Occupational Insurance
- Thread starter pelicn
- Start date
Streakn1
Veteran Expediter
Yes ,occupational insurance is a deductable tax item if you are paying it. It does not matter if you pay the insurance carrier directly or through the fleet owner as you do. It is classified as Insurance (other than health) On form 1040 schedule C.
If you are so lucky to be audited by the IRS you WILL need proof that you paid this deduction to your fleet owner. A signed and dated financial statement from the fleet owner to you itemizing this amount being deducted from your gross earnings usually works. Be careful though, if the amount on your form 1099 is your income after the Occu-health Ins has been deduted you can't use the amount on the 1099 and then deduct the insurance to. That would be double dipping in the IRS's eyes!
We have used The Alliance (now american Truck Business Service) for years as our tax preparers and thats how they advised me on this subject when we were still in our Lease/Purchase agreement.
If you are so lucky to be audited by the IRS you WILL need proof that you paid this deduction to your fleet owner. A signed and dated financial statement from the fleet owner to you itemizing this amount being deducted from your gross earnings usually works. Be careful though, if the amount on your form 1099 is your income after the Occu-health Ins has been deduted you can't use the amount on the 1099 and then deduct the insurance to. That would be double dipping in the IRS's eyes!
We have used The Alliance (now american Truck Business Service) for years as our tax preparers and thats how they advised me on this subject when we were still in our Lease/Purchase agreement.
"Occupational Insurance"
Jan-20-07, 05:18 PM (EST)
We drive for an owner and will be paid on a 1099. We have occupational accident coverage deducted from our weekly settlement. Is this deductible on our taxes at the end of the year? Thanks
Steve and Judy
Panther Elite Services #5683
Morning, Steve and Judy,
We appreciate the inquiry and the answer is "YES" to your question about Occupational Insurance. iT IS A DEDUCTIBLE ITEM that you can deduct.
Make sure that you keep all of your settlement sheets showing that deduction and the others that the Owner is taking, I do not know if there is anything else on the settlement sheet that he could possibly take except for Trip Pack for sending in your B/L's and Pro Sheets. or even for the QualComm. Some owner do charge for it.
You as the Taxpayer must keep all of your reicepts for a minimun period of 3 years. The reason for this is that the IRS has 3 years from the date of April 15, of the year you filed your return to audit you. And you are the ones that have to prove to them that the deduction is substanciated.
I cannot attach anything to this e-mail or answer, but if you would like a complete deductible listing that you can look over please e-mail me Direct at [[email protected]], One you recieve it, you might be surprised at what else can be deducted as an expense.
So, if you have any other questions "Please do not Hesitate to ask." I am here for all drivers. I normally pick up my messages on Monday, Wednesday and Friday Morning, and try to answer them within 24 to 36 hours.
Franklin Katz, ATP
Frank's Tax & Business Service
226 S. Cherokee St.
Kings Mountain, NC 28086
(704) 739-4039
Jan-20-07, 05:18 PM (EST)
We drive for an owner and will be paid on a 1099. We have occupational accident coverage deducted from our weekly settlement. Is this deductible on our taxes at the end of the year? Thanks
Steve and Judy
Panther Elite Services #5683
Morning, Steve and Judy,
We appreciate the inquiry and the answer is "YES" to your question about Occupational Insurance. iT IS A DEDUCTIBLE ITEM that you can deduct.
Make sure that you keep all of your settlement sheets showing that deduction and the others that the Owner is taking, I do not know if there is anything else on the settlement sheet that he could possibly take except for Trip Pack for sending in your B/L's and Pro Sheets. or even for the QualComm. Some owner do charge for it.
You as the Taxpayer must keep all of your reicepts for a minimun period of 3 years. The reason for this is that the IRS has 3 years from the date of April 15, of the year you filed your return to audit you. And you are the ones that have to prove to them that the deduction is substanciated.
I cannot attach anything to this e-mail or answer, but if you would like a complete deductible listing that you can look over please e-mail me Direct at [[email protected]], One you recieve it, you might be surprised at what else can be deducted as an expense.
So, if you have any other questions "Please do not Hesitate to ask." I am here for all drivers. I normally pick up my messages on Monday, Wednesday and Friday Morning, and try to answer them within 24 to 36 hours.
Franklin Katz, ATP
Frank's Tax & Business Service
226 S. Cherokee St.
Kings Mountain, NC 28086
(704) 739-4039