Category: express truck tax

Tax Planning for Small Fleet Owners

The United States tax system operates on a pay-as-you-go basis, which means taxpayers are required to pay most of their tax during the year, as they earn or receive income. This requirement applies not only to employers, who withhold taxes from their employees’ paychecks, but also to individuals who are self-employed, such as owner-operator truck drivers. For these independent workers, the Internal Revenue Service (IRS) mandates the payment of quarterly estimated taxes.

Quarterly taxes are payments made every three months to the federal government and, when applicable, to state governments. Estimated tax payments are calculated based on the income that you expect to earn and the estimated tax liability on that income, including self-employment tax and any other taxes you are liable for.

The importance of Staying on Top of Tax Payments for Small Fleet Owners

Self-employed drivers must understand and respect this payment structure for several reasons:

1. Cash Flow Management: By paying taxes quarterly, owner-operators can better manage their cash flow, avoiding the pressure of a single, large tax payment at year-end.

2. Avoidance of Penalties: The IRS imposes penalties for underpayment of taxes. By correctly calculating and making quarterly payments, owner-operators can steer clear of these penalties.

3. Predictable Financial Planning: Knowing what and when to pay can help owner-operators plan their finances more predictably, contributing to overall business stability.

When preparing to make these estimated tax payments, owner-operators will need several forms. The key form for federal taxes is Form 1040-ES, “Estimated Tax for Individuals.” This form helps calculate the estimated tax required to be paid each quarter. If required by your state, a corresponding state-specific estimated tax form must also be completed.

Failure to meet quarterly tax obligations can have serious consequences, including:

Underpayment Penalty: If you do not pay enough tax through withholding or quarterly estimated payments, you may be charged a penalty for underpayment of estimated tax.

Interest Charges: Like any overdue payment, any unpaid taxes will accrarily interest until the balance is paid in full.

Compounded Debt: Continual failure to pay taxes can lead to a compounded debt that is more difficult to settle in the future, encompassing taxes, penalties, and interest.

For more information on self-employment taxes and current rates, owner-operators can refer to the IRS website.

Meeting the challenge of quarterly tax payments may seem daunting, but with careful financial planning and disciplined saving, owner-operators can ensure compliance with tax regulations, reduce the risk of financial shocks, and maintain focus on the road ahead.

Keeping Detailed Records of Expenses

Maintaining meticulous records of expenses is essential for proper tax preparation, primarily due to the need to substantiate any deductions claimed on tax returns. Precise records provide a clear account of all expenditures, helping to ensure that you are only paying taxes on your net income after legitimate business expenses are extracted. In the event of an audit by the IRS, comprehensive records will serve as your first line of defense, demonstrating that your deductions are valid and accurate.

Effective strategies for organizing and storing receipts include:

Digital Organization: Utilize mobile apps and cloud-based tools designed for expense tracking where you can upload and categorize receipts immediately after incurring an expense. Examples include QuickBooks, Expensify, and Receipt Bank.

Physical Filing System: Establish a well-labeled physical filing system with folders or binders sorted by month, expense type, or another logical categorization that works for your business operations.

Regular Reconciliation: Schedule weekly or monthly sessions to reconcile receipts with bank statements and credit card statements, ensuring that all expenses are accounted for and recorded correctly.

Types of Deductible Expenses

Deductible expenses are specific costs that are necessary and customary for the operation of your business. Common work-related expenses that owner-operators can deduct include:

Food: While on the road, meals are a necessary expense. However, the IRS only allows for partial deduction considering the personal nature of food consumption.

Fuel: Perhaps the most significant expense for truck drivers, fuel costs can be meticulously documented and claimed as deductions.

Lodging: Overnight stays while on long hauls are deductible, provided they are necessary for the completion of work.

Vehicle Maintenance: Regular maintenance and necessary repairs to ensure the safe and efficient operation of the truck are fully deductible.

Insurance Premiums: Insurance for the vehicle and cargo is not only prudent but also a deductible expense.

Licenses and Permits: Any fees associated with obtaining and maintaining required professional licenses and permits are deductible.

Equipment: Necessary gear, from safety equipment to electronics that facilitate your business activities, can often be claimed.

Depreciation: Owner-operators can deduct the cost of their truck and other capital assets over time through depreciation deductions.

Retaining receipts for all these expenses is critical, as they serve as proof that the expenditures were indeed made and relate to the operation of your business. It is important to note that personal expenses or any portion thereof cannot be deducted.

For more guidance on what constitutes a legitimate business expense and how to properly document it, owner-operators can refer to IRS Publication 463 (Travel, Entertainment, Gift, and Car Expenses).

In summary, meticulous record-keeping is pivotal for tax accuracy and compliance. By regularly tracking and properly categorizing every business expense, owner-operators can optimize their tax deductions, ultimately reducing their taxable income and potential tax liability while remaining prepared for any IRS inquiries. 

Exploring Tax Credits

Let’s review possible tax credits that small fleet owners can take advantage of:

COVID-19 Related Tax Credits

The outbreak of the COVID-19 pandemic led to significant economic disruptions, prompting the federal government to introduce a range of tax credits aimed at easing the financial burden for individuals and businesses. Understanding these credits is crucial for taxpayers, as they can substantially decrease the amount of tax owed and, in some cases, result in a refund.

The Families First Coronavirus Response Act (FFCRA): Initially provided paid sick leave and expanded family and medical leave for COVID-19 related reasons and created the corresponding tax credits for eligible employers. Tax credits for sick and family leave can be claimed for wages paid for leave taken due to COVID-19 reasons, including quarantine and vaccination.

Employee Retention Credit (ERC): Originally introduced under the CARES Act, the ERC encourages businesses to keep employees on their payroll. While the availability of this credit has changed over time, it can cover a percentage of wages and health insurance costs paid to employees. Eligibility has evolved, with varying criteria for different periods during the pandemic. It’s essential to review the updated guidelines to determine if your business can still benefit from this credit for past payroll periods.

Recovery Rebate Credit (Stimulus Checks): Taxpayers who did not receive the full amount of the Economic Impact Payments (stimulus checks) may be eligible to claim the Recovery Rebate Credit on their tax return. If the full Economic Impact Payment was not received, a reconciliation on the tax return could lead to additional credit, reducing the tax liability or contributing to a tax refund.

Charitable Donations:

Charitable contributions can play a transformative role in reducing tax obligations for taxpayers who itemize deductions. However, the rules surrounding charitable deductions are nuanced and demand careful consideration.  To be deductible, donations must be made to qualifying organizations as outlined by the IRS. Not all organizations with a charitable purpose will meet the criteria for a tax-deductible contribution.

Itemizing vs. Standard Deduction: Taxpayers must itemize deductions on their tax returns to deduct charitable contributions. This may be beneficial if total itemized deductions exceed the standard deduction for the filing status.

Documentation and Limits: Proper documentation is required for all charitable donations, including receipts from the charitable organization, bank records, or a written acknowledgment for gifts valued at $250 or more. There are limits to how much can be deducted in a given year based on a percentage of the taxpayer’s adjusted gross income (AGI), with any excess potentially carried over to subsequent tax years.

Appreciated Assets: Donating appreciated assets, such as stocks or real estate, can provide additional tax benefits. Taxpayers may be able to deduct the fair market value of the asset while avoiding capital gains taxes that would have been incurred if the asset had been sold.

By strategically engaging with tax credits and maximizing charitable donations, taxpayers can effectively manage their taxable income. However, it is recommended to consult with a tax professional to ensure compliance with the complex tax laws and to optimize the benefits these provisions offer.

In conclusion, understanding and efficiently managing tax obligations is essential for owner-operators and small fleet owners in the United States. By adhering to the pay-as-you-go system through quarterly estimated tax payments and maintaining meticulous documentation of deductible expenses, these independent workers can avoid penalties, manage cash flow effectively, and plan their finances predictably. 

Additionally, exploring available tax credits, especially those related to recent developments like the COVID-19 pandemic, as well as maximizing charitable contributions can significantly lower tax liabilities. Diligence in record-keeping and strategic financial planning are critical for ensuring compliance, optimizing deductions, and securing a stable financial future in the competitive and demanding environment of the trucking industry.

Does Your Trucking Business Need to File 1099-NEC and W-2?

Running your trucking business is no easy task, there are so many different demands and requirements. This includes filing and distributing Forms W-2 and 1099-NEC each year.

If you employ truck drivers or hire them as independent contractors, you are required to file Forms W-2 with the Social Security Administration (SSA) and/or 1099-NEC Form with the IRS. 

If you fail to file as needed, you can risk your business’ IRS compliance and cause difficulty for your drivers when it comes time for them to file their own taxes. 

Don’t worry, we’ve got you covered! Our sister product TaxBandits can help you e-file your Forms W-2 and 1099, they’re the experts!

Here’s a quick rundown of everything you need to know about Forms 1099-NEC and W-2.

When are the Form W-2 and 1099-NEC Deadlines?

The IRS and SSA require that employers file Forms 1099-NEC and W-2 and distribute copies to their employees and independent contractors. The deadline to do this is January 31, 2022. 

What is Form W-2? 

The Form W-2 is a wage tax form that reports the wages you paid to your employees and the taxes that you withheld from their pay. This includes social security, Medicare, and income taxes. 

Your employees need a copy of their Form W-2 in order to complete their own personal taxes and properly report their income to the IRS. 

What is Form 1099-NEC?

Businesses should report all non-employee compensation using Form 1099-NEC for the 2021 tax year. The deadline to file and distribute Form 1099-NEC is also January 31, 2022. 

If your drivers are independent contractors rather than full-time employees on your payroll, you will need to complete Form 1099-NEC instead of a W-2 Form, if you paid them $600 or more 

It is still very important that you provide your independent contractors with a copy of their Form 1099-NEC, as they will need this information to report their income when filing their taxes. 

Check Out TaxBandits!

TaxBandits also helps you fulfill your federal and state e-filing requirements for Forms 1099-NEC, W-2, and many more IRS tax forms including other 1099 forms, the 94x Series forms, and ACA Forms. 

TaxBandits has easy options for handling your recipient copies. When you select our postal mailing services, we ensure that all of your forms are printed and mailed to USPS Validated addresses.

You can also choose online Tax Form Access. This allows your employees to view and download their forms at any time through a secure portal. 

Ready to handle your filing today? Create your free TaxBandits account now!

Facebook Live: ExpressAmber Wants To Talk With You!

The 2021-22 Form 2290 tax deadline is only a few days away. To avoid hefty penalties, you need to have your Form 2290 filed and HVUT paid by August 31st, 2021!

Luckily, expressAmber is here to help answer any questions that you may have! ExpressAmber enjoys hanging out and talking to truckers. She understands and is thankful for all the hard work that truckers put into their careers.

To talk and hang out with as many truckers as possible, expressAmber will be hosting a Facebook live event on:

August 25th @ 7 P.M. 

During this Facebook Live, expressAmber will be there to talk to as many people as she can. She will answer any questions that you may have, not just specific to the Form 2290. Come hang out with us and feel free to join the conversation!

Join The Live!

To join this Facebook Live event, log into Facebook and go to ExpressTrucktax’s Facebook page here!

If you have any more questions about ExpressTruckTax and filing the Form 2290 before the deadline, go to ExpresstruckTax.com or call our customer support team at 704.234.6005.

Look Up! ExpressTruckTax Has A New Billboard

If you’re in the middle of a long road trip and catch yourself driving down Interstate 77, remember to look up! ExpressTruckTax is excited to announce that we have a new active billboard that stands tall over I-77!

This billboard displays a huge welcome to Rock Hill, SC, where our office, including our customer support team, is located and we take pride in our U.S. based office. Whenever you have questions or concerns about ExpressTruckTax, you’ll be talking to our team in South Carolina.

The billboard also shows ExpressTruckTax.com, our IRS-authorized program that was designed to make e-filing your Form 2290 quick and easy.This year’s tax period is open and the IRS is now accepting the Form 2290 tax returns.

E-file on ExpressTruckTax now and receive your Stamped Schedule 1 within minutes! The current deadline is at the end of August, so make sure your return is filed and paid by then!

Other trucking products from Span Enterprises are also displayed on this billboard, including TruckLogics, ExpressITFA, and TSNAmerica. These programs were created to help simplify the trucking business. We even offer a full service filling for Form 2290 through ExpressTruckTax’s sister company, TSNAmerica, where you can file your tax return, right over the phone!

ExpressTruckTax’s support team strives to help our clients! So everytime you call our office, you will be speaking to a real person! Our team provides service in both English and Spanish, to make sure all of our clients get the proper help that they deserve.

Although our team typically never gets to see our clients face-to-face, we would love to see you all! So if you’re ever near Rock Hill, SC, feel free to stop by our office and come meet all of our friendly faces!

What Every Trucker Needs to Know About 1099s & W-2s

If you employ any truck drivers (whether full-time employees or independent contractors) you have to report information about how you paid them to the IRS.

If you are a trucking company employee or a trucking independent contractor, you also have to report information about your income to the IRS.

For both parties, this is where 1099s and W-2s come in.

Let’s go over everything you need to know about 1099 Forms and W-2s.

W-2s for employers

The W-2 is designed to report tax information about full or part-time employees (i.e. any employees who receive income that had social security tax, income tax, or Medicare tax withheld).

As an employer, you will use the W-2 to report whatever salary, income with social security, income tax, or Medicare tax you withheld, and any compensations you offered throughout the tax year. You must also send a copy of the W-2 to each of your employees for their personal taxes.

W-2s for truck drivers

As an employee, you will use the information from your employer’s W-2 to file your personal taxes. This will include information like the amount of state and federal tax withheld and total income.

1099s for Employers

The 1099 is designed for anyone who is paid $600 or more in the tax year and does not have taxes withheld for them.

As an employer, you will use Form 1099-MISC to report what the compensation you gave independent contractors.

What employers need to file 1099s

Here’s all the information you’ll need to file 1099s:

Your Information:

  1. Business Name
  2. Business Address
  3. EIN (Employer Identification Number)

Independent Contractor Information:

  1. EIN
  2. OR Social Security Number
  3. Address
There are also additional federal and state details you will need to research depending on what state you live in.
This includes all miscellaneous incomes you provided, the state income, payer state number, and state tax withheld. If you don’t have your subcontractor’s information available, you can request it through a W-9 Form.

1099s for trucking independent contractors

You will take the information provided to you by your employer on their 1099 and use it to report income that was not previously taxed. This means you will most likely end up owing money to the IRS for state and federal taxes, social security and medicare.

trucking independent contractor who used taxbandits for form 1099

The easiest way to file trucking 1099s and W-2s

The easiest solution for filing trucking 1099s and W-2s (and even those W-9s we talked about) is to use our sister product TaxBandits.

Their e-filing solutions make everything simple for you! Just follow the step by step questions and they will populate your forms for you! Pricing starts at just $1.99 per form.

 
 
 

Australian Truckers Will Blow Your Mind

In Australia, truckers are called “truckies”. Despite their cutesy-sounding nickname, these drivers are seriously hardcore.

They haul huge loads with multiple trailers (called “road trains”) through thousands of miles of uninhabited outback desert.

As an outback trucker, you don’t want to get stranded. Out here, you can die in a matter of hours without water.

Australian trucks come equipped with heavy-duty bars designed to plow right through stray kangaroos without stopping.

Australia’s Outback Truckers

As a country, Australia is approximately the same size as the United States. But that’s where the similarities end.With a population of just 25 million, mostly concentrated around the coasts, Australia has thousands of square miles that are almost entirely empty.About the only people living out here are farmers who manage remote cattle ranches. These massive swaths of land are so dry that they require miles of grazing land for even small herds.

Road Trains

Connecting these people to the outside world are long haul outback truckers who run massive road trains of supplies into small towns.
They are possibly more important to the Australian outback than American truckers are to American farmland.Without these enormous road trains, the most remote communities would never get supplies.It’s not just the long hauls outback truckers have to deal with. There’s also scorching heat in the summer and horrendous rainy seasons.

Many times, truckies are so far from civilization that major mechanical problems can quite literally result in life or death situations.There have been many reports of people dying in the outback after their vehicles broke down just because they didn’t bring enough water to stay hydrated.Life on the road for truckies is much the same as for American Truckers. They spend a lot of time sleeping in trucks and away from their families.

For the most part, they drive Mack and Kenworth. And in most parts of Australia, truck stops are much smaller and much farther apart. There is often little or no cell service.

The life of the Australian truckie is far more hardcore than that of the American trucker. But in much the same way, they are the heroes of their transportation industry.

Express Truck Tax

At Express Truck Tax, we know that trucking is very time-consuming. That’s why we recommend our sister product TruckLogics to all our clients.

Their trucking business management software helps streamline dispatching, expense reporting, invoicing, maintenance, and so much more.

Get a 15-day free trial today! They don’t ask for payment information and there’s no obligation.

4 Surprising Trucking Facts That You Never Knew About

Here at Express Truck Tax, we dug up some truly surprising trucking industry facts that you need to know about.

Enjoy this list of historic world firsts in the trucking industry.

Trucking Industry Facts You’ve Never Heard

First Semi-Trucks

It is widely reported that the first semi-truck was invented in 1898 by Andrew Winton.

He used the first semi-truck to haul his automobiles and avoid putting wear and tear on them before delivery.

At this point in American history, there were no interstate systems and most roads were still unpaved dirt. In fact, in 1900, only 4% of roads were paved.

Traveling by road was much more difficult and most freight was transported by train. However, over time, trucking became the preferred method to reach rural communities that were not being served by trains.

The trucking industry truly exploded as networks of paved roads expanded and the interstate system was begun in 1956.

Fastest Semi-Trucks

The fastest semi-truck in existence is actually hard to nail down. There are many kinds of trucks competing for the title: standard diesel, electric, and one insane jet-powered trucks.

Diesel

The fastest standard diesel semi-truck we could find is Volvo’s Iron Knight. They only made one, created specifically to go as fast as possible.

But just take a look at these stats about the fastest diesel semi-truck:

– 2,400 horsepower (for reference, the Peterbilt 379 has 475 horsepower)
– 4,425 pound-feet of torque (most new Peterbilt engines have about 1,500 pound-feet)
– 500-meters (1640.42 feet) from a dead stop in 13.71 seconds
– 1,000-meters (3280.84 feet) from a dead stop in 21.29 seconds
– 171.5 mph top speed

Watch the Iron Knight outrun a sports car:

Electric

The new Tesla electric semi-truck is set to hit roads in 2020. Love it or hate it, this semi-truck is seriously fast, and it’s actually going to be available to the general public.

Check out what Tesla says about their electric semi-truck:

– 0-60 mph in 5 seconds empty
– 0-60 mph in 20 seconds with 80,000 lbs. load
– 500-mile range at gross vehicle weight and highway speed

Jet-Powered

Last is the seriously insane, jet-powered Shockwave custom Peterbilt. This semi-truck is powered by two huge jet engines that shoot massive flames and propel the truck to a top speed of nearly 400 mph.

Check out these other stats about the fastest jet-powered semi-truck:

– 36,000 horsepower
– 376 mph top speed
– A quarter-mile in 6.5 seconds (the Iron Knight did a similar distance in 13.72 seconds)

Longest Semi-Truck Loads

It’s no secret that normal Australian truckers (called truckies) run massive “road trains” with three, four, or sometimes five trailers.

Their trucks are outfitted with massive grill protectors meant to plow right through kangaroos and other animals that get in their way.

But this Guinness-World-Record-setting road train is the craziest thing we’ve ever seen.
With a single Mack truck, John Atkinson hauled 153 trailers — for about 500 feet. It’s still pretty insane though.

Most Expensive Semi-Trucks

The most expensive semi-truck is this custom Mack truck. It’s another example of a very impractical truck design.

Built for the Sultan Ibrahim Ismail of the Malaysian state of Johor who needed to drag his speedboat, this thing reportedly cost over $1 million.

Check out these over-the-top stats about the most expensive semi-truck:

– 72,000 stitches of gold thread,
– A six-camera closed-circuit TV system
– Imported leather upholstery
– Solid wood flooring
– Stone-topped counters
– XBOX and Playstation

We don’t want to know what the taxes would cost on a truck like the Sultan’s. One thing is for sure, the Sultan doesn’t have to pay HVUT and IFTA taxes. But you do.
Fortunately, Express Truck Tax is here to give you service fit for a king.

Are You Caught Up With Your Truck Taxes?

Being a trucker isn’t easy. It seems like everyone on the road thinks you’re in their way, and yet the demand for delivered goods just keeps increasing.

On top of that, you have some serious bookkeeping to maintain.

Luckily for you, there are online software solutions like ExpressTruckTax to help take the paperwork off your plate.

Here are some yearly and quarterly truck taxes you need to be aware of in order to avoid penalties and interest.
Watch out for these truck taxes:

IFTA Fuel Tax

The IFTA fuel tax is a quarterly tax used to collect and distribute fuel tax revenue between jurisdictions.

IFTA simplifies truck taxes by allowing you to travel in all participating member jurisdictions with a single fuel tax license.

You’ll need to file report your IFTA tax to your base jurisdiction 4 times a year.

Here are the IFTA fuel tax deadlines you need to be aware of:

Quarter
Period
Due Date
1st
January – March
April 30
2nd
April – June
July 31
3rd
July – September
October 31
4th
October – December
January 31
Notice that the 3rd quarter IFTA deadline is approaching soon on Halloween!
Use ExpressIFTA, an online IFTA reporting software, to track all of your fuel records and generate your quarterly IFTA fuel tax reports online.

IRS Form 2290

Form 2290 is due annually, so you only need to worry about it once a year.

It’s coupled with the Heavy Use Vehicle Tax, which is the 2290 tax amount you must pay in addition to filing Form 2290.

Hopefully, this one doesn’t need to even be on your radar for months. It was due September 3, 2019. (Normally, Form 2290 is due August 31, but that date fell on a weekend).

If, however, your Form 2290 was rejected, or if you still have not filed IRS Form 2290 for 2019-20, you’ll need to do so right away. IRS penalties and interest for this tax are not forgiving, and they only increase with time.

Online filing takes less than 10 minutes, so there’s really no reason to endure hefty penalties.

Trucking down the highway, up to date on truck taxs like IFTA fuel tax and Form 941.

If you put off filing your 2290 tax form due to your inability to afford the 2290 tax, it’s important to note that the penalty for filing your Form 2290 but failing to pay your 2290 tax is substantially lower than failing to file and pay.

In addition to avoiding penalties, it is necessary to file your 2290 tax form each year in order to receive your stamped Schedule 1, which is required for operation.

Use ExpressTruckTax, the industry’s leading IRS-authorized e-file provider, to file IRS Form 2290 in minutes from anywhere on your phone, tablet, or computer. Never even set foot in an IRS office during one of the busiest truck tax seasons.

941 Taxes

Form 941 is relevant if you own and operate a trucking business with employees, as it is used to report employment taxes and calculate the employer’s portion of Social Security and Medicare tax.941 taxes are quarterly, meaning they’re due 4 times a year:

Quarter
Period
Due Date
1st
January – March
April 30
2nd
April – June
July 31
3rd
July – September
October 31
4th
October – December
January 31

As you can see, the 3rd quarter 941 Form 2019 deadline is coming up. Make sure you know whether or not you need to file 941 taxes. Unsure if you need to file? Read more here.

If you do need to file IRS Form 941, you’ll want to check out TaxBandits. Forget the paperwork, simply file 941 taxes online in a few minutes. Plus their interview style e-filing process and automatic error checks ensure success.

Keep up with your truck taxes! You don’t need to be spending unnecessary money on penalties and fees. Check out ExpressTruckTax, ExpressIFTA, and TaxBandits today. You’ll be glad you did.

Trucking 101: Everything You Need to Know About ExpressTruckTax

You might already know that ExpressTruckTax is here for your Form 2290 filing needs.

In fact, we’re the industry-leading e-file provider for IRS 2290.

But what else do you know? Find out other ways we can help you with truck taxes to take the paperwork out of trucking.

Truck Taxes

IRS Form 2290

Did you use ExpressTruckTax to file Form 2290 this year? If so, thanks for choosing us!

Our number 1 referral method is word of mouth, so be sure to tell your friends about your experience.

If you didn’t file with ExpressTruckTax, or haven’t heard of us before, here’s the rundown:

1.  ExpressTruckTax is an IRS-authorized e-file provider.

That means our system is authorized by the IRS to participate in the IRS e-file program. Not only are we backed by the IRS, but we run on cloud-based software, keeping your sensitive information safe and secure.

2.  ExpressTruckTax takes the paperwork out of filing.

No, seriously. You never need to touch a piece of paper to file IRS 2290, and you definitely don’t have to stand in those ridiculous lines at the IRS. Honestly, I hope no one is still doing that.

3.  ExpressTruckTax is here for you.

The ExpressTruckTax support team is a 100% US-based, live support team, meaning you’ll always get a real human on the phone who knows what they’re talking about.

Best of all, you’ll get your IRS 2290 stamped Schedule 1 just minutes after filing Form 2290.

IFTA Fuel Tax

So, maybe you knew all that, but did you know we can help with IFTA filing too?

Simply log in to your ExpressTruckTax account, or create one for free. Then, select the “IFTA” tab at the top of the home page.

IFTA filing has never been easier. It’s all the ease of Form 2290, but with IFTA reporting!

Don’t forget, your 3rd quarter IFTA deadline is October 31, 2019. File your IFTA fuel tax by Halloween to avoid penalties and interest.

Truck Drivers Are Our Priority

Now you know a little bit about how ExpressTruckTax can help you, especially with IRS Form 2290 and IFTA fuel tax.

We’re here for you. Our top-notch customer support team is available to help, whether you need to make a correction on your Form 2290, have questions about IFTA filing, or need clarity on truck taxes and deadlines.

We’re here to take some of the hassle and paperwork out of being a truck driver, but most importantly, we’re here for you.

Check out our other blogs to find more resources to help you succeed in the trucking industry.
Happy trucking!

A Complete Guide to the 1099 Form and W-2 Form

How do you know whether or not you need to file W-2 Forms or 1099 Forms for your employees?

It all depends on what role you play in the trucking industry and your drivers’ tax classification.

If you’re an owner-operator or fleet manager, you should determine if new hires are full-time employees or independent contractors from the start.

This will affect what paperwork you need to keep up with to stay compliant.

Here’s everything you need to know about the 1099 Form and W-2 Form.

Trucking Taxes

W-2 Form

The W-2 Form is used to report salary, income with social security, income or Medicare tax withheld, and any compensations offered throughout the tax year.

Employers must file W-2 Forms electronically with the SSA (Social Security Administration) for their employees each year.

In addition, employers must send copies of W-2 Forms to employees so that they can use W-2 information to complete their personal tax returns.

So, if you’re a business owner, who do you need to file W-2 for?

Essentially, employees/drivers will need to receive a W-2 Form if you provided them with income that had social security, income, or Medicare tax withheld.

This means that most company drivers will receive a W-2 Form.

If you’re an independent contractor, you’ll have to cover your end of government expenses. Therefore, you’ll receive a 1099 Form, which is used to report miscellaneous income.

If you’re an agent or commission driver, you might have the “Statutory Driver” box checked on your W-2. Statutory and self-employed drivers should also fill out Schedule C to assess business profit and loss.

The e-filing deadline for filing W2 online is January 31, 2020, but it’s important to understand what classification your employees fall into in order to prepare for various tax deadlines.

1099 Form

If you own a trucking company and hire employees to drive your trucks, you’ll need to file 941, 940, and issue W-2s.

However, if you hire drivers as independent contractors that make more than $600, you’ll need to provide them and the IRS a 1099 Misc. Form.

Independent contractors will then use the information on this 1099 Form to file their tax returns.
If you are just a truck driver driving on your own, or a leased driver, you’ll also need the 1099 Form, which is also known as the 1099 contractor form. 

As a driver, if you own or lease your truck, you could be an independent contractor. Make sure you know your employment classification upon hire.

If you’ve hired independent contractors for your company, you’ll need to complete 1099 filing for them.

Staying Tax Compliant

Keeping up with employer taxes is critical to staying compliant with the IRS and keeping your employees and contractors happy.

Understand whether you need to file W-2 or complete a 1099 filing based on the employment type of your hires.

If you’re still unsure what to file, contact the team at TaxBandits, and they’ll be happy to help.

TaxBandits is an IRS-authorized e-file provider for employer taxes. Use this service to save time on taxes and avoid IRS wait times and penalties.
No matter what forms you need to file, TaxBandits can help you file quickly. Prepare for year-end ahead of time by understanding what you need to file to stay IRS compliant.