A truck or trailer is a major investment for an owner-operator. How you acquire that equipment affects how you deduct its cost. Before signing an agreement, understand whether you are buying equipment or renting it—and remember that a tax deduction reduces taxable income, rather than reducing your tax dollar for dollar. Purchased tractors and trailers have [...]
Over-the-road truck drivers who operate as independent contractors may not have access to an employer-sponsored retirement plan, but they have several options for building retirement savings while potentially reducing their taxes. Let’s dive into these retirement account options below. Traditional IRA A traditional individual retirement account is one of the simplest ways to begin saving for [...]
Hey Abe, as a truck driver, what kind of clothing can I deduct? Certain protective gear and qualifying uniforms may be deductible when they are ordinary and necessary for your trucking business and are not suitable for everyday wear. Common examples in the trucking industry include high-visibility vests, protective work boots, work gloves, safety glasses, coveralls, [...]
Thank You for Going the Extra Mile! National Truck Driver Appreciation Week gives us an opportunity to recognize the hardworking men and women who keep America moving. As an accounting firm serving over-the-road truck drivers, Abacus! has the privilege of working with drivers throughout the year. We see more than the miles you drive. We see [...]
Opening your mailbox and seeing a letter from the IRS can be stressful. The most important thing you can do is read the notice and respond by the deadline. Ignoring it can result in additional penalties, interest, or collection action. Here are some of the most common federal tax notices and what they mean. 1. CP2000 [...]
Hey Abe, I’m thinking about taking out a loan to buy a truck for my business. How does this affect my taxes? Great question! Taking out a business loan can provide the cash needed to purchase equipment, cover operating expenses, or grow your business. Receiving loan proceeds usually does not create taxable income. Likewise, payments made [...]
Over-the-road drivers work hard for every dollar, and no one wants to pay more tax than they have to. If you file as a sole proprietor, your tax starts with your profit. Profit is what is left after business expenses. That means keeping good records can save real money. Tracking fuel, tires, repairs, insurance, permits, tolls, [...]
Hey Abe, what happens if I don’t file my tax return? Great question! One of the most common tax mistakes taxpayers make is failing to file their income tax return. It can lead to severe consequences. The IRS can file a substitute tax return on your behalf. When this happens, the IRS will generally mark you [...]
Hey Abe, what are the benefits of creating an IRS Online Account? Great question! Creating an IRS Online Account can be a smart move if you want an easier way to access important tax information, make payments, review past tax records, and stay organized throughout the year. Think of your IRS Online Account as a secure [...]
The One Big Beautiful Bill Act, signed into law on July 4, 2025, introduced a new savings opportunity for families: Trump Accounts. Launching July 4, 2026, parents, guardians, and other authorized individuals will be able to open these child-owned retirement accounts to help invest for a child’s future. As with any new financial tool, it’s worth [...]
