A Truck Driver’s Guide to 1099…

**Being Prepared can eliminate the tax season stress.**

Oh no I got a 1099 what do I do? I didn’t save any money!

If you’re a truck driver working as an independent contractor and receiving a 1099 instead of a W-2, tax season can feel a little overwhelming. Being informed and being prepared makes a big difference. Don’t worry you’re not alone. Unlike employees, who have taxes withheld from their paychecks, independent contractors are responsible for managing their own taxes. This means staying organized, estimating and paying taxes quarterly, and making sure you’re prepared before tax deadlines.

If you’ve ever found yourself staring at a 1099 form and wondering what to do next, this guide is for you.

What Does It Mean to Be on a 1099 Instead of a W-2?

When you’re on a W-2, you’re considered an employee, and your employer takes care of withholding income taxes, Social Security, and Medicare payments from your paycheck. They also match a portion of your Social Security and Medicare taxes.

However, when you’re on a 1099, you are classified as an independent contractor. This means that NO TAXES ARE WITHHELD FROM YOUR PAY!

– You are responsible for paying both the employee portion and the employer portions of Social Security and Medicare taxes known as the “self-employment tax”.

– You are responsible for making “quarterly estimated tax payments” to the IRS for yourself.

Steps to Take Control of Your Taxes as a 1099 Truck Driver

1. Understand the Self-Employment Tax:

As a 1099 worker, you will owe the self-employment tax, which is currently 15.3% of your net earnings, which is what is left out of your check besides your deductions. The 12.4% for Social Security and 2.9% for Medicare and this is in addition to your regular income tax.

For example, if you earned $80,000 as a truck driver and had $20,000 in business-related expenses, your taxable income would be $60,000. You would still owe self-employment tax on that $60,000, plus income tax based on your tax bracket.

You could get with your professional income tax preparer and they should be able to tell you what tax bracket you are in and help you with any other questions you might have.

2. Track All Your Income and Expenses

Keeping detailed records is essential for anyone on a 1099. This will help you calculate your net income and identify deductions that can reduce your taxable income. Keep everything because you never know what you’re going to need. It would be a smart thing to get yourself some type of receipt holder like a pouch with several dividers or just a shoe box will work or whatever you can do to keep these things in order. If you don’t need them at the end then throw them away but at least you have them. Stay up to date on the tax laws and the rules if you can. You can save yourself a lot of money if you do these things.

Income:

– Save all your 1099 forms (you will receive one from each company you’ve worked with if you earned $600 or more).

– Keep a record of any additional income, even if it wasn’t reported on a 1099.(such as sales of items on social platforms or services you perform for cash money

Expenses:

As an independent contractor, you can deduct many business-related expenses. Common deductions for truck drivers include but are not limited to:

– Fuel costs

– Maintenance and repairs

– Truck lease payments

– Insurance premiums

– Lodging and meals while on the road (subject to per diem limits)

– Licensing fees

– GPS and other trucking tools

– Cell phone and internet costs (if used for work)

Make sure to keep receipts, invoices, and other documentation for all your expenses. If you plan to do your taxes yourself, do your homework so that you don’t make simple mistakes. If you are hiring a professional they will tell you what deductions you can use.

3. Estimate Your Quarterly Taxes

The IRS requires independent contractors to pay taxes quarterly. This helps them avoid penalties for underpayment at the end of the year. Quarterly taxes are due on the following dates:

– April 15 (for January–March income)

– June 15 (for April–May income)

– September 15 (for June–August income)

– January 15 of the following year (for September–December income)

Set reminders on your calendar or a sticky note on your desk. Whatever it takes to remind you so that you don’t get into trouble. I am currently going through a Tax Court case myself right now. Staying on top of these things will make sure they won’t come back to bite you in the rear later.

To estimate your quarterly taxes:

1. Calculate your expected annual income.

2. Subtract your deductible expenses to determine your taxable income.

3. Use the IRS tax brackets and self-employment tax rate to estimate how much you’ll owe for the year.

4. Divide that number by four to determine your quarterly payments.

The IRS provides Form 1040-ES to help you calculate and submit your quarterly payments.

4. Set Aside Money for Taxes

A good rule of thumb is to set aside 25-30% of your gross income, which is the amount you made before anyone took out anything, to cover federal and state taxes. You could open a separate savings account for your tax payments so you’re not caught off guard when quarterly deadlines roll around.

5. Take Advantage of Deductions and Credits:

Deductions can significantly lower your taxable income. In addition to the expenses mentioned earlier, don’t forget about:

– Depreciation: If you own your truck, you can deduct its depreciation over time.

– Health Insurance Premiums: If you pay for your own health insurance as an independent contractor, you may be able to deduct these costs.

– Retirement Contributions: Contributions to a SEP IRA, SIMPLE IRA, or solo 401(k) can reduce your taxable income.

6. Use Tax Software or Hire a Professional:

Even with the best intentions, taxes can get complicated. Consider using tax software designed for self-employed individuals, like TurboTax Self-Employed or QuickBooks. These tools can help you track deductions, calculate quarterly payments, and file your taxes.

Alternatively, hiring a tax professional who specializes in trucking or self-employment taxes can save you time and ensure you’re maximizing your deductions.

7. Don’t Forget State Taxes:

In addition to federal taxes, you may owe state income taxes. Some states also have specific rules for independent contractors, so be sure to research the requirements in your state.

What Happens If You Don’t Pay Quarterly Taxes?:

Failing to pay quarterly taxes can result in penalties and interest from the IRS. These penalties can add up quickly, so it’s essential to stay on top of deadlines. If you’ve already missed a payment, make it as soon as possible to minimize penalties.

Final Thoughts:

Handling taxes as a 1099 truck driver may seem daunting at first, but with pre-planning and organization, it is manageable. By tracking your income and expenses, setting aside money for taxes, and making quarterly payments, you can avoid surprises during tax season.

If you’re feeling unsure or overwhelmed, don’t hesitate to reach out to a tax professional. They can help you navigate the process and ensure you’re staying compliant with IRS regulations.

Remember, tax season is just around the corner—so take the time now to get your finances in order. Your future self will thank you!

I hope all my readers are enjoying the content I write for these blogs and posts on my site. If there is a topic you would like me to research, just shoot me an email because I don’t really have my website ready to leave comments or ask questions yet! I will get there. It is just me managing this site so bear with me and stay tuned for more helpful tips and current events.

Good Day,

April

realtruckersolutions@gmail.com

December 26, 2024 0

LAST MINUTE CHRISTMAS CHECKLIST

Are you one of those people who gets frazzled at the end of your “Christmas to do list”, and can’t get it wrapped up?

Well I’m here to help! I have created a checklist to be sure you get all your gifts and no one is left out, and all your other Christmas errands and chores get done before Christmas Eve.

1.Gifts:

[ ] Finalize your gift list.

[ ] Purchase any remaining gifts.

[ ] Wrap gifts also check supplies,

Tape, bows

Wrapping paper

HAPPY SATURDAY!

I just wanted to pop in and say I hope everyone is enjoying this Christmas holiday season. This year has flown by. A lot of action packed days this year. I’ll have to admit the first couple of months of 2024 were scary for me. I had to scrounge for money due to the bad weather in December and January. It determines my work. This December however, is looking good. I have had steady work all year. I’m on my way home to bake cookies and make fudge and some buckeyes, my brother’s favorite. I’m still undecided about what to take to the Christmas cook out at work. I’m thinking dessert but I want to impress everyone with the best! Anyway I have lots of fun and Interesting articles I’ve been working on all week. I hope to publish all 4 tonight! Happy holidays everyone.

From APRIL

December 14, 2024 0

Hustle Harder, Hustle Smarter

December 8, 2024 0

I could do less complaining!

What could you do less of?

I have found that lately I complain more than I am grateful or thankful. I didn’t realize this until me and my bestie got together and all I did was gab on and on about this situation and that situation and I don’t like this and I don’t like that. I have so much to be thankful and grateful for so I made a conscious effort not to complain about traffic, having to got to work early, getting off late, working on Saturdays, its cold out, its raining out, my darn old car, my little paycheck, my messy house, my big fat body! You get the idea, I changed it up, Thank God I am getting to work all week and on Saturdays. That means it was better than last winter already because we are half way through winter and we are still plugging away! I am thankful that my older car is still getting me to and fro and back home again. I am thankful that I got to drive my truck to North Carolina and help those people up there. You go up there complaining to yourself about stuff that don’t really matter and look around at what they could be complaining about but they aren’t, they are just working and working to get back that little bit of normalcy they once had before the hurricane. My life is grand and the things I have to be thankful for far outweigh the things I complain about! BE THANKFUL AND GRATEFUL FOR RIGHT NOW. Everyone have a great week out there on the road or wherever you are this week.

By April

December 8, 2024 0

Read carefully and take notes if you need to. This article will guide you in the right direction.

Obtaining a Commercial Driver’s License (CDL) is a required step for anyone looking to pursue a career being a truck driver. This guide will take you step by step through the process of getting your CDL, from understanding the requirements to passing the necessary tests.

Understanding CDL Classifications

Commercial Driver’s Licenses are divided into three main classes:

Class A CDL

Allows operation of combination vehicles
Gross Combined Weight Rating (GCWR) over 26,000 pounds
Typical vehicles: Tractor-trailers, truck and trailer combinations

Class B CDL

Allows operation of single or combination vehicles
Gross Vehicle Weight Rating (GVWR) over 26,000 pounds
Typical vehicles: Straight trucks, large buses, segmented buses

Class C CDL

Used for smaller commercial vehicles
Designed for vehicles transporting hazardous materials
Typical vehicles: Passenger vans, small buses, vehicles with hazmat placards

Minimum Requirements

Before applying for a CDL, you must:

Be at least 18 years old (21 for interstate ((out of state)) driving)
Hold a valid standard driver’s license
Be able to read and speak English sufficiently to communicate with law enforcement
Pass a Department of Transportation (DOT) physical examination
Pass a drug screening

Step-by-Step CDL Acquisition Process

Your Pre-Trip Inspection is key in passing your CDL tests.

1. Go pick up a CDL Manual from DMV (there is a link at the bottom of this article where you can download the manual without having to go into the office)

Hazardous Materials (HAZMAT)
Passenger Transport
Tank Vehicles
Double/Triple Trailers
School Bus

Federal Motor Carrier Safety Administration (FMCSA) Website
State DMV Websites
- Professional Truck Driver Associations

Get the official CDL manual from your state’s Department of Motor Vehicles (DMV)
Study the manual thoroughly, covering:
Traffic laws
Safe driving techniques
Vehicle inspection procedures (Pre-Trip)
Cargo handling
Special endorsements (such as Tanker endorsement, passenger endorsement, for driving a bus, doubles, triples and hazardous materials)

2. Prepare for Written Knowledge Tests (STUDY, MEMORIZE)

Key areas of study include: General knowledge, coupling, and air brakes. The test is broken down into three very important parts. Memorize, take practice tests online.

Basic control skills
Vehicle inspection(PRE TRIP INSPECTION)**
Safe driving practices
Transportation regulations
Cargo handling and securing
Specialized endorsements (if applicable)

3. Obtain a Commercial Learner’s Permit (CLP)

Pass the written knowledge tests
Pay required fees
Hold the CLP for a minimum period (typically 14 days) before skills test
Must be accompanied by a licensed CDL holder during practice driving

4. Additional Endorsements

Depending on your career goals, consider these specialized endorsements:

5. Skills Test Preparation

Practice driving with a licensed CDL holder
Take professional driving lessons or attend a truck driving school (Required in Georgia) you can no longer just study yourself and go take the test, you must attend a school.
Know the vehicle inspection procedures (learn the jargon)
Practice backing up, turning, and maneuvering large vehicles

6. Pass the CDL Skills Test

The test typically includes three components:

Vehicle Inspection Test (Pre-Trip)
Basic Control Skills Test
Road Test

7. Final Steps

Pay all required fees
Submit necessary documentation
Receive your CDL
Maintain a clean driving record

Estimated Costs

CDL Training Program: $3,000 – $10,000
Written Test Fee: $10 – $50
Skills Test Fee: $50 – $200
License Issuance Fee: $20 – $100

Tips for Success

Start preparing early(read and memorize the DMV book) Only the sections you need.
Consider professional truck driving schools (Grants may be available)
Practice consistently
Stay physically and mentally prepared
Maintain a clean driving record

The real truth:

Obtaining a CDL requires dedication, preparation, and commitment. By following these steps and investing time in study and practice, you can successfully launch a rewarding career as a truck driver.

My thoughts and input:

I got my CDL at the age of 50. I went to my local department of Labor and I was a displaced worker because of covid. I was then eligible for a grant to go to school and there were many options you could pick. My husband and I had been over the road truckers, I didn’t drive though, for almost 11 years before he passed away. I had gotten my learner’s permit literally six times counting renewing it. I still did not know how to drive the truck really. I could drive an automatic down the road with my learner’s permit when he was tired but that’s not how you’re supposed to do it. Because of my husband’s heavy workload, he was unable to teach me how to drive. When I got the grant it took a year with all the hoops you have to jump through and hurdles to actually start school. Finally it all came together. I’ll give you a piece of advice that helped me the most is studying the book and taking practice tests online. Be sure that you’re taking practice tests on the official department of motor vehicles website because the others could give you wrong information. I have included a link to get the latest information from the DDS official study guide. It is downloadable and printable. Mind you I am not an expert or an official on any of this information, I was just sharing my experiences and that’s all I can go by. I’m sure there are other websites that you can go to and find more information, don’t stop here. There are so many resources out there and avenues you can take other than this probably but this is a good starting point.

https://online.flipbuilder.com/hatf/ckfg/

December 7, 2024 0

Women in Dump Trucking: Breaking Barriers and Shaping the Industry

Women truck drivers are a growing trend that is here to stay.

The trucking industry has long been perceived as a male-dominated field, with women historically underrepresented in various roles. However, the landscape is changing, and women are making significant inroads into all aspects of trucking, including the specialized sector of dump trucking. This article explores the journey of women in dump trucking, the challenges they face, and the impact they are having on the industry.

The Rise of Women in Dump Trucking

In recent years, there has been a noticeable increase in the number of women entering the dump trucking sector. This shift is not just a trend; it represents a broader movement towards gender equality in a traditionally male-dominated industry. Women are stepping up to take on challenging roles that were once thought to be reserved for men, proving that they possess the skills, determination, and resilience needed to excel in this demanding field.

The reasons behind this rise are multifaceted. Many women are drawn to dump trucking for its competitive pay, the opportunity for independence, and the chance to work in a dynamic environment. As construction and infrastructure projects continue to grow, the demand for dump truck drivers is increasing, providing ample opportunities for women to establish successful careers. Organizations and initiatives aimed at promoting women in trucking are also gaining momentum, offering support, training, and resources tailored to female drivers.

Challenges Faced by Women in Dump Trucking

Despite the progress being made, women in dump trucking still encounter numerous challenges. One of the most significant hurdles is overcoming stereotypes and biases that persist within the industry. Many female drivers face skepticism about their abilities, with some colleagues doubting their competence simply because of their gender. This can create an unwelcoming atmosphere, making it essential for women to demonstrate their skills and build credibility on the job.

Another challenge is the lack of representation and support networks. While the number of women in dump trucking is increasing, they often find themselves isolated in male-dominated environments. The absence of female role models can make it more difficult for new female drivers to navigate their careers and feel empowered. However, as more women enter the industry, they are beginning to form networks and mentorship programs to support each other, fostering a sense of community and shared experience.

Impact on the Industry

The presence of women in dump trucking is not only beneficial for the individuals involved but also has a positive impact on the industry as a whole. The diversification of the workforce brings fresh perspectives, ideas, and approaches to problem-solving. Women often bring unique strengths to the table, such as strong communication skills and a collaborative mindset, which can enhance teamwork and efficiency on job sites.

Moreover, increasing female representation in trucking can help address the ongoing labor shortage in the industry. With an estimated shortage of over 160,000 truck drivers in the U.S. alone, attracting women to the field is essential for ensuring a sustainable workforce. By breaking down barriers and encouraging more women to pursue careers in dump trucking, the industry can tap into a vast pool of talent that has previously been underutilized.

Celebrating Achievements and Role Models

As women continue to make strides in dump trucking, it’s crucial to highlight their achievements and role models who inspire others to follow suit. Successful female dump truck drivers are sharing their stories, showcasing their experiences, and proving that women can thrive in this demanding environment. These role models serve as beacons of hope for aspiring female drivers, encouraging them to pursue their dreams and challenge the status quo.

Organizations such as the Women In Trucking Association (WIT) are dedicated to promoting gender diversity in the industry. They provide resources, training, and networking opportunities, helping women navigate their careers and connect with mentors. By celebrating the accomplishments of women in dump trucking and providing platforms for their voices to be heard, the industry can foster a more inclusive environment.

Conclusion: A Promising Future for Women in Dump Trucking

The journey of women in dump trucking is a testament to resilience, determination, and the pursuit of equality in the workplace. As more women break down barriers and carve out successful careers in this field, they are reshaping the perception of what it means to be a truck driver. By addressing the challenges they face and celebrating their achievements, the industry can continue to evolve and become more inclusive.

As we look to the future, it is clear that the presence of women in dump trucking is not just a fleeting trend—it is a fundamental shift that is here to stay. By supporting and empowering female drivers, the trucking industry can harness the full potential of its workforce, paving the way for a brighter, more diverse, and innovative future in transportation.

In closing, I wanted to tell my readers that I was 50 years old when I finally got my CDL. It wasn’t easy either. I got a grant through the department of labor in my town. I had to really brush up on all my academics and I had been out of school for over thirty years. I was so disappointed time after time that I broke down in tears and told my advisor I must not be meant to drive a truck. Just hang in there and don’t be discouraged, I did it and so can you!

December 2, 2024 0

Driving Into the Future: The Latest Truck Tech Innovation

Self driving 18-Wheelers

Beyond fleet management software, another critical innovation that holds tremendous promise for smaller trucking outfits is the rapidly evolving autonomous driving technology. While the idea of self-driving big trucks may sound like science fiction, the reality is that these advanced systems are becoming increasingly sophisticated and cost-effective.

The most immediate applications of autonomous features for owner-operators and small fleets center around safety and driver assistance. Technologies like lane-keeping assist, automatic emergency braking, and adaptive cruise control can help mitigate the risks of driver fatigue, distraction, and human error – which are leading causes of accidents in the trucking world.

Not only do these features enhance safety for your team and the motoring public, but they can also translate to significant cost savings. By reducing the number of collisions and minimizing wear-and-tear on your vehicles, autonomous driving tech can drive down your insurance premiums and maintenance expenses over time.

Furthermore, as the technology continues to advance, we’re likely to see even more autonomous capabilities make their way into commercial trucks – from self-parking and automated backing maneuvers to full self-driving functionality on highways. While widespread adoption of driverless trucks may still be years away, savvy owner-operators would be wise to start familiarizing themselves with these innovations and evaluating how they can be integrated into their operations.

Take the case of Sarah, an owner-operator who hauls bulk commodities across the Southwest. After equipping her fleet with the latest autonomous safety features, she saw a 35% reduction in accident-related costs over the course of a single year. The peace of mind and productivity gains have been invaluable, allowing Sarah to redirect her focus to growing her business rather than dealing with the fallout from collisions.

As autonomous technology matures and becomes more accessible, stories like Sarah’s will become increasingly common in the owner-operator and small fleet space. By embracing these cutting-edge innovations, you’ll not only enhance the safety of your operations, but also position your business for long-term success in an industry that is rapidly evolving.

The Future of Transportation: Self-Driving 18-Wheelers

As we stand on the precipice of a technological revolution, self-driving 18-wheelers are emerging as a transformative force within the logistics and transportation industry. The concept of autonomous trucks is no longer confined to the realm of science fiction; it is a reality that is gradually taking shape on our highways. This article delves into the multifaceted implications of self-driving trucks, examining their potential to reshape the landscape of freight transport, improve safety, and address the growing labor shortages in the trucking industry.

The Technological Leap: How Self-Driving Trucks Work

At the core of self-driving 18-wheelers lies a sophisticated array of technologies that enable them to navigate complex environments with minimal human intervention. These vehicles are equipped with an intricate network of sensors, cameras, radar, and artificial intelligence (AI) algorithms that work in harmony to perceive their surroundings. For instance, LiDAR technology allows these trucks to create detailed three-dimensional maps of their environment, identifying obstacles, road signs, and lane markings with remarkable precision. The data collected is then processed in real time, empowering the vehicle to make split-second decisions that enhance safety and efficiency.

The advancements in machine learning and AI are particularly noteworthy. These systems learn from vast amounts of data, continuously improving their performance based on real-world experiences. This capability not only increases the reliability of autonomous trucks but also sets the stage for a future where they can adapt to various driving conditions and scenarios. Companies like Waymo, Tesla, and Aurora are at the forefront of this technological evolution, investing heavily in research and development to refine their self-driving technologies.

Safety First: Reducing Accidents on the Road

One of the most compelling arguments for the adoption of self-driving 18-wheelers is their potential to significantly reduce road accidents. According to the National Highway Traffic Safety Administration (NHTSA), human error is responsible for approximately 94% of all traffic accidents. Autonomous trucks, with their advanced sensor systems and AI-driven decision-making capabilities, are designed to minimize these errors. They can maintain consistent speeds, adhere to traffic laws, and react to hazards more swiftly than human drivers.

Moreover, the implementation of self-driving trucks could lead to safer roadways not only for truck drivers but also for other motorists. Imagine a future where 18-wheelers communicate with each other and surrounding vehicles through vehicle-to-vehicle (V2V) communication systems. This interconnectedness could provide real-time updates on traffic conditions, potential hazards, and optimal routes, fostering a safer and more efficient driving environment.

Addressing Labor Shortages: A Double-Edged Sword

The trucking industry is currently grappling with a significant labor shortage, with estimates suggesting that the U.S. could face a shortage of over 160,000 truck drivers by 2028. This crisis is compounded by the aging workforce, where many drivers are nearing retirement age without enough new entrants to replace them. Self-driving 18-wheelers present a potential solution to this challenge. By automating long-haul routes, companies can alleviate some of the pressure caused by the shortage of qualified drivers.

However, the rise of autonomous trucks also raises important questions about the future of employment within the industry. While self-driving technology is poised to enhance productivity and efficiency, it also has the potential to displace a significant number of truck drivers. According to a report by the American Trucking Associations, nearly 3.5 million Americans work as truck drivers. As the industry transitions to a more automated model, it is crucial to consider how to retrain and support displaced workers. The focus should not merely be on eliminating jobs but rather on creating new opportunities in tech-driven roles, maintenance, and oversight of autonomous fleets.

The Road Ahead: Regulatory Challenges and Public Acceptance

As self-driving 18-wheelers become more prevalent, they will inevitably face a host of regulatory challenges. Government agencies will need to establish comprehensive safety standards and guidelines to govern the operation of autonomous vehicles on public roads. This includes addressing questions about liability in the event of accidents, insurance requirements, and data privacy concerns related to the extensive data collected by these vehicles.

Public acceptance is another critical factor for the widespread adoption of self-driving trucks. Many people harbor doubts about the safety and reliability of autonomous technology. To build trust, companies must engage in transparent communication, providing data and evidence to demonstrate the effectiveness of their systems. Moreover, pilot programs showcasing the successful operation of self-driving trucks in real-world conditions can help alleviate public concerns and pave the way for broader acceptance.

Conclusion: Embracing the Future of Freight Transportation

In conclusion, self-driving 18-wheelers represent a significant leap forward in the evolution of the transportation industry. Their potential to enhance safety, alleviate labor shortages, and improve efficiency is undeniable. However, as we navigate this technological landscape, it is essential to address the accompanying challenges and ensure that the transition to autonomous trucking benefits all stakeholders involved. By embracing innovation while remaining mindful of the human element, we can pave the way for a future where technology and humanity work in tandem to create safer, more efficient roads for everyone.

December 2, 2024 0

What podcasts are you listening to?

I’m not really big on podcasts. I like bunny XO. And I like Joe Rogan and this past weekend with Theo Vaughn.

December 2, 2024 0

Don’t step on my shoes!

My pet peaves

I always wore white tennis shoes when I was a kid and I always hated to ride the bus on rainy days because people would always, without fail, step all over your shoes.

Don’t get toast crumbs in my butter! Or jelly lol.

Snoring! Period. I hate snoring. It drives me insane. Or tapping, clicking your nails. Those things get me frazzled!

December 2, 2024 0