Tax filing can be a lot of work and for truckers who are on the move all the time, managing their finances adds up to the already busy schedule. But with the right planning and timing, both owner-operators and trucking companies can manage to cut their expenses as well as their time. This article will provide valuable tips on how to ease the anxiety of tax filing and reduce the amount of money you will have to lose.

Keep Detailed Receipts and Maintain Order

The most common problem faced by truckers is sifting through piles of receipts accumulated over the year. These receipts include fuel receipts, meal receipts, and maintenance expenses; all of which are important kinks that need to be worked on. Buy a mobile application or use an online service to take pictures of, and distribute your receipts. This not only helps in avoiding loss of documents, but it also makes the work less time-consuming during the tax period. Poor record keeping also ensures that important expenditure deductions needed to reduce taxable income are not undertaken.

Know the deductible expenses

Some truckers have a number of deductibles which were available to them, but a fair number of them do not take advantage of them because they do not know about them. Some common expenses available for deduction include, fuel, maintenance, truck insurance, meals, accommodation rentals, and even toll expenses.

If you are self-employed as an owner-operator, you can also deduct costs related to leases, depreciation, and training expenses. However, it is advisable to keep an expense record to help you remember potential cost savings. A tax expert with experience in the trucking business can recommend some deductions pertinent to your specific industry.

File Form 2290 Early

Another important aspect about filing taxes is Form 2290 which all truckers using heavy vehicles weighing over 55000 pounds have to fill in for the heavy vehicle use tax. It is advisable to complete this form early on to avoid impending penalties and keep your heavy vehicle legal. Considering there are Ev-forms (electronic versions of tax forms), Many truckers do E-filing Form 2290, this has a lot of benefits since it saves time, provides an instant confirmation from the IRS, and involves less paperwork. Always take note of the deadline such as August 31 so that unnecessary penalties don’t happen. On the other hand, if you still have doubts about this particular process many trucking tax sites serve the purpose of step by step specifics.

Consider Quarterly Tax Payments

For owner-operators to keep up with high tax rates and avoid a steep health penalty and more serious IRS sanctions, allowing them to make voluntary estimated payments is the best option. Avoiding these penalties is even easier as simply making estimated tax payments every quarter does the job because it prevents even quarterly debts being so large it becomes a financial burden due to their voluntary estimated payments. Just in case some things are not quite clear, using apps or any helpful programs will help to properly estimate their taxes and make reminders. Earning a consistent tax payment record allows one’s strong position to stay in the IRS which practically makes every tax season much smoother than ever imagined.

Leverage Professional Help

Understandably, because some truck drivers are fans of the do it yourself approach for taxes, in particular, filling tax forms, there is a strong chance hiring a tax professional to deal with taxes can be a smooth payoff.

Professional accountants who have operational awareness of the trucking industry comprehend the particular aspects of filing for denial and the corresponding instances that allow the deceitful tax. In determining the aggressive tax strategies that bear a risk of adverse IRS reaction, such dependency can assist in regulatory matters like substantive compliance with IRS timelines and reporting complex obligations also. Opting for these services helps in making sure that time spent on driving and the expansion of the business is maximized and operating in a more financially favorable level.

Following the suggestions above, truck drivers are able to take some of the hassle out of tax returns, alleviate tension and save some extra dollars. By being organized, counting what is tax-deductible, utilizing the appropriate items or the right people and the correct taxation authorities, it is not possible to view tax periods as harassments but rather as moments of economic enhancement for the firm.

Note: For more information, visit IRS website