Great question! Side gigs like selling goods online, delivering food, or starting a ridesharing business are common ways people earn extra money. If you have a side gig where you earn income, you’re required to report that income. The question then becomes, is my side gig a hobby, or am I operating my side gig as [...]
Yes, per diem works very differently depending on whether you’re an owner-operator (independent contractor) or a company driver (W-2 employee). Understanding this distinction is critical, because using per diem the wrong way can lead to missed deductions or tax issues. Per Diem for Owner-Operators and Independent Contractors If you are self-employed, per diem is generally taken [...]
It’s a common question for truck drivers, and the answer depends on your situation. Purchasing equipment before year-end can offer a tax benefit, especially if you’re an owner-operator or self-employed, because many business-related purchases may be deductible. That said, the decision shouldn’t be based on taxes alone. If you genuinely need new equipment, have the cash [...]
Great question, and you’re not alone. Many people wonder where they stand taxwise as the year wraps up, especially if their income has changed or they’ve had unexpected expenses. That’s exactly where Abacus! can help. Our Quarterly Estimate Program is designed to give you clarity and confidence when it comes to taxes. We use your actual [...]
Great question. Cash jobs, like helping at a pumpkin patch or running a seasonal delivery route, can seem informal, but the IRS still considers this taxable income. Whether you are paid in cash, by check, or electronically, you are required to report the earnings on your tax return. How Cash Income is Reported The way you [...]
Great question. Per diem is one of the most valuable deductions available to truck drivers, but it is also one of the most misunderstood. Per diem allows you to deduct a set daily amount for meals and incidental expenses while you are away from home for work. To claim it properly, the IRS requires clear and [...]
You heard right—per diem is going up in 2025! Starting in the 2025 tax year, the Department of Transportation per diem rate for meals and incidental expenses is increasing to $80 per full day on the road, with 80% of that amount being deductible. That means $64 per day is deductible, a meaningful bump that can [...]
Great question, and one that trips up a lot of people. Let’s break it down. If you’re making child support payments, those payments are not tax-deductible. The IRS considers child support a personal expense. So, even if you pay a significant amount each month, you won’t be able to claim any of it on your tax [...]
Hey Abe! I am a lease operator, and I know that I’m required to pay my taxes in quarterly estimates. Do I have to file anything for this? Great question! Here’s the good news: While you are required to pay these quarterly estimates, you do not need to file any quarterly state or federal tax returns. [...]
Great question! Filing a tax extension refers to a process by which taxpayers can request additional time beyond the original tax filing deadline to submit their tax returns to the Internal Revenue Service (IRS). In the United States, the standard tax filing deadline for most individuals is typically April 15th each year, unless that date falls [...]
