Tax Defense Network’s Senior Licensed Tax Professional Jonathan Bochese, and Registered Tax Return Preparer Krystle Hoard were joined by Tom Weakly, Director of Operations for the Owner-Operator Independent Driver Association (OOIDA), and Tom Gann, the Corporate Trainer for OOIDA for the foundation’s Business Education Series webinar on December 6, 2012.
In the webinar, the guests discussed the tax issues many owner-operators experience when trying to file their estimated taxes for their truck or fleet of trucks. With most trucking firms starting out being run from the home of the owner-operator, many truckers were interested in the panel’s advice.
Krystle Hoard went into detail on the important topic of whether or not an owner-operator can claim their home as a home office. She insisted that those on the road most of time will not be able to deduct their home office because they are not home enough to qualify for the deduction. Also, education deductions were addressed by Hoard.
“If you are taking very general educations courses, more for your own benefits, and your own knowledge base, there are tax credits, like the Lifetime Learning Credit, that you can claim. If you are taking specific courses related to trucking, [the money you spend on those courses] can be taken directly from your income as part of the continuing education tax option,” Hoard explained.
Hoard advised that any owner-operator that pays an assistant, additional driver, or a vendor over $600 per year must issue that person a 1099.
The last question dealt with whether an owner-operator should incorporate or not. Hoard explained that with incorporating comes state corporation taxes, which can be more aggressive than the IRS in some cases. Hoard advised that those who are starting out should not incorporate.
In closing, Hoard and Bochese went into detail about Tax Defense Network and how they have the ability to pull transcripts when consulting with truck drivers about their taxes. She stressed that Tax Defense Network specializes in taxes specific to owner-operators and self-employed individuals, while providing tax relief to those with tax problems.
Tax Defense Network has over 35 years of trucking industry knowledge and specializes in taxes regarding owner-operators. For more information on Tax Defense Network, or its tax services, please contact us for a free consultation.