Author: Marcela De Vivo

Rev Up Your Savings: The Ultimate Guide to Heavy Vehicle Tax Deduction

Posted on July 24, 2023 by Marcela De Vivo - Taxable Heavy Vehicle

As an owner-operator, it’s essential to consider all the tax implications of your truck, including heavy vehicle tax deductions. Understanding the ins and outs of tax deductions, benefits, and credits for your heavy vehicle can save you and your business considerable money.

From Section 179 Deductions and Bonus Depreciation to writing off maintenance and repair deductions, here’s everything you need to know about heavy vehicle tax deductions.

Tax Credits and Benefits for Heavy Vehicles and Equipment: Section 179

The Tax Cuts and Jobs Act (TCJA) of 2017 changed how depreciation can be deducted. With the new tax law, truck drivers now have two options for heavy vehicle tax deductions: Section 179 or Bonus Depreciation.

What’s the difference between Section 179 and Bonus Depreciation? Let’s explore the differences:

How does Section 179 work?

The Section 179 deduction is a small business tax deduction used for capital assets — typically vehicles and equipment. It lets you write off the entire cost of your item immediately instead of depreciating it over time.

For example, if you spent $50,000 on a piece of heavy equipment, you can write off the entire purchase price for the current tax year instead of deducting it for five years at $10,000 a year, for example.

The whole point of Section 179 is to encourage small business owners to make more expensive purchases and, in turn, help stimulate the economy.

Qualifying for Section 179

To qualify for Section 179, you must purchase your heavy vehicle or equipment and put it into service on the year you are filing for. This means if you bought your truck in late 2023 but didn’t start using it for your business until 2024, you’ll have to wait to claim the Section 179 deduction for your 2024 tax returns.

Other stipulations include the following:

The heavy vehicle must be purchased (not leased).
The vehicle can’t be bought from someone related to you.
If using the vehicle for both personal and business use, you must use the vehicle for more than 50% of your business.

While Section 179 has a complicated set of exceptions for vehicles, non-personal heavy-weight vehicles intended for business are eligible for a full deduction. These vehicles include:

Semi-trucks, tractor-trailers, and dump trucks
Heavy construction equipment like forklifts
Vehicles with a fully enclosed compartment and no seating behind the driver’s seat (like a cargo van)
Vans that seat nine or more passengers (i.e., an airport shuttle)

To claim the Section 179 deduction on your tax returns, you must include a description of your heavy vehicle, its cost for business use, and the amount of Section 179 you’re claiming. This deduction is made on Part 1 of Form 4562.

Limits to Section 179

Section 179 has important limits, such as a cap to the total amount that can be written off. For example, in the 2022 tax year, you can expense up to $1,080,000 of eligible property. For 2023, this deduction limit will increase to $1,160,000.

There’s also a cap on the total amount of equipment that can be purchased. For 2022, this limit is $2,700,000. And for 2023, the cap is $2,890,000. This means the deduction begins to be reduced on a dollar-for-dollar basis after the total amount is spent.

You also can’t deduct more money than you make in a year. So, if you have a net income of $100,000 (before taking the Section 179 deduction into consideration) and you purchased $110,000 worth of deductible property, your deduction will be limited to $100,000.

At this point, you can take regular depreciation on the remainder of your assets.

Tax Credits and Benefits for Heavy Vehicles and Equipment: Bonus Depreciation

Bonus Depreciation is usually taken after the cap for the Section 179 deduction is met. Available for new and used vehicles and equipment, bonus depreciation lets you write off an additional first-year depreciation on eligible property.

After the TCJA was passed, the potential value of Bonus Depreciation increased significantly — but only for a limited time. The Bonus Depreciation rate was expanded to 100% for qualified property in service through 2022. After that, the amount dropped by 20% for 2023 and will continue to drop at 20% until 2027, when the program will close.

That means the Bonus Depreciation rate is 80% for 2023, 60% for 2024, and so on, until 2027, unless Congress extends it.

What’s the Difference Between Section 179 and Bonus Depreciation?

While both Section 179 and Bonus Depreciation allow for serious deductions for a heavy vehicle in service, they also differ in the following ways:

The Section 179 deduction is capped by the IRS ($1,160,000 in 2023) and is reduced by the dollar amount if it exceeds the IRS threshold ($2,890,000 in 2023). However, there is no annual deduction limit for Bonus Depreciation.
Section 179 is typically more flexible than Bonus Depreciation. With Section 179 depreciation, you can deduct any amount you want as long as it’s within the IRS threshold set that year. You can also allocate which assets/vehicles get the deduction. Bonus Depreciation, however, requires that you write off all vehicles and take the entire tax break at once. You don’t get to pick and choose which assets/vehicles you want to deduct.
Section 179 is limited to the amount of taxable income, but Bonus Depreciation can exceed taxable income and create a net loss to be carried forward.
While qualifications, deduction limits, and investment limits change yearly, Section 179 is an indefinite part of the IRS tax code. Bonus Depreciation, on the other hand, is set to end on Dec. 31, 2026.

Keeping records for Section 179 deductions and Bonus Depreciation

You must keep detailed records of your vehicle usage — like mileage logs, receipts, invoices, etc. — to qualify for the Section 179 deduction or Bonus Depreciation.

These records will back up your business use claims of your vehicles in the event you’re ever audited by the IRS.

Claiming Heavy Vehicle Tax Deduction: Maintenance and Repair Expenses

Since your truck is not a personal-use vehicle, you can deduct all the expenses you’ve made to maintain or repair it throughout the tax year. For example, you can make deductions for the following costs:

Oil changes
Regular checkups
New tires
Routine and emergency maintenance
Truck parts
Cleaning supplies
Loan interest (if you financed the purchase of your truck and trailer)

The deductions for the maintenance and repair of your vehicle will be made on your Schedule C, which you will file along with Form 1040 in April every year.

Other vehicle maintenance deductions for Schedule C

In addition to the costs it takes to maintain and repair your truck, you’ll also come across other vehicle-related expenses that you can deduct from your Schedule C, including the following:

Load-related tools – Deduct any equipment needed for your trucking business, like bungee cords, chains, ratchet straps, duct tape, tarps, and locks.
GPS systems – Write off any navigation system you use while driving your truck for work.
Association dues – If you’re part of a union or other trucking association, you can deduct any required fees you’ve made to belong to that group.
Liability insurance – While your health insurance will be deducted on a separate form (Form 1040), Schedule C is where you’ll count your premiums for auto/cargo liability and property damage insurance you’re required to have on your truck.
Parking and toll fees – If you encounter any parking or toll fees while driving your truck for work, you can also count these as a deduction on Schedule C.

Claiming the IRS Commercial Clean Vehicle Credit

Beginning in 2023, the Commercial Clean Vehicle Credit will be available for qualified heavy-duty electric vehicles. According to the IRS, this credit will equal the lesser of:

15% of your basis in the vehicle (30% if the vehicle is not powered by gas or diesel)
The incremental cost of the vehicle

The maximum credit is $7,500 for qualified vehicles with gross vehicle weight ratings (GVWRs) under 14,000 pounds and $40,000 for all other vehicles.

While the IRS has not yet released information on how to claim the Commercial Clean Vehicle Credit (as of Tax Day 2023), it will apply to vehicles purchased on or after Jan. 1, 2023. Keep checking the IRS website for the latest details.

Claiming Additional Heavy Vehicle Tax Deductions

There are also additional heavy vehicle tax deductions, credits, and benefits you can take following IRS guidelines for other tax forms.

Heavy vehicle tax deductions: Form 1040

If you’re an independent contractor or owner-operator and pay for your own health, dental, and vision insurance, you can count this as a deductible — just not as a business expense. Instead, you’ll deduct your health insurance separately (for you and your dependents) on Schedule 1 Form 1040.

Heavy vehicle tax deductions: IFTA

If you have a qualified motor vehicle and travel between two or more of the member jurisdictions (48 of the United States and 10 Canadian provinces), you must have an International Fuel Tax Agreement (IFTA) license and decals. IFTA reports are filed quarterly and are separate from your annual taxes.

You can count the fuel taxes and costs you pay on the road toward IFTA as part of your tax deductions.

Heavy vehicle tax credits: Form 2290

In certain circumstances, you can also claim a tax credit for heavy vehicles on your Form 2290.

For example, if your truck is registered as a Heavy Highway Motor Vehicle and it was stolen, destroyed, sold, or did not exceed mileage credit, you can count it as a tax credit.

Similarly, if your truck is registered as a heavy vehicle and you use it for 5,000 miles or less (7,500 miles or less for agricultural purposes), it will also qualify as a tax credit.

Form 8849 Schedule 6 is the IRS form used to claim a refund of excise taxes. There is no deadline to file this return. You can also claim credits using this return if you’ve overpaid in taxes.

Filing Form 8849 Schedule 6 with ExpressTruckTax

E-filing Form 8849 is easy with ExpressTruckTax. Here’s how you can easily claim your excise taxes with our help:

Create or sign in to the ExpressTruckTax account
Choose Form 8849 and fill in the necessary information
Pay for our services and transmit your return to the IRS

The IRS will issue a refund via check and send it to the address mentioned on the return. It can take up to six weeks to receive a refund.

When using ExpressTruckTax to file your 2290 forms, we automatically generate your Form 8849 when the credits on your Form 2290 exceed the tax you owe. We also offer bundle pricing so that you can E-File both Form 2290 and Form 8849 for one low price.

Why wait? Start e-filing with ExpressTruckTax today!

How To Add Trucks To Your Accepted Schedule 1

Posted on July 20, 2023 by Marcela De Vivo - Form 2290 stamped Schedule 1

Hey everyone, now that the 23-24 tax year has begun, we are getting a lot of questions about how to add another truck to the stamped Schedule 1. So, let’s say that you’ve already filed your 23-24 Form 2290, and you get a new truck or you add a truck to the fleet or whatever the case might be, how do I add that to my stamped Schedule 1 since it’s already been accepted? The answer for this is pretty simple when it comes to filing the Form 2290. You just need to file a new 2290 for that vehicle.

Now, this is not talking if you sold, destroyed, you know, that whole deal where you’re claiming a credit. This is just as if you’re adding a new truck to your fleet. You just file a new 2290, and you choose the first use month that that truck goes on the road.

So let’s say it’s going to go on the road in August, you would choose August just as the first used month, or November or December, whatever month that truck goes on the road. That’s going to get that prorated tax for that vehicle the next year when you file your 2290. You’ll put it together with all of your other trucks in your fleet, and they’ll all be listed on one stamped Schedule 1.

So, adding a truck to your fleet is not difficult. You just start a new 2290 with ExpressTruckTax. You have that one-page option there for e-filing for a single vehicle. Super easy, fill in questions one through six, file the 2290. You get your stamp schedule one back with that vehicle listed there, and then you can get the plates for that new truck.

Now, if you’re talking about adding a credit or claiming the credit, that’s a different process, and I have other videos for that process. But to simply add a truck to your fleet or add a truck to your 2290, you just need to file a new 2290, select the first use month, enter the information for that truck, and you’re good to go.

The Ultimate Guide to Filing 2290 Forms

Posted on July 17, 2023 by Marcela De Vivo - 2290 form

Form 2290 is an IRS federal form used to calculate and report Heavy Vehicle Use Taxes (HVUT) every year. The money from this tax is then distributed back into the states for highway maintenance.

But who needs to file 2290 forms? And what’s the easiest way to do it? Online? In the mail? For answers to these questions and more, we’ve put together the ultimate guide to filing your 2290 forms.

Who Needs to File the 2290 Form?

If you have a vehicle with a gross weight of 55,000 pounds or more and are using it on public roads, you must file Form 2290.

For example, trucks, truck tractors, and buses designed to carry a load over public highways will have to file 2290 forms. However, smaller trucks, like vans, pickup trucks, and panel trucks likely will not have to file a Form 2290.

How is Form 2290 enforced?

You have to file your 2290 forms to get back a stamped Schedule 1. This paper is what you need to renew your tags. If you are leased with a company, they’ll also want to see that you have a stamped Schedule 1.

Pro tip: Keep a copy of your stamped Schedule 1 in the cab of your truck in case you get pulled over or need to show it to the Department of Transportation (DOT).

What is the HVUT & Why is it Important?

The Heavy Vehicle Use Tax is an annual truck tax that the IRS imposes based on the weight of your vehicle. It is a significant part of funding the upkeep of roadways in the U.S. Since heavy trucks add more wear and tear to the nation’s highways than other motorists, the HVUT evens the playing field. Owner-operators of heavy vehicles pay a little more for the upkeep of the national highway system through the HVUT.

Who has to pay the HVUT?

You must pay the HVUT if:

The vehicle is registered in your name
Your vehicle has a gross weight of 55,000 pounds or more
Your vehicle is being used on public roadways/highways

What is the taxable gross weight of a vehicle?

The taxable gross weight of a vehicle is determined by adding these three things:

The actual unloaded weight of your motor vehicle fully equipped for service
The actual unloaded weight of trailers or semi-trailers fully equipped for service that are typically used with the vehicle
The weight of the maximum load typically carried on the vehicle and on the trailers or semi-trailers

What does ‘actual unloaded weight’ mean?

The actual unloaded weight of a truck is simply the empty weight of the vehicle. If your truck is equipped to tow a trailer or a semi-trailer, the weight will be the truck and trailer combined.

What does ‘fully equipped for service’ mean?

To add the weight of a truck fully equipped for service, you will include the body of the vehicle, all accessories, and the equipment attached to or carried by the truck. You’ll also include the truck’s entire supply of fuel, oil, and water.

However, fully equipped for service does not include the driver or the equipment used in handling, protecting, or preserving cargo. It also does not count any special equipment like an air compressor or crane.

How to calculate and make HVUT payments

The HVUT varies based on the taxable gross weight category. For example, the HVUT payment for a vehicle with a gross weight between 55,000 to 75,000 pounds is $100. And, if your truck is over 55,000 pounds, you’ll need to add $22 for every 1,000 pounds that your vehicle weighs (with a cap at 75,000 pounds).

So, if you have a truck that weighs 60,000 pounds, your HVUT payment would be $210 ($100 + $22 x 5).

However, if your vehicle has a gross weight of over 75,000 pounds, the maximum HVUT payment you’ll make is $550.

HVUT Payment Breakdown

Vehicles below 55,000 pounds	No tax
Vehicles 55,000 pounds	$100
Vehicles over 75,000 pounds	$550
Vehicles between 55,000 and 75,000 pounds	$100 plus $22 for every1,000 pounds over 55,000

When Should You File the 2290 Form?

Form 2290 is an annual truck tax that you will have to file every year. The deadline to file is the last day of the month following the “first used month” of the vehicle. This means you have a two-month window to file for all of your trucks over 55,000 pounds.

For example, if you get a new truck in December and put it on the road, you must file your 2290 tax form by Jan. 31. If the due date falls on a Saturday, Sunday, or a legal holiday, you will file by the next business day.

However, if you’re continuing to operate your truck on public highways, you’ll file following the fiscal year. Since the tax year begins on July 1 and ends on June 30, the deadline to file Form 2290 for most truckers is August 31.

How to File the 2290 Form

You can either e-file or mail your 2290 forms. No matter which method you choose, you’ll need to gather the following information:

Your Employee Identification Number (EIN)
Your name – this must match the name on your EIN
The Vehicle Identification Number (VIN) of each vehicle
The taxable gross weight of each vehicle

Note: If you don’t have an EIN, you need to apply for one since you can’t use your social security number to file Form 2290. Keep in mind that you’ll need to allow four weeks for your new EIN to be established in the system before filing your 2290 forms.

How to e-file Form 2290

E-filing is the most common and easiest way to file your Form 2290. It’s also the only method the IRS will allow if you’re filing for more than 24 vehicles.

Not to mention that when you e-file, your return will be processed quickly. This means you’ll get your stamped Schedule 1 in a matter of minutes. And you’ll get your refund faster, usually within three weeks of the IRS receiving your tax return (even sooner if you have your refund directly deposited into your banking account).

To e-file Form 2290, you’ll need to do the following:

Gather your information – collect all the personal details listed above
Choose a 2290 e-file provider and file – You cannot e-file Form 2290 on irs.gov. You must use a participating third-party provider like ExpressTruckTax
Choose a payment option – You can pay your taxes by credit card or debit card, via an electronic funds withdrawal, or through the Electronic Federal Tax Payment System (EFTPS).

What are the Penalties for Non-Compliance?

If you miss the deadline to file your Form 2290 returns or pay your HVUT taxes, you could be hit with significant IRS penalties and interest charges.

For example, if you fail to file your Form 2290 returns by the due date, you could be penalized 4.5% of the total HVUT taxes due — this penalty can accrue for up to five months.

If you fail to pay the full amount of HVUT taxes due, you could also face a penalty of 0.5% of the unpaid tax per month, with a maximum penalty of 25%.

So if your unpaid HVUT liability was originally $500, it would increase to over $700 by the end of the five-month period.

Not only do these penalties quickly add up, but the registrations of your vehicles will also be suspended. And, in a worst-case scenario, the IRS could seize your assets to make up for your tax debt.

How to claim tax exemptions

There are several vehicles exempt from paying the HVUT. These vehicles include the following:

Commercial vehicles (including suspended vehicles) that clock fewer than 5,000 miles for the year
Agricultural vehicles that drive fewer than 7,500 miles for the year
Vehicles that are not considered highway motor vehicles (i.e. vehicles specifically for off-highway transportation)
Vehicles used for the collection of blood

Not sure whether you’re exempt from paying the HVUT? Our support team at ExpressTruckTax can answer any questions you have about filing Form 2290. As the market-leading e-file provider for Form 2290, we ensure you have all the information you need to file your return on time. In fact, with ExpressTruckTax, you can file your Form 2290 return instantly with the IRS and get your stamped Schedule 1 in minutes.

Why Should You Pay Form 2290 HVUT By Credit Card?

Posted on July 13, 2023 by Marcela De Vivo - HVUT Payment

Hey everyone! So when it comes to paying your IRS tax due for your Form 2290, it’s typically $550 for a vehicle that is over 75,000 pounds on the road year after year, um, and again, if you have two or five or ten trucks, that just multiplies per truck.

So, there’s lots of different ways to pay the IRS tax due. One of the most convenient ways and smartest ways for your business is to pay that with a credit or debit card. Again, we’ve kind of talked about the fact that there are benefits to using the credit card from the credit card side, and also that gives you a little bit of extra time to make that payment.

So, when you’re on ExpressTruckTax.com, if you’re filing for a single vehicle, I believe it’s question number four, talks about the IRS tax payment, and there are five different choices listed there. The very top choice is credit card through ExpressTruckTax, and again, this is the easiest way because you enter your credit card one time and you’re paying your filing fee and your tax payment at the same time.

You don’t have to re-enter that information, so that is a huge time saver for you. Also, what are the common mistakes that happen when you choose to pay the credit card with a third party, which is also an option? However, you’ve got to go to that website, choose a third party because there are a couple different ones listed there, and you have to re-enter all of your information that you’ve already filed with ExpressTruckTax. There’s a lot of room for mistake there.

When you choose to pay with a credit card through ExpressTruckTax, you don’t have to re-enter that information. You enter your information for your 2290, choose credit or debit card, and check out. You’re done! There’s nothing else for you to do. By paying with the credit or debit card, there are some benefits, um, you know, whether you get cash back or points or different, there’s different credit card, um, incentives for using those credit cards. So, that is a really smart decision because, again, you’re making more time for yourself and you’re eliminating mistakes.

So, if you do have any questions, though, about the credit card payment or about any other information on your 2290, we do have a full support team, and we are here to help you Monday through Friday, 8:30 to 5:30.

You can always call us at 704-234-6005 or send us an email to support@expresstrucktax.com. We also have that live chat feature on our website as well, so if you do have any questions, please feel free to call us.

Adding a Truck to Form 2290: A Step-by-Step Guide

Posted on July 11, 2023 by Marcela De Vivo - E-file form 2290

Truck owners and companies must often add another truck to their Form 2290 filing. Whether you’ve expanded your fleet, acquired a new vehicle, or replaced an existing one, it’s essential to understand how to add a truck to your Form 2290 to ensure compliance with the Heavy Vehicle Use Tax (HVUT) regulations. In this blog post, we will guide you through the steps involved in adding another truck to your Form 2290.

1. Determine the Taxable Period for the New Truck

The FUM or first used month is determined by when you put the new truck on the road. The HVUT tax period typically runs from July 1st to June 30th of the following year. If the new truck is in use or placed on the road anytime during the tax period, you must file Form 2290 for that period.

2. Gather Required Information

Collect all the necessary information for the new truck, including its Vehicle Identification Number (VIN), taxable gross weight, and the date it was first used on public highways. This information is crucial for accurately completing Form 2290 and calculating the applicable tax amount.

3. Create or Login To Your Account with ExpressTruckTax.com

You must start a new Form 2290 and provide the required information for the new vehicle. Ensure that all information is accurate and current to avoid potential errors or delays in the filing process.

4. Calculate and Pay the Tax

ExpressTruckTax will automatically calculate the tax due using the taxable gross weight and the first used month of the new truck. Verify and choose the IRS payment method that makes the most sense for your business.

5. Obtain Stamped Schedule 1

After the IRS processes your Form 2290 and payment, you will receive a copy of your stamped Schedule 1 as proof of tax filing for this new vehicle.

By following these steps, you can successfully add another truck to your Form 2290 and ensure compliance with HVUT regulations. Remember to keep copies of your filed Form 2290, stamped Schedule 1, and any relevant documentation for your records.

Disclaimer: The information provided in this blog post is for general informational purposes only and should not be considered as legal, tax, or financial advice. For specific guidance related to your individual situation, it is recommended to consult with a professional tax advisor or the IRS directly.

On the Road to Savings: A Comprehensive Guide for Truck Driver Taxes

Posted on July 10, 2023 by Marcela De Vivo - truck driver

Not having a plan for truck driver taxes is like hitting the open road without knowing where you’re headed — a surefire way to run into unnecessary mishaps and expenses.

Mapping out a plan of action for your tax season will not only save you time and money, but it will help keep you from making a mistake that could lead to a future IRS audit or penalty.

Staying on top of your truck driver taxes can feel overwhelming, though, so we’ve put together the ultimate guide for truck driver taxes, including everything you need to know about tax deductions and IRS tax forms for truck drivers. We’ve also provided all the tips and tricks to maximize your tax returns. Let’s get started!

Common Tax Deductions for Truck Drivers

More than just a vehicle, your truck is also your place of business, which means everything you need to operate your truck could also count as a tax deduction. Here’s what you need to know about truck driver tax deductions.

Per diem expenses for truck drivers

Per diem expenses are one of the most significant truck driver tax deductions you can make as a contract driver or owner-operator. But what exactly does per diem mean?

Deriving from a Latin phrase that translates to “by the day,” per diem is simply reimbursement for meals and other incidental expenses that occur while on the road (for example, dry cleaning a uniform or tipping a server).

According to the IRS, truck drivers need to meet the following criteria to qualify for per diem expenses:

Your work requires you to be away from your “tax home” longer than a standard workday
You need to rest and sleep to carry out your duties (while away from home)

What exactly does this mean for truck driver taxes? Basically, you get to claim a set amount for every day you’re away from home. However, if you drive locally, you likely won’t qualify. And for the days you leave and come back home, you can only claim a partial day allowance.

While the per diem rates vary for each city and state, the IRS abides by the General Services Administration’s current rates.

Truck maintenance and repair expenses

Because your truck is designated as a non-personal-use vehicle, you can deduct everything you pay to maintain and repair it. For example, common truck driver tax deductions for vehicle maintenance could include the following:

Washing your truck
Replacing the tires
Truck lease payments
Depreciation value of your vehicle
Fuel, toll fees, and parking fees

Home office deductions for truck drivers

While doing your truck driver taxes, you’re likely to come across some traditional office expenses to run your business. You can also count these as deductions, including the following:

Log books or accounting software
Pens, pencils, paper, and staplers
Cleaning supplies
Postage and envelopes
Faxing and photocopying
Calculators

Other common deductions for truck driver taxes

Here are some other common expenses that truck drivers can count toward their tax deductions:

Electronics – Cell phones, GPS units, GPS map updates, power boosters, and CB radio
Tractor supplies – Bunk heaters, coolers, and window screens
Tools – Bungee cords, chains, tarps, electrical tape, and flashlights
Safety clothing – Gloves, boots, sunglasses, and thermals
Insurance – Commercial auto liability, property damage insurance, and loss of cargo insurance (if you pay for your own health insurance, you’ll count it as a deduction on a separate tax form)
Licensing fees – State business licenses, your commercial driver’s license (CDL), etc.
Education – Training for CDL licenses, business courses, etc.

IRS Tax Forms for Truck Drivers

Running your own trucking business is no easy task, especially when it includes filing and distributing IRS tax forms. Here’s a rundown of everything you need to know as a truck driver and owner-operator.

1099 forms

Whether you work as an independent contractor or you hire one out for your trucking business, you’ll still have to report how much money was paid. That’s where 1099 forms for truck drivers come into play.

1099 forms for employers

If you paid an independent contractor more than $600 in a tax year, you’ll need to report the compensation you gave them on Form 1099-NEC.

To file a 1099 form, you’ll include the following:

Your business name
Your business address
Your EIN
Your independent contractor’s name
Your independent contractor’s EIN or social security number
Your independent contractor’s address

If you need your independent contractor’s information, you can request it through a W-9.

There are also additional federal and state details you’ll need to know, depending on where you live. This could include state income, payer state number, and withheld state tax.

1099 forms for truck drivers

As an independent trucking contractor, you’ll need client 1099s to report the income you earned during the tax year.

If you haven’t been making estimated quarterly payments, then you’ll likely end up owing the IRS for state and federal taxes, social security, and Medicare.

Schedule C forms

Every taxpayer must file the IRS Form 1040.

If you’re an owner-operator, you’ll also file Schedule C along with Form 1040. This is what independent contractors use to report their trucking income (from your 1099s) and expenses (from your deductions) for the tax year.

Usually, if you file Schedule C, you’ll also have to file Schedule SE to report self-employment taxes.

Form 2290

Form 2290 is used to pay the Heavy Vehicle Use Tax, which the IRS collects for highway construction and maintenance.

If your truck weighs 55,000 pounds or more and you operate it on public highways, you must file a 2290 form.

To file a 2290 form, you’ll need the following information:

Your employer identification number (EID)
Your full name (must match your EID)
The vehicle identification number for each truck you own/operate
The taxable gross weight of each vehicle

You must also file a 2290 form to get your stamped Schedule One, which you’ll need to renew your plates for your truck or to be leased by a company.

However, the due date for Form 2290 is not tied to your vehicle registration date. Instead, it depends on the first month you use your truck (a taxable vehicle) for business. Typically, the tax period begins on July 1 and ends on June 30 of the following year.

If you miss the deadline to file your 2290 on time, you’ll face a penalty fee and an additional interest charge on late payments.

Other IRS tax forms for truck drivers

Other possible tax forms could include the following:

Form 2016 – Use this form if you provide your services as an employee and need to claim business-related expenses.
Form 8849 Schedule 6 – Use this form to claim any taxes you made in excess.
Form 1040-ES – Use this form if you’re an owner-operator that has an expected tax liability of $1,000 or more.

Estimated tax payments

If you’re a self-employed truck driver and expect to owe at least $1,000 in taxes, you must make estimated tax payments each quarter.

Your estimated quarterly payments include self-employment tax and federal and state income tax.

So how much should you set aside for these quarterly tax payments? Generally, you’ll want to allocate between 25%-30% of your monthly income. That’s because your income tax will likely fall into the 10%-12% income tax bracket, and self-employment tax will be roughly 15.3% of your net earnings. (The self-employment rate includes a 12.4% Social Security tax and a 2.9% Medicare tax).

You can pay your federal tax estimates online or via the IRS mobile app. (If you have an electronic federal tax payment system account, you can make your payments there.) Many states also let you pay your estimated taxes online.

Pro tip: If you find that you earned more than you expected in the tax year, make a large payment in the fourth quarter. That way, you can bridge the gap between your estimations and the actual tax amount you owe (and avoid any IRS penalties).

State Tax Laws for Truck Drivers

Overview of state income tax

Forty-three states and the District of Columbia have state income taxes. The seven states that do not impose individual income taxes are Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.

The definition and rules of taxable income vary by state. For example, New Hampshire and Tennessee residents only pay tax income from dividends and interest.

To stay on top of your state taxes, check your state’s government website for more information on where you live and work.

State-Specific Truck Driver Taxes

Truck driver taxes also vary from state to state. For example, in Washington, independent contractors and owner-operators could be subject to public utility tax, business and occupation tax, retail sales tax, and use tax. Again, check your state’s government website for more details.

Tips for Maximizing Your Tax Returns

Keep accurate records

Stay on top of tracking your expenses, so you can have accurate records when it comes time to report your truck driver tax deductions. Here are a few tips to keep everything in order so you can maximize your tax returns:

Always ask for a receipt, even for smaller expenses — those small snacks on the road can add up over time!
Sort and organize your receipts by expense — like food, fuel, equipment, etc.
Store your receipts in one central place, whether in a labeled folder or a spreadsheet.
Keep a log book that documents the date, time, and purpose of each trucking trip.
Track your miles as you go so you don’t forget to record any trips or stops.
Consider using accounting software or another form of digitized tracking to easily record your expenses and the income you’re bringing in.

Take advantage of tax credits

Before you file your truck driver taxes, check if you’re eligible for any tax credits.

For example, if your truck is registered as a Heavy Highway Motor Vehicle and it was stolen, destroyed, or sold before June 1, you can count it as a credit vehicle. Similarly, if your truck is registered as a heavy vehicle and you use it for 5,000 miles or less (7,500 miles or less for agricultural purposes), it will also qualify as a tax credit.

A truck that qualifies as a plug-in electric drive motor vehicle can also be claimed as a tax credit.

And, if you donate to charities and nonprofits during the tax year, you can claim these donations on your truck driver taxes as well.

Truck driver taxes have a lot of nuances, which can be confusing and take a lot of time to sort out. Consider working with a tax professional that’s knowledgeable about the truck driving industry, especially if you’re filing as an owner-operator for the first time.

Filling your 2290 Forms

You’ll also have to go through an IRS-approved third party to e-file your 2290 forms. That’s where ExpressTruckTax can help. As a market-leading Form 2290 e-file provider, we make it easy for business owners to file online for themselves or for their drivers. Whether you’re filing Form 2290 for one truck or multiple trucks, filing with ExpressTruckTax only takes a few simple steps. And if you have any questions along the way, our dedicated support team of experts is available to help. What are you waiting for? File with ExpressTruckTax today for a fast and easy Form 2290 filing experience!

Common Questions About Truck Driver Taxes

Q: What tax deductions can I claim as a truck driver?

A: As a truck driver, you can claim per diem expenses, truck maintenance and repair, home office supplies, and anything you need to run your truck-driving business, like electronics, tools, and safety clothing, for your deductions.

Q: What IRS forms do I need to file as a truck driver?

A: Essential IRS tax forms for truck drivers include Form 1049 (which might include Schedule C and Schedule SE), Form 1099, and Form 2290.

Q: What are the state tax laws for truck drivers in my state?

A: Truck driver taxes vary from state to state. Check your state’s government website for more information on the taxes for where you live.

Q: How can I maximize my tax returns as a truck driver?

A: Maximize your tax savings by keeping clear records of your tax deductions and working with a tax professional who understands the ins and outs of the truck driving industry.

What is a Schedule 1 and Why is it Important for Truckers?

Posted on July 6, 2023 by Marcela De Vivo - 2290 Schedule 1

When it comes to heavy vehicle use taxes with the Internal Revenue Service (IRS), one crucial document that truck owners and operators must be familiar with is the stamped Schedule 1.

This document serves as proof of filing the Heavy Vehicle Use Tax (HVUT) and is an essential part of staying compliant with tax regulations. In this blog post, we will dive into the importance of the stamped Schedule 1 and its significance for trucking businesses.

What is a Stamped Schedule 1?

The stamped Schedule 1, also known as IRS Form 2290 Schedule 1, is a document issued by the IRS to confirm that the Heavy Vehicle Use Tax has been filed for a particular business and vehicle. It indicates that the vehicle’s owner has fulfilled their tax obligations for the tax period specified on the document.

The Schedule 1 is stamped by the IRS upon successfully processing Form 2290, which is filed annually by truck owners operating vehicles with a gross weight of 55,000 pounds or more. When you e-file your Form 2290, the stamp is an electronic stamp. Whether you have a red manual stamp or a gray electronic stamp, your IRP office must accept that document.

Why is the Stamped Schedule 1 Important?

The stamped Schedule 1 holds significant importance for several reasons:

Proof of Filing: The stamped Schedule 1 proves that the HVUT has been filed (and paid) for the specified tax period. It acts as a receipt and confirmation that the vehicle owner is in compliance with tax regulations. Many authorities, including state DMVs and law enforcement agencies, may request a copy of the stamped Schedule 1 as evidence of tax payment.

Vehicle Registration and Renewal: The stamped Schedule 1 is required when registering or renewing the registration of a heavy vehicle. DMVs typically ask for this document to ensure that the vehicle’s owner has met their tax obligations. Without a valid stamped Schedule 1, the registration process may be delayed or denied.

Operating Authority: For commercial trucking businesses, obtaining operating authority from agencies like the Federal Motor Carrier Safety Administration (FMCSA) may require a valid stamped Schedule 1 as part of the application process. It demonstrates that the business complies with HVUT requirements and has paid the necessary taxes.

Proof of Compliance: In addition to serving as proof of filing, the stamped Schedule 1 demonstrates a truck owner’s commitment to compliance with tax regulations. It reflects their adherence to their tax obligations and helps build a reputation for reliability and professionalism within the trucking industry.

Obtaining the Stamped Schedule 1

To obtain a stamped Schedule 1, truck owners and fleet managers must first file Form 2290 with the IRS and pay the applicable Heavy Vehicle Use Tax. This can be done electronically through authorized IRS e-file provider like ExpresTruckTax, which offers a convenient and efficient way to file and receive the stamped Schedule 1 in a timely manner.

Electronic filing saves time, eliminates the need for paper forms, and expedites the processing of tax returns. You will receive your stamped Schedule 1 in minutes instead of weeks.

In conclusion, the stamped Schedule 1 is a critical document for truck owners and operators. It serves as proof of filing for the Heavy Vehicle Use Tax and is vital to compliance with tax regulations. Truck owners should ensure that they file Form 2290 and obtain the stamped Schedule 1 promptly to avoid any delays in vehicle registration or operating authority.

Please note that the information provided in this blog post is for general informational purposes only and should not be considered as legal, tax, or financial advice. For specific guidance related to your individual situation, it is recommended to consult with a professional tax advisor or the IRS directly.

The 2023-24 Form 2290 Tax Year Starts Today!

Posted on July 1, 2023 by Marcela De Vivo - New Form 2290 Tax Year

As the calendar flips to a brand new month, a month filled with celebrations, watermelon, and firecrackers, let us not forget it is also the start of a new tax year.

That’s right! It’s time for truckers to prepare for their Form 2290 filing once again. The 2023-24 tax year has officially begun, and it’s essential to handle your tax filing efficiently and without unnecessary stress. With the right tools and resources at your disposal, filing your Form 2290 can be a smooth and hassle-free process.

Form 2290 is an annual requirement for truck owners and fleet managers who operate vehicles with a gross weight of 55,000 pounds or more. The Form 2290 tax is used to support our nation’s highway infrastructure and ensure that roadways remain safe and well-maintained. While the tax itself is a necessary responsibility, the filing process can often be overwhelming, especially if you did not file with ExpressTruckTax!

Our number one goal is to simplify your Form 2290 filing and eliminate unnecessary stress. Here are a few ways ExpressTruckTax is like a breath of fresh air.

ExpressTruckTax Features

We have built a user-friendly interface

We offer an intuitive interface that guides you through each step of the filing process. With clear instructions and helpful prompts, you can easily navigate the form and provide accurate information.

We know that time is money

Save yourself a significant amount of time and effort compared to manual paper filing or e-filing with other services that are not as user-friendly as ExpressTruckTax. With automated calculations and built-in error checks, you can minimize the chances of errors and reduce the need for manual rework.

We get you your Schedule 1 back quickly

ExpressTruckTax processes your Form 2290 quickly and will send you immediate confirmation of your filing status. No more waiting for weeks to receive your stamped Schedule 1; with electronic filing, you can receive it in minutes, ensuring compliance and peace of mind. And if you’re leased, we will even send your Schedule 1 to your company for you!

We take security seriously

With over 13 years of e-filing experience, ExpressTruckTax prioritizes the security and privacy of your sensitive information. We employ robust data protection measures, giving you peace of mind that your personal and financial details are safeguarded.

We provide expert support

Should you encounter any questions or concerns during the filing process, professional support teams are readily available to assist you. With their extensive knowledge and experience, they can provide guidance and resolve any issues promptly.

File Your 2023-24 Form 2290 Today

So, as the 2023-24 Form 2290 tax year kicks off, don’t let the filing process become a source of stress and frustration. Embrace the advantages of modern technology and choose the #1 online filing solution, ExpressTruckTax to make your Form 2290 filing experience efficient and hassle-free.

Take control of your tax obligations and file your 2290 Form stress-free. Get started with ExpressTruckTax today and experience the difference it can make for your trucking business.

How Much Does Form 2290 Cost?

Posted on June 27, 2023 by Marcela De Vivo - IRS form 2290

Hey, it’s ExpressAmber, and a lot of times we get the question of how much is my Form 2290? How much does it cost? And there’s kind of two answers here. Number one is the tax payment portion of it, and the tax payment is based on your first use month and your gross weight.

So every year, July would be your first use month. If you’re on the road over and over, July is the first use month of the tax year. And if your gross weight is over 75,000 pounds up to 80 or 90, your tax due is going to be $550.

If you go to ExpressTruckTax.com, we have a tax calculator where you can plug in your first use month and your gross weight, which again starts at 55,000 pounds and goes to over 75,000 pounds. So you can plug in whatever your gross weight is.

Your gross weight is your truck, your trailer, and the maximum that you can haul. And so you plug in those two pieces of information, and it calculates how much your tax would be. So that’s a really cool tool for you to figure out what your tax due is going to be.

And then the second piece of that is the filing fee. Now, ExpressTruckTax, we’ve been around for over 12 years. We’re the number one IRS-authorized e-file provider in the trucking industry. And to file for one truck, it’s $14.90, again one of the lowest in the industry.

Not only that, but we do have a full support team here ready to answer any questions that you have. So if you do have questions about your tax gross weight or your tax amount, we are here for you, and it comes with that price.

So, the price to file your 2290 is based on the number of trucks. We have one truck, two trucks, three to twenty-four trucks, 25 to 100. So, there are lots of different categories that you might fit into, but they’re all very reasonably priced. And again, we’ve built ExpressTruckTax to be safe for you and for your company and for your information.

So, you just come on, create an account, put in your business information, your truck information, and then we do the rest. We calculate it for you, we transmit it to the IRS, and you’ll just get an email back when it’s been accepted. You’ll get your stamped Schedule 1, and then you’re good to go.

So those are the two pieces when we’re talking about, well, how much is my 2290 going to be? The tax payment is based on your first use month and your gross weight. And then, of course, our filing fees, we’ve already discussed those.

When it comes to paying your tax due, there are five ways that you can pay the tax, and on the IRS payment section, those will be listed out for you. We’ve got electronic funds withdrawal, which is where you enter in your bank account and your routing number. That will the IRS will automatically debit that account within one to two business days once the return has been accepted.

The next is a credit card. With ExpressTruckTax, the benefit of doing that is number one, it’s going on a credit card. Number two, when you do it through ExpressTruckTax, you don’t have to re-enter all of your information again. It’s just one and done. We also offer the credit card through the IRS system, which again, you’ve got to go to a different site, re-enter all of your payment information, and pay with the credit card there.

We also have the EFTPS. If you have this account set up, perfect. If you do not and you want to get it set up, now is the time because it does take about 15 days to get that account set up with the IRS. And then the last is a check or money order. So again, this option is very manual. You have to write a check or money order out and mail it to the IRS before August 31st. But that’s the five payment methods that we offer through ExpressTruckTax.

You can reach us at our email supported expressstrucktax.com, phone 704-234-6005, and we have a live chat option as well at expresstrucktax.com. There’s a little bubble down there on the right-hand side. You can click that, and we’ll answer.

So, I look forward to helping you soon. If you have not filed your 2023-2024 Form 2290, go to ExpressTruckTax.com, login to your account, click pre-file, and be done in literally less than five minutes. I’ll talk to you guys soon. Bye.

Can I Transfer My Form 2290 To A New Truck?

Posted on June 21, 2023 by Marcela De Vivo - Transfer Form 2290

Hey, it’s Amber with ExpressTruckTax, and today I’m going to answer a common question that we get here. Can I transfer my Form 2290 tax from one truck to the next truck? The answer is sometimes. Um, most of the time, yes, you can, uh, if you file the 2290 on Truck A in July and you get a new truck in September, you can file the tax from Truck A to Truck B, um, and it just kind of moves over depending on how you sell and purchase the vehicles.

The only time that there’s a question is if you’ve gone over 5,000 miles, and there are, you know, there are a lot of different stipulations. But for the most part, you can transfer your tax from Truck A to Truck B. There are three different reasons.

Number one, you get a new truck, so you sold a truck, you got a new truck, you move that tax over. If you destroy Truck A, you get a new truck, you can move that tax over. Um, if Truck A is stolen and you’ve paid the tax on that truck, you can move it to Truck B. So there are three different key reasons of why you would transfer the tax to a new truck.

But make sure you check with your accountant, your tax advisor, just to make sure before you’re doing this transaction. But the IRS does say that you can transfer your tax from Truck A to Truck B if it’s sold, destroyed, or stolen.

And of course, you can do that on ExpressTruckTax. Um, and then there’s also the option where let’s say you sell your truck and it’s the middle of the tax year, and you’re not getting a new truck, you can claim a credit on that sold vehicle. So again, if it’s not gone over 5,000 miles and you paid for the full tax year, you can file an 8849 for a sold vehicle.

And, um, the IRS will mail you a refund check for that unused tax. The same with stolen or destroyed vehicles, you can claim credits on those. Or if you’re getting a new truck, you can transfer that over to the new vehicle.

If you have any further questions, feel free to reach out to our support team. We’re here Monday through Friday, 8:30 to 5:30. Call 704-234-6005. You can find us at support@ExpressTruckTax.com, or you can do live chat, which is right on our website.

So reach out if you do have further questions. And if you would like to see more helpful videos on specific topics, comment down below, and I’ll be happy to make them. Talk to you soon. Bye.