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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.

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!

Every year there are changes to tax laws that may go under the radar for some 1099 truck drivers. Not knowing what these changes are may cause people to miss out on significant savings when it comes time to file their taxes . That's why we wanted to provide a few pieces of advice to make sure you aren't making the same common mistakes other owner-operators are making. Are you a self-employed truck driver who needs help with your taxes? Click here! 1. The Standard Deduction increased again, make sure to take it if it’s greater than your Itemized Deduction An estimated 90% of taxpayers use the Standard Deduction. This percentage is not expected to change due to the Standard Deduction increasing to $14,600 for single taxpayers, up from $13,850, $29,200 for married couples filing jointly, up from $27,700, and $21,900 for head of household, up from $20,800. 2. Student Loan Phase-Out Increased You may be able to deduct $2,500 of student loan interest paid. The deduction is subject to income limitations which have gone up for 2024. For joint filers, the deduction begins to phase out with a modified AGI of $165,000 and reduces to zero at $195,000. For single and head of household filers, the phaseout begins at $80,000 and reduces to zero at $95,000. For married filing separately filers, the deduction is not allowed. 3. 1099-K The 1099-K is not likely to affect the trucking business per se, but if your spouse has a business or you have a side business you may see one this year. Many platforms such as eBay, Venmo, Zelle, Etsy, PayPal to name a few, will potentially be issuing these forms. The threshold for issuing 1099-Ks has changed from $20,000 and 200 transactions in 2023 and prior years to $5000 in 2024, $2,500 in 2025, and $600 in 2026 and future years. While the 1099-K should only be issued for business transactions, given the recent change, it is possible you could get one for reimbursing your friend for concert tickets or similar transactions. This can be corrected by contacting the issuer of the 1099-K, or, if all else fails, it can be corrected on the tax return at the time of filing. 4. Key Change for Retirement Income For those in, or approaching, retirement, the age for taking required minimum distributions (RMDs) has increased to 73. RMDs are required for retirement plans like 401(k), 403(b), 457(b), traditional IRAs, SEP, and SIMPLE IRAs. For those who turn 73 in 2024, you must take your first RMD by April 1, 2025. You must also take your 2nd RMD by December 31st, 2025. The penalty for failing to take the RMD has decreased from 50% to 25%, and that penalty is decreased to 10% for timely corrections. 5. Don’t miss out on the QBI Deduction 77% of owner-operators received a QBI Deduction for 2023 because they had a net profit. If a business operates at a loss for the year, a QBI Deduction can't be claimed. The average deduction received was $7,700. As an owner-operator, chances are you will qualify for this deduction, so if you didn't take this deduction last year make sure you look into it this year. 6. Don’t Wait The most important aspect of tax time is paying tax due by April 15th. For self-employed individuals, quarterly tax payments are critical to the process of paying tax in full by April 15th. Paying Estimated taxes throughout the year greatly reduces the chances of being assessed penalties and interest. Extensions can be provided for additional time to file, however, extensions are not available for deadlines to pay your taxes. Organize and send all your tax documents as early as possible to get a head start on filing.

The last thing any trucker wants to think about is filing their taxes or wondering if they have found a good tax preparer who knows specifically about trucking taxes. But it’s better to conduct this search as early as possible. The closer you get to tax day, the harder it is to find a quality tax preparer. The following are various points to consider when choosing a tax preparer for truckers: Are you a self-employed truck driver that needs help with your taxes? Click here! Preparer Credentials and Ethics If you own a trucking business, it is recommended you hire a tax preparer who can handle complex tax issues and understands trucking taxes. A firm that hires tax professionals who are Enrolled Agents (EA) and Certified Public Accountants (CPA) not only addresses these issues, but has unlimited representation before the IRS. This is very beneficial in the event of an audit or collection proceedings. EAs and CPAs must not only pass rigorous testing requirements to achieve their designations but they must regularly complete a required number of continuing professional education hours to maintain these designations. Because these tax professionals are regulated, it is easy to verify if they have a questionable history by checking with the IRS Office of Enrollment for EAs, and the state board of accountancy for CPAs. Unenrolled preparers often have limited training and are allowed limited representation on behalf of their clients in IRS proceedings. Furthermore, without regulation, it may be difficult to check their background history. NEED HELP WITH TAXES? REQUEST MORE INFORMATION PTINS and E-filing A paid preparer must have a Preparer Tax Identification Number (PTIN) and if they prepare and file more than 10 returns for clients they must file electronically. The client copy of the tax return should show the preparer's name and PTIN in the signature area of page two of the Form 1040. Never agree to do business with a tax preparer who does not provide this information and/or refuses to provide their clients with copies of their tax returns. Signing the Tax Return In the height of a busy tax season, it is easy to make mistakes. To ensure accuracy, tax firms will use a double check process where tax returns are prepared by tax accountants and then reviewed by a senior tax accountant. The senior tax accountant handles the final review of the tax return and signing of the tax return. An experienced senior tax accountant will then discuss the tax return results with their client and make sure the client is comfortable with the numbers on the return prior to asking the client to sign it. Avoid tax preparers who do not enlist a double check process and refuse to discuss the tax return results with their clients or ask their clients to sign a blank tax return. Records and Documentation Good tax preparers will ask for all your W-2, 1099 and 1098 forms as well as other records and receipts to verify income, expenses and credits. Preparers who are willing to e-file returns using paystubs in place of W-2s are in direct violation of IRS rules and regulations. Preparer Availability Because the IRS and most States conduct audits and send letters of inquiry throughout the year, it is best to work with a preparer who maintains office hours beyond the filing deadline so they are available to answer your questions or assist with any tax return correspondence. Fee Determination Instead of asking a preparer what their fees are, ask how they determine their fees. For taxpayers with more complex returns that require several forms, it is normally better to select a firm that charges a set fee for the type of return (1040, 1065, 1120S, 1120), rather than one that charges by form. The reason is because this can be rather costly. Client Security Unfortunately, the tax preparer industry has not remained immune from the ever-increasing problem of security breaches. Never hesitate to ask a preparer how they safeguard client confidentiality in the form of physical and electronic security of their clients' information and records. If the answer is not to your satisfaction then walk away. Hire a Tax Preparer for Truckers If you need help managing your taxes, consider hiring ATBS to help you out. ATBS has been in the industry for more than 25 years and we are experts in trucking taxes. We offer a variety of services including accounting, bookkeeping, and tax preparation, specifically for truck drivers. We also offer unlimited business consulting for our RumbleStrip Professional clients. ATBS just recently launched the ATBS Hub , which makes working with us even easier! If you’d like to learn more about ATBS services or want to get started today, give us a call at 866-920-2827. Sources: http://www.consumerreports.org/cro/news/2012/02/how-to-find-a-good-tax-preparer/index.htm# http://taxes.about.com/od/findataxpreparer/a/tax_accountant.htm http://www.forbes.com/sites/kellyphillipserb/2014/01/22/11-questions-to-ask-when-hiring-a-tax-preparer/

Generally, as a rule, I have made it a habit to track many of my business’s numbers. I do this for several reasons: To benchmark against my peers To identify problem areas and To measure improvements I have made in my operation The fact is that, if you want to change anything, you first must be able to measure it. One of the simplest things is to track fuel consumption on paper. Tracking fuel mileage is something I do, because I remember the figures and notations better when I write them down. I also make little notations, so that if my actions while driving improve my fuel efficiency, I know that it’s a practice that should be continued. By the same token, if I tried something different and the results lowered my efficiency, that information will be used to ensure the practice doesn’t continue. My friend Yunsu Park recently put together an initiative using Geotab telematics to see how my practices during driving influenced the productivity and efficiency of our trucking operation. We’re not only tracking fuel mileage, but also use of time. This is important because it doesn’t matter how efficient an operation is, if it can’t complete the assigned task of delivering the freight to its destination. So far, the only numbers that have been tracked are things that can be controlled such as speed, cruise control usage, and the amount of time the equipment is being utilized. However, using the hours of service to its full extent and planning the time of day to avoid high-density traffic is greatly beneficial. The benefits of avoiding high-density traffic are better fuel efficiency, better use of available operating hours, and reduced exposure to risk. Herein is the information that we have compiled so far. In the future, there will be items that will be added such as precipitation, temperature, wind direction, and percentage of grade change on the road. Tracking your financials to gauge how your business is doing, is also important. With a service like ATBS, you’ll have easier access to know where your numbers stand, identify problems with your operation, and keep your records in good order and up to date.

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

If you’re an owner-operator truck driver, paying quarterly taxes can be a big change from the days when taxes were withheld from your paycheck as a W2 company driver . In fact, unpaid taxes is one of the leading causes of businesses failing. For this reason, it’s important to be diligent about how much money you set aside throughout the year for taxes. How much should you set aside for quarterly tax payments? Typically, January through March are often the slowest months of the year for freight cycles. This means that having a big tax payment due at the end of March can be a huge burden. Therefore, ATBS recommends that drivers set aside between 25 and 30 percent of their weekly net income for quarterly taxes. That way you aren’t caught off guard when you have to pay your quarterly taxes after a slow month. Let’s quickly break down where this 25-30% comes from. Many individuals will fall into the 10-12% income tax bracket. However, self-employed individuals will also need to set aside taxes for self-employment tax (Social Security and Medicare also known as FICA). Self-employment tax is roughly calculated as 15.3% of your business net income. So when you take 12% income tax, plus 15.3% self-employment tax, plus your state income tax, you get approximately 25-30%. ATBS recommends that you create an organizational system for setting aside money for tax payments throughout the year. At the beginning of the year, get all of your paperwork, tax documents, and finances in order to start the year off right. Then, set up an automated system for money to be transferred every week or every month into an account specifically for quarterly tax payments. It may seem like a big change at first, but setting aside money with each paycheck can quickly become part of your routine. Why is it important to pay your quarterly taxes? If you fail to pay your quarterly estimated taxes, you may be charged a late payment penalty. If you also fail to timely file your tax return , that’s another penalty tacked onto what you owe. Additionally, the IRS can apply their current interest rate of six percent to your balance due after all the penalties have been added on. All of this can add up quickly and put you and your business in a financial hole. This is why failing to pay your taxes accurately and on time is one of the leading causes for a business to fail. How much do you pay? It is recommended that owner-operators estimate taxes based on actual income since their income can vary significantly each month. Calculating and paying estimated tax payments based on your actual business income will help you avoid overpayment or underpayment of your taxes due. If you can't pay your entire estimated tax payment all at once, ensure you are at least paying what you can afford. For example, the IRS uses a safe harbor calculation to calculate a minimum quarterly tax payment due to avoid penalties. For simplicity, the safe harbor estimate is your tax liability from last year divided by four equal payments. Each quarter you would pay in one installment of the minimum amount. While this method may leave you with either an underpayment or overpayment come tax filing time, at least you won’t be penalized for not paying your quarterly estimated tax payments at all. How do you pay your quarterly taxes? You can pay your federal quarterly tax estimates online at www.irs.gov/payments or even on the IRS mobile app, IRS2go . ATBS recommends paying directly from your bank account as there is no fee. You will owe a percentage fee if you decide to pay with your credit card. Many states also allow you to make tax payments online. Each state may be a little different, so we recommend visiting your state’s Department of Revenue website to see how you can make a tax payment online. You also have the option of applying the tax refund you receive after filing your taxes to the quarterly taxes that will be due in the future. Many owner-operators want their refund right away, but this could be a good way of getting a head start on your upcoming estimated tax payments. So, should you pay your taxes quarterly? Technically you have the right to wait and pay your taxes once a year, but is it really worth it? When it comes to taxes, you should be taking small steps towards doing it right rather than handing over more of your hard-earned money by doing it incorrectly. If you have any questions about paying estimated taxes, call ATBS at 888-640-4829. One of our business consultants or tax professionals would be more than happy to assist you. Not an ATBS client? Give us a call at 866-920-2827 to enroll in our services!

Being an independent truck driver can be a stressful business. The holiday season can certainly add to that stress, with the desire to spend the holidays at home conflicting with the need to keep your business financially sound. Some shippers will shut down on Christmas and New Years, causing drivers to lose productivity for a whole week, maybe two. However, the holiday season can be a good time to stay on the road and work as much as possible, especially considering the annual slowdown typically occurs in January and February. In fact, ATBS Benchmark data shows contractors run 7% fewer miles in January than in November and December, because there is much less freight available in January. Let’s look at the financial consequences of some choices often made during the holiday season: Ignoring fixed expenses The average daily fixed expenses for owner-operators are $150 per day. Ignoring fixed expenses to take 7-10 days off for each holiday means $1,050 - $1,500 in costs each week that aren’t being offset by any revenue. Deadheading or driving out of route to get home Basic operating costs and fuel can be 75 cents per mile. If you deadhead or drive out of route 1,000 miles you’ve added $750 to your costs, again with no revenue to offset the additional costs. Losing momentum It’s difficult to get back up to speed after the holiday shutdown. It takes time to get into the flow of freight again, which means a reduction in revenue for days or even a week after you’re back at work. Thinking short-term Gift buying and entertaining increase your home costs. Significant time off during the holidays means less revenue to offset your increased financial burden. The freight slowdown in January and February also means limited prospects of digging yourself out of the hole until March or April—right before your taxes are due on April 15th. No one should miss a holiday with their family, but it is important to protect your business as well. Many drivers tend to start heading home a week or two before the holidays—which is the wrong thing to do. Do your best to run as many days as you can right up to the Holiday. Be creative in ways to get home without sacrificing a week or two or deadheading thousands of miles. Many trucks will already be parked for the holiday, so this could be your single best freight opportunity of the year. Let’s look at a few other ways to make this season work to your advantage: Fly instead of drive Considering your fixed and variable costs, if reasonable airfare can be found, it may make more sense to park your truck securely under load and fly home for only a day or two. Fly back and get the load running while everyone else is trying to get a load out of home. Make up missed holiday time in January Even though you may miss one of the holidays with your family by working as much as possible, you can take extra time off in January and make it up to them. Freight is slower then and the additional revenue you generated at the end of the year will make your time off less stressful. Don't be picky Now is not the time to be picky about what loads to haul after Christmas and through the end of February. Plus January and February are always the worst times of the year for freight. Think long-term The only way to offset the inevitable slowdown at the beginning of the year is by planning for it in November and December. Bring in revenue then and you’ll be in a better position to pay your bills come January and February. Tax Day also will be less of a burden. The holidays are a difficult time for everyone in trucking. It’s good to remember that when dealing with others you come in contact with—shippers, receivers, regulation enforcement, etc. A lot of people feel the extra stress, so when dealing with others, applying a little holiday cheer is likely to go a long way. ATBS is here to help you get through the holiday season. And by the way…Happy Holidays!

During the COVID era, driver turnover rates were at all-time lows for most carriers. Rates were up, fuel costs were down, and owner-operators were making money like never before. There was no need to move when they could work 4 days a week and still make record income. But over the past two and a half years, this stability has faded. Rising costs, shrinking rates, and increased challenges have driven turnover rates back up, creating widespread strain on carriers. In this article, we’ll examine the impact of high turnover on fleets and quantify the costs a carrier faces every time an owner-operator leaves. How Turnover Drains Your Fleet’s Resources 1). Departure Costs Owner-operators rarely leave at the first sign of dissatisfaction. Usually, they go through a phase of disengagement first. As their motivation drops, so does their performance, and this has serious implications for carriers: Performance and Reliability: Disengaged drivers may neglect maintenance, cut corners, or fail to deliver on commitments, harming both operations and morale. Profit and Service Impact: A driver who’s mentally checked out impacts customer service, which hurts satisfaction and, ultimately, revenue. A single disengaged driver can drag down an entire fleet's profitability over time. 2). Lost Experience Experienced owner-operators are invaluable assets. Contractors who know the ins and outs of your business operate efficiently, make quick decisions, and require less oversight. Every departure is a major investment loss—not just in skill, but in accumulated experience. Losing them means losing both expertise and smooth operations, as replacements take time to reach the same level of productivity. 3). Increased Overhead When an operator leaves, your overhead costs—rent, salaries, utilities—don’t go down. They remain fixed, but with fewer operators to generate revenue and absorb those expenses. As turnover rises, so does the impact of fixed costs on profitability. If the remaining operators—or any replacements you bring in—can’t bring in enough revenue to make up for the one who left, your profit margins take a hit. Each departure stretches resources thinner, and with fewer operators available, the impact of high trailer-to-tractor ratios becomes even more serious. Now, with limited drivers to handle each load, every gap is felt harder, and every missed opportunity or delayed shipment adds up to a higher overall cost of turnover. 4). Missed Opportunities Every operator who leaves doesn’t just take their revenue with them—they take potential profits, business relationships, and future opportunities. For example, if an operator is grossing $15,000 a month for his carrier, and the carrier has a 7% pretax margin, their departure means around $1,050 in lost monthly profit for the company. And that’s just one driver. Multiply this across every lost driver, and the cost quickly adds up. Each operator you lose also means fewer drivers to handle critical loads, creating gaps that leave customers waiting—or, worse, drive them straight to your competitors. 5). Replacement and Training Costs Recruiting, training, and onboarding a new driver is no small task. Recruitment costs alone include advertisements, exams, and processing applications. Training is equally resource-intensive, requiring orientation materials, trainers, and lost production time. Add to this the higher safety, cargo claims, and customer service costs that come with new drivers, and it’s clear that every new hire represents a significant financial investment. Even once trained, new operators may be restricted from handling your most valued customers and, with fewer miles, may not meet the contribution level of a proven operator for some time. High turnover forces you to invest continually in replacement and training—a costly cycle that can only be broken by keeping experienced drivers engaged and satisfied. Industry-Wide Impact: A Billion-Dollar Problem So, what’s the potential owner-operator turnover cost to the industry? Not only is there a cost to the carriers, but owner-operators who switch carriers incur costs that are often difficult, if not impossible, to overcome. The numbers often look like this: Cost to Carriers Estimated Number of Leased OO’s: 100,000 Estimated Average Turnover in 2020: 95% Estimated Cost of a new OO: $10,000 -------------------------------------------------------------- Estimated Total Cost of OO Turnover: $950 Million Cost to Owner-Operators 3 weeks of revenue NOT made while switching: $9,000 3 weeks of tractor and insurance payments: $4,500 (Minus expense for variable costs that didn’t happen like fuel, maintenance): - $3,100 Cost to get up to speed at the new carrier: $5,000 ------------------------------------------------------------------------ Total out-of-pocket cost to switch after one year: $14,350 Multiply $14,350 by 95,000 turned-over owner-operators, combined with the $950 million burden on carriers, reveals an industry-wide issue costing over $2 billion annually. How ATBS Can Help Your Fleet Curb Turnover and Protect Profits At ATBS, we specialize in tackling the root causes of turnover by helping owner-operators succeed, which in turn makes them more likely to stay with you. With over 200 fleets already benefiting from our services, we know that strong retention strategies work. Our resources help owner-operators manage their finances, improve their business decisions, and prepare for tax season— all at no cost to the fleet. With services like unlimited business consulting, driver coaching, monthly profit and loss statements, and tax preparation, ATBS empowers owner-operators to stay financially secure, engaged, and loyal to their carriers. Partnering with ATBS means building a fleet of satisfied, stable operators, reducing the high costs of turnover, and focusing on growth instead of replacement. Want to learn more about how a partnership with ATBS can help you with owner-operator turnover? Click here for a Fleet Success Story or click here to learn more about starting a partnership with us.