Search Results

Every year there are changes to tax laws that may go under the radar for some 1099 truck drivers. Not knowing what these changes are may cause people to miss out on significant savings when it comes time to file their taxes . That's why we wanted to provide a few pieces of advice to make sure you aren't making the same common mistakes other owner-operators are making. Are you a self-employed truck driver who needs help with your taxes? Click here! 1. The Standard Deduction increased again, make sure to take it if it’s greater than your Itemized Deduction An estimated 90% of taxpayers use the Standard Deduction. This percentage is not expected to change due to the Standard Deduction increasing to $15,750 for single taxpayers, up from $14,600, $31,500 for married couples filing jointly, up from $29,200, and $23,625 for head of household, up from $21,900. 2. Student Loan Phase-Out Increased You may be able to deduct $2,500 of student loan interest paid. The deduction is subject to income limitations which have gone up for 2025. For joint filers, the deduction begins to phase out with a modified AGI of $170,000 and reduces to zero at $200,000. For single and head of household filers, the phaseout begins at $85,000 and reduces to zero at $100,000. For married filing separately filers, the deduction is not allowed. 3. 1099-K The 1099-K is not likely to affect the trucking business per se, but if your spouse has a business or you have a side business you may see one this year. Many platforms such as eBay, Venmo, Zelle, Etsy, and PayPal to name a few, will potentially be issuing these forms. The threshold for issuing 1099-Ks has changed to $20,000 and 200 transactions in 2026. This is a much higher threshold, meaning people will receive fewer of these forms for small transaction amounts. 4. Key Change for Retirement Income For those in or approaching retirement, the age for taking required minimum distributions (RMDs) has increased to 73. RMDs are required for retirement plans like 401(k), 403(b), 457(b), traditional IRAs, SEP, and SIMPLE IRAs. For those who turned 73 in 2025, you must take your first RMD by April 1, 2026. You must also take your 2nd RMD by December 31st, 2026. The penalty for failing to take the RMD is 25%, and that penalty is decreased to 10% for timely corrections. 5. Don’t miss out on the QBI Deduction The 20% QBID has officially become a permanent part of the tax code. For owner-operators, this is one of the most valuable deductions available. It allows you to deduct 20% of your net business profit before calculating income tax, lowering your total tax burden significantly. 77% of owner-operators received a QBI Deduction for 2025 because they had a net profit. If a business operates at a loss for the year, a QBI Deduction can't be claimed. The average deduction received was $7,700. As an owner-operator, chances are you will qualify for this deduction, so if you didn't take this deduction last year make sure you look into it this year. 6. Don’t Wait The most important aspect of tax time is paying tax due by April 15th. For self-employed individuals, quarterly tax payments are critical to the process of paying tax in full by April 15th. Paying estimated taxes throughout the year greatly reduces the chances of being assessed penalties and interest. Extensions can be provided for additional time to file, however, extensions are not available for deadlines to pay your taxes. Organize and send all your tax documents as early as possible to get a head start on filing.

If you’re an owner-operator, you don’t have to go far to find bad tax advice. It shows up at the fuel island, in Facebook groups, in carrier breakrooms, and from other drivers who mean well but are usually speaking from personal experience rather than actual tax rules. Unfortunately, bad tax advice has a way of costing truck drivers real money, often months or years after it was followed. Below are six of the most common examples we hear every tax season and why they should not be ignored. “Send your accountant all your food and drink receipts to write off.” This is one of the fastest ways to spot advice that is outdated or just plain wrong. Most owner-operators do not deduct actual food and beverage receipts anymore. Instead, they qualify for per diem, which allows eligible drivers to deduct a daily amount for meals while away from home overnight. Per diem simplifies recordkeeping and, in many cases, results in a larger and cleaner deduction than trying to track individual meals. Sending in coffee receipts, fast food slips, or convenience store purchases does not increase your deduction and can actually create confusion if mixed incorrectly with per diem rules. Per diem has specific qualifications, limits, and calculations. It is not the same as writing off every meal you buy on the road. Doing it correctly matters. “If you didn’t get a 1099, you don’t have to report it.” This one pops up every year, especially when documents are delayed or missing. Income does not become non-taxable just because a form was not received. If money was earned through your trucking business, whether it came through settlements, direct deposits, or other payments, it generally must be reported. The IRS looks at consistency between reported income and information they receive from carriers, brokers, and other sources. Missing income, even unintentionally, can result in notices, adjustments, or penalties later. It is always better to report income accurately from the start than to explain missing pieces after the fact. “I’ll just pay everything at tax time.” Owner-operators are responsible for making quarterly estimated tax payments throughout the year. These payments help cover income tax and self-employment tax as you earn income, rather than waiting until tax time. Skipping quarterly payments does not eliminate the tax bill. It simply delays it and often adds penalties and interest for underpayment. By the time tax season arrives, drivers can find themselves facing a much larger balance than expected, all due at once. Quarterly payments are not about paying more. They are about spreading the liability out, improving cash flow planning, and avoiding unnecessary penalties. “You should want to get a big tax refund.” A big tax refund feels like a win, but for most owner-operators, it usually means you overpaid during the year. Refunds happen when estimated tax payments are too high or when planning is off. That money could have been used all year to cover expenses, build a cash buffer, or invest back into the business. Instead, it sat with the IRS interest-free. The goal is not to owe a surprise balance or chase the biggest refund possible. The goal is accuracy. Paying what you owe without penalties and keeping more of your cash working for you throughout the year. If someone tells you a big refund means you did everything right, it is worth taking a second look. “Setting up an S corp in your first year saves tons on taxes.” This one sounds especially appealing to new owner-operators. An S corporation can be the right move in certain situations, but it is not a guaranteed tax savings, and it is rarely a first-year solution for drivers. S corporations come with additional requirements such as payroll, reasonable salary rules, added filings, and higher administrative costs. Without sufficient and consistent profit, the structure often adds complexity without delivering meaningful savings. We frequently see drivers pushed into S corps too early based on generalized advice. Whether it makes sense depends on income level, long-term goals, and how the business is operating, not just the promise of saving on self-employment tax. “I use tax software. Trucking taxes aren’t that different.” Tax software can be a helpful tool, but it does not replace experience or industry-specific knowledge. Owner-operator taxes include per diem, depreciation on equipment, estimated taxes, multi-state considerations, and business structures that affect how income is reported. Software will ask questions and generate a return, but it will not tell you whether you are making smart decisions for your business. Many drivers come to us after filing on their own because something did not feel right or because the outcome was not what they expected. Filing is only one part of the process. Planning and understanding what the numbers mean is just as important. The Bigger Picture Most bad tax advice comes from someone sharing what worked for them, without accounting for differences in income, expenses, business setup, or timing. Owner-operators are running real businesses, and their tax situation deserves more than shortcuts and assumptions. The goal is not to pay more tax than necessary, but it is also not to create problems that show up later when they are harder and more expensive to fix. If you are hearing any of this advice and are unsure whether it applies to your situation, that is usually a sign it is time to slow down and ask questions. If you are getting any of this bad tax advice, reach out to ATBS. We work with owner-operators every day to help make sure their tax strategy actually fits their business and supports them year after year.

1. Work With a Trucking Tax Professional Running a business is difficult. It’s even harder when you’re on the road driving all day. Having someone who can help you run the business side of trucking can be a big asset. Don’t work with just any accountant - work with tax professionals in the trucking industry. Learn More 2. Keep Your Accountant Updated If you’re working with a tax professional, make sure you’re keeping them updated throughout the year and not just at tax time. If there are any big career changes or personal life changes, make sure you’re letting your tax preparer know so they can plan accordingly when it comes time to file your taxes. Learn More 3. File on Time Even if you cannot pay taxes owed, filing your tax return on time is the best course of action. From the first day after the filing deadline, the IRS will assess a penalty if you fail to file your taxes on time. Learn More If you’re an owner-operator that’s tired of handling paperwork, ready for more free time, and wants to pay less in taxes, click here to get started ! 4. Pay Your Taxes Quarterly If you fail to pay your quarterly estimated taxes, you will be faced with a large one-time tax payment when you file your taxes. Additionally, you may be charged a late payment penalty. Learn More 5. Start Your Taxes Early Starting your taxes early eliminates the stress of the impending tax deadline and gives you time to plan, rather than rush around the deadline. Learn More 6. Stay Organized Throughout the Year Keep track of all of your finances and documents throughout the year. This gives you the best chance of paying as little as legally possible to the IRS. It can be stressful and inefficient to try and chase down all of your tax information when it comes time to file, and it may cause you to misplace important tax information. Learn More 7. File as the Correct Type of Business Depending on the level of consistent income, it may be a tax advantage for an LLC to elect to be taxed as an S-Corporation. However, if that income level is not high enough, an LLC electing to be taxed as an S-Corporation may cost more than the savings received in taxes. Learn More 8. Get Caught up if You’re Behind It is never a good idea to avoid filing your taxes. You may think that you can sidestep these responsibilities without too much consequence, but the truth is you will be penalized. The taxes owed will not go away, and your debt to the IRS will grow every day you fail to file. Learn More 9. Take Advantage of Your Tax Deductions A tax deduction happens when you have a tax-deductible expense or an exemption. This reduces your overall taxable income. Learn More 10. Take Advantage of Your Tax Credits Tax credits work very differently than tax deductions. Tax credits will reduce your tax liability instead of reducing taxable income. Learn More 11. Accurately Track Your Per Diem 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. Learn More 12. Choose the Correct Tax Filing Status As a married taxpayer, you have two choices: Married Filing Jointly and Married Filing Separately. Generally, Married Filing Jointly will work out better for a taxpayer, but not always. Learn More 13. Keep a Tax Calendar As a self-employed truck driver, there are many tax deadlines you have to be aware of, aside from just the tax filing deadline. Make sure you’re keeping a tax calendar so you’re filing your taxes and making your quarterly estimated tax payments on time. Learn More 14. Maintain Good Bookkeeping Habits Bookkeeping allows you to understand your business and keep track of your revenue and expenses all year. This reduces the chance of errors during tax season since you won’t be scrambling to do your bookkeeping all at once. This way, you can also find all the legal deductions you are entitled to, so you don’t pay more in taxes than you have to. Learn More 15. Keep Up With Tax Law Changes Make sure you’re staying up to date on the significant changes that happened over the year that could affect your tax return. You could miss out on tax savings or make a mistake on your return if you aren’t paying attention. Learn More 16. Keep Your Documents It is recommended to keep your tax documents for at least seven years. This includes any receipts, forms, and statements related to income, deductions, and credits. If the IRS conducts an audit and you don't have documentation to back up your tax claims, it can be extremely difficult to prove that the agency made a mistake. Learn More 17. Amend Your Taxes if Needed You should file an amended tax return to correct errors or make changes to your original tax return. For example, you should amend to change your filing status or to correct your income, deductions, or credits. Learn More 18. Contribute to Your Retirement Funds Contributions that you make towards a traditional IRA are considered tax deductible. In 2026, you can contribute up to $7,500 per year across all IRAs in your name and if you are over the age of 50, you can make an additional $1,100 contribution for a total of $8,600 per year. Learn More 19. Extend Your Due Date if Needed Filing an extension is a great option to avoid penalties and late fees. It’s important to remember that just because you file a six-month extension, doesn’t mean you have an extension on paying any taxes that you owe. Learn More 20. Know Whether to Itemize or Take the Standard Deduction Although it’s rare, when your itemized deductions exceed the standard deduction, it may be beneficial to itemize your tax deductions. This could include expenses such as mortgage interest, charitable contributions, and state and local taxes. Learn More 21. Understand Depreciation and Section 179 Section 179 doesn’t increase the total amount you can deduct, but it does allow you to get your entire depreciation deduction in one year, rather than taking it a little at a time over the term of an asset’s useful life. Learn More 22. Properly Calculate the Child Tax Credit One of the most important tax credits for parents is the Child Tax Credit. The Child Tax Credit gives parents a $2,200 tax credit for each child dependent. Learn More 23. Ask Questions As an owner-operator, you have mastered the art of driving a truck. However, you may not be an expert on filing taxes, and that’s OK! Don’t be afraid to reach out and ask questions to trucking industry tax professionals on things that you are unsure about. Learn More 24. Don’t Believe Myths There are many tax myths you might hear on the radio or while at the truck stop. If it sounds too good to be true, it probably is. Make sure you are working with a trusted tax professional who will be able to clear up any confusion you might have on things you hear while out on the road. Learn More 25. Keep Taxes in Mind Throughout the Year The best way to file your taxes on time and save money is to keep taxes in mind throughout the year. The best way to do this is by working with a tax professional like ATBS. At ATBS we work with you throughout the entire year, not just at tax time. If you dread paperwork, let ATBS handle it for you with just the touch of a button via the ATBS Hub ! Once you send off your receipt or settlement statement, you no longer have to worry about it. We will then take the financial documents you send via the ATBS Hub and organize them. Then when it comes time to file your taxes, we will have everything we need to do it quickly and easily. Because of this, we find missing deductions for over 90% of our clients! If you’re an owner-operator who’s tired of handling paperwork, ready for more free time, and wants to pay less in taxes, click here to get started !

What Truck Drivers Need to Know About the New Tax Law In July 2025, Congress passed the One Big Beautiful Bill Act (OBBBA), a sweeping tax law that locks in major tax cuts from the 2017 Tax Cuts and Jobs Act and introduces new deductions, credits, and savings opportunities. Many of these changes directly impact owner-operators, giving truck drivers new ways to reduce taxes, plan ahead, and keep more money in their pockets. This guide breaks down the most important parts of the law in clear, driver-friendly language. Whether you’re a first-year owner-operator or a long-time small-fleet owner, here’s what the new bill means for your business. Key Tax Provisions for Owner-Operators Qualified Business Income Deduction (QBID) Is Now Permanent The 20% QBID has officially become a permanent part of the tax code. For owner-operators, this is one of the most valuable deductions available. It allows you to deduct 20% of your net business profit before calculating income tax, lowering your total tax burden significantly. The OBBBA also increases the income thresholds so more drivers qualify for the full deduction. On top of that, beginning in 2026, a new minimum QBID of $400 applies for anyone with at least $1,000 of business income. Making this deduction permanent is a big win for long-term planning. Whether you’re thinking about leasing on, switching to an S-Corp, or buying a truck in the next few years, you can count on the QBID being part of your tax strategy every year going forward. Tax Brackets Stay the Same — Permanently The seven-bracket system introduced in 2017 is here to stay. This offers stability and makes it easier for owner-operators to forecast their future tax situation. Income thresholds will continue adjusting for inflation, which helps prevent drivers from being pushed into higher brackets automatically. The U.S. tax system is progressive, meaning you pay a specific tax rate only on the income that falls within each bracket — not your entire income. That structure remains unchanged. Standard Deduction Increases The standard deduction has been permanently increased across all filing statuses. This gives most owner-operators a larger automatic deduction each year, reducing taxable income without needing to itemize expenses. However, the personal exemption is permanently eliminated. For many drivers, the combination of a higher standard deduction and an expanded Child Tax Credit offsets that loss. Choosing between itemizing and taking the standard deduction remains an important yearly decision — especially if you own a home, pay high state taxes, or donate substantially to charity. Temporary Increase to the SALT Deduction From 2025 through 2029, the State and Local Tax (SALT) deduction cap increases from $10,000 to $40,000 per household. This is extremely helpful for drivers in states with high income or property taxes. The pass-through entity (PTE) SALT workaround also remains in place, allowing S-Corp and partnership owners to deduct state income taxes at the business level. That’s a major advantage for high-income drivers operating under these structures. The cap returns to $10,000 in 2030. Higher 1099 Reporting Thresholds Beginning in 2026: 1099-NEC threshold increases from $600 to $2,000 1099-K returns to the long-standing $20,000 and 200 transactions threshold This reduces paperwork for owner-operators, but does not affect your ability to deduct legitimate business expenses. Keep tracking and recording everything. Equipment Deductions: Huge Opportunities for Owner-Operators 100% Bonus Depreciation Returns Through 2030 One of the most important changes in the entire bill is the return of full bonus depreciation for equipment purchases. Drivers can deduct 100% of the cost of new or used trucks, trailers, and other qualifying business assets in the year they place them into service. This rule is powerful because: It applies to both new and used equipment It can create a business loss, which can be carried forward It allows large upfront write-offs during major purchase years For owner-operators, this means that upgrading equipment or expanding into multiple trucks could dramatically reduce your taxable income for several years in a row. Section 179 Expensing Section 179 continues to offer flexibility by letting drivers pick specific assets to fully deduct. The cap rises to $2.5 million, with phase-outs starting at 4 million. Section 179 cannot create a loss, but it helps tailor your taxable income more precisely in profitable years. Most owner-operators use a combination of Section 179 (first) and bonus depreciation (after) to optimize their tax strategy. New and Expanded Deductions Per Diem Deduction Is Now Permanent The per diem deduction for meals and incidental expenses becomes a permanent part of the tax code. Official rate: $80 per day Owner-operators deduct 80% of that amount Deduction equals $64 per full day on the road This gives drivers reliable, predictable savings every year. $6,000 Senior Deduction Drivers age 65 or older can claim a temporary $6,000 “below-the-line” deduction for tax years 2025 through 2028. Because it reduces Adjusted Gross Income directly, it can increase eligibility for other important credits and deductions. The deduction phases out at higher income levels, but for most senior owner-operators — especially part-time or seasonal drivers — this offers meaningful tax savings for four years straight. Auto Loan Interest Deduction From 2025 to 2028, you can deduct up to $10,000 of interest paid on a personal vehicle (not your commercial truck). The vehicle must: Be new Be purchased after December 31, 2024 Be assembled in the U.S. This deduction is above the line and applies whether you itemize or take the standard deduction. High-income earners may be phased out. Universal Charitable Deduction Beginning in 2026, taxpayers who take the standard deduction can still claim some charitable giving. Caps: $1,000 for single filers $2,000 for married filers There is a “floor,” meaning that only donations above 0.5% of your AGI count. This gives drivers who don’t itemize a way to support charities while still lowering their tax bill. Tax Credits for Families and Small Businesses Child Tax Credit Becomes More Generous The Child Tax Credit (CTC) now starts at $2,200 per child beginning in 2025. It is permanently indexed for inflation, so it will rise every year. A refundable portion of $1,700 remains available, meaning qualifying families can receive that amount even if they owe no income tax. This is especially helpful for owner-operator parents whose income may fluctuate year-to-year. Overtime, and Tip Deductions Several deductions have been expanded temporarily to support working families. These include: A temporary deduction for tip income (for qualifying spouses) A temporary deduction for overtime income (with income phase-outs) Most owner-operators are excluded from overtime and tip deductions, but these provisions may apply to spouses or non-driving employees. Trump Accounts A brand-new savings tool allows parents to invest up to $5,000 annually per child, with employers optionally contributing up to 2500. Children born between late 2024 and early 2029 also receive a $1,000 starter credit. These accounts help families set aside long-term savings for education or major life expenses. Additional Changes Owner-Operators Should Know EV and home energy efficiency credits will end earlier than previously scheduled Mortgage interest deduction cap remains at $750,000 Casualty loss rules expand to include state-declared disasters Moving expense deduction is permanently eliminated for most taxpayers These changes affect specific situations, but are worth knowing as part of the bigger tax picture. What This All Means for Owner-Operators Most owner-operators will benefit from the new tax law. Between the permanent QBID, expanded standard deduction, more generous Child Tax Credit, bigger equipment write-offs, and new temporary deductions, many drivers will see lower tax bills and more opportunities for planning. The return of 100% bonus depreciation and the expanded Section 179 limits alone make equipment upgrades far more tax-friendly. Combine that with the new senior deduction, charitable deduction, and family-focused credits, and the OBBBA provides substantial advantages for a wide range of trucking businesses. However, the law also adds new complexity. The best way to navigate these changes and maximize your tax savings is to work with a trucking tax expert. ATBS is here to help you understand how these provisions apply to your unique situation — and how you can take full advantage of them each year.

Many professional truck drivers choose to contract their services to carriers and fleets. The 1099-NEC (Non-Employee Compensation) is a tax form which allows the IRS to track any payment given by a company to independent contractors. Are you an owner-operator that needs help with your 2025 taxes? Click here! Where is my Form 1099-NEC? Form 1099-NEC has been used to report non-employee compensation since tax filing year 2021. Previously Form 1099-MISC was used to report this information. This form must be issued to the IRS and all independent contractors by January 31st of each year. This puts the responsibility on the carrier or fleet to provide the 1099 form to its contractors. Even if you do not receive the 1099, you will still need to report the income on your tax return. Tracking Down Form 1099 If you have trouble tracking down this form from your fleet, there are several things you can do. First, you can give the fleet or carrier a call. Typically, the group that handles your paycheck every week or month will issue your Form 1099. Be sure to track this information down at the beginning of February so you are ready to submit your forms and paperwork to ATBS in order to file on time. Second, you can get older 1099s electronically at www.irs.gov/transcripts . Finally, as a last resort, you can estimate your 1099-NEC income. Do so by reviewing your end-of-year pay stubs issued by your fleet or carrier. A simple amendment process is available if you overestimated your income. Remember, the IRS does not like it when you underestimate earnings, and may impose penalties for doing so. ATBS clients have their income reported or downloaded every month, so the tax filing process is streamlined. The Tax Organizer walks ATBS clients through the tax process and ensures every owner-operator tax deduction is considered. Notice, If you are a corporation, there is a possibility that you will not receive a 1099-NEC; work with your carrier if that is the case. The IRS exempts corporations from receiving the 1099 form because these entities are already subject to strict state and federal reporting and administrative requirements. Issuing a 1099 Some independent contractors will pay others to help them run their business. If you paid someone more than $600 in 2025, then you will need to file a 1099 for that person, and send a copy of this to the IRS by January 31st. A good bookkeeping practice to adhere to is to file a signed and completed W-9 for each contractor you hire. This provides the information you need for filing Form 1099 with your contractor and the IRS. ATBS clients have a dedicated team of bookkeepers who can properly categorize any payments made to independent contractors. Be sure to work with your ATBS business consultant to successfully file all forms with the IRS and independent contractors in a timely manner. Get Organized Form 1099 is an important element in every independent contractor’s life. Keep an eye out for it in January and ensure that all of your paperwork is organized for your tax preparer in February. ATBS prepares taxes for more than 15,000 professional drivers every year. We help owner-operators keep their money where it belongs -- in their pockets. Give ATBS a call today with all your tax-related questions at 303-218-2827.

Tax season is here, which means it’s time to start thinking about filing your 2025 taxes. Before you start, we’re here to make sure you’re up to date on some of the significant changes that have happened over the past year that could affect your tax return . In this article, we’re going to provide you with a list of a few things that have changed and a few things that are carrying over from the previous tax season. Are you an owner-operator who needs help with your 2025 taxes? Click here! Here’s a list of a few IRS updates and recent congressional acts and their tax implications affecting your 2025 taxes and beyond: IRS Per Diem Rates for the Transportation Industry The per diem deduction for meals and incidental expenses increased to $80 per full day and $60 per partial day as of October 1st, 2024, and the rate remains in place in 2025. The IRS allows for an 80% deduction of the above amounts. If you are tracking per diem, this means under the new rules the deduction for a full day has increased to $64, and the deduction for a partial day has increased to $48. One Big Beautiful Bill Act (OBBBA) The One Big Beautiful Bill Act was signed into law on July 4, 2025. 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 several years. Climate-Related Tax Credits Federal EV tax credits for new and used vehicles expired for purchases after September 30, 2025, under the OBBBA. Buyers who signed binding contracts and made payments on qualifying new or used EVs by that date may still claim the credit (up to $7,500 new, $4,000 used) on their 2025 tax returns, even if delivery was later. After September 30, 2025, these federal incentives are gone, but state/local programs and leased vehicle options (which have different rules) might still be available. For 2025, homeowners can claim two main federal energy tax credits expiring December 31st: the Energy Efficient Home Improvement Credit (up to $1,200 annually for windows, insulation, etc., plus an extra $2,000 for heat pumps/biomass) and the Residential Clean Energy Credit (30% for solar, wind, geothermal, batteries). Both credits are nonrefundable, but the Residential Clean Energy Credit allows carrying forward unused amounts. You can claim the credit for improvements made through December 31, 2025. Health Insurance and Care OBBBA will return subsidies and repayment caps for the Affordable Care Act to pre-American Rescue Plan Act levels beginning in 2026. Owner-operators in need of health insurance can 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. Increase in SALT Deduction for Itemizers The OBBBA increases the State and Local Tax (SALT) deduction cap significantly to $40,000 for itemizers (up from $10,000) starting in 2025 through 2029. This provides substantial relief, especially for those in high-tax states, but it phases out for incomes above $500,000 and reverts to $10,000 in 2030. The change encourages more taxpayers to itemize, and the full benefit applies only if total itemized deductions exceed the standard deduction. Bonus Depreciation Beginning in 2025, the OBBBA restores your business’s ability to take an immediate first-year deduction on any asset purchased during the year. For any qualified property purchased and placed in service after January 19, 2025, you will be able to depreciate 100% of the cost of the property in that year. Assets purchased and placed in service January 1-19, 2025, will only qualify for the previous 40% bonus depreciation. Student Loan Interest Deduction Adjusted for Inflation You may be able to deduct up to $2,500 of student loan interest paid. The deduction is subject to income limitations, which have gone up for 2025. For joint filers, the deduction begins to phase out with a modified AGI of $170,000 and reduces to zero at $200,000. For single and head of household filers, the phaseout begins at $85,000 and reduces to zero at $100,000. For those married filing separately, the deduction is not allowed. Dependent Care Credit The One Big Beautiful Bill Act (OBBBA) significantly changes dependent care benefits starting in 2026, primarily by increasing the Dependent Care Flexible Spending Account (FSA) limit to $7,500 (from $5,000) and expanding the Child and Dependent Care Tax Credit (CDCTC), making it more generous for lower and middle-income families with a tiered system up to 50% credit, alongside boosting employer tax credits for offering childcare. These updates aim to make childcare more affordable through both pre-tax employee savings and direct tax relief for families and employers. 1099-K The 1099-K is likely not going to affect the trucking business per se, but if your spouse has a business or you have a side business you may see one this year. Many platforms such as eBay, Venmo, Zelle, and Etsy, to name a few, will potentially be issuing these forms. The threshold for issuing 1099-Ks has been restored to the previous threshold of $20,000 and 200 transactions. Additional Deductions Additional Deductions is a new form for 2025-2028 tax years, created by OBBBA to claim four new below-the-line deductions: no tax on tips, no tax on overtime, no tax on car loan interest, and an enhanced deduction for seniors (age 65+), which reduces taxable income without affecting Adjusted Gross Income (AGI). Taxpayers use it to calculate these specific deductions, even if they itemize on Schedule A, to lower their overall tax burden. Key Deductions on the new Schedule 1-A No Tax on Tips: A deduction for qualified cash tips up to $25,000, regardless of filing status, for specified occupations. No Tax on Overtime: A deduction for overtime pay up to $12,500 (single filers) and $25,000 (joint filers); however, most drivers will not qualify for this deduction. No Tax on Car Loan Interest: A deduction for up to $10,000 on interest paid on qualifying car loans for new cars assembled in the United States. Enhanced Deduction for Seniors: An increased deduction of $6,000 (single filers) and $12,000 (joint filers) for individuals aged 65 and over. The bottom line is that being aware of these changes can potentially save you money on your taxes. Many of these changes could be temporary, so make sure you’re taking advantage of them now while they are available. If you have any questions, feel free to give us a call at (303) 218-2827 or email us at info@atbs.com. Taxes for truckers is what we do.

Section 179 doesn’t increase the total amount you can deduct, but it allows you to get your entire depreciation deduction in one year, rather than taking it a little at a time over the term of an asset’s useful life. This is called first-year expensing or Section 179 expensing. (Expensing is an accounting term that means currently deducting a long-term asset.) Example In 2025, Bill buys a $25,000 van for his delivery business. Under the regular depreciation rules, Bill would have to deduct a portion of the cost each year over its five-year useful life. By deducting the van under Section 179, Bill can deduct the entire $25,000 expense from his income taxes in 2025. So he gets a $25,000 deduction in 2025 under Section 179, instead of the normal deduction he would get using regular depreciation methods. The maximum Section 179 deduction in 2025 for vehicles 6,000-14,000 pounds is $31,300. What Property Qualifies You qualify for the Section 179 deduction only if you buy long-term, tangible personal property that you use in your business more than 50% of the time. Under Section 179, you can deduct the cost of tangible personal property (new or used) that you buy for your business. Examples of tangible personal property include computers, business equipment and machinery, cell phones, etc. Property Used Primarily (51%) for Business To deduct the cost of property under Section 179, you must use the property primarily for your business. The deduction is not available for property you use solely for personal purposes or to manage investments or otherwise produce non-business income. You can take a Section 179 deduction for property you use for both personal and business purposes, as long as you use it for business more than half of the time. The amount of your deduction is reduced by the percentage of your personal use. You’ll need to keep records showing your business use of the property. If you use an item for business less than half the time, you will have to use regular depreciation instead and deduct the cost of the item over several years. Another limitation regarding the business use of property is that you must use the property over half the time for business in the year in which you buy it. You can’t convert property you previously used for personal use to business use and claim a Section 179 deduction for the cost. Annual Deduction Limit There is a limit on the total amount of business property expenses that you can deduct each year under Section 179. The maximum in 2025 is $2.5 million with a phase out threshold beginning at $4 million. Once you're above $6.5 million, no Section 179 deduction is allowed. You don’t have to claim the full amount, it’s up to you to decide how much to deduct under Section 179. Whatever amount you don’t claim under Section 179 must be depreciated instead over the life of the asset. Advantages and Disadvantages of Taking Section 179 The main advantage of Section 179 is it lets you take a higher deduction immediately. By receiving a higher depreciation deduction today, a business will reduce its current tax bill. This deduction is especially helpful for new businesses that may be having cash-flow troubles. Section 179 lets businesses maximize deductions today and avoid delaying deductions to the future when the business may no longer exist. Two of the major disadvantages are as your income increases, it will move into a higher tax rate. By accelerating your business's deductions, you will have fewer options in the future to reduce your taxes when your business may be in a higher tax bracket. Another disadvantage of the accelerated method is that it has a greater risk of recaptured depreciation. You may decide to sell a long-term asset before it is considered worthless according to its depreciation schedule. If you sell the asset for more than its current accounting value, your profit will be considered recaptured depreciation. The IRS will take back your depreciation deductions as the asset did not lose as much value as planned. Your recaptured depreciation profits will be taxed as income. Accelerated depreciation systems have a higher cost of recaptured depreciation because they recognize more depreciation upfront. Proper planning can help you make the best possible decision on depreciation. Call your business service provider today to discuss your current situation and your future business plans in order to make a sound decision on depreciating your business assets.

As an owner-operator truck driver, your tax situation is unique. You file and pay taxes like a business owner while also being eligible for deductions that are specific to truck drivers. If you’re looking for more information on how to file and pay taxes as an owner-operator truck driver, we’re here to help. Below is a brief overview of how to handle and manage owner-operator taxes. Are you a self-employed truck driver that needs help with your taxes, accounting, or bookkeeping? Click here! Estimated Tax Payments As an independent contractor, the Internal Revenue Service (IRS) requires you to make quarterly estimated tax payments based on your business profits. Your quarterly estimated tax payments include: Self-employment tax: The self-employment tax rate is 15.3%. It consists of Social Security (12.4%) and Medicare (2.9%) taxes. Federal Income Tax and State Income Tax: This is calculated on your tax return. Those who expect to owe at least $1,000 in taxes are required to make quarterly payments of self-employment and income taxes. When you are self-employed the payment of Social Security and Medicare taxes is your responsibility. This is unlike those individuals who are classified as an employee as these taxes would be withheld from a paycheck and paid by an employer. How can you estimate your taxes owed each quarter? There are two common methods for estimating tax: Safe harbor: Slightly simplified, this method is calculated by dividing your prior year's tax liability by four to arrive at the amount to pay for each quarterly tax estimate. Actual estimate: This method is a far more useful method to calculate quarterly tax estimates for those with fluctuating income. This method uses the business’ current year profit each quarter to calculate the amount to pay during each quarter. This ensures that you are keeping current with tax payments during your business’ growth throughout the year and prevents any surprises during tax filing. For new independent contractors, it is recommended to use the actual income method for estimating quarterly taxes. Put time aside on your calendar each quarter to work through tax estimates. Do not wait until the last minute as penalties can apply. Tax Deductions and Credits Lower Tax Liability When it comes time to file your taxes, you can minimize your tax liability by claiming every legal tax deduction and credit available. Understanding and recording all the deductions and credits appropriately will help you avoid penalties, reduce the risk of an audit, and minimize the amount you have to pay in taxes. Tax Deductions A tax deduction occurs when you have a reduction of taxable income, like an expense. The reduction of your taxable income results in less tax due. As an owner-operator truck driver, you have numerous tax deductions for your business including: Your truck payment Fuel Accounting and bookkeeping fees Office supplies Maintenance fees Uniforms Licenses and permits Communication Fees Insurance Any expense that you have record of and is “ordinary and necessary” for your business can be considered tax deductible. For our list of commonly missed owner-operator truck driver tax deductions, check out our Tax Deductions for Truck Drivers List . Tax Credits Tax credits work very differently than tax deductions. Tax credits will reduce your tax liability dollar-for-dollar while tax deductions reduce your taxable income. This means if you owe $5,000 in taxes and receive a $4,000 tax credit, you will only be responsible for paying $1,000 in taxes. A few common examples of tax credits are: Child tax credit Earned income credit Child and dependent care tax credit American opportunity credit Reduce the Risk of Audit on Your Business The IRS is tasked with selecting taxpayers for audit in two ways: The first is if they suspect dishonesty or practices that do not adhere to tax law; the second is a random selection of tax returns for audit to check tax compliance. To reduce the likelihood of a tax audit and reply to a random audit, it is important to claim tax deductions and tax credits for which you have documentation and support. Without supporting documents, the IRS may disallow the deductions or credits and charge interest and penalties. Keep receipts, canceled checks, electronic log books, and other valid proofs of payment documentation for a minimum of three years. Per Diem 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. The IRS allows 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 (as of October 1, 2024) is $80 per day in the Continental US. You may hear the amount of the deduction quoted as $64. That is because the IRS only allows you to deduct 80% of the Per Diem rate. 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. To learn more about Per Diem, click here . Depreciation and Section 179 Section 179 doesn’t increase the total amount you can deduct, but it allows you to get your entire depreciation deduction in one year, rather than taking it a little at a time over the term of an asset’s useful life. This is called first-year expensing or Section 179 expensing. (Expensing is an accounting term that means currently deducting a long-term asset.) You qualify for the Section 179 deduction only if you buy long-term, tangible personal property that you use in your business more than 50% of the time. Under Section 179, you can deduct the cost of tangible personal property (new or used) that you buy for your business. There is a limit on the total amount of business property expenses that you can deduct each year under Section 179. The maximum was increased in 2025 to $2.5 million. The phase-out threshold was also increased to $4 million. You don’t have to claim the full amount, it’s up to you to decide how much to deduct under Section 179. Whatever amount you don’t claim under Section 179 must be depreciated instead over the life of the asset. The main advantage of Section 179 is it lets you take a higher deduction immediately. By receiving a higher depreciation deduction today, a business will reduce its current tax bill. This deduction is especially helpful for new businesses that may be having cash-flow troubles. Two of the major disadvantages are as your income increases, it will move into a higher tax rate. By accelerating your business's deductions, you will have fewer options in the future to reduce your taxes when your business may be in a higher tax bracket. Another disadvantage of the accelerated method is that it has a greater risk of recaptured depreciation. You may decide to sell a long-term asset before it is considered worthless according to its depreciation schedule. Proper planning can help you make the best possible decision on depreciation. Additional Taxes Employee Tax Do you have employees working for your business? If so, you must collect taxes on behalf of your employees including: Social Security Medicare Federal and state income tax The amount of taxes to withhold from each employee’s wages starts with a calculation that begins with the employee’s Form W-4. The Form W-4 is prepared by the employee and provided to the employer. The taxes calculated and withheld from an employee’s paycheck must be sent to the federal and state government based on their specific rules. Excise Tax Excise tax is considered an indirect form of taxation because the government does not directly apply the tax during the income tax filing process. An intermediary, either the producer or merchant, is charged and then must pay the tax to the government. Excise tax can apply to businesses in a variety of ways based on your industry, the product or service you provide, and where you operate your business. A couple of common excise taxes that apply to trucking are: Form 2290 Federal Highway Use Tax (FHUT) Diesel Fuel Tires Purchases made on specific types of consumables or goods (such as fuel) and certain activities (such as a truck using a highway) are subject to excise taxes. Franchise Tax Franchise taxes are paid by certain entities (corporations, partnerships, and limited liability companies) that do business in certain states. These may be considered “privilege” taxes as they allow a business the right to operate in a certain state or locality. Property Tax Property taxes are due if you own property or real estate and it must be paid to the local government. Gross Receipts Tax Gross receipts taxes are imposed by some states on businesses instead of a state income tax. In these states, gross receipts (revenues) of the business are taxed. Some states allow deductions for gross receipts tax and some states exempt certain types of businesses. ATBS can help you determine if you are responsible for this tax and if a deduction is applicable. Common Tax Questions Q: How much should I set aside for business taxes? A: It is recommended to set aside 25-28% of your weekly net income for quarterly taxes. Q: I cannot get my taxes done on time. What should I do? A: If you can’t get your taxes done in time, file a one-time 6 month extension. However please keep in mind, It is an extension to file not an extension to pay. Q: Will I receive a tax refund? A: This is very dependent on your individual situation, however, it’s not likely if you are an owner-operator. You should work hard to being owed as little as possible. Remember, if you are getting a refund, you have given the government an interest free loan. Q: Will my tax preparer send me my 1099-NEC form? A: No, your carrier will send you your 1099-NEC form. Q: I did not pay my quarterly tax estimates this year. What is going to happen? A: The IRS will charge underpayment penalties and interest for the tax not paid. For more common tax questions that we’ve answered, click here . Lease vs. Purchase If you’re leasing your truck, you can deduct each month’s payment from your taxes. This means if you purchased your truck, you’ll typically see a higher deduction in the first two years due to depreciation. However, because of the depreciation schedule, by the fourth year, you’ll have very little depreciation left. That means the driver who is leasing their truck will see a tax benefit compared to the driver who purchased. Additionally, the driver who purchased their truck will see a tax delay. This is because the tax will still have to be paid in later years, as it’s not eliminated by depreciation. Preparing and Filing Taxes Who is currently preparing and filing the taxes for your business? A non-specialized provider? A family member or yourself? A local accountant? If you are using any of the options above, you may be paying more tax than you need to. Continuously changing tax laws make it hard for any business owner to understand and accurately file and pay taxes. Filing accurately and maximizing deductions to reduce the tax burden starts with choosing a specialized business provider for your industry. Using ATBS to prepare your federal, state, and local taxes can translate to an easy and seamless tax preparation process. With ATBS, there are just three easy steps to file your taxes: Send ATBS all your business receipts Complete our tax organizer Be available for follow-up questions ATBS will take this information and make sure you receive every tax deduction you deserve while remaining in compliance with the IRS. We give each return personalized attention, including an extensive review process by a tax professional, to make sure it’s done right. Throughout the year, we’ll also provide you with your tax estimate amounts so you know how much to pay. Tax estimates are calculated on “actual profit” and can be accessed on a secure online portal anytime, anywhere. At ATBS, we have helped more than 150,000 owner-operators over the past 20 years run a better business. We offer a variety of services including bookkeeping, accounting, and tax preparation, which will provide you with the best outcome when filing your tax return. We also offer unlimited business consulting for our RumbleStrip Professional clients. A dedicated business consultant will help you keep your business “between the lines” just like rumblestrips on the highway keep your truck between the lines. If you’d like to learn more about ATBS services or want to get started today, give us a call at 866-920-2827 .

Looking to jumpstart your trucking business in 2026? Check out the articles that were read the most during the past year and become a more well-rounded truck driver and business owner! Per Diem Tax Deduction Tips for Truck Drivers The Top 25 Quick and Easy Meals for Truck Drivers The Complete Guide to Taxes for Owner-Operator Truckers How to Obtain MC Authority: A Step-by-Step Guide The Best and Worst States for Outbound Freight Owner-Operator Truck Driver Tax Deductions Everything You Need to Know About Chain Laws 1099 vs. W-2 Truck Drivers: What's the Difference? What a Truck Driver Needs to Know About Starting an LLC 12 Helpful Apps for Truckers

If you operate in the northern half of the United States, diesel winterization should be a priority to keep you moving through the cold season. Not knowing how to properly winterize diesel fuel is simply not preparing for your operating environment, much the same as not having chains or the wrong seasonal clothing. At certain temperatures, diesel will turn into a gel-like substance that will not flow through your fuel system. It not only gels in your tanks but also in your fuel lines and fuel filter. It can stop you in your tracks, prevent you from getting moving in the morning, and prevent you from getting heat in your cab/sleeper, which presents a serious safety hazard. Fuel Types and Gel Points It is very difficult to pinpoint a specific temperature at which diesel gels because so many variables come into play. Here, we're referring to general temperature ranges. There are basically two temperature points that concern us: First is the cloud point, which is the point at which paraffin wax just begins to precipitate out of the fuel. The fuel will start to become cloudy but the actual temperature can vary somewhat. Second is the pour point which is also referred to as the gel point. This is the point at which so much wax precipitates out of the fuel that it no longer flows. The gel point is generally ten to fifteen degrees below the cloud point. Let’s take a look at the different types of crude oil, diesel, and their temperature characteristics. All petrodiesel contains paraffin waxes, which are straight- and branched-chain hydrocarbons. It’s these waxes that become solid at lower temperatures. The amount of paraffin wax in your diesel depends on the type of crude oil used and the process to manufacture the fuel. Crude oil is typically classified as: Brent Blend: which is broken down into Brent Crude and Brent Light Sweet Crude. West Texas Intermediate: also known as Texas Light Sweet. OPEC Reference Basket: which is broken down further as Bonnie Light, Arab Light, Basra Light, Saharan Blend, and Minas. Dubai Crude. Diesel fuel comes in two blends: summer and winter. For the purpose of this discussion summer blend diesel is non-treated diesel. In this case, the paraffin wax will begin to precipitate out as the ambient temperature drops below +32°F. As the ambient temperature drops below 0°F, the solidifying wax particles combine into solids large enough to be stopped by filters. Summer blend diesel, also called No. 2 ULSD, will cloud and gel at higher temperatures than winter blend No. 2 ULSD, which is a mixture of No. 2 ULSD and No. 1 diesel/kerosene. It is the kerosene that lowers the gel point in winter blend diesel. The actual temperature at which your winter blend diesel will gel depends on the specific mixture you purchased. The higher the kerosene content, the lower the gel point. For example, the winter diesel in my town is only winterized to +10°F, and below that, anything is fair game. Some areas may winterize down to -20°F. It has not been my experience that the temperature to which diesel is winterized is published near the pump. Typically this information will take a little research. If you happen to be fueling in a part of the country that is running a petrodiesel/biodiesel blend then you should be aware that biodiesel will gel at a higher temperature than petrodiesel. Biodiesel comes in B2, B5, B20 and B100. That number represents the percent of biodiesel in the mix. Similar to petrodiesel, the approximate temperature at which pure biodiesel will gel depends on the oil it’s made from. Some typical oils include peanut, corn, soy, coconut, olive, and canola. Biodiesel from canola oil has the lowest gel temperature. A petro/biodiesel mix will have a lower gel point than pure biodiesel. A petro/biodiesel mix can be treated to lower the gel point just the same as petrodiesel. Managing Moisture in Your Fuel System All diesel has water suspended in the solution. This water comes from condensation that forms on the inside of a cold fuel tank that has warm fuel. You can also get condensation from temperature and humidity changes. Keeping your diesel as “dry” as possible by using a water separator is a good way to pull the water out of your fuel. As the temperature drops and the paraffin wax begins to precipitate out of the fuel, the water held in suspension will begin to form ice crystals that can cause excessive wear and damage to your fuel system and engine components. Additives and Prevention Options There are several ways to prevent diesel clouding and gelling. I’ve seen insulated fuel tank blankets used in some climates. The most common is to add a winter fuel additive. There are additives to address the moisture content by helping to “dry” the fuel, there are additives that lower the gel point of diesel fuel and there are combination additives. There are even additives that will thaw your diesel after it has gelled, but that can be somewhat difficult on the side of the interstate with the temperature in the teens or below as it requires removing the fuel filter, sometimes more than once. The method you choose is your preference. Most truckstop chains treat for the conditions of the region they are in. Check with your engine manufacturer to get their recommendations on fuel treatments, as some can cause damage to the new high-pressure common rail injection systems. Be Prepared for Changing Temperatures The point is to be prepared ahead of time and if you are operating in cold climates it might be wise to treat your fuel. It is much cheaper than a tow and recovery bill. It is also worth noting that it’s possible to buy fuel in a relatively warm climate in the morning and finish your day in a cold climate. Be prepared and proactive in keeping your diesel flowing.

Many people struggle to maintain a healthy weight. From fad diets to intense exercise programs, it can feel like there’s a new miracle solution every day. Americans spend millions each year trying to improve their weight and health, when the real steps toward success are often much simpler. Here are seven top tips to reach your long-term health and weight-loss goals. Stop Comparing Health looks different for everyone. One person may struggle with blood sugar levels while another deals with low iron. Our bodies need different balances to reach peak health, and our body shapes will always vary. Whatever the “ideal” body type of the moment may be, it may not be realistic—or healthy—for you. Focus on what helps you thrive, rather than changing your body to meet someone else’s expectations. Consult your healthcare professional to understand your own health needs and the steps to achieve your goals. Learn to Cook Whether you’re watching YouTube tutorials, grabbing a new cookbook from the library, or tuning in to a cooking show, anyone can learn to cook! It takes practice, but preparing your own meals is one of the most impactful steps toward a healthier diet. Truck stops continue to improve their healthy food options, but temptation is everywhere. Preparing your own meals gives you control over ingredients and portions—both key to long-term health and weight management. Move More Carve out just 30 minutes a day for a brisk walk or exercise. That’s only a half-hour out of 24 hours—totally doable. One study found that moderately overweight men who exercised hard enough to sweat for 30 minutes a day lost an average of 8 pounds over three months. That could be 32 pounds in a year. It’s Not Just About the Number Weight loss isn’t only about watching the scale drop. It’s also about recognizing your successes as well as the setbacks. Don’t let small disappointments derail you. Remember, weight loss is just one benefit of getting healthier. When you build muscle, the number on the scale can go up—but you might be losing inches around your waist. Measure success by how your clothes fit, how well you’re sleeping, and how alert you feel throughout the day. These are the signs that truly reflect improved well-being—not just a number on the scale. Find Inspiration Seeing others reach their goals is a good reminder that everyone starts somewhere. You’re not alone. You might even join an online community of people working toward similar goals. Love Yourself Someone once said, “You will never be truly happy with your success until you learn to love yourself—right now.” This may be one of the hardest steps, but appreciating yourself and your body as it is—even with imperfections—can help you recognize how special it is to be you. No matter your weight, gratitude for what your body provides makes success much sweeter. Give it Time Meaningful, lasting change takes time. Small steps may feel slow, but they help you build habits that stick. Over time, these habits make it easier to maintain both your weight loss and your improved health. Applying these tips in your daily life can put you on the road to a healthier, happier you. Work with your healthcare professional to find a plan that fits your needs, and learn to accept yourself along the way. Why not start today?

Life is full of all kinds of unexpected events. It’s because of these uncertainties that we need to make sure we are always prepared. Setting up an emergency fund can help to offset a financial strain. What is an emergency fund? An emergency fund is a liquid amount of cash that you can easily access if some sort of emergency pops up. I am not talking about money, you might need to take a last-minute trip to the Caribbean. Getting your emergency fund started. Getting your emergency fund started can be as simple as $100. As long as you are able to meet and exceed your breakeven point each month, you can continue to contribute small amounts over a long period of time. As you slowly build your emergency fund, you are going to want to make sure you monitor your spending and avoid debt. How big should your emergency fund be? If you talk to any financial professional, you will probably get a different answer from all of them on what the perfect amount is. Some people say your emergency fund needs to be as little as $1,000. Personally, I think it’s better to have a few months' worth of household expenses. This will help keep peace of mind in the event that something does happen. Where do you put the money? After you have made the choice to start your emergency fund, you need to decide where to put the money. The answer is simple. You need to stash it in a high-yielding savings account. A high-yielding savings account isn’t going to make you rich, but it keeps the money easily accessible if you need it in a hurry. It’s also better than just keeping it under your mattress. Wrapping it up. If you follow this advice and set up an emergency fund, then you should feel safe the next time an unexpected financial emergency pops up in your life.