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Owner-operators in 2018 on average earned $65,360 in take-home pay for the year — a record-high income for a segment that saw a big boost from strong economic growth and robust per-mile rates. However, miles dropped 5.8 percent to 103,800 — the lowest average miles on record for owner-operators. These averages come from ATBS and is based on more than 15,000 leased and independent owner-operators. READ MORE

by Todd Amen, ATBS President and CEO Throughout the year, ATBS tracks and analyzes income and mileage trends from our owner-operator clients. We’ve noticed there is some discontent right now amongst both owner-operators (O/Os), and the trucking industry in general. We sense it’s the result of a normal (slower) first quarter versus the gangbuster year we experienced in 2018. It will be nearly impossible to beat the benchmarks set in 2018 because it was such an extraordinary year! In the first quarter of this year, O/O miles overall were down almost 2,000 miles (down 7.3%) vs Q1 2018. This reflects the softness O/Os are feeling in the market. However, revenue per mile was actually up 8 CPM (up 5.2%) in Q1 2019 vs Q1 2018. So, net/net, total overall revenue for Q1 2019 is down $967 (down 2.5%) vs Q1 2018. Regarding specific operating segments, revenue is down 5.2% in the Flatbed segment and down 1% in the Reefer segment. The Dry Van segment is on par with the average. Bottom line results show net income is down $240 (down 1.5%) in Q1 2019 vs Q1 2018. The Refrigerated segment is performing strongly year-over-year with net income up $959 (up 7.6%). Both the Dry Van and Flatbed segments show net income down approximately 4% (down approximately $650). We believe the key to having a successful 2019 is realizing the world has changed. 2018 was all about revenue generation whereas 2019 will be more about the cost side of the business. For 2019, we anticipate lower miles and rates compared to last year. So, don’t be overly picky on loads; take what you are offered if it provides reasonable revenue. It’s far better to generate revenue and contribution margin than sitting and digging a hole with business and personal fixed costs building up. At the same time, have a razor-sharp focus on the cost side of your business. If you generate a dollar of revenue, only a fraction of that dollar makes it to your pocket as profit. If you cut a dollar of cost, 100% of that dollar goes in your pocket. You can save $5000 on fuel alone if you manage it properly. For a reminder on tips to save on fuel costs, click here. The message for 2019 is fairly simple. While things might not be quite at the level they were in 2018, the fact remains this is one of the best times ever to be an owner-operator. You became an owner-operator for a reason; to be in control of your life and in charge of your own business. Just make the necessary adjustments and your bottom line will remain strong in 2019!

LAKEWOOD, COLO. - June  6, 2019 - Preliminary data based on over 3,000 tax returns indicate that the Tax Cuts and Jobs Act had an overall positive impact on owner-operators in the trucking industry. ATBS has observed the following statistics related to how owner-operators fared on 2018 taxes. First, the average owner-operator’s taxable Adjusted Gross Income (AGI) went from $43,093 in 2017 to $52,180 in 2018. This was an increase of $9,087 or 21%. The increase was predominantly related to a booming year in the transportation industry. During the same time, the average owner-operator Total Tax Liability went from $8,242 (2017) to $9,284 (2018).  This was a much smaller increase of $1,042 or 12.6%. The overall effective tax rate for owner-operators went from 19.1% (2017) to 17.8% (2018) or a reduction of 1.3%. The net result is that owner-operator taxable income increased 21% while actual tax liability increased only 12.6%.  Following are some of the specific reasons for the reduction in owner-operator tax liability. 68% of ATBS owner-operator clients took advantage of the Qualified Business Income deduction with an average of $6,235 being deducted from their tax liability.  This was a new deduction for 2018 as a result of the Tax Cuts and Jobs Act. The average client’s Standard Deduction went from $9,439 to $18,862. The number of drivers filing the standard deduction increased from 71% to 94%.  The Tax Cuts and Jobs Act essentially doubled the standard deduction for most tax filers. The average owner-operator depreciation deduction increased from $17,072 (2017) to $20,965 (2018). The significant increase in depreciation was a result of the Tax Cuts and Jobs Act allowing faster depreciation methods than prior years. The only negative consequence of 2018 taxes was the number of drivers that paid the Affordable Care Act’s individual mandate penalty.  In 2018, 28% of ATBS clients paid the penalty with an average penalty amount of $1,027. However, this mandate will no longer be in effect for 2019 taxes. Overall, statistics from ATBS show that owner-operator clients enjoyed a mostly positive impact from the changes that came with the Tax Cuts and Jobs Act. Owner-operators who would like help with taxes and bookkeeping are encouraged to call ATBS at 866-920-2827. About ATBS American Truck Business Services (ATBS) is the largest tax, consulting, and bookkeeping firm in the transportation industry, with over 20 years of experience working with owner-operators and independent contractors. Since 1998, ATBS has helped over 150,000 clients earn more money, reduce stress, and drive a richer life. In 2016, ATBS developed the RumbleStrip line of service packages, which includes back-office solutions for truck drivers in every stage of their careers. For more information, visit www.ATBS.com. ###

*UPDATED 7/21/2020 LAKEWOOD, COLO. - [August 14, 2019] - The IRS will begin using form 1099-NEC (Non-Employee Compensation) once again during the 2020 tax year. In 1983, the IRS started requiring businesses to file Form 1099-MISC for contract workers such as owner-operator truck drivers. Now the IRS is reverting back to form 1099-NEC. The revival of this form is related to the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), which requires businesses to file information returns about any non-employee compensation by January 31 of each year. This resulted in problems with the IRS’ processing systems because there was still a due date of March 31 for any 1099-MISC forms that didn’t contain non-employee compensation. To simplify this, the new Form 1099-NEC contains an extra box and a single due date. Click here to view a draft of the form, available on the IRS website. Fleet owners are advised to take note of this change, as it will require them to issue a different form to their owner-operator independent contracts likely beginning with 2020 income. ATBS will continue to share additional information about this change as it becomes available. About ATBS American Truck Business Services (ATBS) is the largest tax, consulting, and bookkeeping firm in the transportation industry, with over 20 years of experience working with owner-operators and independent contractors. Since 1998, ATBS has helped over 150,000 clients earn more money, reduce stress, and drive a richer life. In 2016, ATBS developed the RumbleStrip line of service packages, which includes back-office solutions for truck drivers in every stage of their careers. For more information, visit www.ATBS.com.

LAKEWOOD, COLO. – March 6, 2020 – During the Truckload Carriers Association’s Annual Convention, clients of ATBS won awards in two categories. Ed and Tracy Zimmerman, team drivers for Hirschbach Motor Lines, Inc., were named the 2019 Highway Angels of the Year, also known as EpicAngels, during the Truckload Carriers Association’s Annual Convention. The award is given each year by the Truckload Carrier Association and its partner Epicvue. Ed and Tracy Zimmerman assisted in the rescue of a man trapped in his vehicle that was upside down, in a ditch, and on fire. When Tracy first noticed the vehicle, she immediately stopped the truck and positioned it in a way to block traffic. She and Ed grabbed their fire extinguisher out of their truck and ran quickly to the scene. As one person used the fire extinguisher to keep the flames back, another used a crowbar to smash the passenger-side window. Ed, Tracy, and two other men pulled the trapped driver free and carried him from the vehicle moments before it exploded. Ed and Tracy were unharmed while the driver sustained serious injuries but is expected to survive. The Zimmermans have been ATBS clients since 2009. On the same night, Kevin Kocmich, an owner-operator with Diamond Transport System, was named the 2019 Owner-Operator of the Year by the Truckload Carriers Association and Overdrive. This was Kevin’s fourth straight year being nominated for the award and first time winning. Kevin is based out of Litchfield, Minnesota, and has been leased to Diamond Transportation since 2014. He averages about 115,000 miles per year while hauling mostly oversized and overweight freight. Kevin has driven more than 3.7 million accident and violation-free miles. He drives with his wife Joy and they stay on the road for two to three months straight before spending a week or two at home. Kevin also participates in the Trucker Buddy program, a program that connects elementary school classrooms with truck drivers in order to help kids learn about different school subjects through the scope of trucking. Kevin Kocmich has been an ATBS client since 2018. “Being able to attend the TCA Convention and personally see these awards given out to the Zimmermans and Mr. Kocmich is a humbling experience. They are such awesome people who represent our industry and their profession so well. We are honored to serve them as they continue to be among the top professional drivers and business owners in the industry,” said Todd Amen, President of ATBS. ATBS is proud and honored to assist such accomplished drivers with their trucking business needs. About ATBS American Truck Business Services (ATBS) is the largest tax, consulting, and bookkeeping firm in the transportation industry, with over 20 years of experience working with owner-operators and independent contractors. Since 1998, ATBS has helped over 150,000 clients earn more money, reduce stress, and drive a richer life. In 2016, ATBS developed the RumbleStrip line of service packages, which includes back-office solutions for truck drivers in every stage of their careers. For more information, visit www.ATBS.com.

If you’re bringing in a lot of revenue, yet at the end of each month there is little money left in the bank, you’re simply spending too much. Every expense should be subjected to this simple test: Is this purchase something that’s truly necessary and do I need it? Or is it something I want? Think back to a few years ago when your income was probably a lot less than it is now. If you got by then, you can certainly do it again. The first step is creating a budget and it is important to include your personal expenses. If you aren’t currently tracking your personal expenses, this could be a great New Year’s Resolution for 2014! At ATBS, we think of a budget as a profit plan, the best tool to keep expenses from exceeding your income. A profit plan should show a full picture of your spending history. Really diving into your personal spending habits could show that little things like eating out everyday is cutting into your total net cash, or big items like vacations, holiday shopping, or a new car is the issue. Personal expenses must be included in your profit plan. When all of your truck expenses are paid you should spend no more than 60% of your net income on these things. For example, look at the chart to the left showing “Joe Trucker’s” Profit Plan. If your monthly income is $4,200 after you’ve paid your business expenses, then the most you should spend on personal expenses is $2,520. 40% or $1,680 should be divided into a retirement fund, a savings account for taxes, and finally some should be used for fun! ATBS recommends dividing the leftover amount into four amounts ($420). Every month, put $420 into retirement, half ($840) into taxes, and spend $420 at your leisure. If there’s a big gap between your net income and your lifestyle, consider changing some things in your lifestyle: Quit smoking. The American Lung Association says that the average cost of a pack of cigarettes in America is $5.51. If you smoke a pack a day, that’s about $2,200 a year wasted on something that is bad for your health and will likely cost you much more in medical bills down the road. Sell unused vehicles. If your family can get by with one personal vehicle when you are back home from on the road, sell your extra vehicle that sits in the driveway most of the year. Eliminating a $500 a month car payment can save you $6,000 a year, not to mention the insurance costs! Housing expenses. Many people are switching from an expensive cable or satellite package to watching Netflix or Hulu. Spending $10/month for one of these online services is a lot cheaper than a $100/month Comcast bill. Find the cheapest insurance . Get competitive bids on home and auto insurance at least once a year. Insurance rates tend to creep higher without being noticed. Try to diminish credit card debt. Credit cards should be used as cash management tools, not borrowing tools. The average American household owes about $15,000 in credit card debt. The national credit card interest rate is 14.95%. That’s about $2,240 wasted every year in interest. To lower your debt, you can temporarily use some of that retirement fund or leisure money. Every dollar you don’t pay in interest is like a guaranteed risk-free and tax-free return on your money. There is a wide range in how much people at the same income level can save. It simply comes down to your spending choices. As a client of ATBS, you already have a profit plan created for you! Call your business consultant at (866) 920-2827 if you would like to review your personal expenses and receive advice on how you can cut back on personal expenses. Increasing your total net cash in 2014 is a great New Years Resolution that will help you and your trucking business long term. Remember, it’s not how much you make, it’s how much you can save that counts!

Beyond your house and truck payments, health insurance tends to be one of the biggest fixed expenses for a truck driver. While it’s possible to lower your monthly payments, it requires you and your family to take on a higher deductible. If a large medical expense presents itself, the idea of coming up with the money to pay the bill doesn’t excite many people. The good news is that if you have medical expenses and they make up more than 7.5% of your adjusted gross income then you might be able to claim the expense as an income tax deduction. What costs and expenses qualify? Deductions are not limited to just medical expenses. This also extends to both dental and vision expenses as well. If you have an eye exam, purchase glasses or contacts, need braces, or even require a root canal, all of these are deductible expenses. You can even deduct your health insurance premiums themselves. To get a more detailed list of expenses that qualify, check out IRS Publications 502 . One thing to remember is that if you have been reimbursed by your insurance company for any expense, then you will not be able to claim it on your tax return. This also means that if you use a Health Savings Account or a Flexible Spending Account you will not be able to receive a double benefit. Also Read: Tax Deductions 101 You Must Itemize If you are going to claim a medical expense deduction then you can’t claim the standard deduction on your taxes. Instead, you must itemize your deductions. If you have questions about whether or not it makes more sense for you and your family to take the standard deduction or itemize you can talk to a tax accountant at ATBS and they can tell you what is best for your situation. Payments Need to be Made During the Current Tax Year For example, if you will be itemizing expenses that you incurred in 2024 then it’s important that you also paid the bill in 2024. You are not allowed to claim any past expense that took place during a previous year and the same goes for any future expenses. If you are paying with a credit card then the date paid will be acceptable. If you pay with a check, then the postmark date should be sufficient. If you have any questions about deducting medical expenses give ATBS a call at 866-920-2827.

LAKEWOOD, COLO. - [November 13, 2019] - Barney Moran, an ATBS Tax Resolution Specialist and Enrolled Agent, has successfully completed the requirements to earn the designation of a Certified Tax Resolution Specialist (CTRS). This dignified certification is earned by good standing members of the American Society of Tax Problem Solvers (ASTPS). Barney Moran was first required to be permitted to practice before the IRS, take several directly related professional courses and pass a comprehensive examination administered by ASTPS. The CTRS designation gives the public a means to distinguish among persons rendering solutions to tax problems. ASTPS is the only organization solely devoted to the development of professional skills in this area of practice. Please feel free to contact ATBS for any questions or information. ATBS can be reached at 866-920-2827 or at info@atbs.com.

As a business owner, it’s important for you to create your own brand if you want to stand out from your competition. Some business owners just cut prices for their products or services or may copy what another business may be doing. In order to stand out from the crowd, you will want to focus your efforts on making your company unique so that customers will remember you. A successful business will concentrate on the customer. What does your client need or how can you make their job easier? Find solutions to these questions and then do the job better than anyone else. Stand out by determining what you do best and how you can create added value. It’s important to know your clients on a personal level and make them feel as if they are your only customer. Provide them with outstanding service from the proposal to closing on a product or service. Always follow up and stay in touch with clients. Pick the market you will serve and then focus on becoming the expert. Basically, find your niche. You can’t serve everyone so choose a specific area in which to focus your service. Aim to become an expert by creating blogs, videos, training, or writing a book. Customers seeking answers to their specific problems will seek out your business. If your company is new or you are just starting out, create a unique offer. This can be in the form of a discount for them to try your product or service. Consider ways to differentiate your company by looking for ideas and extra additions to your product or service that offer something special for your client. For example, my mother in law takes her car into the dealer service center for routine maintenance a couple times a year. She calls to make an appointment for the car and the dealership also makes her an appointment with a nail manicurist who works on site. She gets her nails done for free while she is waiting for her car to be serviced. When my wife gets her hair done at the salon, they always offer her a glass of wine. Any type of luxury add on will help to retain customers over the long term. Once you choose a direct strategy to make your business stand out from the crowd, the marketing and promotion efforts should be focused on your unique differences so that your business is set apart from the competition. This article was originally featured on Teamrunsmart.com.

I read an article recently which stated that the Department of Transportation’s National Highway Traffic Safety Administration reported that in 2000 there were over 450,000 large trucks involved in accidents. There are millions of truck drivers in the United States which means safety training should be a top priority for the trucking industry. Considering the weight and size of large trucks, using safe driving practices can help avoid being involved in a motor vehicle accident. Many drivers attend some sort of truck driving school in order to obtain their education for a (CDL) license. These schools or institutions provide the necessary training techniques for defensive driving. These programs also include discussion on safety routines to be completed prior to each ride. Such as: weight, tire pressure, safety lights and fuel levels. Large fleets/trucking companies offer on-going safety programs for their drivers. These companies often have their own “Safety Director” to oversee training and education. What about the small carrier or independent owner operator? Safety is just as important of an issue no matter how small or big the organization may be. Each company/driver is responsible for their practices in regards to safety and compliance issues. For those small carriers and independent owner operators, creating a safety program for your company is very important. Should you happen to be involved in an accident which occurs and is then followed by a court case, you will want to represent your company/driver to the best of your ability. This can be done if you have a proven record of an on-going safety program. You will want to demonstrate to the court and those involved that you cared about safety within your company. Driver files should contain the necessary signed and dated articles, publications, and certificates for training completion, meeting notes or any other forms/items showing valid proof that safety prevention was a top priority. Today, we have many options in regards to education and training resources. In creating your own safety program, you might decide to review safety materials weekly, monthly or quarterly. There are many online classes/courses to fit your working schedule. You could attend a safety training seminar or read about safety prevention articles in various trucking industry publications. Maybe you could coordinate a driver startup safety group who could gather together to meet monthly in person or by phone to discuss and refresh on skills, defensive driving techniques and safe maneuvering practices. Safety prevention should be important to each of us. As professionals in the trucking industry, we can take the necessary steps to create a safety program for our company so that we’re knowledgeable and prepared to handle safety issues should they arise. This article was originally featured on Teamrunsmart.com.

In the commercial trucking industry, “diabetes” is a fearful word. For many years there was a blanket ban that prevented anyone with diabetes who used insulin from driving commercial trucks in interstate commerce. However, in 2003, the Federal Motor Carrier Safety Administration (FMCSA) announced its plan to remove the blanket ban and begin accepting waivers in its Diabetes Exemption Program. This program allows diabetic drivers to operate commercial vehicles if they meet certain criteria. As of November 8, 2014, the FMCSA recommends that drivers have an A1C between 7-10% to meet requirements for an exemption. Diabetes can be a hard disease to manage at home, and when your “home” is on wheels that travel hundreds of miles a week on the interstates of America, it can be even more difficult. A 2009 study found that commercial truck drivers have a 50% higher risk of developing diabetes compared to the general population and 87% of truck drivers have hypertension or pre-hypertension. Commercial truck driving is a hard job, especially with work long hours to meet tight schedules and deadlines. The food options along the road are unhealthy with high-sodium fast food being the most available choices. The high stress, lack of physical activity and normal sleep, and an unhealthy diet can lead to numerous health issues, including diabetes. Diabetic commercial truck drivers face unique challenges because of a work lifestyle that limits healthy food choices and affords little time for physical activity. However, with a little forethought managing diabetes and truck driving is possible. Managing Diabetes and Truck Driving Make your medical appointments a priority Being on the road all the time makes it tough to keep appointments. Often times doctor and dentist appointments are tossed to the side to meet work deadlines, especially if driving is your sole income. However, when you have serious medical conditions such as diabetes, medical appointments need to be a priority. If you can’t make your appointment, call and reschedule for a time when you will be home. Many practices have diabetes nurses or care coordinators that can help you on road via phone. Don’t be afraid to utilize these services. If you’re on the road and need care, check out one of the Convenient Care Clinics, which includes a network of organizations such as CVS/Minute Clinic and Walmart. Convenient Care Clinics created a national network of Department of Transportation (DOT) clinics that offers DOT exams and aims to provide wellness services for truck drivers. Carry your medical records with you First, if you are diabetic or have other serious medical conditions you should wear a medical bracelet to identify you as diabetic in case of emergency. Emergency responders are trained to look for these items. Secondly, carry your medical records with you. Most health care providers use electronic health records and can print you a copy of your records including current medications and lab results. You can carry your records in a folder with you or ask to have your files added to a USB drive (or both!). If you see another health provider in a different state, having your health records with you will be very helpful for the new doctor and could potentially save your life in case of an emergency. Additionally, many larger medical practices will offer patient portals for their patients. You can log in to your patient portal via the Internet and see parts or all of your health records as well. Make time for physical activity If you have a smartphone or tablet, there are many amazing fitness apps available for free that you’d be crazy not to download and try a few. Apps such as MapMyFitness can help you locate walking trails wherever you may be. You can also track your activity and what you eat for the day. Perhaps technology is not your thing - that’s okay too! On your next stop, try walking around the parking lot a few times before you hop into your rig and continue driving. Start with small goals. For example, every time you stop for food or a bathroom break, walk around for at least 10 minutes. If you stop 3 times in one day, that equals to 30 minutes of exercise. Choose healthy food options Most food options on the road are unhealthy. The American highways are dominated by fast food joints. If you are diabetic, it is important to work with your diabetes nurse/coach and quite possibly a dietitian. There are many resources out there to help you identify healthy options that can help you manage your diabetes. The American Diabetes Association is a wonderful resource of information on food and what you should eat as a diabetic. It is important to choose foods with a low glycemic index (GI), such as beans, dark leafy greens, sweet potatoes, and berries. Before starting any new diet, consult with your health care provider to determine what’s best for you. Be proactive Living with diabetes on the road takes planning. You need to ensure that you always carry enough medication and supplies, such as your glucose meter and test strips, with you in your truck. If you can, plan snacks and meals ahead of time. A cooler full of healthy, low GI snacks will help keep your blood sugar stable and your tummy happy. The National Diabetes Information Clearinghouse (NDIC) recommends working with your health care provider to develop a meal schedule to help you maintain stable blood sugar throughout the day. Being on the road and working under tight deadlines can make managing a schedule difficult, but it is important that your health comes first. If your diabetes becomes out of control, you may not be able to drive and you could lose your main source of income. Diabetes doesn’t have to be a career ending diagnosis. Every day, more and more Americans are diagnosed with diabetes – to the tune of about 1.7 million new diagnoses every year. Most Americans don’t face potentially losing their job over diabetes like commercial truck drivers. Prior to 2003, diabetics could not drive commercial trucks, but today you may qualify for an exemption. Eating a healthy diet, making time for physical activity, and prioritizing your health, will make managing diabetes on the road easier - and keep you in the driver's seat for a very long time!

Truck driving does not leave one with a lot of time or convenience to do many tasks. Exercise, leisure, and cooking come to mind. There are many resources on exercising and eating healthy in past ATBS articles, but what about cooking food for truckers? Not just cooking mediocre meals, but cooking great quality food? There is an option that isn’t commonly known, and it’s called sous-vide cooking. At the heart of sous-vide cooking is vacuum-sealed food cooked in heated, non-boiling water. What are the benefits of this cooking style? Meat, fish, and vegetables, along with some desserts, will cook to exact doneness, and not overcook, even if the food is left to cook longer than the minimum required time. Another advantage of this style of cooking is portability and ease. All sous-vide cooking requires is an outlet and water. Most ‘water ovens’ and sous-vide setups are compact and easily placed in any area, including the cab of your truck. Cook meals at home or on the road, freeze them for later, and heat up whenever you need a satisfying, healthy meal. Here are a few sous-vide cooking options to get you started: Water Oven Everything is built-in and all you need is some water and an outlet. Recommended Product: SousVide Supreme Demi Circulator This option requires a container to hold water - a tall pot, tub or a cooler works well. Recommended Product: Anova Precision Cooker Vacuum Sealer A vacuum sealer is best, but similar results come from simply using a ziplock bag. Place the food-filled ziplock bag in water just below the seal to remove the air, then zip shut. Recommended Product: FoodSaver V2244 Vacuum Sealing System If you decide sous-vide cooking is right for you, remember that the purchase of cooking products is tax deductible. Drive safely, and eat well! Author: NW Dexter