steps to take now to ensure a smooth process. Here are a few simple steps we require to ensure everything moves as smoothly and efficiently as possible. Step 1 - Don’t Delay in Sending in Business Income and Expenses Let ATBS do the heavy lifting on your bookkeeping now before the busy season arrives! We need the full picture of your income and deductions before the tax preparation process can begin. Stay diligent in sending receipts each month and if you need to catch up in sending ATBS your receipts from prior months, now is the time for action. Don’t spend time on things that aren’t necessary. Per diem is a large deduction for self-employed truck drivers. The documentation that the IRS requires can be supported using your electronic logs and your settlements. Make sure you are saving your electronic logs frequently. You can save time by not having to send ATBS your E-logs and food receipts because we’ll calculate your per diem deduction based on the number of days you spent on the road. Also, see our ATBS Hub Mobile App for our per diem tracking tool to make per diem tracking even easier. Step 2 - Complete the Annual Tax Questionnaire (Tax Organizer) You’ll want to be prepared to send the below documents submitted to ATBS as soon as possible as the new year rolls over. Some of the below documents won't be available in January but that doesn't stop you from preparing and being ready for when these documents are available. A great first step is to complete and submit the tax organizer that ATBS will send in December 2023. The tax organizer is used to kick off the whole tax process. Without a completed tax organizer, we won’t be able to get things moving. While we understand it can be a fairly lengthy document, it allows us to find every possible deduction to reduce your tax liability. Tax forms are also important. When your tax forms are available make sure you send a copy to ATBS. Forms such as: W-2 (Wages from employee jobs) 1099’s (Compensation from self-employed activity or other types of compensation) If you do not receive a 1099 look for a similar replacement document that verifies annual revenue such as a year to date (YTD), factoring statement, or other similar statements. 1095-A, 1095-B, or 1095-C (Health Insurance) Bill of Sales for purchased or sold pieces of equipment A copy of your prior-year tax return if ATBS did not file the return If you need help or have questions, please give us a call. Each year, incomplete tax organizers result in a significant slow-down in the tax return process. The sooner we receive your completed tax organizer, the sooner we can begin your tax return. Step 3 - Make Sure You’ve Paid in Full for Services Before we can get started on the tax preparation process, make sure you’ve paid your ATBS service fees in full. If you didn’t have one of our Rumblestrip full-service packages for twelve full months and you haven’t yet made the accounting completion fee payment, then it’s likely that you have outstanding tax service fees. If you are unsure about your current balance or would like to discuss payment options, please call us at 866-920-2827. Step 4 - Be Available We often have follow-up questions as we work through specific tax situations for clients. One of the most important things we ask of our clients is that you’re available to promptly respond to emails and voicemails from ATBS employees. The number one reason why the tax process is delayed is because we are unable to reach a client for answers to critical questions we need to complete their tax return. The sooner we can get things answered, the sooner we can move you along in the tax preparation process. Bonus Tip - Pay Your Quarterly Tax Estimates The purpose of filing a tax return is to report tax liability due to the IRS or file a claim for a refund. The IRS can’t assess penalties and interest if you don’t have a balance due. One of the top reasons that businesses fail is tax debt. To prepare and get ahead of any surprises you want to make all of your quarterly estimated tax payments throughout the year. Doing so will help you avoid penalties and interest from the IRS. ATBS is here to help take the burden and stress off your shoulders. Give us a call at 866-920-2827 and let one of our experienced tax professionals help you prepare your tax return.

The weather is beginning to get a little cooler across the United States and some of the higher elevations are beginning to see snow. That means it’s time to freshen up on the chain laws in the states that you regularly run. Alabama The use of tire chains shall be permitted upon any vehicle when required for safety because of snow, rain, or other conditions tending to cause a vehicle to slide or skid. Alaska You are not permitted to use chains from May 1 through September 15 when north of 60 North Latitude. You are not permitted to use chains from April 15 through September 30 when south of 60 North Latitude. If you are operating a vehicle on Sterling Highway, you are not permitted to use chains from May 1 through September 15. You will need to obtain a special permit from the Department of Administration if you would like to use chains in one of these prohibited zones. Arizona The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Arkansas The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. California California does not require trucks to carry chains during any specified time period. When the weather hits, though, it takes at least eight chains for a standard tractor-trailer configuration to comply with the regulations. During the winter months, there might be traction chain controls in the mountain areas. When these are established you will see signs posted along the highway. These signs will also include the type of requirement, which will include one of the following: R1 - Chains, traction devices or snow tires are required on the drive axle of all vehicles except four wheel/ all wheel drive vehicles. R2 - Chains or traction devices are required on all vehicles except four wheel/ all wheel drive vehicles with snow-tread tires on all four wheels. R3 - Chains or traction devices are required on all vehicles, no exceptions. Colorado From September 1 through May 31, all trucks must carry sufficient chains on I-70 when traveling between mile marker 259 outside Golden, CO and mile marker 133 in Dotsero, CO. If you get stopped and do not have chains on your truck, the fine is $50 plus a surcharge of $16. If you do not put chains on your truck when the law is in effect, the fine is $500 plus a $78 surcharge. If you do not put chains on and you end up blocking the highway, then the fine will increase to $1,000 plus a $156 surcharge. Colorado has two different types of chain laws: Level 1 - Single-axle combination commercial vehicles must chain up. Trucks must have all four drive tires in chains. When level 1 is in effect, all other commercial vehicles must have snow tires or chains. Level 2 - When level 2 is in effect, all commercial vehicles are required to chain up the four drive tires. Connecticut Chains are permitted during hazardous weather from November 15 through April 30. The chains can not be damaging to the highway’s surface. Delaware You are permitted to use chains on highways from October 15 through April 15. Georgia At any time the Georgia Department of Transportation may close or limit access to certain highways during inclement weather. If this occurs, signage will be placed to inform drivers that chains are required in order to proceed. For commercial vehicles, chains must be placed on the outermost drive tires. Idaho Officials with the Idaho Department of Transportation can determine that it is unsafe to drive over Lookout Pass and Fourth of July Pass on I-90, and Lolo Pass on Highway 12. If it is deemed unsafe, then you will be required to chain up a minimum of one tire on each drive axle and one axle at or near the rear. Illinois The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Indiana The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Iowa The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Kansas The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Kentucky No person shall use on a highway not covered with ice a vehicle with a chained wheel unless the wheel rests upon an ice-shoe at least 6 inches wide. When chains are used on rubber-tired vehicles, the cross chains shall be not more than three-fourths (3/4) of an inch in thickness or diameter, and shall be spaced not more than ten inches apart, around the circumference of the tires. Louisiana The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Maine Vehicles cannot have tires with metal studs, wires, spikes or other metal protruding from the tire tread from May 1 through Oct. 1. Other than that the use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Maryland The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Massachusetts Massachusetts prohibits the use of studded tires and chains between May 1 and Nov. 1 without a permit. The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Michigan The use of chains is allowed for safety when snow, ice, or other condition are present. If chains are used, they must not come in direct contact with the roads surface. Minnesota The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Mississippi The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Missouri No person shall operate any motor vehicle upon any road or highway of this state between the first day of April and the first day of November while the motor vehicle is equipped with tires containing metal or carbide studs. The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Montana If the Montana Department of Transportation determines that highways are too dangerous for travel, they may establish the following recommendations on traction devices: Chains or other approved traction devices recommended for drive wheels Chains or other approved traction devices required for drive wheels Chains required for driver wheels Nebraska The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Nevada It is unlawful for any person to operate a motor vehicle, whether it is an emergency vehicle or otherwise, without traction devices, tire chains or snow tires upon any street or highway, under icy or snowy conditions, when the highway is marked or posted with signs for the requirement of traction devices, chains or snow tires. If a highway is marked or posted with signs requiring the use of traction devices, tire chains or snow tires, a motor vehicle or combination of vehicles must be equipped with: Traction devices, tire chains or snow tires if it has a gross weight or combined gross weight of 10,000 pounds or less. Tire chains if it has a gross weight or combined gross weight of more than 10,000 pounds. New Hampshire The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. New Jersey The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. New Mexico The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. New York The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. North Carolina The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. North Dakota North Dakota also allows metal studs within 1/16 inch beyond tread from Oct. 15 through April 15. The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Ohio The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Oklahoma The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Oregon Oregon’s law applies to all highways in the state. Signs will tell you when you are required to carry chains and when you are required to use them. You will need to have six chains on hand to comply in Oregon. The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Pennsylvania The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Rhode Island The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. South Carolina The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. South Dakota The South Dakota DOT has the authority to restrict travel on roads. Signs will alert you to these restrictions. The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Tennessee The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Texas The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Utah When any designated highway is so restricted no vehicle shall be allowed or permitted the use of the highway, during the period between October 1 and April 30, or when conditions warrant due to adverse, or hazardous weather or roadway conditions, as determined by the Utah Department of Transportation, unless: An operator of a commercial vehicle with four or more drive wheels, other than a bus, shall affix tire chains to at least four of the drive wheel tires. Vermont Vermont has a traffic committee that will decide if use of chains will be required. The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Vehicles with semitrailers or trailers that have a tandem-drive axle towing a trailer shall have chains: On two tires on each side of the primary drive axle, or if both axles of the vehicle are powered by the drive line, one tire on each side of each drive axle; and On one tire of the front axle and one tire on one of the rear axles of the trailer. Virginia The use of tire chains are allowed when required for safety during a time of snow, ice, or another condition that might cause slippery highways. Washington Any commercial vehicle over 10,000 lbs. Gross vehicle weight rating should carry chains from November 1 to April 1 when driving on one of the following routes: Blewett Pass SR-97 between MP 145 and Milepost 185 Chinook Pass SR-410 Enumclaw (MP 25) to SR-12 (MP 342) Cle Elum to Teanaway SR-970 Cle Elum (MP 0) to Teanaway (MP 10) Gibbons Creek to Intersection of Cliffs Rd. SR-14 Gibbons Creek (MP 18) to Intersection of Cliffs Rd. (MP 108) Mt. Baker Highway (Ellensburg to Selah) SR-542 (MP22) to (MP 57) I-82 from Ellensburg (MP 3) to Selah (MP 26) Newhalem to Winthrop SR-20 Newhalem (MP 120) to Winthrop (MP 192) Omak to Nespelem SR-155 Omak (MP 79) to Nespelem (MP 45) Satus Pass SR-97 Columbia River (MP 00) to Toppenish (MP 59) Sherman Pass SR-20 Tonasket (MP 262) to Kettle Falls (MP 342) Snoqualmie Pass I-90 North Bend (MP 32) and Ellensburg (MP 101) Stevens Pass SR-2 Dryden (MP 108) to Index (MP 36) White Pass SR-12 Packwood (MP 135) to Naches (MP 187) West Virginia The use of chains is allowed for safety when snow, ice, or other condition are present. If chains are used, they must not come in direct contact with the roads surface. Wisconsin The use of chains is allowed for safety when snow, ice, or other condition are present. If chains are used, they must not come in direct contact with the roads surface. Wyoming When the chain law is in effect due to snow, ice or other conditions, travel on a highway may be restricted to use only by motor vehicles utilizing adequate snow tires or tire chains. There are two levels. Level 1: When conditions are hazardous, travel can be restricted to vehicles equipped with tire chains, vehicles with adequate snow tires, or all-wheel-drive vehicles. Level 2: When conditions are extremely hazardous, travel can be restricted to vehicles equipped with tire chains or all-wheel-drive vehicles equipped with adequate mud and snow or all-weather-rated tires. The operator of a commercial vehicle shall affix tire chains to at least two (2) of the drive wheels of the vehicle at opposite ends of the same drive axle when the vehicle is required to utilize tire chains under this subsection. Any driver that is in violation will face a fine of no more than $250. If the violation results in the closure of all lanes in one or both directions of a highway, you will face a fine of no more than $750. Image Source - https://www.flickr.com/photos/toddmccann/

Who Will Train the Next Generation of Truck Drivers? Every time I see a video of a rookie struggling to back up, or making poor decisions in other aspects of trucking, I immediately think of their training. Many CDL schools provide the foundation for new drivers, and then send them out on the road to learn on the job. They can't be fully prepared for every circumstance, but they can be well trained. What makes someone well trained? What makes a good trainer/trainee? Why is it so important to set a high standard when releasing rookies out on the road? Let’s explore the answers to these questions below: To begin, we should acknowledge the very unique training experience in the trucking industry. Most new drivers get 3-4 weeks of in-class experience where they learn the regulations and fundamentals, and then they’re put with a trainer for another 3-4 weeks to shadow them and get real-world practice. From there, they get put in a truck solo. This is the standard operating procedure for the industry. It should be mentioned that earlier this year, a law was passed that required anyone getting their CDL to have received training from an approved center. Previously, people could study independently, or learn from a family member, but now, to raise the standards of training, they’ve implemented this new regulation. What Are the Incentives to Becoming a Trainer? The most obvious is money. Less obvious, are the skills you gain from becoming a teacher. One of these skills being the newfound ability to discern work ethic/character by having a frame of reference that’s gained by evaluating a group of people. This may be advantageous for someone looking to hire for their own business. Also, a good teacher can identify strengths and weaknesses to provide precise feedback and help accelerate the trainee's growth. This translates to child rearing as well. Communication is a valuable skill that becoming a trainer will help you hone in on. There are some challenging aspects to being a trainer. I’ll leave it to you to use your imagination to create circumstances based on these personality characteristics. Attributes of a Good Trainer Patience, cleanliness, communication, discernment, adaptability, professionalism, accountability, responsible, concern, compassion, humility, empathy, and respect. Attributes of a Poor Trainer Irritable, haste, indifference, poor hygiene, poor temperament, lack of knowledge of the profession, lack of initiative, greed, and lack of morals or character. Attributes of a Good Student Is receptive to feedback, takes initiative, is respectful, professional, humble, clean, and grateful. Attributes of a Poor Trainee Arrogant, lazy, unaccountable, disrespectful, unhygienic, poor temperament, close-minded, indifferent, and lastly entitled. This is by no means a comprehensive list, but it does help illustrate some challenging aspects of the job. Lastly is the personal fulfillment that comes from assisting someone in beginning the next chapter of their life. Receiving sincere gratitude from these people is not expected, but most welcome. I had an incredibly pleasant experience getting started in my trucking career, and I want to contribute to the success of new drivers. Part of me feels responsible for helping create the drivers I will be sharing the road with. Changing the world, one driver at a time, by raising the bar on safety and etiquette standards. Putting the time and effort into preparing a new driver goes a long way in ensuring their success. If every old school driver who looks to the sky/boomer book, shaking their fist, cursing this new generation of "steering wheel holders," transformed that fist into an olive branch with a spirit of camaraderie, and used their vast experience to educate the people that they enjoy ridiculing, then they would become the change they want to see in the world. Source: https://driving-tests.org/new-entry-level-driver-training-requirements-2022/

Per Diem (per day) is one of your largest tax deductions as an owner-operator, but what is it exactly? In its simplest terms, the Per Diem deduction is a tax deduction that the IRS allows to substantiate ordinary and necessary business meal and incidental expenses paid or incurred while traveling away from home. In this article, we address the specific rules around using this significant tax deduction. As a result of the Tax Cuts and Jobs Act, employees known also as company drivers are no longer eligible to claim the Per Diem deduction. The IRS does allow contractors and self-employed transportation workers, subject to the hours of service regulations that travel for business, to deduct their meal expenses from their income. The per diem rate is set by the IRS. The current rate for 2023 (last updated October 1, 2021) is $69 per full day and $51.75 per partial day in the Continental US. You may hear the amount of the deduction quoted as $55.20 per full day. Temporarily for 2021 and 2022, the Taxpayer Certainty and Disaster Relief Act of 2020, allowed a 100% deduction on Per Diem. Starting in 2023, the deduction has gone back to 80%. Need help calculating your Per Diem deduction and filing your taxes? Click here! In order to qualify for these deductions, IRS publication 463 states that you are traveling from home if: Your duties require you to be away from the general area of your tax home substantially longer than an ordinary day's work, AND You need to sleep or rest to meet the demands of your work while away from home. It further states that taking a nap does not satisfy the requirement. However, “you do not need to be away from home for a whole day, as long as your relief from duty is long enough to get necessary sleep or rest.” What does this mean to a driver? If you are an owner-operator, the rule is simple, you get to claim the tax deduction for each day that you are away from your “tax home”. On the days that you depart and the days that you arrive at home, you must claim a partial day allowance instead of a full day allowance. That is ¾ of the standard allowance. Things become a little more complicated if you are a local driver. Are you gone from home long hours? Local and regional drivers are frequently away from their home much longer than an average eight-hour workday. Therefore, fulfilling the first part of the requirements is simple. However, notice the “AND” between the two requirements? This means that you must meet both conditions in order to claim the deduction. Another way to think of it is, drivers who start and end a trip at home on the same DOT HOS work day cannot claim per diem. Easily keep track of your days away from home with the NEW ATBS Per Diem Tracker! Furthermore, IRS publication 463 states that you must have a “tax home”. There are three tests to determine your tax home. In order to meet the requirements, you must satisfy at least two of the three following items: You have living expenses at your main home that you duplicate because your business requires you to be away from that home. You have not abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging. You perform part of your business in the area of your main home and use that home for lodging while doing business in the area. So what does this all mean? In a nutshell: You must be away from home for 'substantially longer than a normal work day', per the IRS. You must have a home from which to be away. For 2021 and 2022 taxes, if you meet both requirements above, you can deduct $69 for each full day away from home as a driver and as a ride-along that assists in business functions. You can deduct $51.75 per partial day as a driver and as a ride-along that assists in business functions. At ATBS, we believe that a good way to start tracking Per Diem is to keep a Per Diem calendar, where you put an ‘X’ on full days away, and a ‘/’ on partial days. That way you can count up exactly how many days of Per Diem you have for your tax preparer come tax season. In order to prove your Per Diem, you will need to be able to provide DOT ELD logs with time, date, and location. Also, it's good practice to keep all receipts and documentation of travel for at least 3 years. The Department of the Treasury and Internal Revenue Service continues to work on regulations clarifying various tax matters that were affected by the Tax Cuts and Jobs Act. If future regulations are published that impact the per diem deduction, ATBS will update this information and communicate any changes. If you have more questions on Per Diem, please contact ATBS at 866-920-2827.

Stress is a part of life, but as truck drivers, we deal with a unique set of circumstances. Whether it's navigating through a congested city, stopping traffic to dock at a customer, or getting a routine inspection by the DOT at some point, there can be pressure and anxiety associated with trucking. How we respond in these moments will contribute to our success and peace of mind, or dissatisfaction, if we allow it. So, here’s my quick and simple formula for managing stress, I hope it helps: Accept Acceptance allows us to recognize that we are choosing to focus on one emotion, yet we are capable of choosing another. Life is going to throw us curve balls, and we don’t need to worry about things outside of our control. Don’t waste valuable mental energy ruminating over something that can’t be changed. Remember that we’re human, and it’s okay to have an impulse to give in to anger and stress. Often we behave in patterns, and creating new patterns of behavior and trying to condition ourselves to have new initial reactions, takes practice. It’s a skill. Take responsibility for your emotions. Anger can sometimes be the result of a victim mindset if our perception is one of injustice. Life is happening “for us,” not “to us”. This segues nicely into the next step. Select We should ask ourselves, how do we want to respond? Are we responding in haste, thoughtlessly, or otherwise limited? There is an infinite number of responses we can have. How often do we consider one response, or even two? I strive for wisdom, grace, and tact, but as a human, I find it challenging sometimes. There’s one thing that we do have supreme control over, and that’s how we choose to respond to situations. Learning how to take charge of this power should not be undervalued. Selecting is understanding that our thoughts create our emotions, and becoming aware of different perspectives is the same as becoming aware of different thoughts. A quick example to illustrate my point is as follows: Someone cuts you off in traffic. One response may be, “What a jerk, this guy is being reckless and inconsiderate of other vehicles on the road”. Another response could be, “There might be an emergency, possibly a hurt child or pregnant woman”. Even a third response, “That guy must really have to use the bathroom”. Notice how each one of these could influence our behavior and temperament. Embrace So something happens, we have an impulse to respond, we’ve considered multiple different responses, and have settled on what we feel is the best perspective. Now it’s time to embrace our choice. We may need to set little reminders for ourselves, until sitting in a new emotional state becomes a habit. I have set reminders on my phone asking, “How do I want to respond?” or maybe a post-it note, or jewelry, that reminds you of this incredible power. Get creative, and if you want more information on why this is so important consider these implications: The negative health effects of stress. People say “Don’t stress, you’ll give yourself an ulcer”. That goes deeper than we know. Our thoughts can make us sick, but is the opposite true? People say “laughter is the best medicine,” and don't realize that this is truer than we know. Emotions are hormones and chemicals in the body. “Research has found a link between an upbeat mental state and improved health, including lower blood pressure, reduced risk for heart disease, healthier weight, better blood sugar levels, and longer life.” (U.S. Department of Health and Human Services, 2018) I’m convinced that if more people knew how this worked, everyone would be shifting their emotional states to reap these benefits. Thanks so much for reading and remember, how do you want to show up today? U.S. Department of Health and Human Services. (2018, November 1). Positive emotions and your health. National Institutes of Health. Retrieved September 15, 2022, from https://newsinhealth.nih.gov/2015/08/positive-emotions-your-health#:~:text=Research%20has%20found%20a%20link,sugar%20levels%2C%20and%20longer%20life.

What is The Inflation Reduction Act? The Inflation Reduction Act was signed into law on August 16, 2022. While the act is titled the Inflation Reduction Act, it is not considered by all experts to be effective in reducing inflation. There are several areas of the economy that this act seeks to make changes to including keeping health insurance affordable, helping to make prescription drugs more affordable, creating incentives for producing and using cleaner energy, and creating a minimum tax for billion-dollar corporations. To the average self-employed truck driver, this act in many ways will have little to no effect on the way you conduct your business currently. However, it does provide new opportunities for tax savings and things to watch out for over the next 10 years such as increased funding to the IRS for enforcement and collection efforts. According to Senate Democrats, the goals of the Inflation Reduction Act will be achieved by: Expanding Medicare benefits Creating energy credits for electric vehicles and residential improvements Making historic climate investment Lowering health care costs Extending the Affordable Care Act through 2025 Creating manufacturing jobs Closing tax loopholes used by billion-dollar C-Corporations Here at ATBS, we want to summarize how this new legislation could affect owner-operator truck drivers. Below you’ll find our key takeaways from the complex 730-page bill. IRS Tax Enforcement We believe the biggest provision self-employed truck drivers should be aware of is the $80 billion investment in the IRS over the next 10 years with a goal of collecting $124 billion in tax revenue. With this investment, the IRS plans on hiring 87,000 more IRS agents. Tax professionals are hopeful that taxpayers will receive better customer service from the IRS and these funds should allow the IRS to make up ground with the backlog of unprocessed tax returns. However, an increase in the number of IRS agents means an increase in the importance of filing and paying your taxes correctly and on time. This is because the IRS plans on spending more than half of the $80 billion in funding on enforcement activities such as collections, IRS legal support, criminal investigations, and technology enhancement. Over the past few years, the tax audit rate decreased from 1% of tax returns to 0.2% of tax returns. The goal with these new agents is to increase the IRS’s number of audits. According to Treasury Secretary Yellen, the IRS plans on achieving this goal by targeting those who earn $400,000 or more and are typically out of compliance. In IRS terms, out-of-compliance typically means that tax returns have not been filed at all or have been filed without following specific tax regulations. The Inflation Reduction Act has no language that prevents the IRS from increasing enforcement on taxpayers earning below $400,000. Additionally, based on the number of people who are currently making $400,000 or more, there will be one IRS agent for every 11 people in this group. This means the IRS will likely have to audit taxpayers below this income in order to achieve their goals to increase tax revenue collection and increase audit rates to historic norms. It is likely that non-compliant taxpayers and those not filing taxes at all, regardless of income level, will soon become targets of IRS enforcement. Experts anticipate that IRS computer-generated tax notices will increase significantly and be one of the first implementations for the IRS. What does this mean for you? It means it will be as important as ever to ensure you are up-to-date on filing your taxes, paying your taxes, and staying compliant year after year. It appears there will be increased pressure on those who don’t file or pay their taxes due to a higher probability of IRS enforcement. Are you a self-employed truck driver that needs help with your taxes? Click here! Climate-Related Tax Credits The Inflation Reduction Act provides roughly $369 billion in incentives for energy and climate-related programs. Many of the incentives will be seen in the form of tax credits. A few of the new tax credits we believe could affect owner-operator truckers are: Tax Credit for NEW Electric Vehicles 30% of the cost of the electric vehicle (up to $7,500) Can’t have Adjusted Gross Income over $300,000 Married Filing Jointly ($150,000 Single) The cost of the vehicle must be less than $80,000 for Van, SUV, or Truck ($55,000 for any other vehicle) Tax Credit for USED Electric Vehicles 30% of the cost of the electric vehicle (up to $4,000) Must be purchased from a dealership Can’t have Adjusted Gross Income over $150,000 Married Filing Jointly ($75,000 Single) The cost of the vehicle must be less than $25,000 The model year must be 2 years earlier than the date of purchase Three-year waiting period to receive the credit again Tax Credit for Residential Energy 30% of the cost (Limited to $150 - $1,200 annually) Several items qualify such as solar panels, windows, doors, energy-efficient appliances, etc. Need an ID number (Product Identification Number) to claim the credit Energy Tax Credits for Electric Tractor Trailers Credits available for up to $40,000 The upfront costs for electric tractors are currently estimated at $300,000 (roughly twice the price of a Class 8 diesel vehicle) If a trucker or fleet has been on the fence about purchasing electric vehicles, this credit could push them to do so. However, does this mean you should go out and purchase an electric vehicle solely for the tax credit? Not necessarily. The difference in cost between an electric truck and an internal combustion engine can be hundreds of thousands of dollars. This means a credit of $40,000 maximum is not enough to cover the difference. Additionally, it is yet to be seen whether or not the number of charging stations will keep up with the number of electric vehicles. This could make the already difficult parking situation that truck drivers face even more difficult. If you are considering a purchase of an electric tractor be sure to get all the facts first. Considerations could include: Speaking with the original equipment manufacturer (OEM) Checking for, planning, and reserving charging stations along your route Planning for the time it takes to charge the battery for the next trip Checking with qualified mechanics in the area that can make repairs to electric vehicles. Health Insurance and Care The Inflation Reduction Act will extend some of the subsidies brought on by the Affordable Care Act. Specifically, it extends the subsidies for health insurance premiums. These subsidies had been set to expire in 2023 but the Inflation Reduction Act will extend these subsidies through the end of 2025. It can be difficult sometimes for owner-operators to find affordable health insurance as employer coverage, as an employee, often provide cheaper health insurance options. With this extension, those who are self-employed have a shot at affordable care for a longer period of time. Owner-operators should search the Federal Marketplace to see if they qualify for a subsidy. Be careful when applying for a subsidy to make sure your income levels qualify. If a subsidy is granted and it turns out the income level is over the qualified amount, then a portion or even the entire subsidy is payable back to the IRS as a penalty. Additionally, a goal of the Inflation Reduction Act is to lower some health care costs overall. Out-of-pocket drugs will be capped at $4,000 by 2024 and $2,000 by 2025. Specifically, insulin will be capped at $35 per month and vaccines will continue to be free. If prices of drugs increase at a faster rate than inflation, the drug companies will be required to provide rebates to those who are affected. All of this is good news for owner-operators. Key Takeaways/What Should You Do Next? 1. IRS's funding has increased and the funding is to be spent over the next 10 years. It is likely that IRS enforcement will increase as a result. Make sure you’re staying compliant so you aren’t caught by surprise. Use a professional service, ask questions, and file and pay timely. 2. Tax credits can be a large motivator for taxpayers to make a new purchase or upgrade their home, tractor, or personal vehicle. However, don’t rush into purchasing decisions without first considering the impact on your finances. Tax credits will reduce your tax liability, but keep in mind you’ll want to confirm that a product qualifies for the tax credit before you purchase it. Additionally, analyze your energy-efficient purchase and understand that you will be paying out of pocket for it. You won’t be receiving a tax credit for the full amount of the purchase. 3. Owner-operators may want to look into the Federal Marketplace health insurance options for affordable plans. Make sure that you qualify for a subsidy for health insurance premiums before accepting a new plan. If someone applies for the subsidy and it turns out they make too much, they will owe the entire subsidy back to the IRS as a penalty. If you have any questions, feel free to give us a call or send us an email and we will assist you as best we can. As more information comes out, we will continue to make updates to this article. Sources https://www.democrats.senate.gov/imo/media/doc/inflation_reduction_act_one_page_summary.pdf https://www.ttnews.com/articles/inflation-reduction-act-offers-incentives-increase-electric-truck-adoptions https://www.forbes.com/advisor/personal-finance/inflation-reduction-act/ https://www.freightwaves.com/news/congress-approves-incentive-boost-for-ev-truck-purchases https://www.overdriveonline.com/regulations/article/15295569/inflation-reduction-act-what-ownerops-need-to-know-now

If you’re an owner-operator truck driver, paying quarterly taxes can be a big change from the days when taxes were withheld from your paycheck as a W2 company driver. In fact, unpaid taxes is one of the leading causes of businesses failing. For this reason, it’s important to be diligent about how much money you set aside throughout the year for taxes. How much should you set aside for quarterly tax payments? Typically, January through March are often the slowest months of the year for freight cycles. This means that having a big tax payment due at the end of March can be a huge burden. Therefore, ATBS recommends that drivers set aside between 25 and 30 percent of their weekly net income for quarterly taxes. That way you aren’t caught off guard when you have to pay your quarterly taxes after a slow month. Let’s quickly break down where this 25-30% comes from. Many individuals will fall into the 10-12% income tax bracket. However, self-employed individuals will also need to set aside taxes for self-employment tax (Social security and Medicare also known as FICA). Self-employment tax is roughly calculated as 15.3% of your business net income. So when you take 12% income tax, plus 15.3% self-employment tax, plus your state income tax, you get approximately 25-30%. ATBS recommends that you create an organizational system for setting aside money for tax payments throughout the year. At the beginning of the year, get all of your paperwork, tax documents, and finances in order to start the year off right. Then, set up an automated system for money to be transferred every week or every month into an account specifically for quarterly tax payments. It may seem like a big change at first, but setting aside money with each paycheck can quickly become part of your routine. Why is it important to pay your quarterly taxes? If you fail to pay your quarterly estimated taxes, you may be charged a late payment penalty. If you also fail to timely file your tax return, that’s another penalty tacked on to what you owe. Additionally, the IRS can apply their current interest rate of six percent to your balance due after all the penalties have been added on. All of this can add up quickly and put you and your business in a financial hole. This is why failing to pay your taxes accurately and on time is one of the leading causes for a business to fail. How much do you pay? It is recommended that owner-operators estimate taxes based on actual income since their income can vary significantly each month. Calculating and paying estimated tax payments based on your actual business income will help you avoid overpayment or underpayment of your taxes due. If you can't pay your entire estimated tax payment all at once, ensure you are at least paying what you can afford. For example, the IRS uses a safe harbor calculation to calculate a minimum quarterly tax payment due to avoid penalties. For simplicity, the safe harbor estimate is your tax liability from last year divided by four equal payments. Each quarter you would pay in one installment of the minimum amount. While this method may leave you with either an underpayment or overpayment come tax filing time, at least you won’t be penalized for not paying your quarterly estimated tax payments at all. How do you pay your quarterly taxes? You can pay your federal quarterly tax estimates online at www.irs.gov/payments or even on the IRS mobile app, IRS2go. Some taxpayers may have an electronic federal tax payment system account (eftps) and those taxpayers can pay quarterly tax estimates at www.eftps.gov. Many states also allow you to make tax payments online. Each state may be a little different, so we recommend visiting your state’s department of revenue website to see how you can make a tax payment online. You also have the option of applying the tax refund you receive after filing your taxes to the quarterly taxes that will be due in the future. Many owner-operators want their refund right away, but this could be a good way of getting a head start on your upcoming estimated tax payments. So, should you pay your taxes quarterly? Technically you have the right to wait and pay your taxes once a year, but is it really worth it? When it comes to taxes, you should be taking small steps towards doing it right rather than handing over more of your hard-earned money by doing it incorrectly. If you have any questions about paying estimated taxes, call ATBS at 888-640-4829. One of our business consultants or tax professionals would be more than happy to assist you. Not an ATBS client? Give us a call at 866-920-2827 to enroll in our services!