Possibly A Dumb Question.... How Are Taxes Handled As An OTR Driver?
Topic 2751 | Page 1
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.
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
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.
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.
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.
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.
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.
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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: