taxes

[therigwelder]

okay i am new to this o/o.I bought a straight truck that i am leasing to ace transportation for a 30/70 split.the problem i am having is they want to take taxes from my driving check but i already own a welding fabrication company thats incorperated i added this new trucking venture to this company as a DBA subsidiary.this company pays me a 5000 a year personal salary.thats what i pay personal taxes on,every nickle i make with this drivers check increases my personal taxable income meaning i got to give uncle sam a lot more than i want to.legally i dont feel they can withhold taxes since i am incorporated with a tax id #.ace told me even though i own the truck,i will be driving it so that justifies them withholding tax,this dosent make a lick of sense.i am looking for advice to get around them:+

 

[RichM]

I assume you are getting the 70%. It seems to me that Ace should give you a 1099 at the end of the year and not a W2. A W2 indicates you are an employee of Ace not an independent contractor. Since you lease the truck to Ace there must be some type of lease agreement that spells out the relationship between you and Ace. If not,run away to a more reputable carrier.

 

[therigwelder]

yes i am getting 70.a 1099 is a no go too i pay taxes quarterly. i simply need them not to take taxes at all.being drivers pay obviously they would 1099 me not my companies.looking to find the info to present to them eg;legal reason they cannot withhold.i dont like having other people interfere with my finances

 

[terryandrene]

Withholding of federal income tax on a 1099 is not an illegal act.

I have federal and state withheld on a 1099 as a matter of convenience. I suspect your carrier's policy to do so is for their convenience if they deduct weekly and submit to the govt. on a quarterly basis. They get to enjoy the float at your expense. Perhaps their procedure is a small print clause in your lease agreement