Search Results

It is important to get your tax return to the IRS by the April 15th deadline. But what happens when meeting that deadline is just not possible? Filing an extension is a great option to avoid penalties and late fees. Each year nearly eight million Americans file for an extension on their taxes. This represents nearly eight percent of all taxpayers in the United States. It’s important to remember that just because you file a six-month extension it doesn’t mean you have an extension on paying any taxes that you owe. You’ll need to pay the estimated amount of taxes you owe no later than April 15th to avoid penalties. Here are some things you should know about working with ATBS to file an extension Extensions for individual returns MUST be filed by April 15th. If you are currently utilizing our monthly business services and are in need of an extension, we will automatically file your extension on April 15th, whether you request one or not, at no additional charge to you. Not using our monthly services? Just call and talk to us about filing an extension. It only takes about five minutes and costs $50. While the $50 is not refundable, we will apply it to your tax preparation fees. When will your tax return be done? While the IRS extension period lasts until October 15th, ATBS is dedicated to completing your return as quickly as possible. We complete each return in the order it was received. If you need your tax return done very quickly for any reason such as a mortgage, a business loan, an IRS matter, or applying for college financial aid we have payment options available to discuss accommodating that request. We can expedite your taxes for just $199.99 and have your return filed within just five to seven business days as long as your tax organizer is completed and on file. No matter when you file your taxes you should know that... Owner-operators have an obligation to pay quarterly taxes If you did not pay your estimated quarterly taxes this past year, it is doubtful that you will receive a refund. However, if you paid the recommended estimates in each quarter, you will have most likely paid close to what your required annual payment will be. This means you likely will avoid penalties for underpayment of estimates. Company drivers’ employers withhold taxes for them throughout the year For many drivers, this will result in a refund each year if you are having the proper amount of taxes withheld. If you are due a refund, the IRS will not penalize you for filing your return after the April 15th deadline. If you expect to owe taxes, an extension of time to file your return is NOT an extension of time to pay You are still required to pay your tax liability by April 15th. How do I send payment to the IRS with my application for an extension? You can download a blank application for a tax extension here. If you'd prefer to have a completed extension voucher emailed to you, ATBS can provide you with a copy of the extension we are filing on your behalf by request. Remember, ATBS is here to help you with the tax extension filing process! If you need any additional assistance, please contact your ATBS business consultant or tax professional or give us a call at (866) 920-2827. What happens after the extension is filed? Once you have filed your extension you will have until October 15, 2025 to file your actual return. At ATBS, we begin working on tax returns in the order that we receive completed tax organizers from clients. We are dedicated to completing your taxes as quickly and accurately as possible. For those who want to file their own tax extension, download Form 4868 from the IRS website . Simply fill it out, send it in, and make sure you have paid the estimated amount that you owe for the first quarter of 2025. Are my chances of a tax audit higher? There are a lot of rumors out there about what can trigger a tax audit . Some people you talk to claim that filing an extension is one of those triggers. That is not the case. The reality is that the IRS is pretty tight-lipped about what they are looking for when they decide to audit an individual. On the other end of the spectrum, some people believe that if you file an extension you have a lower chance of being audited by the IRS. By the time the October 15th deadline approaches, they have already reached their yearly quota for audits. Is that a true statement? No one is really sure since it’s purely speculation. Just remember that as we get closer to the tax deadline, ATBS is here to help you through the process. If you have any questions make sure to give us a call at (866) 920-2827.

As a truck driver, you want to always be pulling a load. This means that after you deliver a shipment, you want to be loading up a new load quickly and bringing it back home. This is truck driving 101. You know that not all loads are created equal and prices vary dramatically by state. If you are able to control more precisely where you deliver to, then it is best to pay attention to the best and worst states for outbound freight. Let’s take a look at the top and bottom 10 states in flatbed, reefer, and van over the past week (7 days), according to Truckstop . Flatbed - Top 10 (03/23/2025 - 03/29/2025) Flatbed - Bottom 10 (03/23/2025 - 03/29/2025) Reefer - Top 10 (03/23/2025 - 03/29/2025) Reefer - Bottom 10 (03/23/2025 - 03/29/2025) Van - Top 10 (03/23/2025 - 03/29/2025) Van - Bottom 10 (03/23/2025 - 03/29/2025) The idea here is not to boycott the low-paying states, but rather develop relationships with those who pay better than average in those states. By doing so you can guarantee that you will be hired for the job, and through patronizing those that pay better, you can encourage the industry as a whole to pay better. The data above is provided by Truckstop . Interested in learning more, get your first month of Truckstop’s Load Board Pro FREE, https://partners.truckstop.com/48if2i397cyz

Tax season makes a lot of people nervous.  They are worried that they might owe money or that they haven’t done their taxes properly .  They worry about whether or not they will get a notice that says they are being audited.  The truth is that most people can relax.  Even if you did make a mistake, most aren’t severe enough to trigger an audit.  However, as you do your taxes this year, pay attention to these seven red flags that may lead to a  tax audit , or if not an audit then the letter from the IRS that states you made a mistake or forgot something and they changed the return and you owe them money. High Income The biggest red flag that may trigger an audit is having a high income.  The reason is simple: the IRS is not going to waste their resources pursuing someone who is cheating them out of a few hundred dollars.  It would cost far more to investigate than they would get back.  However, those who pay hundreds of thousands in taxes every year, they are the ones that make the IRS more money.  Here is a rough breakdown of your chances of being audited: If you make up to $200,000, your chances of an audit are about .9%.  $200,000 to $1 million those chances jump to 3.25%.  If you make over $ 1 million they surge to 11.1%.  Keep in mind that sudden increases in income can also trigger those audits.  It might look a little odd to the IRS if you make $100,000 one year and the next year you are only reporting $25,000 in taxable income. Failure to Report Income This should be a no-brainer.  If you receive a W-2 or a 1099 form , and you don’t report that as income, then you are going to be caught.  It might take a few years for the IRS to catch up with you, but when they do you won’t have a leg to stand on.  Report all of your income and don’t take the chance. Not Using Fair Market Value This one is a bit trickier, and harder to catch (unless those who are doing their reporting are blatantly careless).  Let’s suppose you need to buy a new piece of equipment for your truck.  When brand new the equipment might be $10,000 and used it could be $5,000.  You might be tempted to buy the used piece, and write off on your taxes the amount for a new piece.  Can you get away with it?  Yes, you can.  But it could trigger a red flag and cause the IRS to come knocking.  Now you could always up your odds of being caught by claiming you paid $20,000; but most wouldn’t even dream of taking that chance. Be sure to keep all receipts for major items to back up your deductions . Typos and Entry Errors Let’s face it, mistakes happen.  No matter how careful you are, your tax return may end up with a typo, or worse you could put the decimal point in the wrong place and cause your numbers to be off by thousands.  Make sure you double-check your tax return carefully so that you aren’t audited because you misspelled a word or two. Missing Forms As an owner-operator, you know there are a lot of forms that go into filing your taxes.  You don’t get the luxury of a simple W-2 (but you also don’t have the restrictions that come with being an employee).  If you do your taxes on your own, then you run the risk of missing necessary forms.  Usually it is worthwhile to  hire an accounting firm  to do your taxes to make sure that everything is done correctly. High Charitable Giving Charitable giving is a great way to help others and reduce your tax burden.  But if you are making $75,000 per year, and claiming that you give away $50,000, you are going to raise some flags at the IRS offices. There is nothing wrong with giving away vast amounts of money.  Just be aware that doing so could trigger an audit, and you want to make sure to have a perfect tax return if that happens. It is necessary to have documentation of all charitable gifts. Ask for a receipt when you give something. Business Owner The simple fact that you are a business owner puts you at a higher risk of being audited.  Why?  It is because it’s easier for business owners to cut corners than a W-2 employee. Employees can’t write off miles driven for work (generally speaking).  Employees don’t get to deduct business expenses.  Employees don’t have marketing consultants, business lunches, insurances to pay for, and a whole host of other expenses that a business owner does.  So when it comes tax season, the employee’s tax return is pretty straightforward.  But as a business owner, you have more opportunities to cut corners (not that you would), and thus are thrust into a higher risk category. Audit is just a big scary word to say that the IRS will double check your return to make sure that you didn’t lie or cut corners.  If you take the time to do your taxes properly, and make sure you’re following the rules, then you really have nothing to worry about.  Even if you are audited you will be able to prove everything is legit. By working with a  reputable tax company like ATBS  you will be able to rest easy knowing that your taxes will be done properly and the risk of an audit will be decreased significantly.

Here is a list of the most commonly asked tax questions we've received from owner-operators, and our answers.   Needs help with your taxes? Click here! Q: How much should I set aside for business taxes? A: It is recommended to set aside 25-28% of your weekly net income for quarterly taxes. Q: I cannot get my taxes done on time. What should I do? A: Let ATBS know as soon as possible. We will file a one-time 6 month extension for you. It is an extension to file not an extension to pay. Q: Will I receive a tax refund? A: This is very dependent on your individual situation, however, it’s not likely if you are an owner-operator. ATBS works hard to keep you as close to owing nothing as possible. Remember, if you are getting a refund, you have given the government an interest free loan. Q: Will my tax preparer send me my 1099-NEC form? A: No, your carrier will send you your 1099-NEC form. However, if you are a corporation, there is a possibility that you will not receive a 1099-NEC; advise with your carrier if that is the case. Q: I did not pay my quarterly tax estimates this year. What is going to happen? A: The IRS will charge underpayment penalties and interest for the tax not paid. At ATBS, our tax department will calculate that charge and include the penalties and interest on your year-end tax return . Q: What tax forms do I need to complete for a contract laborer, (for example an employed team driver)? A: If you have an employee, run them through payroll and issue them a W-2 at the end of the year. If you have a contractor laborer issue them a 1099-NEC. Q. Do I need to file a separate tax return for owner-operator earnings and company driver earnings? A: No. As a sole proprietor, you will file one return, Form 1040. The 1040 will contain a Schedule C, listing business earnings and expenses. Per Diem Questions Q: How does the Per Diem tax deduction work? A: Per Diem is a tax deduction for meals and incidental expenses on the days you are working away from home. The current rate for 2024 (as of October 1, 2024) is 80% of $80 per full day, and ¾ of this amount for partial days. Partial days are the day you leave home and the day you return. Full days are any day you need to stop driving due to the hours of service rules or are unable to drive due to on-the-road repairs. Visiting family or friends for a few days does not count as Per Diem days. If you are using a motel/hotel while on the road, Per Diem is still deductible, but not during home time. IMPORTANT NOTICE: The Per Diem rate from January 1, 2024 - September 30, 2024, was $69 per day in the Continental United States. This means you will need to calculate your total Per Diem deduction using two different Per Diem rates. You need to keep this in mind when you are filing your 2024 taxes. Q: Can I use my e-log records to count the days for Per Diem? A: You can if you have the full year of e-log records. Contact your carrier every 3-4 months and ask for a copy of your e-logs. Many carriers delete e-logs every six months; so do not wait until the end of the year to ask for a copy. Read More: Seizing The Per Diem Tax Break Family Related Questions Q. Should I file my tax return separately from my spouse? A. As a married taxpayer, you have two choices, Married Filing Jointly and Married Filing Separately. Generally, Married Filing Jointly will work out better for a taxpayer, but not always. ATBS can prepare the return both ways, and then provide you with them both to indicate the best tax outcome for you. Q: Can I claim a parent as a dependent on my taxes? A: To meet the support requirements necessary to claim your parent as a dependent on your tax return, you must cover more than half of your parent’s support costs – meaning 51% or more of their support costs must be covered by you. These costs include food, housing or lodging expenses, clothing, and medical services and/or equipment costs. To be a “Qualifying Relative” the person you’re caring for can be your parent, in-law, or grandparent. Q: How much of my (or my spouse’s) Social Security income is taxable? A: How much Social Security income is taxable depends on your total income and marital status. If you file a federal tax return as an individual and your income is between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits. If your income is more than $34,000, or more than 44,000 for a married couple filing jointly, then up to 85 percent of your benefits may be taxable. If you are married and you file a joint return, and you and your spouse have a combined income that is between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits. Q: Should I claim a dependent on my quarterly estimated taxes? A: No, you should claim dependents only on your year-end tax return. Deduction Questions Click Here to Download our "Trucker Tax Deduction Worksheet" Q: Is fuel tax deductible for truck drivers? A: Yes, fuel tax is a part of the cost of fuel, so it is deductible as an outgoing owner-operator fuel expense. Q: Can I claim the home office deduction? A: It is possible for an owner-operator to qualify for a home office deduction, however, you need to meet two tests: The home office must be used regularly and must be used exclusively for the business, and; The home office must be your principal place of business. If you conduct business outside of your home such as being an over-the-road trucker but use an office space when you’re home to conduct business calls, organize receipts, and overall business functions then it’s possible to qualify for a home office deduction. There has been conflicting information about what qualifies for a home office deduction but if you can prove the office is used exclusively for business then you should be entitled to the deduction. The IRS may challenge the validity of the deduction for a trucker since your truck is considered your primary place of business. Q: Is clothing tax deductible? A: Generally, gloves, steel-toed boots, etc. that are required as part of the job are deductible, but not general everyday clothing that everyone needs to buy. Q: Is a gym membership tax deductible? A: Yes, but only if the membership is prescribed by a doctor to treat a specific medical condition. You must also join the gym after the diagnosis. Q: Are medical expenses deductible? A: If medical expenses exceed 7.5% of your Adjusted Gross Income you can deduct the amount over 7.5%. For example, if you have an adjusted gross income of $50,000 and $6,000 of medical expenses, you would multiply $50,000 by 0.075 (7.5 percent) to find that only expenses exceeding $3,750 can be deducted. This leaves you with a medical expense deduction of $2,250 (6,000 - 3,750). Q: I purchased an Auxiliary Power Unit this year. Can I receive a tax credit for this purchase? A: Yes. Send your tax preparer the receipt or the Bill of Sale for the APU. Also, write down the hours it was used or gallons of fuel used so we can provide the tax credit. Q: Are truck dog expenses deductible? A: Yes, if a dog is acting as a security for the truck it is considered a guard dog and its expenses (food, veterinary bills) can be deducted from your taxes. Other Miscellaneous Questions Q: If I sold a home this year, is the profit taxed? A: It depends on how long you owned and lived in the home before the sale and how much profit you made. If you owned and lived in the place for two of the five years before the sale, then up to $250,000 of profit is tax-free. If you are married and file a joint return, the tax-free amount doubles to $500,000. The law lets you "exclude" an amount from your taxable income. (If you sold for a loss, though, you cannot take a deduction for that loss.) Q: If I rented out a home this year, do I have to claim it on my taxes? A: Yes, you will need to fill out a Schedule E form. Q: What is the penalty for not having health insurance? A: The insurance mandate has been removed. As of 2019, there is no longer a penalty for not having health insurance. If you have any more questions, feel free to give us a call at 866-920-2827 or visit our website at www.atbs.com .

The deadline to pay and file your 2024 taxes is April 15, 2025. This means if you haven’t filed your taxes yet, today is the perfect day to get started. But before you do, we think it’s important to clear up some common tax myths that float around each year. These myths could end up costing you thousands of dollars if you’re not careful. Myth: An extension to file is an extension to pay Millions of Americans will end up filing a tax extension this year. This extension will give individuals until October 15th to file a completed return. Contrary to what some people might tell you, the extension won’t give you additional time to pay the amount you owe. Instead, what you owe will still be due on April 15, 2025. While your extension will help you avoid any penalties for failing to file, it won’t save you from the failure to pay penalty. Any balance that you have after April 15th will begin accruing a failure to pay a penalty of 0.5% per month. You will also be charged interest on the outstanding balance. Myth: You must file a joint return if married Another idea that we frequently hear is that you must file a joint tax return if you are married. In reality, if you are legally married, then you have two filing options: married filing jointly or married filing separately. ATBS will provide the option to file either jointly or separately depending on which status has the best outcome for you. Myth: You’re more likely to be audited when you file an extension Many people are against filing a tax extension because they feel that it makes them more likely to receive an audit. While there have been numerous studies done on this issue, none have presented proof that there is a correlation between filing an extension and being audited. So if you need to file an extension, don’t worry about it increasing your chances of an audit. Myth: You should always want to receive a tax refund Most of you probably know people who get excited every year because they are going to get a tax refund. However, because many of you are owner-operators, there is only a small chance that you will be receiving a refund check and you should be thrilled about this. It means you managed your money well throughout the year, and you didn’t give the IRS an interest-free loan. As long as you keep up with your quarterly tax payments , you should be able to break even on tax day. If you are not currently an ATBS client and would like to have one of our tax professionals complete your 2024 state and federal tax return, give us a call at 866-920-2827.

How much is a handshake worth? Here at ATBS, we sometimes hear owner-operators tell us they would rather work with a local CPA or Tax Professional instead of ATBS because they can “shake the hand” of their tax preparer . Human connection is more important than ever - we agree! In a world where many companies are trying to get rid of human labor in favor of high tech tools and artificial intelligence, ATBS knows the true secret to success for tax companies: Human beings want to work with other human beings. This is a simple truth to us here at ATBS, but there are a lot of people in the world who think technology is going to completely replace humans in the workplace. We disagree. While technology will undoubtedly replace many jobs in the future, we believe technology will be used primarily to help human beings work with other human beings - especially in industries where service is the product, like tax, accounting, and business consulting (which is what we do for owner-operators at ATBS). Many drivers think that because ATBS is capable of working for you remotely that it somehow means they’re going to be working with a robot - not true! And by the way, we have offices (with human beings in them!) where you can stop by if you’re in the area to see us in person. Our focus is on working with you anytime, anywhere, but you can always stop by to see us as well! Our services are designed with you (truck drivers) in mind, and that means focusing on having as much human connection as possible for your business. We know your world is becoming ever more automated and regulated by technology, and we always make sure that we never lose sight of the human connection with what we do. When someone tells us they want to “shake the hand” of the person handling their taxes, what they really mean is, “I want a human being to handle my taxes and care about the outcome of those taxes as much as I do .” Does that mean you need someone to do that work while they’re sitting in front of you? No! That means you need someone who knows trucking , who cares about you and your business , and who does this kind of work all year long (not just on April 15th) to get it done right. Let’s talk about the differences between ATBS and your typical Local CPA or Tax Professional , and we’ll highlight some reasons why we really, truly, believe that ATBS is the best possible option for every single owner-operator’s tax needs . 1 - Industry (Trucking) Knowledge Most CPAs or Tax Professionals are generalists . They know a little bit about a lot of different industries, which means they can generally do a decent job of minimizing your IRS liability. However, you are always - always! - better off using someone who knows your industry inside and out. ATBS has been in the trucking business for over 25 years, and all we do is handle taxes for truckers - this is a huge advantage for our clients because we know everything there is to know about our industry and the taxes related to it. We keep an eye on the tax laws every single day for our trucking clients to make sure we’re getting it done right, every single time. 2 - Year-Round Tax Help & Preparation Most CPAs or Tax Professionals only work a few months out of the year, during tax season. If they work during the off-season, their hours are typically limited and they are tough to track down to get any work done. ATBS is different because we work year-round to help our clients with their tax, accounting, and business consulting needs. Trucking never stops, so we make sure we’re here all year long to help you out. We don’t disappear after April 15th and leave clients out to dry if tax problems come up during the offseason! 3 - Going Beyond Taxes Most CPAs or Tax Professionals don’t want to see your paperwork when it comes time to file taxes. They want to: See you once per year Have you do all the paperwork & bookkeeping yourself Take the work you’ve done, charge you a ton of money, and simply plug the numbers in to file your tax return Seems like a lot of work for you - and a lot of money to spend - considering they’re the supposed tax experts, right? At ATBS, we take the tax burden off of our client’s hands entirely. We handle the paperwork and bookkeeping , we do their accounting each and every month, we calculate quarterly tax estimates so they can pay on time, we file their taxes each year, and we provide consulting year-round to help our clients minimize their taxes and maximize their profits . We are a full-service tax provider. Our clients deserve the opportunity to focus on running their business while we take care of the rest! Don’t pay someone to file your taxes when you’re doing all the work yourself. Let ATBS help you year-round so you can save time, cut out the stress, and focus on driving your truck… we’ll handle the rest. 4 - Ease of Doing Business (ATBS Hub) As we mentioned, most CPAs or Tax Professionals don’t want to see your paperwork or handle your bookkeeping needs. And if they do, they probably require you to sort it yourself and drop it off in person, right? Here at ATBS, we have the ATBS Hub for all of that. No need to sort receipts or wait until you see us in person to deliver them - simply submit paperwork to us in real-time , as often as you like. We work tirelessly on figuring out how to make working with us as simple and as easy as possible. Our ATBS Hub makes working and communicating with our team easier than ever. No other CPA or Tax Professional out there is doing what we do… want to know why? 5 - Because we care We operate a family-owned business , and our owners grew up in trucking . We know, understand, and appreciate our clients more than any other CPA or Tax Professional out there. We know trucking, and we know how hard it is to keep America moving. We do what we do because we want to make life better for our trucking clients, and that’s why we ONLY work with trucking clients. We don’t want to be generalists. We don’t want to work with you just one day a year. We don’t want you to have to do all the bookkeeping and accounting for your business after a 14 hour day on the road. We don’t want you to have to hold onto paperwork and deliver it to us in person because that just wastes time and clutters up your life. We care about our trucking clients, and that’s why we’re always better than any other CPA or Tax Professional out there. Yes, our services are great: We’re trucking specific We work with you year-round We help with all of your tax-related needs, not just the act of filing the taxes themselves You can work with us anywhere, anytime But, the reason why we’ve been in business for over 25 years and have helped over 150,000 owner-operators is because we care. So, just because you might not be able to shake our hand when you work with us - although you can always come to our offices if you’re in the area! - doesn’t mean we can’t provide the best possible service to you and your business. We’re here to provide the human connection you want and need to run the most successful business possible, and that’s why we really, truly, believe that ATBS is the best possible option for every single owner-operator’s tax needs. Check out our website to learn more - we’ve been around for over 25 years, and we’ll be around for many years to come. Give us a call!

Per Diem (per day) is one of your largest tax deductions as an owner-operator, but what is it exactly? The Per Diem deduction is a tax deduction that the Internal Revenue Service (IRS) allows to substantiate ordinary and necessary business meals and incidental expenses paid or incurred while traveling for business while away from home. In this article, we address the specific rules around using this significant tax deduction. As a result of the Tax Cuts and Jobs Act, W-2 employees, sometimes referred to as company drivers, are no longer eligible to claim the Per Diem deduction. The IRS allows contractors and self-employed transportation workers, subject to the hours of service regulations, to deduct their meal expenses while traveling for business. The Per Diem rate is set by the IRS. The Per Diem rate, effective October 1, 2024, is $80 per full day and $60 per partial day in the Continental United States. You may see the deduction amount quoted as $64 per full day and $48 per partial day. That is because the IRS only allows you to deduct 80% of the Per Diem rate. Non-CDL riders who are performing other duties (bookkeeping, dispatching, assisting loading, and unloading) may deduct 50% of the $80 rate which comes out to $40 per full day. For travel outside the Continental United States, the Per Diem rate effective October 1, 2024, is $86 per full day and $64.50 per partial day. You may see the amount of the deduction quoted as $68.80 per full day and $51.60 per partial day. Non-CDL riders who are performing other duties (bookkeeping, dispatching, assisting loading, and unloading) may deduct 50% of the $86 rate which comes out to $43 per full day. IMPORTANT NOTICE: The Per Diem rate from January 1, 2024 - September 30, 2024, was $69 per day in the Continental United States and $68 per day in Canada. This means you will need to calculate your total Per Diem deduction using two different Per Diem rates . You need to keep this in mind when you are filing your 2024 taxes. If you need help calculating your Per Diem deduction and filing your taxes, please click here . In order to qualify for these deductions, IRS publication 463 states that you are traveling from home if: Your duties require you to be away from the general area of your tax home substantially longer than an ordinary day's work, AND You need to sleep or rest to meet the demands of your work while away from home. It further states that taking a nap does not satisfy the requirement. However, “you do not need to be away from home for a whole day, as long as your relief from duty is long enough to get necessary sleep or rest.” What does this mean to a driver? If you are an owner-operator, the rule is simple you get to claim the tax deduction for each day that you are away from your “tax home.” On the days that you depart and the days that you arrive at home, you must claim a partial day allowance instead of a full day allowance. The partial day allowance is 75% of the full day allowance. Things become a little more complicated if you are a local driver. Local and regional drivers are frequently away from their home much longer than an average eight-hour workday. Therefore, fulfilling the first part of the requirements is simple. However, notice the “AND” between the two requirements? This means that you must meet both conditions in order to claim the deduction. Another way to think of it is, drivers who start and end a trip at home on the same Department of Transportation (DOT) Hours of Service (HOS) work day cannot claim Per Diem. Easily keep track of your days away from home with the ATBS Per Diem Tracker! Furthermore, IRS publication 463 states that you must have a “tax home”. There are three tests to determine your tax home. In order to meet the requirements, you must satisfy at least two of the three following items: You perform part of your business in the area of your main home and use that home for lodging while doing business in the area. You have living expenses at your main home that you duplicate because your business requires you to be away from that home. You have not abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging. So what does this all mean? In a nutshell: You must be away from home for 'substantially longer than a normal work day', per the IRS. You must have a home from which to be away from. If you meet both requirements above, for any days on or after October 1, 2024, you can deduct $64 for each full day away from home as a driver and $40 as a ride-along that assists in business functions. You can deduct $48 per partial day as a driver. At ATBS, we believe that a good way to track is by using the ATBS Hub . Since the Per Diem rate changed during 2024, the ATBS Hub will track exact dates and changes in Per Diem rates. That way you can determine exactly how many full and partial days you have to report to your tax preparer for 2024. In order to substantiate your Per Diem, you may need to provide DOT electronic logging device information with time, date, and location. It is good practice to keep all receipts and documentation for this Per Diem deduction for at least three years. If you have any questions on Per Diem, please contact ATBS by clicking here or giving us a call at 866-920-2827.

The ATBS Hub makes working with us even easier! The ATBS Hub features several tools for viewing and analyzing your revenue, expenses, and profitability. Sections in this Guide: How to Switch to the New Hub Download the App Log in to the ATBS Hub Contact Your ATBS Business Consultant Track Your Per Diem Days Send Documents to ATBS Track the Status of Your Documents Hub Message Center View P&L View Profit Plan View Quarterly Tax Estimate Voucher View Your Tax Returns Logout Frequently Asked Questions Already an ATBS Client? Here’s How to Switch to the New Hub! How do I update my app? If you have not been using the ATBS mobile app, you will need to go to the Google or Apple app store and download the app . If you have been using the ATBS mobile app, it should automatically update to the newest version. Otherwise, you’ll need to manually update your app through your phone’s app manager.  How do I gain access to the ATBS Hub? Your username is the email address you have on file with ATBS. All clients MUST set up a new password!  You can do this by opening the UPDATED  ATBS Hub mobile app or by visiting hub.atbs.com  and clicking on “Forgot my Password” to reset a new password. Will the old app and portal still work? No, after launch day the old app and portal will no longer work. The ATBS Hub can be accessed by downloading the update for your app, or by visiting hub.atbs.com . Download the App The ATBS Hub App is available on the Google Play Store or the Apple App Store. Click on one of the links below to download it! Back to Top Log in to the ATBS Hub On the Hub’s login screen, enter your username and password. This will be the same on both the desktop and the mobile app. Not sure what your credentials are? Click here  to reset your password. Not yet a client? Contact Us  to get enrolled today! Back to Top Contact Your ATBS Business Consultant After logging in, you’ll see your Business Consultant’s name towards the bottom of the page. Tap on the phone or email button to contact your Business Consultant right away! Back to Top Track Your Per Diem Days You can use the ATBS Hub to log your days away from home and keep track of your valuable Per Diem tax deduction ! Tap the Menu button from the home screen in the top left corner Click on “Per Diem” from the Menu Your Per Diem Tracker can also be accessed by clicking on “Per Diem YTD Total” from the home screen Select whether you will be tracking a Full Day(s), Partial Day(s), or Clearing a Day(s) Select the Month and Year of the days you want to track Select the days you want to track. You can pick one or multiple days Click “Submit” On the “Per Diem” page, you’ll now see your estimated year-to-date deduction, how many full days and partial days you’ve tracked, and a calendar view of the specific days you’ve tracked To remove a day you previously tracked, select the “Clear” status, select the day(s) you wish to clear, and hit the “Submit” button For more information on the Per Diem Deduction, click here ! Back to Top Send a Document to ATBS Select the “Upload Document” button at the bottom of the page Choose whether you will be uploading a “single-page file” like a receipt, or a “multi-page file” like a tax return Choose whether you want to use your camera to take a picture of the document(s) or upload a file you already have saved on your device Using your camera to take a picture of a document Center your document in the view and take a picture Decide whether you want to “Retake” or “Use Photo” Give your document an optional title Use the auto-crop feature to cut out any unnecessary space from your image Add a note if you’d like to provide any additional information about the document to ATBS Hit the “Submit” or “Save” button If you previously selected to upload a single page, that’s it! Your document is now on its way to ATBS! If you previously selected to upload multiple pages, you’ll have the option to Add a New Page or delete a page you previously planned to upload Uploading a file already saved on your device Locate the file you want to import on your phone Tap the document Give your document an optional title Add a note if you’d like to provide any additional information to ATBS Hit the “Submit” or “Save” button If you previously selected to upload a single page, that’s it! Your document is now on its way to ATBS! If you previously selected to upload multiple pages, you’ll have the option to Add a New Page or delete a page you previously planned to upload Back to Top Track the Status of Your Documents When you upload documents to the ATBS Hub, each document will fall into the “Received” or “Posted” category and be labeled with a status to tell you where it's at. Here is what each of those statuses means: Received Submitted Your document has been successfully uploaded to the ATBS cloud server. There is no need for you to resend your document. Working On It Your document has been received by ATBS. There is no need for you to resend your document. Still Working On It Our team is reviewing the document and will get it to the appropriate department soon. There is no need for you to resend your document. Posted All Done! All done! Your document has been posted to your P&L. Back to Top Hub Message Center Tap the Menu button from the home screen in the top left corner Tap the Messages tab to view your conversations You will also receive a notification on the home screen when a new message is available From there, select an existing Message to view it Back to Top View P&L Tap the Menu button from the home screen in the top left corner Click on “Financial Performance” from the Menu and select “Profit & Loss” Your Profit & Loss can also be accessed by clicking on “YTD Revenue”, “YTD Expenses”, and “YTD Profit” from the home screen Select the year and period of time you want to view your P&L data You can toggle between viewing your P&L data in charts or tables by selecting the matching icon on the top right of your screen In the chart, the green check indicates the areas where you are performing in the top half of ATBS clients and the red exclamation point indicates the areas where you are performing in the bottom half of ATBS clients Back to Top   View Profit Plan Tap the Menu button from the home screen in the top left corner Click on “Financial Performance” from the Menu and select “Profit Plan” If you have not created a Profit Plan with your Business Consultant, reach out to schedule a time to do so Back to Top View Quarterly Tax Estimate Voucher Tap the Menu button from the home screen in the top left corner Click on “Tax” from the Menu and select “Quarterly Tax Estimates” Select a year and tax quarter and click “Apply” A PDF of your tax estimate will be downloaded to your device If you need to make a payment, click on “Make IRS EFTPS Payment” to be redirected to the IRS website Back to Top View Your Tax Returns Tap the Menu button from the home screen in the top left corner Click on “Tax” from the Menu and select “Tax Returns” Select a tax return and click “Apply” A PDF of your tax return will be downloaded to your device Back to Top Logout of the App Tap the Menu button from the home screen in the top left corner. Click “Log Out” Back to Top Frequently Asked Questions  How do I know if you've received my documents? Answer: Within 72 hours the status of your document should update to "Working on it". In most cases, the status will update within the hour.  Can I use multiple devices? Answer: Yes! Your data (such as Per Diem) will sync between devices.   How do I log Team Driver Per Diem? Answer:  We currently do not support logging separate drivers per diem, but we are looking into it.   What does "Still Working" mean? Answer:  This status means we need a little additional time to process this document.  I have an idea for a new feature, what's the best way to tell you? Answer: That's great! Send us an email at info@atbs.com I never got my reset password email?  Answer: Please check your spam folder. If it’s not there, please contact your Business Consultant

Owner-operators are not just responsible for calculating and paying their own taxes , they’re also responsible for deducting expenses, which can significantly lower their tax burden. Because of this, we often get asked about the common tax deductions that owner-operators can take advantage of. In this article, we will help answer this question by discussing some of the most overlooked owner-operator truck driver tax deductions. Are you a self-employed truck driver who needs help with your taxes? Click here! Insurance Business-related insurance can be deducted as a business expense. This could include cargo insurance, physical damage insurance, bobtail insurance, etc. Some health insurance related expenses can also be deducted. Meal Expenses The Per Diem deduction is a tax deduction that the IRS allows to substantiate ordinary and necessary business meal and incidental expenses paid or incurred while traveling away from home. The current rate (as of October 1, 2024) is $80 per day and $60 per partial day in the Continental US. You may see the deduction amount quoted as $64 per full day and $48 per partial day. That is because the IRS only allows you to deduct 80% of the Per Diem rate. If you are an owner-operator, the rule is simple, you get to claim the tax deduction for each day that you are away from your “tax home”. On the days that you depart and the days that you arrive at home, you must claim a partial day allowance instead of a full day allowance. That is ¾ of the standard allowance. However, you can't claim the deduction if you depart and arrive home on the same day. Fuel and Travel Any of the fuel costs that you face on the road along with any of the fuel taxes you have to pay when filing your quarterly IFTA report are tax deductible. You can also claim other fees like tolls and parking if they are incurred while traveling for work. Truck Supplies Many of the truck supplies that you need can be deducted, lowering your taxable income. A few examples of the supplies that can be deducted are: Chains Fire Extinguisher Ice Scraper Coffee Pot Microwave TV Refrigerator Mattress If the supplies are common to your profession and appropriate or helpful in developing or maintaining your business they can be considered tax deductible. Trucking Business Fees Any expense that is directly related to your business can be deducted when it comes time to file your taxes. Some of the more common trucking business fees to make sure you remember are: Dispatch Fees Licensing Fees Subscriptions Association Dues Factoring Fees Bank Fees Remember, all of these have to do directly with your trucking business. That means subscriptions, associations, or any education that is outside of trucking can’t be deducted. Medical Expenses Truck drivers are required to get regular DOT medical fitness exams in order to maintain their CDL. You can deduct the cost of these exams as a business expense. Any medical exams or treatments that are not directly work-related are only deductible as personal expenses, not business, and you can only claim them if you itemize your deductions. Maintenance Generally, if a maintenance repair makes the equipment better, restores the equipment back to its normal condition, or modifies the property for a new or different use, then the expense can be depreciated over several years. Maintenance expenses that don’t fall under these categories can be deducted in full in the same year the expense was paid. A few examples of maintenance expenses that can be deducted are: Repairs Parts Labor Oil Tires Tools A simple rule of thumb when it comes to maintenance expenses is “If you repair stuff, you can deduct it”. Office Supplies Office supplies are tangible and traditional items regularly used in offices by businesses or organizations. A few examples of the office supplies that can be deducted are: Calculator Paper Pens Envelopes Stapler Any office supplies that were used during the year that were needed to help run the business side of your trucking operation can be considered tax deductible. Personal Supplies Not all personal supplies are considered tax deductible. In order for personal supplies to be considered tax deductible they have to be ordinary and necessary for operating your business. A few examples of personal supplies that can be deducted are: Uniforms Gloves Motel Boots Showers Reflective Vests Sunglasses Fire-resistant Clothing This is a broad tax deduction category that you will really have to think about. Keeping in mind the words ‘ordinary’ and ‘necessary’ will make it easier to decide whether or not an item is tax deductible. However, items such as shirts and jeans are considered everyday clothing and are not deductible. Communication Similar to the previously mentioned truck driver tax deductions, any technology needed for communication in order to run your business can be considered a deductible expense. As a truck driver, there are many methods of communication that you will be able to deduct from your taxes. A few examples of communication that can be deducted are: CB Radio Electronic Logging Device (ELD) Cell Phone Internet Radio Keep in mind that these methods of communication need to be used strictly for business. Non-Deductible Expenses Here is a list of some of the common expenses that aren’t tax deductible: Commuting expenses Clothing that isn't part of your uniform Personal trips Reimbursed expenses Make sure you aren’t claiming these examples or any other expenses that aren’t necessary and ordinary for your business. Want to know more about owner-operator truck driver tax deductions? Keep in mind that there are many other overlooked tax deductions that truck drivers aren’t aware they can take advantage of. For our complete list of owner-operator truck driver tax deductions, check out our Tax Deductions for Truck Drivers List . If you have any questions, give us a call at 866-920-2827.

This week, I’m driving Celeste to the Mid-West Truck and Trailer Show which takes place on February 7 & 8, 2025 in Peoria, Illinois. The show is held each year at the Peoria Civic Center . I have attended it for many years. In the past, it has always snowed, or we have had very frigid temperatures. This year, it seems it will be cold, but sunny. The weather app shows days in the upper 20’s to the mid 30’s. This event brings many organizations looking to showcase a variety of high-quality and innovative technology, which attracts potential buyers attending the show. The show offers a special focus on trucks, trailers, parts, and truck accessories. Also, there will be a vast array of products from various automotive segments, and many will be advertising power and renewable energy. Celeste, my 2022 Freightliner Cascadia, and I will be on-site and available for conversations on fuel efficiency, profitability, and the bottom line. I look forward to seeing you in Peoria, IL at the Mid-West Truck & Trailer Show.

If you are a company driver, you probably receive a paycheck every two weeks. From that paycheck, certain payroll taxes are withheld. These include Social Security, Medicare, as well as state and federal taxes. However, when you make the move to becoming an owner-operator, you become entirely responsible for calculating and paying your own taxes. What is Self-Employment Tax? In 1935, the United States government passed the Federal Insurance Contribution Act, which most of us know as FICA. This tax was created so that there would be funding for both Social Security and Medicare. This tax amounts to 15.3% of taxable income. Half of the tax is paid by the employer and the other half is paid by the employee. So what happens when someone is self-employed and there is no employer contribution? In 1954 the Self-Employment Contributions Act (SECA) was passed. What is now referred to as the self-employment tax, made it so that anyone who is self-employed would be solely responsible for the entire 15.3% tax payment. What makes up the Self-Employment Tax? We have already established that the self-employment tax will be made up of 15.3% of your taxable income, but let’s break it down a little further. This tax is made up of two different parts. The first is for Social Security which is 12.4%. What many people might not know is that there is a maximum income that can actually be taxed for Social Security. In 2025, the limit is $176,100, which is up from $168,600 during the 2024 tax year. The second part of the self-employment tax covers Medicare. This is made up of 2.9% of your taxable income. Unlike Social Security, there is no limit to the amount of income that can be taxed by Medicare. In fact, Obamacare actually added an additional 0.9% Medicare surtax to any income over a certain amount. If you are married filing jointly, the added surtax would be applied on anything over $250,000 and if you are married filing separately, the added surtax would be applied on anything over $125,000. For all other taxpayers, the surtax would start at any income over $200,000. How to File Self-Employment Taxes? Anyone who claims self-employed income on their tax return will be required to file a Schedule C on Form 1040. This is how you will calculate your net self-employment income. Once you have determined your net income (or loss), if your net income is over $400, you will use this number on Schedule SE of your Form 1040. This will allow you to find out how much self-employment tax you will be required to pay for the year. If you file a joint tax return with your spouse, and they are self-employed as well, then you will both need to calculate self-employment taxes separately. Some of the rules can get a little tricky, so it’s best to call a tax expert to help guide you through the entire process. Filing Estimated Taxes When Self-Employed As a self-employed owner-operator, you’re not only responsible for paying your self-employment taxes, but you’re also responsible for paying estimated taxes each quarter. If you are an ATBS client, then we do most of this legwork for you. We will calculate the amount you owe based on your actual income or with a safe harbor estimate. Then, all you need to do is make your payment each quarter. This helps to simplify your life, allowing you to spend less time figuring out how much you owe, and more time getting back to doing what you love. The Bottom Line Deciding to make the jump from life as a company driver to becoming an owner-operator is a big step. While the rewards can be great, it also comes with more responsibility. Instead of having your taxes automatically deducted, you’re now responsible for making sure they’re fully paid. If you find the process a little overwhelming, give us a call at 866-920-2827 and let us do the work for you!

1. Work With a Trucking Tax Professional Running a business is difficult. It’s even harder when you’re on the road driving all day. Having someone who can help you run the business side of trucking can be a big asset. Don’t work with just any accountant - work with tax professionals in the trucking industry. Learn More 2. Keep Your Accountant Updated If you’re working with a tax professional, make sure you’re keeping them updated throughout the year and not just at tax time. If there are any big career changes or personal life changes, make sure you’re letting your tax preparer know so they can plan accordingly when it comes time to file your taxes. Learn More 3. File on Time Even if you cannot pay taxes owed, filing your tax return on time is the best course of action. From the first day after the filing deadline, the IRS will assess a penalty if you fail to file your taxes on time. Learn More If you’re an owner-operator that’s tired of handling paperwork, ready for more free time, and wants to pay less in taxes, click here to get started ! 4. Pay Your Taxes Quarterly If you fail to pay your quarterly estimated taxes, you will be faced with a large one-time tax payment when you file your taxes. Additionally, you may be charged a late payment penalty. Learn More 5. Start Your Taxes Early Starting your taxes early eliminates the stress of the impending tax deadline and gives you time to plan, rather than rush around the deadline. Learn More 6. Stay Organized Throughout the Year Keep track of all of your finances and documents throughout the year. This gives you the best chance of paying as little as legally possible to the IRS. It can be stressful and inefficient to try and chase down all of your tax information when it comes time to file, and it may cause you to misplace important tax information. Learn More 7. File as the Correct Type of Business Depending on the level of consistent income, it may be a tax advantage for an LLC to elect to be taxed as an S-Corporation. However, if that income level is not high enough, an LLC electing to be taxed as an S-Corporation may cost more than the savings received in taxes. Learn More 8. Get Caught up if You’re Behind It is never a good idea to avoid filing your taxes. You may think that you can sidestep these responsibilities without too much consequence, but the truth is you will be penalized. The taxes owed will not go away, and your debt to the IRS will grow every day you fail to file. Learn More 9. Take Advantage of Your Tax Deductions A tax deduction happens when you have a tax-deductible expense or an exemption. This reduces your overall taxable income. Learn More 10. Take Advantage of Your Tax Credits Tax credits work very differently than tax deductions. Tax credits will reduce your tax liability instead of reducing taxable income. Learn More 11. Accurately Track Your Per Diem Per Diem (per day) is one of your largest tax deductions as an owner-operator, but what is it exactly? In its simplest terms, the Per Diem deduction is a tax deduction that the IRS allows to substantiate ordinary, and necessary, business meal and incidental expenses paid, or incurred while traveling away from home. Learn More 12. Choose the Correct Tax Filing Status As a married taxpayer, you have two choices: Married Filing Jointly and Married Filing Separately. Generally, Married Filing Jointly will work out better for a taxpayer, but not always. Learn More 13. Keep a Tax Calendar As a self-employed truck driver, there are many tax deadlines you have to be aware of, aside from just the tax filing deadline. Make sure you’re keeping a tax calendar so you’re filing your taxes and making your quarterly estimated tax payments on time. Learn More 14. Maintain Good Bookkeeping Habits Bookkeeping allows you to understand your business and keep track of your revenue and expenses all year. This reduces the chance of errors during tax season since you won’t be scrambling to do your bookkeeping all at once. This way, you can also find all the legal deductions you are entitled to, so you don’t pay more in taxes than you have to. Learn More 15. Keep Up With Tax Law Changes Make sure you’re staying up to date on the significant changes that happened over the year that could affect your tax return. You could miss out on tax savings or make a mistake on your return if you aren’t paying attention. Learn More 16. Keep Your Documents It is recommended to keep your tax documents for at least seven years. This includes any receipts, forms, and statements related to income, deductions, and credits. If the IRS conducts an audit and you don't have documentation to back up your tax claims, it can be extremely difficult to prove that the agency made a mistake. Learn More 17. Amend Your Taxes if Needed You should file an amended tax return to correct errors or make changes to your original tax return. For example, you should amend to change your filing status or to correct your income, deductions, or credits. Learn More 18. Contribute to Your Retirement Funds Contributions that you make towards a traditional IRA are considered tax deductible. In 2025, you can contribute up to $7,000 per year across all IRAs in your name and if you are over the age of 50, you can make an additional $1,000 contribution for a total of $8,000 per year. Learn More 19. Extend Your Due Date if Needed Filing an extension is a great option to avoid penalties and late fees. It’s important to remember that just because you file a six-month extension, doesn’t mean you have an extension on paying any taxes that you owe. Learn More 20. Know Whether to Itemize or Take the Standard Deduction Although it’s rare, when your itemized deductions exceed the standard deduction, it may be beneficial to itemize your tax deductions. This could include expenses such as mortgage interest, charitable contributions, and state and local taxes. Learn More 21. Understand Depreciation and Section 179 Section 179 doesn’t increase the total amount you can deduct, but it does allow you to get your entire depreciation deduction in one year, rather than taking it a little at a time over the term of an asset’s useful life. Learn More 22. Properly Calculate the Child Tax Credit One of the most important tax credits for parents is the child tax credit. Starting in tax year 2018, the child tax credit gives parents a $2,000 tax credit for each child dependent. Learn More 23. Ask Questions As an owner-operator, you have mastered the art of driving a truck. However, you may not be an expert on filing taxes, and that’s OK! Don’t be afraid to reach out and ask questions to trucking industry tax professionals on things that you are unsure about. Learn More 24. Don’t Believe Myths There are many tax myths you might hear on the radio or while at the truck stop. If it sounds too good to be true, it probably is. Make sure you are working with a trusted tax professional who will be able to clear up any confusion you might have on things you hear while out on the road. Learn More 25. Keep Taxes in Mind Throughout the Year The best way to file your taxes on time and save money is to keep taxes in mind throughout the year. The best way to do this is by working with a tax professional like ATBS. At ATBS we work with you throughout the entire year, not just at tax time. If you dread paperwork, let ATBS handle it for you with just the touch of a button via the ATBS Hub ! Once you send off your receipt or settlement statement, you no longer have to worry about it. We will then take the financial documents you send via the ATBS Hub and organize them. Then when it comes time to file your taxes, we will have everything we need to do it quickly and easily. Because of this, ATBS finds missing deductions for over 90% of their clients! If you’re an owner-operator that’s tired of handling paperwork, ready for more free time, and wants to pay less in taxes, click here to get started !