Possibly A Dumb Question.... How Are Taxes Handled As An OTR Driver?

Topic 2751 | Page 1

Page 1 of 1
Gary C.'s Comment
member avatar

Lets say I live in a no-income-tax state such as Nevada, as I plan to move back there after getting my CDL. Do I just file as a Nevada resident? Am I taxed by each state I drive through? Do I pay in the state the company is headquartered in? I just thought about this a few minutes ago, and my brief internet searching has left me more confused than anything.

CDL:

Commercial Driver's License (CDL)

A CDL is required to drive any of the following vehicles:

  • Any combination of vehicles with a gross combined weight rating (GCWR) of 26,001 or more pounds, providing the gross vehicle weight rating (GVWR) of the vehicle being towed is in excess of 10,000 pounds.
  • Any single vehicle with a GVWR of 26,001 or more pounds, or any such vehicle towing another not in excess of 10,000 pounds.
  • Any vehicle, regardless of size, designed to transport 16 or more persons, including the driver.
  • Any vehicle required by federal regulations to be placarded while transporting hazardous materials.
guyjax(Guy Hodges)'s Comment
member avatar

Lets say I live in a no-income-tax state such as Nevada, as I plan to move back there after getting my CDL. Do I just file as a Nevada resident? Am I taxed by each state I drive through? Do I pay in the state the company is headquartered in? I just thought about this a few minutes ago, and my brief internet searching has left me more confused than anything.

You are taxed based on your home state for state and federal. I mentioned federal tax cause your tax bracket depending on the tax laws of the state and any agreements your state and the government has in place could effect you differently.

CDL:

Commercial Driver's License (CDL)

A CDL is required to drive any of the following vehicles:

  • Any combination of vehicles with a gross combined weight rating (GCWR) of 26,001 or more pounds, providing the gross vehicle weight rating (GVWR) of the vehicle being towed is in excess of 10,000 pounds.
  • Any single vehicle with a GVWR of 26,001 or more pounds, or any such vehicle towing another not in excess of 10,000 pounds.
  • Any vehicle, regardless of size, designed to transport 16 or more persons, including the driver.
  • Any vehicle required by federal regulations to be placarded while transporting hazardous materials.
Thomas M.'s Comment
member avatar

Gary,

We have a specific trucking accountant doing our taxes right now. I agree though it is by your state and the IRS. It is really not much different at the basics but you have all the write off's and per diem that gets confusing. For a couple hundred bucks it is well worth it to have a professional do it.

Per Diem:

Getting paid per diem means getting a portion of your salary paid to you without taxes taken out. It's technically classified as a meal and expense reimbursement.

Truck drivers and others who travel for a living get large tax deductions for meal expenses. The Government set up per diem pay as a way to reimburse some of the taxes you pay with each paycheck instead of making you wait until tax filing season.

Getting per diem pay means a driver will get a larger paycheck each week but a smaller tax return at tax time.

We have a ton of information on our wiki page on per diem pay

Brett Aquila's Comment
member avatar
For a couple hundred bucks it is well worth it to have a professional do it.

I would say the first time at least - definitely. IF they know the laws for truckers which many tax people do not. It's not that they're complex or anything, it's just that they're specific to people who travel for a living.

But doing your taxes yourself with something like Turbotax is no problem for truckers once you know how to handle the write-offs.

Gary C.'s Comment
member avatar

Thanks again for all the replies! Starting school March 3rd, kind of want to have an idea going in at things I may be looking at.

Tracey K.'s Comment
member avatar

Pay the upfront money to a local tax guy. Let him explain the in's and out's. Being a "sole proprietor" will be your best bet. You can write off a great deal. But. get a good understanding of what is taking place. Sitting down face to face with someone is always the best bet. Most people get a better understanding.

Truckers loose more money that they think each year because of the taxes they pay. Get the education you need. Now. Before you start making money.

OOS:

When a violation by either a driver or company is confirmed, an out-of-service order removes either the driver or the vehicle from the roadway until the violation is corrected.

Steven N. (aka Wilson)'s Comment
member avatar

Truckers loose more money that they think each year because of the taxes they pay. Get the education you need. Now. Before you start making money.

That will be the trick. Finding out ahead of time what information you have to gather, what receipts to save, etc so that you will not learn at the end of the year the things you *should have* done. Probably a learning curve here.

OOS:

When a violation by either a driver or company is confirmed, an out-of-service order removes either the driver or the vehicle from the roadway until the violation is corrected.

Pat M.'s Comment
member avatar

That will be the trick. Finding out ahead of time what information you have to gather, what receipts to save, etc so that you will not learn at the end of the year the things you *should have* done. Probably a learning curve here.

That's easy, save them all if there is a question.

Page 1 of 1

New Reply:

New! Check out our help videos for a better understanding of our forum features

Bold
Italic
Underline
Quote
Photo
Link
Smiley
Links On TruckingTruth


example: TruckingTruth Homepage



example: https://www.truckingtruth.com
Submit
Cancel
Upload New Photo
Please enter a caption of one sentence or less:

Click on any of the buttons below to insert a link to that section of TruckingTruth:

Getting Started In Trucking High Road Training Program Company-Sponsored Training Programs Apply For Company-Sponsored Training Truck Driver's Career Guide Choosing A School Choosing A Company Truck Driving Schools Truck Driving Jobs Apply For Truck Driving Jobs DOT Physical Drug Testing Items To Pack Pre-Hire Letters CDL Practice Tests Trucking Company Reviews Brett's Book Leasing A Truck Pre-Trip Inspection Learn The Logbook Rules Sleep Apnea
Done
Done

0 characters so far - 5,500 maximum allowed.
Submit Preview

Preview:

Submit
Cancel

This topic has the following tags:

Truck Driver Salary
Click on any of the buttons above to view topics with that tag, or you can view a list of all forum tags here.

Join Us!

We have an awesome set of tools that will help you understand the trucking industry and prepare for a great start to your trucking career. Not only that, but everything we offer here at TruckingTruth is 100% free - no strings attached! Sign up now and get instant access to our member's section:
High Road Training Program Logo
  • The High Road Training Program
  • The High Road Article Series
  • The Friendliest Trucker's Forum Ever!
  • Email Updates When New Articles Are Posted

Apply For Paid CDL Training Through TruckingTruth

Did you know you can fill out one quick form here on TruckingTruth and apply to several companies at once for paid CDL training? Seriously! The application only takes one minute. You will speak with recruiters today. There is no obligation whatsoever. Learn more and apply here:

Apply For Paid CDL Training

About Us

TruckingTruth was founded by Brett Aquila (that's me!), a 15 year truck driving veteran, in January 2007. After 15 years on the road I wanted to help people understand the trucking industry and everything that came with the career and lifestyle of an over the road trucker. We'll help you make the right choices and prepare for a great start to your trucking career.

Read More

Becoming A Truck Driver

Becoming A Truck Driver is a dream we've all pondered at some point in our lives. We've all wondered if the adventure and challenges of life on the open road would suit us better than the ordinary day to day lives we've always known. At TruckingTruth we'll help you decide if trucking is right for you and help you get your career off to a great start.

Learn More