Did you know that there are currently more than 1.6 million Americans working as truck drivers, making it the most common occupation across the country in 29 states? And truckers may be major beneficiaries of the president’s tax reform plan with significant tax changes that may directly affect how much independent contractors and owner operator drivers will pay in taxes.
NEW TAX BILL
On December 2, the U.S. Senate passed its version of the Tax Cuts and Jobs, while the U.S. House of Representatives passed its own version of the tax bill in November. With aspirations to have the bill signed by President Trump by Christmas, a committee of representatives from both houses of Congress are working on a reconciled bill with most changes taking effect for 2018.
Most provisions of the tax bill, if passed this year, are scheduled to take effect January 1, 2018. If it slides into next year, lawmakers could make it retroactive or set a new implementation date.
From tax rates on businesses and individuals, to allowable deductions and expensing of your truck, much of what you know about taxes is changing, so it’s important to be aware of the changes currently consideration. Additionally, the fees and expenses related to trucking that are tax deductible are different from any other industry. That’s why as an Openforce member through our Member Benefits program, we are pleased to extend expert tax services and a special offer through Equinox Business Solutions.
Equinox offers a comprehensive array of business services including bookkeeping, tax, and technology solutions, all which enable Equinox’s team of Professional Tax Advisors to help independent contractors manage their business and adapt to changes in their business fast. With over 12 years of leading industry experience and working with independent contractors across the nation in 48 states—Equinox and its people are the Truck Tax Experts.
Equinox experts are closely monitoring how these changes will impact clients and their trucking operations in 2018. Significant tax changes MAY include:
- You may pay overall lower taxes
- Your tax liability could be capped at 25%
- Your itemized personal deductions may be restricted or eliminated
- The standard deduction for married couples filing jointly may be raised to $24,400
- Your personal exemption may be replaced by a tax credit of $300 per adult
- The child tax credit may be enhanced
- Estate taxes may be repealed for those passing away after 2023
- The amount excluded from estate tax may double
The bottom line is most truckers should see more money in their pockets with the tax rewrite. But with so many changes and unknowns in the works, you’ll want to consult with a licensed tax professional that can help wrap up 2017, and best guide you through these changes in 2018.
Additionally, if you’re an Openforce member and new to Equinox, sign up today, and you’ll receive $50 off your first annual tax filing!
Be sure to mention you’re an ‘Openforce member’ to maximize your contractor discounts and benefits.
Please Note: This blog post does not give nor is it intended to give specific tax advice. Your tax situation is unique, and you should consult with your own licensed tax/accounting professional.