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Here is a list of the most commonly asked tax questions we've received from owner-operators, and our answers.   Needs help with your taxes? Click here! 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: Let ATBS know as soon as possible. We will file a one-time 6 month extension for you. 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. ATBS works hard to keep you as close to owing nothing 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. However, if you are a corporation, there is a possibility that you will not receive a 1099-NEC; advise with your carrier if that is the case. 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. At ATBS, our tax department will calculate that charge and include the penalties and interest on your year-end tax return . Q: What tax forms do I need to complete for a contract laborer, (for example an employed team driver)? A: If you have an employee, run them through payroll and issue them a W-2 at the end of the year. If you have a contractor laborer issue them a 1099-NEC. Q. Do I need to file a separate tax return for owner-operator earnings and company driver earnings? A: No. As a sole proprietor, you will file one return, Form 1040. The 1040 will contain a Schedule C, listing business earnings and expenses. Per Diem Questions Q: How does the Per Diem tax deduction work? A: Per Diem is a tax deduction for meals and incidental expenses on the days you are working away from home. The current rate for 2024 (as of October 1, 2024) is 80% of $80 per full day, and ¾ of this amount for partial days. Partial days are the day you leave home and the day you return. Full days are any day you need to stop driving due to the hours of service rules or are unable to drive due to on-the-road repairs. Visiting family or friends for a few days does not count as Per Diem days. If you are using a motel/hotel while on the road, Per Diem is still deductible, but not during home time. IMPORTANT NOTICE: The Per Diem rate from January 1, 2024 - September 30, 2024, was $69 per day in the Continental United States. This means you will need to calculate your total Per Diem deduction using two different Per Diem rates. You need to keep this in mind when you are filing your 2024 taxes. Q: Can I use my e-log records to count the days for Per Diem? A: You can if you have the full year of e-log records. Contact your carrier every 3-4 months and ask for a copy of your e-logs. Many carriers delete e-logs every six months; so do not wait until the end of the year to ask for a copy. Read More: Seizing The Per Diem Tax Break Family Related Questions Q. Should I file my tax return separately from my spouse? A. 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. ATBS can prepare the return both ways, and then provide you with them both to indicate the best tax outcome for you. Q: Can I claim a parent as a dependent on my taxes? A: To meet the support requirements necessary to claim your parent as a dependent on your tax return, you must cover more than half of your parent’s support costs – meaning 51% or more of their support costs must be covered by you. These costs include food, housing or lodging expenses, clothing, and medical services and/or equipment costs. To be a “Qualifying Relative” the person you’re caring for can be your parent, in-law, or grandparent. Q: How much of my (or my spouse’s) Social Security income is taxable? A: How much Social Security income is taxable depends on your total income and marital status. If you file a federal tax return as an individual and your income is between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits. If your income is more than $34,000, or more than 44,000 for a married couple filing jointly, then up to 85 percent of your benefits may be taxable. If you are married and you file a joint return, and you and your spouse have a combined income that is between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits. Q: Should I claim a dependent on my quarterly estimated taxes? A: No, you should claim dependents only on your year-end tax return. Deduction Questions Click Here to Download our "Trucker Tax Deduction Worksheet" Q: Is fuel tax deductible for truck drivers? A: Yes, fuel tax is a part of the cost of fuel, so it is deductible as an outgoing owner-operator fuel expense. Q: Can I claim the home office deduction? A: It is possible for an owner-operator to qualify for a home office deduction, however, you need to meet two tests: The home office must be used regularly and must be used exclusively for the business, and; The home office must be your principal place of business. If you conduct business outside of your home such as being an over-the-road trucker but use an office space when you’re home to conduct business calls, organize receipts, and overall business functions then it’s possible to qualify for a home office deduction. There has been conflicting information about what qualifies for a home office deduction but if you can prove the office is used exclusively for business then you should be entitled to the deduction. The IRS may challenge the validity of the deduction for a trucker since your truck is considered your primary place of business. Q: Is clothing tax deductible? A: Generally, gloves, steel-toed boots, etc. that are required as part of the job are deductible, but not general everyday clothing that everyone needs to buy. Q: Is a gym membership tax deductible? A: Yes, but only if the membership is prescribed by a doctor to treat a specific medical condition. You must also join the gym after the diagnosis. Q: Are medical expenses deductible? A: If medical expenses exceed 7.5% of your Adjusted Gross Income you can deduct the amount over 7.5%. For example, if you have an adjusted gross income of $50,000 and $6,000 of medical expenses, you would multiply $50,000 by 0.075 (7.5 percent) to find that only expenses exceeding $3,750 can be deducted. This leaves you with a medical expense deduction of $2,250 (6,000 - 3,750). Q: I purchased an Auxiliary Power Unit this year. Can I receive a tax credit for this purchase? A: Yes. Send your tax preparer the receipt or the Bill of Sale for the APU. Also, write down the hours it was used or gallons of fuel used so we can provide the tax credit. Q: Are truck dog expenses deductible? A: Yes, if a dog is acting as a security for the truck it is considered a guard dog and its expenses (food, veterinary bills) can be deducted from your taxes. Other Miscellaneous Questions Q: If I sold a home this year, is the profit taxed? A: It depends on how long you owned and lived in the home before the sale and how much profit you made. If you owned and lived in the place for two of the five years before the sale, then up to $250,000 of profit is tax-free. If you are married and file a joint return, the tax-free amount doubles to $500,000. The law lets you "exclude" an amount from your taxable income. (If you sold for a loss, though, you cannot take a deduction for that loss.) Q: If I rented out a home this year, do I have to claim it on my taxes? A: Yes, you will need to fill out a Schedule E form. Q: What is the penalty for not having health insurance? A: The insurance mandate has been removed. As of 2019, there is no longer a penalty for not having health insurance. If you have any more questions, feel free to give us a call at 866-920-2827 or visit our website at www.atbs.com .

The deadline to pay and file your 2024 taxes is April 15, 2025. This means if you haven’t filed your taxes yet, today is the perfect day to get started. But before you do, we think it’s important to clear up some common tax myths that float around each year. These myths could end up costing you thousands of dollars if you’re not careful. Myth: An extension to file is an extension to pay Millions of Americans will end up filing a tax extension this year. This extension will give individuals until October 15th to file a completed return. Contrary to what some people might tell you, the extension won’t give you additional time to pay the amount you owe. Instead, what you owe will still be due on April 15, 2025. While your extension will help you avoid any penalties for failing to file, it won’t save you from the failure to pay penalty. Any balance that you have after April 15th will begin accruing a failure to pay a penalty of 0.5% per month. You will also be charged interest on the outstanding balance. Myth: You must file a joint return if married Another idea that we frequently hear is that you must file a joint tax return if you are married. In reality, if you are legally married, then you have two filing options: married filing jointly or married filing separately. ATBS will provide the option to file either jointly or separately depending on which status has the best outcome for you. Myth: You’re more likely to be audited when you file an extension Many people are against filing a tax extension because they feel that it makes them more likely to receive an audit. While there have been numerous studies done on this issue, none have presented proof that there is a correlation between filing an extension and being audited. So if you need to file an extension, don’t worry about it increasing your chances of an audit. Myth: You should always want to receive a tax refund Most of you probably know people who get excited every year because they are going to get a tax refund. However, because many of you are owner-operators, there is only a small chance that you will be receiving a refund check and you should be thrilled about this. It means you managed your money well throughout the year, and you didn’t give the IRS an interest-free loan. As long as you keep up with your quarterly tax payments , you should be able to break even on tax day. If you are not currently an ATBS client and would like to have one of our tax professionals complete your 2024 state and federal tax return, give us a call at 866-920-2827.

How much is a handshake worth? Here at ATBS, we sometimes hear owner-operators tell us they would rather work with a local CPA or Tax Professional instead of ATBS because they can “shake the hand” of their tax preparer . Human connection is more important than ever - we agree! In a world where many companies are trying to get rid of human labor in favor of high tech tools and artificial intelligence, ATBS knows the true secret to success for tax companies: Human beings want to work with other human beings. This is a simple truth to us here at ATBS, but there are a lot of people in the world who think technology is going to completely replace humans in the workplace. We disagree. While technology will undoubtedly replace many jobs in the future, we believe technology will be used primarily to help human beings work with other human beings - especially in industries where service is the product, like tax, accounting, and business consulting (which is what we do for owner-operators at ATBS). Many drivers think that because ATBS is capable of working for you remotely that it somehow means they’re going to be working with a robot - not true! And by the way, we have offices (with human beings in them!) where you can stop by if you’re in the area to see us in person. Our focus is on working with you anytime, anywhere, but you can always stop by to see us as well! Our services are designed with you (truck drivers) in mind, and that means focusing on having as much human connection as possible for your business. We know your world is becoming ever more automated and regulated by technology, and we always make sure that we never lose sight of the human connection with what we do. When someone tells us they want to “shake the hand” of the person handling their taxes, what they really mean is, “I want a human being to handle my taxes and care about the outcome of those taxes as much as I do .” Does that mean you need someone to do that work while they’re sitting in front of you? No! That means you need someone who knows trucking , who cares about you and your business , and who does this kind of work all year long (not just on April 15th) to get it done right. Let’s talk about the differences between ATBS and your typical Local CPA or Tax Professional , and we’ll highlight some reasons why we really, truly, believe that ATBS is the best possible option for every single owner-operator’s tax needs . 1 - Industry (Trucking) Knowledge Most CPAs or Tax Professionals are generalists . They know a little bit about a lot of different industries, which means they can generally do a decent job of minimizing your IRS liability. However, you are always - always! - better off using someone who knows your industry inside and out. ATBS has been in the trucking business for over 25 years, and all we do is handle taxes for truckers - this is a huge advantage for our clients because we know everything there is to know about our industry and the taxes related to it. We keep an eye on the tax laws every single day for our trucking clients to make sure we’re getting it done right, every single time. 2 - Year-Round Tax Help & Preparation Most CPAs or Tax Professionals only work a few months out of the year, during tax season. If they work during the off-season, their hours are typically limited and they are tough to track down to get any work done. ATBS is different because we work year-round to help our clients with their tax, accounting, and business consulting needs. Trucking never stops, so we make sure we’re here all year long to help you out. We don’t disappear after April 15th and leave clients out to dry if tax problems come up during the offseason! 3 - Going Beyond Taxes Most CPAs or Tax Professionals don’t want to see your paperwork when it comes time to file taxes. They want to: See you once per year Have you do all the paperwork & bookkeeping yourself Take the work you’ve done, charge you a ton of money, and simply plug the numbers in to file your tax return Seems like a lot of work for you - and a lot of money to spend - considering they’re the supposed tax experts, right? At ATBS, we take the tax burden off of our client’s hands entirely. We handle the paperwork and bookkeeping , we do their accounting each and every month, we calculate quarterly tax estimates so they can pay on time, we file their taxes each year, and we provide consulting year-round to help our clients minimize their taxes and maximize their profits . We are a full-service tax provider. Our clients deserve the opportunity to focus on running their business while we take care of the rest! Don’t pay someone to file your taxes when you’re doing all the work yourself. Let ATBS help you year-round so you can save time, cut out the stress, and focus on driving your truck… we’ll handle the rest. 4 - Ease of Doing Business (ATBS Hub) As we mentioned, most CPAs or Tax Professionals don’t want to see your paperwork or handle your bookkeeping needs. And if they do, they probably require you to sort it yourself and drop it off in person, right? Here at ATBS, we have the ATBS Hub for all of that. No need to sort receipts or wait until you see us in person to deliver them - simply submit paperwork to us in real-time , as often as you like. We work tirelessly on figuring out how to make working with us as simple and as easy as possible. Our ATBS Hub makes working and communicating with our team easier than ever. No other CPA or Tax Professional out there is doing what we do… want to know why? 5 - Because we care We operate a family-owned business , and our owners grew up in trucking . We know, understand, and appreciate our clients more than any other CPA or Tax Professional out there. We know trucking, and we know how hard it is to keep America moving. We do what we do because we want to make life better for our trucking clients, and that’s why we ONLY work with trucking clients. We don’t want to be generalists. We don’t want to work with you just one day a year. We don’t want you to have to do all the bookkeeping and accounting for your business after a 14 hour day on the road. We don’t want you to have to hold onto paperwork and deliver it to us in person because that just wastes time and clutters up your life. We care about our trucking clients, and that’s why we’re always better than any other CPA or Tax Professional out there. Yes, our services are great: We’re trucking specific We work with you year-round We help with all of your tax-related needs, not just the act of filing the taxes themselves You can work with us anywhere, anytime But, the reason why we’ve been in business for over 25 years and have helped over 150,000 owner-operators is because we care. So, just because you might not be able to shake our hand when you work with us - although you can always come to our offices if you’re in the area! - doesn’t mean we can’t provide the best possible service to you and your business. We’re here to provide the human connection you want and need to run the most successful business possible, and that’s why we really, truly, believe that ATBS is the best possible option for every single owner-operator’s tax needs. Check out our website to learn more - we’ve been around for over 25 years, and we’ll be around for many years to come. Give us a call!

The ATBS Hub makes working with us even easier! The ATBS Hub features several tools for viewing and analyzing your revenue, expenses, and profitability. Sections in this Guide: How to Switch to the New Hub Download the App Log in to the ATBS Hub Contact Your ATBS Business Consultant Track Your Per Diem Days Send Documents to ATBS Track the Status of Your Documents Hub Message Center View P&L View Profit Plan View Quarterly Tax Estimate Voucher View Your Tax Returns Logout Frequently Asked Questions Already an ATBS Client? Here’s How to Switch to the New Hub! How do I update my app? If you have not been using the ATBS mobile app, you will need to go to the Google or Apple app store and download the app . If you have been using the ATBS mobile app, it should automatically update to the newest version. Otherwise, you’ll need to manually update your app through your phone’s app manager.  How do I gain access to the ATBS Hub? Your username is the email address you have on file with ATBS. All clients MUST set up a new password!  You can do this by opening the UPDATED  ATBS Hub mobile app or by visiting hub.atbs.com  and clicking on “Forgot my Password” to reset a new password. Will the old app and portal still work? No, after launch day the old app and portal will no longer work. The ATBS Hub can be accessed by downloading the update for your app, or by visiting hub.atbs.com . Download the App The ATBS Hub App is available on the Google Play Store or the Apple App Store. Click on one of the links below to download it! Back to Top Log in to the ATBS Hub On the Hub’s login screen, enter your username and password. This will be the same on both the desktop and the mobile app. Not sure what your credentials are? Click here  to reset your password. Not yet a client? Contact Us  to get enrolled today! Back to Top Contact Your ATBS Business Consultant After logging in, you’ll see your Business Consultant’s name towards the bottom of the page. Tap on the phone or email button to contact your Business Consultant right away! Back to Top Track Your Per Diem Days You can use the ATBS Hub to log your days away from home and keep track of your valuable Per Diem tax deduction ! Tap the Menu button from the home screen in the top left corner Click on “Per Diem” from the Menu Your Per Diem Tracker can also be accessed by clicking on “Per Diem YTD Total” from the home screen Select whether you will be tracking a Full Day(s), Partial Day(s), or Clearing a Day(s) Select the Month and Year of the days you want to track Select the days you want to track. You can pick one or multiple days Click “Submit” On the “Per Diem” page, you’ll now see your estimated year-to-date deduction, how many full days and partial days you’ve tracked, and a calendar view of the specific days you’ve tracked To remove a day you previously tracked, select the “Clear” status, select the day(s) you wish to clear, and hit the “Submit” button For more information on the Per Diem Deduction, click here ! Back to Top Send a Document to ATBS Select the “Upload Document” button at the bottom of the page Choose whether you will be uploading a “single-page file” like a receipt, or a “multi-page file” like a tax return Choose whether you want to use your camera to take a picture of the document(s) or upload a file you already have saved on your device Using your camera to take a picture of a document Center your document in the view and take a picture Decide whether you want to “Retake” or “Use Photo” Give your document an optional title Use the auto-crop feature to cut out any unnecessary space from your image Add a note if you’d like to provide any additional information about the document to ATBS Hit the “Submit” or “Save” button If you previously selected to upload a single page, that’s it! Your document is now on its way to ATBS! If you previously selected to upload multiple pages, you’ll have the option to Add a New Page or delete a page you previously planned to upload Uploading a file already saved on your device Locate the file you want to import on your phone Tap the document Give your document an optional title Add a note if you’d like to provide any additional information to ATBS Hit the “Submit” or “Save” button If you previously selected to upload a single page, that’s it! Your document is now on its way to ATBS! If you previously selected to upload multiple pages, you’ll have the option to Add a New Page or delete a page you previously planned to upload Back to Top Track the Status of Your Documents When you upload documents to the ATBS Hub, each document will fall into the “Received” or “Posted” category and be labeled with a status to tell you where it's at. Here is what each of those statuses means: Received Submitted Your document has been successfully uploaded to the ATBS cloud server. There is no need for you to resend your document. Working On It Your document has been received by ATBS. There is no need for you to resend your document. Still Working On It Our team is reviewing the document and will get it to the appropriate department soon. There is no need for you to resend your document. Posted All Done! All done! Your document has been posted to your P&L. Back to Top Hub Message Center Tap the Menu button from the home screen in the top left corner Tap the Messages tab to view your conversations You will also receive a notification on the home screen when a new message is available From there, select an existing Message to view it Back to Top View P&L Tap the Menu button from the home screen in the top left corner Click on “Financial Performance” from the Menu and select “Profit & Loss” Your Profit & Loss can also be accessed by clicking on “YTD Revenue”, “YTD Expenses”, and “YTD Profit” from the home screen Select the year and period of time you want to view your P&L data You can toggle between viewing your P&L data in charts or tables by selecting the matching icon on the top right of your screen In the chart, the green check indicates the areas where you are performing in the top half of ATBS clients and the red exclamation point indicates the areas where you are performing in the bottom half of ATBS clients Back to Top   View Profit Plan Tap the Menu button from the home screen in the top left corner Click on “Financial Performance” from the Menu and select “Profit Plan” If you have not created a Profit Plan with your Business Consultant, reach out to schedule a time to do so Back to Top View Quarterly Tax Estimate Voucher Tap the Menu button from the home screen in the top left corner Click on “Tax” from the Menu and select “Quarterly Tax Estimates” Select a year and tax quarter and click “Apply” A PDF of your tax estimate will be downloaded to your device If you need to make a payment, click on “Make IRS EFTPS Payment” to be redirected to the IRS website Back to Top View Your Tax Returns Tap the Menu button from the home screen in the top left corner Click on “Tax” from the Menu and select “Tax Returns” Select a tax return and click “Apply” A PDF of your tax return will be downloaded to your device Back to Top Logout of the App Tap the Menu button from the home screen in the top left corner. Click “Log Out” Back to Top Frequently Asked Questions  How do I know if you've received my documents? Answer: Within 72 hours the status of your document should update to "Working on it". In most cases, the status will update within the hour.  Can I use multiple devices? Answer: Yes! Your data (such as Per Diem) will sync between devices.   How do I log Team Driver Per Diem? Answer:  We currently do not support logging separate drivers per diem, but we are looking into it.   What does "Still Working" mean? Answer:  This status means we need a little additional time to process this document.  I have an idea for a new feature, what's the best way to tell you? Answer: That's great! Send us an email at info@atbs.com I never got my reset password email?  Answer: Please check your spam folder. If it’s not there, please contact your Business Consultant

This week, I’m driving Celeste to the Mid-West Truck and Trailer Show which takes place on February 7 & 8, 2025 in Peoria, Illinois. The show is held each year at the Peoria Civic Center . I have attended it for many years. In the past, it has always snowed, or we have had very frigid temperatures. This year, it seems it will be cold, but sunny. The weather app shows days in the upper 20’s to the mid 30’s. This event brings many organizations looking to showcase a variety of high-quality and innovative technology, which attracts potential buyers attending the show. The show offers a special focus on trucks, trailers, parts, and truck accessories. Also, there will be a vast array of products from various automotive segments, and many will be advertising power and renewable energy. Celeste, my 2022 Freightliner Cascadia, and I will be on-site and available for conversations on fuel efficiency, profitability, and the bottom line. I look forward to seeing you in Peoria, IL at the Mid-West Truck & Trailer Show.

If you are a company driver, you probably receive a paycheck every two weeks. From that paycheck, certain payroll taxes are withheld. These include Social Security, Medicare, as well as state and federal taxes. However, when you make the move to becoming an owner-operator, you become entirely responsible for calculating and paying your own taxes. What is Self-Employment Tax? In 1935, the United States government passed the Federal Insurance Contribution Act, which most of us know as FICA. This tax was created so that there would be funding for both Social Security and Medicare. This tax amounts to 15.3% of taxable income. Half of the tax is paid by the employer and the other half is paid by the employee. So what happens when someone is self-employed and there is no employer contribution? In 1954 the Self-Employment Contributions Act (SECA) was passed. What is now referred to as the self-employment tax, made it so that anyone who is self-employed would be solely responsible for the entire 15.3% tax payment. What makes up the Self-Employment Tax? We have already established that the self-employment tax will be made up of 15.3% of your taxable income, but let’s break it down a little further. This tax is made up of two different parts. The first is for Social Security which is 12.4%. What many people might not know is that there is a maximum income that can actually be taxed for Social Security. In 2025, the limit is $176,100, which is up from $168,600 during the 2024 tax year. The second part of the self-employment tax covers Medicare. This is made up of 2.9% of your taxable income. Unlike Social Security, there is no limit to the amount of income that can be taxed by Medicare. In fact, Obamacare actually added an additional 0.9% Medicare surtax to any income over a certain amount. If you are married filing jointly, the added surtax would be applied on anything over $250,000 and if you are married filing separately, the added surtax would be applied on anything over $125,000. For all other taxpayers, the surtax would start at any income over $200,000. How to File Self-Employment Taxes? Anyone who claims self-employed income on their tax return will be required to file a Schedule C on Form 1040. This is how you will calculate your net self-employment income. Once you have determined your net income (or loss), if your net income is over $400, you will use this number on Schedule SE of your Form 1040. This will allow you to find out how much self-employment tax you will be required to pay for the year. If you file a joint tax return with your spouse, and they are self-employed as well, then you will both need to calculate self-employment taxes separately. Some of the rules can get a little tricky, so it’s best to call a tax expert to help guide you through the entire process. Filing Estimated Taxes When Self-Employed As a self-employed owner-operator, you’re not only responsible for paying your self-employment taxes, but you’re also responsible for paying estimated taxes each quarter. If you are an ATBS client, then we do most of this legwork for you. We will calculate the amount you owe based on your actual income or with a safe harbor estimate. Then, all you need to do is make your payment each quarter. This helps to simplify your life, allowing you to spend less time figuring out how much you owe, and more time getting back to doing what you love. The Bottom Line Deciding to make the jump from life as a company driver to becoming an owner-operator is a big step. While the rewards can be great, it also comes with more responsibility. Instead of having your taxes automatically deducted, you’re now responsible for making sure they’re fully paid. If you find the process a little overwhelming, give us a call at 866-920-2827 and let us do the work for you!

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 2025, you can contribute up to $7,000 per year across all IRAs in your name and if you are over the age of 50, you can make an additional $1,000 contribution for a total of $8,000 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. Starting in tax year 2018, the child tax credit gives parents a $2,000 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, ATBS finds missing deductions for over 90% of their clients! 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 !

No matter if you’re an ATBS client or you’ve been using another tax professional, you’ve probably heard the terms tax credit and tax deduction. But do you know the difference between the two? Both are going to save you a significant amount of money when it’s time to file your taxes , but they operate in very different ways. Keep reading as we dig into a tax deduction vs. a tax credit. What is a tax deduction? A tax deduction happens when you have a tax deductible expense or an exemption. This reduces your overall tax liability. As an owner-operator truck driver, you have numerous tax deductions for your business including your truck payment, fuel expenses, accounting and bookkeeping fees , and more. Here is an example to help you understand how tax deductions work. Let’s assume your income is $75,000, you own a home that has property taxes of $4,500 per year. Because property taxes are an income tax deduction, your taxable income would now be $70,500. What is a tax credit? Tax credits work very differently than tax deductions. Tax credits will reduce your tax liability instead of reducing taxable income. One of the most important tax credits for parents is the child tax credit. The child tax credit gives parents a $2,000 tax credit for each child dependent. To show you how a tax credit differs from tax deductions, consider the following example. Let’s assume you have a tax liability of $5,000 and you have two children. The two children would allow you to receive a $4,000 tax credit. This would decrease your tax liability to $1,000. Standard Deductions vs Itemized Deductions: Which should you take? When filing your income tax return, you have the option to use either a standard deduction or itemized deduction. Starting with tax year 2018, the standard deduction increased drastically. For 2024, the standard deduction is $14,600 for single filers and those married filing separately and $29,200 for those married filing jointly Alternatively, if you have enough deductible expenses in any single tax year, you can choose to itemize your deductions. However, now that the standard deduction has been increased by nearly 100%, the number of people itemizing is significantly less. Some common itemized deductions include the following: ● Mortgage interest ($750,000 limit) ● Property taxes (up to $10,000) ● Medical and dental expenses (when expenses exceed 7.5% of adjusted gross income) Let’s assume you have personal deductions totaling $13,000 and you file your taxes married filing jointly. Because this is significantly less than the standard deduction of $29,200, it would make more sense to file your return using the standard deduction. However, if your itemized deductions are greater than the standard deduction, it would make sense to file with itemized deductions. No matter if you’re filing your return with tax deductions, tax credits, or both, you’re going to want to apply the maximum allowed. Both are going to reduce your taxable income and both are going to help keep more of your hard earned money in your pocket. If you have any questions about how tax credits and tax deductions affect your tax situation, feel free to reach out to ATBS by calling 866-920-2827.

There are many differences between W-2 and 1099 truck drivers. In this article, we'll talk about the main differences between the two, specifically how they file and pay their taxes . The most significant difference between W-2 and 1099 drivers, is that a W-2 worker is classified as an employee and has taxes withheld from their paycheck prior to the employee receiving their pay. The employer of the W-2 employee is responsible for remitting the various taxes withheld to the appropriate governmental agencies. A 1099 worker is classified as a contractor, and a 1099 worker does not have taxes withheld from their paycheck. A 1099 contractor would receive the full gross amount as pay. The company who has hired the 1099 worker has no responsibility to remit taxes. The tax remittance or payment of tax is the full responsibility of the individual 1099 worker. The Form W-2 is what a company issues to an employee at the end of the year and the Form 1099 is what a company issues to a contractor at the end of the year. Both of these forms indicate the amount of money earned by the worker within the given year but the W-2 will include information about how much in taxes was withheld while the 1099 reports only earnings. Let’s dive into some of the tax differences between these two types of workers based on the tax form they receive. Are you a self-employed truck driver that needs help with your taxes, accounting, or bookkeeping? Click here! W-2 In the world of trucking, company drivers are considered W-2 employees. They are the typical, hourly or salaried workers that are hired to perform a specific role. In terms of truck driving, they are given a schedule, a consistent paycheck, benefits provided by the company, a company truck, etc. Every tax season, employers provide a Form W-2 to the IRS and the employee. On the Form W-2, the employer will report the annual compensation paid to their employee and the taxes withheld from that compensation for federal income taxes, state income tax (if applicable), and taxes remitted for Social Security and Medicare. When it comes to paying taxes as a W-2 employee, the employer has already withheld federal and state income tax, Social Security tax, and Medicare tax from employees when they pay them. All of these amounts are included on the W-2 form that is received from the employer which is then used to file taxes. Employers must mail Form W-2 to their employees by January 31st of each calendar year. Filing taxes as a W-2 employee is much simpler compared to filing taxes as a 1099 worker. The filing of an income tax return is the process in which a taxpayer would determine if they had their employer withhold too much tax throughout the year. In the event that tax was over withheld a tax refund would be issued to the W2 employee by the IRS and state (if applicable). If the employee did not have their employer withhold enough in taxes, then the employee would be required to pay the IRS the amount of taxes that are still due. In terms of deductions, specifically for truck drivers, W-2 company drivers can no longer deduct the Per Diem deduction . Additionally, a majority of W-2 drivers end up taking the Standard Deduction unless they have a lot of medical expenses or if they dealt with a significant loss due to a natural disaster. The Standard Deduction is an IRS-allowed deduction for each taxpayer and/or spouse used to reduce taxable income. There is nothing that a taxpayer must do to receive the Standard Deduction; it is an automatic allowance to each taxpayer when filing their tax return. 1099 1099 workers may not have a single employer and could have been contracted on with multiple customers that they worked for throughout the year. This is because they own their business and contract their services. They’re also responsible for reporting their income to the IRS themselves, paying Self-Employment Taxes (which cover Social Security and Medicare), and paying income taxes. The companies that hire 1099 contractors DO NOT pay or remit taxes on behalf of that 1099 contractor. The most common types of 1099 truck drivers are: Independent contractors who source their own loads, use their own equipment, and run on their own schedule, or Those who opt for longer-term more rigid work arrangements with a specific carrier A Form 1099 is a document used by companies to report payments made to a contractor for work performed during the prior year. Companies that pay contractors $600 or more during a year must issue the contractor a Form 1099-NEC by January 31st of the following calendar year. The company that issues a contractor a 1099-NEC is also responsible for filing the 1099-NEC with the IRS by January 31st of the following year. Contractors pay a self-employment tax because the companies that they work with don’t withhold or remit Social Security or Medicare taxes for them. The self-employment tax rate is 15.3%. It’s a little more complicated than that, as only income up to $174,900 is subject to Social Security tax whereas all your income is subject to Medicare taxes. 1099 contractors have a lot more freedom than their W-2 peers when it comes to tax payments and the deductions they can take. It is highly recommended that 1099 contractors set aside 20-25% of their net income to make quarterly estimated tax payments. The IRS does require self-employed individuals to pay taxes quarterly. If this is not adhered to, there is an IRS penalty when filing the tax return on top of a much higher one-time tax payment. Unlike W-2 employees, 1099 workers are still eligible to deduct Per Diem from their taxes. Additionally, thanks to the Tax Cuts and Jobs Act, they are allowed significant additional tax deductions from the Qualified Business Income Deduction or QBI. QBI is a 20% pass-through deduction calculated using the lesser of your self-employment earnings or your overall taxable income. 1099 workers are also able to deduct health insurance premiums and business expenses on top of their Standard Deduction. Even though self-employed individuals are subject to a more complicated tax filing process, they’re eligible for more deductions as well. Big Takeaways For 1099 workers, taxes are not automatically taken out of their paycheck by whoever they are working for. 1099 workers should make sure they’re setting aside 25% of their income to make their tax payments quarterly 1099 workers should take advantage of all available deductions they’re eligible for. If you’re a new 1099 worker, or still don’t have a very good grasp on how to manage your taxes, let ATBS know and we can help you out!

When I started my career as an independent owner-operator under my own authority, I spent a lot of time putting my business plan together. One of the sources I used was the Small Business Administration. Utilizing the SBA turned out to be a great asset as I charted the course for my new business. U.J. Cozart was my aide at the SBA. He put me through the paces and helped me put together a business plan, a backup plan to the business plan, and a backup to the backup plan to the business plan. Having a backup plan became very handy as I embarked on my new business venture. A few times I had to dip into that plan b. I will never forget one of the last meetings that I had with U.J. Cozart. He had run my plan past peers in the trucking industry. He told me that I had everything in order. I was ready to get started. He was almost ready to let this bird fly on my own. But as he leaned back in his chair and put his feet up on the desk, he looked me squarely in the eye and asked me “Why would any company use your service to ship their products?”. I paused for a second before replying and before I could say anything, U.J. stopped me and said, “You hesitated, and I don't even want to hear your answer at this time. Take a week and come back to me with a good answer”. My answer was going to be that I was going to be professional, on time, and reliable. But thinking back to when I was running the freight desk at a shipper, I thought “Well, that's not a very special reason for anyone to use me, because that's what every trucking company says”. I was still thinking of the question posed to me by U.J. as I arrived home and picked up my mail from the mailbox. The answer came to me as I opened an envelope with a toothpaste sample in it. For many years I had been buying the same brand of toothpaste. I never really thought about it before, but I had been using the same brand of toothpaste that my parents had bought many decades prior. It turns out that this toothpaste sample that I had just received was from the opposing major brand. I decided to give this free trial a chance. I thought to myself, “This is the answer I need to take back to the SBA”. My plan was to use a “special introductory rate” that was good for a prescribed time frame to demonstrate to a shipper the benefits of using my company to transport their products. I also would ask them to give me the shipment going to the consignee which they regularly had trouble with. At the end of this trial period, I would have a better idea of what it took to conduct business with this “troublesome” customer, and they would also have a clear view of what my company was all about. My process would be arriving at the consignee at the scheduled time, typically first thing in the morning. I would walk in with a box of donuts to introduce myself and inform them that I would be delivering to them regularly. As a result, when I started my business, this simple little step, often, led to the consignee requesting the shipper to send me with the next delivery. The key to this whole process was that when it came time to negotiate what the actual freight rate was going to be, I had the upper hand because I had successfully pleased the consignee who in the past was normally complaining about something. I will say that there was much more to the process than this. However, it’s important to have a reason as to why any new prospective customer would want to utilize your services over the carriers who are already servicing their business.

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 2024 taxes? Click here! Where is my Form 1099-NEC? Form 1099-NEC will now be used to report non-employee compensation for tax filing year 2021 and on. 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 amend 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 2024, 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 866-920-2827.

Truck parking is one of the most frustrating issues that the trucking industry faces. With roughly 313,000 spots to park nationwide for 3.5 million drivers, it’s no wonder why truck parking is such a problem. Truck drivers will usually park for free at truck stops due to the offered amenities, or at rest stops. However, when they can’t find parking there, they either have to risk their safety and park in a less than desirable area or pay for parking out of pocket. Many drivers, especially those new to the trucking industry, might have a difficult time understanding why the truck parking shortage is such an issue. The reality is that there’s no easy answer. There are many reasons why there’s a shortage of parking spots, including: The ELD Mandate : With HOS (hours of service) being restricted, drivers are now required to park after a specified number of hours, which increases the demand for spots. Closed rest areas: Many of the country’s rest areas need renovations and states often don’t have enough funding to repair or replace them. Shippers not letting trucks park at their dock : Many shippers fear drivers will leave the area worse than they found it, and will then have to clean up afterward. This may be an unfair assumption, but nonetheless, a reality that drivers have to navigate. RVs and cars using truck spots: Sometimes recreational vehicles and passenger cars are directed to take truck parking spots because of their size. Sometimes these motorists just don’t know any better or don’t have anywhere else to park. So, what are some of the long-term solutions to the lack of truck parking? Federal level : In June 2023, two new major federal grants were awarded to expand the nation's commercial truck parking capacity. The two awards , totaling more than $33 million, will create 170 new truck parking spaces located at freight corridors in Louisiana and Texas. State level: According to the American Transportation Research Institute, many local governments aren’t aware of how bad the truck parking problem truly is, so they’ve decided to develop three guidebooks that would help states better manage and improve truck parking facilities. Trucking Associations: In 2022, the American Trucking Associations and the Owner-Operator Independent Drivers Association sent a letter to the U.S. Secretary of Transportation urging that the Infrastructure Investment and Jobs Act funds be prioritized to boost the nation's truck parking. Private sector : Companies like Love’s are opening up more and more truck stops across the nation to create more parking spots, as well as other private companies, like Big Rig Parking, creating paid parking lots so truckers can reserve a spot in advance. While there’s not much any of us can do to immediately solve the parking shortage, there are a few things that you do have control over. Here are some things that you can do to have the best parking experience possible. Parking Etiquette Practicing parking etiquette might seem tedious, but it’s the right thing to do. By being a courteous parker, you’ll make it easier for companies to provide and maintain safe parking for drivers. Follow these tips the next time you park your truck: Be tidy : Take your trash to the trash cans, and don’t leave a mess for a fellow trucker or truckstop/shipping dock employee to deal with. Back your trailer in : Don’t park in the spot headfirst as this eliminates road space for others. Make sure the front of the truck is facing outwards. Check the spot you’re backing into : Before you back into a spot, make sure it’s not already marked as reserved. A poorly marked spot will be harder to see, so double-check it to avoid getting woken up in the middle of the night by an employee asking you to move. Be mindful of other drivers: Avoid making loud noises when parked, we’ve all had a noisy neighbor at some point - don’t be a nuisance to others. Leave no trace : If there’s any grass around the parking spot, don’t drive on it - be respectful of the surrounding land and environment and leave no trace behind. Don’t stay parked in fuel islands : Get your fuel, and get moving. Parking Safety With so few spots available, sometimes parking in a less-than-desirable area is the only choice, so safety must always be your top priority. No one wants to think about a burglary, or worse, but the reality is that you need to be prepared if something does happen. Here are some tips to help keep you safe when you park: Avoid parking on the shoulder. Try to park in areas that are well-lit. Trust your instincts - if something doesn’t feel right in a certain area, leave immediately. Make sure your trailer is locked and secured, and avoid discussing what you’re hauling with anyone to prevent yourself from becoming a target. Invest in a good lock for your trailer, like this one: The Enforcer Lock . Close the curtains, and lock your doors. Strap your doors shut and set up a makeshift alarm system. Consider taking your dog on the road with you. Not only are they wonderful companions, they’re also great at notifying you of an intruder. These furry friends are also a tax deduction ! Be prepared to defend yourself. Keep items like pepper spray or a baseball bat within reach in case someone breaks in. Parking Solutions Free parking is always ideal, however, it’s not always possible to do so in a safe manner. Paid parking is controversial, some drivers like it, while others don’t. However you feel about it, there are tools available that can help you book and reserve spots in advance, if you choose to do so. We’ve listed some free and paid parking resources below that you can take advantage of: Free Parking Solutions Trucker Path helps you find free parking by providing real-time updates, or you can reserve paid parking in advance. Dock411 has a free version of the app that provides information on whether or not shippers allow overnight parking, restrooms, wifi, etc. DAT One also helps you find free parking or reserved parking. Paid Parking Solutions Truck Parking Club : reserve an hourly, daily, weekly, or monthly truck parking space at 1400+ locations across the US. Trucker Tools is a free app that allows you to reserve paid parking in advance. Pilot Flying J will enable you to reserve a parking spot at one of their locations. Truck Smart by TA Petro helps you reserve a paid parking spot at one of their locations up to 30 days in advance. Conclusion While truck parking is a complicated issue that has no easy solution, there are wheels in motion for long-term solutions, and more importantly, there are things that you can do today to enhance your parking experience. Remember to be mindful, try to plan ahead, and use the tools you have at your disposal. Park safely!