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Taxes: Quarterly or Annually?

Videodrome

Videodrome

Seasoned Expediter
The first time I tried expediting with Tri-State, I wasn't totally sure what I was doing. I basically just saved a ton of receipts and sat down with a Tax Preparer to sort it all out.

I'm talking with a Fleet Owner who runs with Panther and they said their drivers just receive their taxes Annually. This seems okay, but I've heard other people argue that you're supposed to send in taxes quarterly.
 
fastman_1

fastman_1

Veteran Expediter
Owner/Operator
Videodrome said:
Okay, it seems like that would be fine. I've just heard people argue adamantly that it should be done quarterly like a business or something.
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Depends on if your business or or just an I/C, I guess. But 38 years and never a problem
 
Turtle

Turtle

Administrator
Staff member
Retired Expediter
Ragman said:
Considering the fact that you are running a business, you should file quarterly like a business or something.
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The rule for taxes is, you must pay as you go. That means weekly (if you're employed and your employer takes withholding from your pay), or quarterly (if self-employed) If you owe taxes at the end of the year and didn't pay your quarterly estimated tax, you'll have to pay penalties and interest. Paying your quarterly taxes late, even one day late, will result in penalties and interest.

One thing, though, if at the end of the year you know you will have to pay less than $1000 in taxes for the year, you don't have to file quarterly estimated taxes. That $1000 includes Social Security and Medicare taxes, though, so yeah.
 
fastman_1

fastman_1

Veteran Expediter
Owner/Operator
Turtle said:
The rule for taxes is, you must pay as you go. That means weekly (if you're employed and your employer takes withholding from your pay), or quarterly (if self-employed) If you owe taxes at the end of the year and didn't pay your quarterly estimated tax, you'll have to pay penalties and interest. Paying your quarterly taxes late, even one day late, will result in penalties and interest.

One thing, though, if at the end of the year you know you will have to pay less than $1000 in taxes for the year, you don't have to file quarterly estimated taxes. That $1000 includes Social Security and Medicare taxes, though, so yeah.
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What?? You mean we are supposed to make a profit?
 
RoadTime

RoadTime

Veteran Expediter
Owner/Operator
Turtle said:
One thing, though, if at the end of the year you know you will have to pay less than $1000 in taxes for the year, you don't have to file quarterly estimated taxes. That $1000 includes Social Security and Medicare taxes, though, so yeah.
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That is the most important part. My first year with a fleet owner I did exceed this and was penalized. But as an O/O never have came close, so have not paid quarterly in 4 years and been fine. Depends on your situation, expenses, credits, etc. I would be cautious while driving for a fleet owner as you don't have as many deductions, but at todays rates they will probably ask you to apply for assistance programs :rolleyes:

You could pay quarterly for the first year just to be safe and see how close you are, or if you would have been penalized. One thing is for sure, the IRS don't play around. If unsure, I'd rather be safe then sorry. Worse case, you get a refund.
 
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Videodrome

Videodrome

Seasoned Expediter
RoadTime said:
That is the most important part. My first year with a fleet owner I did exceed this and was penalized. But as an O/O never have came close, so have not paid quarterly in 4 years and been fine. Depends on your situation, expenses, credits, etc. I would be cautious while driving for a fleet owner as you don't have as many deductions, but at todays rates they will probably ask you to apply for assistance programs :rolleyes:

You could pay quarterly for the first year just to be safe and see how close you are, or if you would have been penalized. One thing is for sure, the IRS don't play around. If unsure, I'd rather be safe then sorry. Worse case, you get a refund.
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Okay, I'm going to run this by an accountant.
 
OntarioVanMan

OntarioVanMan

Retired Expediter
Owner/Operator
I never paid taxes quarterly until 2 years ago when congress changed the tax code.....
Reason: Never made a profit...My GAI was always at poverty level....

for 6 yrs prior I paid yearly...
apparently SS tax is not the same as paying income tax...
 
Mailer

Mailer

Veteran Expediter
Owner/Operator
Hi there Millennials:)

If you are in the 18-34 age bracket. You might want to consider making some profits in this business and pay your taxes and the social security. It will be part of your retirement checks when you retired. The social security should still be there, I think. Lol...

Really, this is so important that you got to have the retirement planning initiated as early as you can. Do some readings and research on social security benefits.

As for the baby boomers, if you didn't plan well, just keep on expediting.

There's always hope.o_O:eek::rolleyes::confused2::oops::cool:;):):D

 
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Chris@Doms

Chris@Doms

Seasoned Expediter
Carrier Management
Usually when collecting sales tax is involved is when you do stuff quareterly. Having a relationship with a real accountant and keeping good records go hand in hand. Mine always recommended me to see him in September, January, March. September to show him how I've been doing, he may tell me spend some money or say start saving, January to send all the 1099s, and March to do my taxes. I usually just fill a form 4868 and do it during the summer. I recommend to my ICs doing the same. Keep good records while you're out there, see someone near the end, do your taxes on time.
 
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Videodrome

Videodrome

Seasoned Expediter
There is an accountant who says they know trucking taxes and there are a couple truck terminals here. If I get a job lined up, I'll speak with them.
 
brokcanadian

brokcanadian

Veteran Expediter
Owner/Operator
To Canadian newbies, you will owe tax and you will pay quarterly, or you will pay interest. When they're done fooling with your money, you might get some of it back
 
Moot

Moot

Veteran Expediter
Owner/Operator
Turtle said:
Paying your quarterly taxes late, even one day late, will result in penalties and interest.
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The above should read: Paying your quarterly taxes late, even one day late, may result in penalties and interest.

The IRS officially calls quarterly tax payments, Federal Quarterly Estimated Tax Payments. The key word here is "estimated". The following link provides info about these payments and includes other links to determine how to calculate your estimated tax payments. 2016 Federal Quarterly Estimated Tax Payments | Tax Compliance & Planning

I haven't used the tax calculator since after the first couple years of expediting. My quarterly payments could be lower but I usually skip the 3rd quarter payment due to taking time off in the summer. One can also adjust the amount of the quarterly payment during the year to reflect an increase or decrease in the expected yearly gross income.

As for reporting a loss every year, that is somewhat of a grey area. I don't think the IRS could make a solid case for an expediter's business as a hobby but who knows?

Business or Hobby? Answer Has Implications for Deductions
 
G

geo

Veteran Expediter
Charter Member
Retired Expediter
US Navy
most important is a good tax account , that knows trucking there are many things to keep track of
record everything, do it up monthly , make a spread sheet with all expense's
fuel, toll's, phone , ins, how many night's away from home.
if you are in big truck fuel tax you have to pay and keep track of miles in each state
 
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