Search Results

2016 income data for owner-operators reveals dips in revenue and take-home pay, despite driving more miles. Here's what each segment averaged in 2016. READ MORE

Net income for leased and independent owner-operators dipped about $255 in the first half of 2017 compared to the same period a year ago, according to ATBS, the nation’s largest owner-operator business services firm. READ MORE

LAKEWOOD, COLO. – January 11, 2018 – In December of 2017, Congress passed the "Tax Cuts and Jobs Act" bill, which resulted in several significant changes to U.S. tax code. As the leading tax and accounting company for owner-operator truck drivers, American Truck Business Services has developed The Owner-Operator’s Guide to The Tax Cuts and Jobs Act of 2017, an in-depth analysis of how the tax reform bill will affect truck drivers. This comprehensive guide is focused on topics such as per diem, the Affordable Care Act “individual mandate” penalties, child tax credits, child support and alimony deductions, and more. Follow the link below to download a copy of this eBook: The Owner-Operator’s Guide to The Tax Cuts and Jobs Act of 2017 www.atbs.com/2017-tax-reform In addition to the eBook, drivers are encouraged to attend a live conference call to hear ATBS tax and trucking experts explain the new tax code. The conference call details are as follows: How Will The Tax Cuts and Jobs Act of 2017 Affect Me? Wednesday, January 24, 2018 9 a.m. Central | 12 p.m. Eastern Click Here to Register The information provided in the eBook and conference call should help alleviate some of the confusion and misconceptions associated with these recent tax code changes. About ATBS American Truck Business Services (ATBS) is the largest tax, consulting, and bookkeeping firm in the transportation industry, with 20 years of experience working with owner-operators and independent contractors. Since 1998, ATBS has helped over 150,000 clients earn more money, reduce stress, and drive a richer life. In 2016, ATBS developed the RumbleStrip line of service packages, which includes back-office solutions for truck drivers in every stage of their careers. For more information, visit www.ATBS.com. ###

The goal of the Tax Cuts and Jobs Act was to help simplify the entire tax filing process. Unfortunately, many of the changes added an extra layer of complexity. This article from DAT.com will hopefully clear up some of the questions you might have surrounding the changes to the IRS tax code. READ MORE

Project Sanctuary, a nonprofit providing hope and healing for thousands of military families across the country, raised over $250,000 at its third annual gala, held May 18 at Colorado University South Denver Campus. The Operation Project Sanctuary (O.P.S.) Gala, presented by Aimco Cares and First Command Financial Services, drew nearly 300 guests from around the country. READ MORE

Leased owner-operators naturally have liked longer hauls with less wasted time delivering and picking up. But in the end, we’ve moved to a world where revenue per hour or day is the metric that matters, not so much miles anymore. If shipments are aligned to maximize daily productivity of the driver, they will cost more with the ELD mandate, and everyone being able to track the data of wasted time. READ MORE

The high-demand year that trucking enjoyed for most of 2018 produced strong rate hikes that translated well to owner-operators net income. On average, owner-operators earned a higher net income while running fewer miles. "It was a record year in many areas and a great year to be an owner-operator," says Todd Amen, ATBS CEO. READ MORE

Owner-operators in 2018 on average earned $65,360 in take-home pay for the year — a record-high income for a segment that saw a big boost from strong economic growth and robust per-mile rates. However, miles dropped 5.8 percent to 103,800 — the lowest average miles on record for owner-operators. These averages come from ATBS and is based on more than 15,000 leased and independent owner-operators. READ MORE

by Todd Amen, ATBS President and CEO Throughout the year, ATBS tracks and analyzes income and mileage trends from our owner-operator clients. We’ve noticed there is some discontent right now amongst both owner-operators (O/Os), and the trucking industry in general. We sense it’s the result of a normal (slower) first quarter versus the gangbuster year we experienced in 2018. It will be nearly impossible to beat the benchmarks set in 2018 because it was such an extraordinary year! In the first quarter of this year, O/O miles overall were down almost 2,000 miles (down 7.3%) vs Q1 2018. This reflects the softness O/Os are feeling in the market. However, revenue per mile was actually up 8 CPM (up 5.2%) in Q1 2019 vs Q1 2018. So, net/net, total overall revenue for Q1 2019 is down $967 (down 2.5%) vs Q1 2018. Regarding specific operating segments, revenue is down 5.2% in the Flatbed segment and down 1% in the Reefer segment. The Dry Van segment is on par with the average. Bottom line results show net income is down $240 (down 1.5%) in Q1 2019 vs Q1 2018. The Refrigerated segment is performing strongly year-over-year with net income up $959 (up 7.6%). Both the Dry Van and Flatbed segments show net income down approximately 4% (down approximately $650). We believe the key to having a successful 2019 is realizing the world has changed. 2018 was all about revenue generation whereas 2019 will be more about the cost side of the business. For 2019, we anticipate lower miles and rates compared to last year. So, don’t be overly picky on loads; take what you are offered if it provides reasonable revenue. It’s far better to generate revenue and contribution margin than sitting and digging a hole with business and personal fixed costs building up. At the same time, have a razor-sharp focus on the cost side of your business. If you generate a dollar of revenue, only a fraction of that dollar makes it to your pocket as profit. If you cut a dollar of cost, 100% of that dollar goes in your pocket. You can save $5000 on fuel alone if you manage it properly. For a reminder on tips to save on fuel costs, click here. The message for 2019 is fairly simple. While things might not be quite at the level they were in 2018, the fact remains this is one of the best times ever to be an owner-operator. You became an owner-operator for a reason; to be in control of your life and in charge of your own business. Just make the necessary adjustments and your bottom line will remain strong in 2019!

LAKEWOOD, COLO. - June  6, 2019 - Preliminary data based on over 3,000 tax returns indicate that the Tax Cuts and Jobs Act had an overall positive impact on owner-operators in the trucking industry. ATBS has observed the following statistics related to how owner-operators fared on 2018 taxes. First, the average owner-operator’s taxable Adjusted Gross Income (AGI) went from $43,093 in 2017 to $52,180 in 2018. This was an increase of $9,087 or 21%. The increase was predominantly related to a booming year in the transportation industry. During the same time, the average owner-operator Total Tax Liability went from $8,242 (2017) to $9,284 (2018).  This was a much smaller increase of $1,042 or 12.6%. The overall effective tax rate for owner-operators went from 19.1% (2017) to 17.8% (2018) or a reduction of 1.3%. The net result is that owner-operator taxable income increased 21% while actual tax liability increased only 12.6%.  Following are some of the specific reasons for the reduction in owner-operator tax liability. 68% of ATBS owner-operator clients took advantage of the Qualified Business Income deduction with an average of $6,235 being deducted from their tax liability.  This was a new deduction for 2018 as a result of the Tax Cuts and Jobs Act. The average client’s Standard Deduction went from $9,439 to $18,862. The number of drivers filing the standard deduction increased from 71% to 94%.  The Tax Cuts and Jobs Act essentially doubled the standard deduction for most tax filers. The average owner-operator depreciation deduction increased from $17,072 (2017) to $20,965 (2018). The significant increase in depreciation was a result of the Tax Cuts and Jobs Act allowing faster depreciation methods than prior years. The only negative consequence of 2018 taxes was the number of drivers that paid the Affordable Care Act’s individual mandate penalty.  In 2018, 28% of ATBS clients paid the penalty with an average penalty amount of $1,027. However, this mandate will no longer be in effect for 2019 taxes. Overall, statistics from ATBS show that owner-operator clients enjoyed a mostly positive impact from the changes that came with the Tax Cuts and Jobs Act. Owner-operators who would like help with taxes and bookkeeping are encouraged to call ATBS at 866-920-2827. About ATBS American Truck Business Services (ATBS) is the largest tax, consulting, and bookkeeping firm in the transportation industry, with over 20 years of experience working with owner-operators and independent contractors. Since 1998, ATBS has helped over 150,000 clients earn more money, reduce stress, and drive a richer life. In 2016, ATBS developed the RumbleStrip line of service packages, which includes back-office solutions for truck drivers in every stage of their careers. For more information, visit www.ATBS.com. ###

*UPDATED 7/21/2020 LAKEWOOD, COLO. - [August 14, 2019] - The IRS will begin using form 1099-NEC (Non-Employee Compensation) once again during the 2020 tax year. In 1983, the IRS started requiring businesses to file Form 1099-MISC for contract workers such as owner-operator truck drivers. Now the IRS is reverting back to form 1099-NEC. The revival of this form is related to the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), which requires businesses to file information returns about any non-employee compensation by January 31 of each year. This resulted in problems with the IRS’ processing systems because there was still a due date of March 31 for any 1099-MISC forms that didn’t contain non-employee compensation. To simplify this, the new Form 1099-NEC contains an extra box and a single due date. Click here to view a draft of the form, available on the IRS website. Fleet owners are advised to take note of this change, as it will require them to issue a different form to their owner-operator independent contracts likely beginning with 2020 income. ATBS will continue to share additional information about this change as it becomes available. About ATBS American Truck Business Services (ATBS) is the largest tax, consulting, and bookkeeping firm in the transportation industry, with over 20 years of experience working with owner-operators and independent contractors. Since 1998, ATBS has helped over 150,000 clients earn more money, reduce stress, and drive a richer life. In 2016, ATBS developed the RumbleStrip line of service packages, which includes back-office solutions for truck drivers in every stage of their careers. For more information, visit www.ATBS.com.

LAKEWOOD, COLO. – March 6, 2020 – During the Truckload Carriers Association’s Annual Convention, clients of ATBS won awards in two categories. Ed and Tracy Zimmerman, team drivers for Hirschbach Motor Lines, Inc., were named the 2019 Highway Angels of the Year, also known as EpicAngels, during the Truckload Carriers Association’s Annual Convention. The award is given each year by the Truckload Carrier Association and its partner Epicvue. Ed and Tracy Zimmerman assisted in the rescue of a man trapped in his vehicle that was upside down, in a ditch, and on fire. When Tracy first noticed the vehicle, she immediately stopped the truck and positioned it in a way to block traffic. She and Ed grabbed their fire extinguisher out of their truck and ran quickly to the scene. As one person used the fire extinguisher to keep the flames back, another used a crowbar to smash the passenger-side window. Ed, Tracy, and two other men pulled the trapped driver free and carried him from the vehicle moments before it exploded. Ed and Tracy were unharmed while the driver sustained serious injuries but is expected to survive. The Zimmermans have been ATBS clients since 2009. On the same night, Kevin Kocmich, an owner-operator with Diamond Transport System, was named the 2019 Owner-Operator of the Year by the Truckload Carriers Association and Overdrive. This was Kevin’s fourth straight year being nominated for the award and first time winning. Kevin is based out of Litchfield, Minnesota, and has been leased to Diamond Transportation since 2014. He averages about 115,000 miles per year while hauling mostly oversized and overweight freight. Kevin has driven more than 3.7 million accident and violation-free miles. He drives with his wife Joy and they stay on the road for two to three months straight before spending a week or two at home. Kevin also participates in the Trucker Buddy program, a program that connects elementary school classrooms with truck drivers in order to help kids learn about different school subjects through the scope of trucking. Kevin Kocmich has been an ATBS client since 2018. “Being able to attend the TCA Convention and personally see these awards given out to the Zimmermans and Mr. Kocmich is a humbling experience. They are such awesome people who represent our industry and their profession so well. We are honored to serve them as they continue to be among the top professional drivers and business owners in the industry,” said Todd Amen, President of ATBS. ATBS is proud and honored to assist such accomplished drivers with their trucking business needs. About ATBS American Truck Business Services (ATBS) is the largest tax, consulting, and bookkeeping firm in the transportation industry, with over 20 years of experience working with owner-operators and independent contractors. Since 1998, ATBS has helped over 150,000 clients earn more money, reduce stress, and drive a richer life. In 2016, ATBS developed the RumbleStrip line of service packages, which includes back-office solutions for truck drivers in every stage of their careers. For more information, visit www.ATBS.com.