Dollars & Sense

Quick Trucking Tax Tips!

By PBS Tax & Bookkeeping Service
Posted Dec 26th 2007 10:48AM

Tax time:
Listed below are items needed for income tax preparation and are required to be mailed not later than January 31. You should receive the listed items by early February:

1. W-2’s from employers

2. 1099’s from all companies and/or individuals you’ve done work for, brokers, motor carriers, independent businesses, etc.

3. 1099’s or end of year statements from banks for interest and dividend income, brokers for stock information, mutual funds, 401K and IRA distributions, and mortgage interest statements.
 
4.   Schedule K1 if you are involved in any partnerships or s-corporations.

5.   W-2P or 1099R for pension and annuity income.

6. 1099’s and year end statements for unemployment compensation, social security income and state tax refund.

If you have not received these items by the first week in February, you should contact your employers or financial institutions to request duplicates.

If you have employees or used independent contractors in 2007, you are also required to send out your W-2’s and 1099’s by January 31, as well.  This includes those self-employed individuals that have hired their children to do work for their businesses.  You must issue W-2’s to your children to get the deduction.

Tax tip: Per Diem
The Per Diem rate for 2007 is computed at $52 per day under the special rules for the transportation industry.  Seventy five (75%) of the per diem rate is deductible for 2007 and is increasing to (80%) of $52.00 for 2008.  So save those log sheets!

PBS Tax tip: Keeping Good Records      
You can avoid headaches at tax time by keeping track of your receipts and other records throughout the year.  Good record-keeping will help you remember the various transactions you made during the year, which in turn may make filing your return a less taxing experience.

Records help you document the deductions you’ve claimed on your return.  You’ll need this documentation should the IRS select your return for examination.  Normally, tax records should be kept for three years, but some documents – such as records relating to a home purchase or sale, stock transactions, IRA and business or rental property – should be kept longer.

In most cases, the IRS does not require you to keep records in any special manner.  Generally speaking, however, you should keep any and all documents that may have an impact on your federal tax return:

•Bills
•Credit card and other receipts
•Invoices
•Mileage logs
•Cancelled, imaged or substitute checks or any other proof of payment
•Any other records to support deductions or credits you claim on your return.

Good record-keeping throughout the year saves you time and effort at tax time when organizing and completing your return.  If you hire a paid professional to complete your return, the records you have kept will assist the preparer in quickly and accurately completing your return.

This tax tip is presented by PBS Tax & Bookkeeping Service. PBS specializes in services to the trucking industry and has been providing expert tax and bookkeeping services to truckers nationwide for over 25 years.

Our reputation is built on our ability to help owner-operators, independent contractors and company drivers save money on their income taxes.  Extensive knowledge of the trucking world allows us to maximize all the deductions to which you’re entitled.

PBS is committed to providing the trucking industry with dependable quality service. If you have a tax question, would like further information or a free 2007 Income Tax Organizer, please call us at 800-697-5153 or visit our web site at www.pbstax.com .

Everyone’s financial situation is different.  This article does not give and is not intended to give specific accounting and/or tax advice.  Please consult with your own tax or accounting professional.