Truckers that work for themselves or even as an independent contractor with another company can expect to pay in for their taxes when they roll around. When this is the case, they are going to pay a decent amount on these tax payments. This is not something that is wanted by the truckers. Finding ways to cut back on the amount owed and reduce them as much as possible is highly recommended.
“There are ways to help them do this and when they do, they can feel a financial freedom when tax time rolls around and they do not have to pay as much as they normally do into the IRS.”
Follow along with some of these tips and tricks that help truckers everywhere reduce their IRS tax bill by half or more. You will be surprised to know that many truckers have been using these tips for some time and have found solace with a company that is able to do the IRS talking for them, since they are busy driving the trucks.
Deductions are always going to bring the tax bill down. You want to make sure that you know what you can deduct from them because as a trucker, there are a lot of deductions that you might not be taking that you could be. With everything from lodging to food, to gas and beyond. These items can all be taken off your tax bill since they are deductions for the job. Keep track of these deductions and have the receipts in an envelope, as this is the best way to have proof of them if you are ever asked for them and to ensure that you have them handy, as needed.
Some examples of deductions for truckers include: hotels, food, gas, truck repairs and maintenance items, milage driven, union dues and more. Those that are local cannot claim these deductions on their taxes however, since they are not required to do the long distance traveling that is often required of truck drivers. It is best to speak with a tax professional regarding deductions available for your specific case.
2 Keep Track of All Expenses and Income
Keeping track of all your expenses and income is always an ideal way to go. Not only will you know what is going out, but what is coming in. You will know what is deductible from the expenses, but you also can expect how much you will be paying in when you know your income. This is all good information to have. You do not want to find out later that the tax bill you thought was going to be much lower is actually three times as much.
“Those that have budgets and keep track of this information are much better off when the time comes to pay taxes and benefit.”
3 Pay Your Taxes on Time or Use a Payment Plan
If you want to pay off those taxes, it is always wise to pay them in full when they are due. Not only does this mean they are gone and you do not have to worry about them until next year, but it means you do not have to pay extra in fees because of the payment plan tacking it on. Payment plans are good to have when you’re unable to pay the large lump sum right away but they also cost more in the long run. You want to be prepared with the payment so always have extra cash on hand to pay for any payments that come due.
Quarterly payments throughout the year before taxes are also recommended. This helps the entire amount get paid before it is all due at once. You might even get some of the money back during tax time if you overpaid the amount.
4 Negotiate with the IRS to Reduce Back Taxes
Negotiate with the IRS to reduce the back taxes that you owe. This is a serious thing to do and one that can benefit you overall if you’re able to get them to cut back on the amount that you owe. Once this is done, you then do not have to worry about paying that whole amount back, but just the amount that is agreed upon. There are numerous programs that offer these types of tax cuts for those that are struggling to pay back the taxes that they owe from previous years. When they can prove that this is a hardship for them, they can find that this is something that they are able to do when they want to cut their tax bill in half or more.
Of course, if there is no time or you do not feel confident in your ability to negotiate the amount with the IRS then you will want to speak with a IRS Debt Relief Company that can negotiate all of these terms for you.
“This is a good way to go when someone that is knowledgeable in the tax collection field is doing the talking for you. You can have them handle everything from start to finish.”
It is important that you work with the best method that works with you and what you feel the most comfortable with. If you do not feel that you have enough time to do any of this, much less call back home, then you can speak with a professional IRS Debt Relief Company that can help you set up what is needed to get you on your way. With the help that they provide, everyone is able to feel confident and comfortable working with the IRS and being able to reduce their payments without actually having to be the one to call and negotiate.
Let the IRS Debt Relief Company out there help you with the IRS debt that you owe them today and get even more tips for handling your taxes through the knowledgeable tax experts they have on hand! Give them a call today to learn even more!