It is important to remember throughout the year to keep receipts of any business-related expenses in the event the IRS audits you. Knowing what can be tax-deductible for owner-operators can help save you money and prevent you from overpaying to the IRS. Whether you own your own trucking business, or you lease from a trucking carrier, you are still responsible for deducting your personal taxes. The breakdown for these taxes is Social Security 12.4% and Medicare 2.9% totaling 15.3%. To determine how much you should withdraw from your check you can refer to the Tax Bracket at Self-Employment – when you are not classified as an employee, self-employment is like Social Security and Medicare that is deducted from an employee’s check. However, for an owner-operator, you become responsible for calculating these taxes based on your monthly check. These includeįederal Income Tax and State Income Tax – as an employee, these taxes are withheld from your paycheck. There are two different tax types that as a business owner may need to file. By paying the IRS quarterly, helps avoid any tax penalties and having any surprise expenses on Tax Day. To avoid having to pay a large lump sum at the end of the year for your taxes, it is advised to take 20-30% of your net income and pay quarterly to the IRS.
Owning your own trucking business can be difficult to understand how you are taxed, the type of taxes you need to file, or what you can use as a tax deduction.
National Tax Day is April 15 th, and business taxes should be filed by this time unless you have filed for an extension.
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