With 2015 now getting underway and the deadline for your 4th quarter estimates just having passed, there are some important things to remember about this time of year. Of course there are obvious things such as winter driving, fuel gelling, and carrying chains for the cold winter weather, but one thing you also need to remember that that is equally as important is that you will soon be receiving important forms showing the amounts of money you earned last year. You will soon need to gather these forms together and get ready to prepare taxes for your business and yourself.
Starting this month, employers and carriers will be sending out earnings statements for 2014 to all of their employees and contractors. Whether your earnings arrive in the form of a 1099 or a W-2 withholding form, you will need to make sure to have these documents ready for tax time to give your accountant or tax preparation service an exact form of documented accountability for your earnings last year. Compare it to your year-to-date earnings on your settlemets or paycheck stubs for accuracy and file it in a secure place (safe, file cabinet, etc.). There are a few other forms that you will want to make sure to start gathering soon as well. Write-offs for business related exenses are very important to have to help offset your tax liability as well. Here are a couple of categories you might want to look at if not already doing so for your business if they apply:
- Car Expenses – Used solely to commute to and from the yard where I park and for parts trips to the dealer, etc. (either mileage deduction or lease payment w/ fuel purchases). For me, this is significant, as I park my rig nearly 40 minutes from where I live and commute daily to it.
- Health Insurance Premiums - With the rising costs of health insurance, you want to make sure you are getting to write off as much of those monthly premiums as you can.
- Home office expenses and square footage dedicated solely for its use - Expenses incurred such as electricity and rent/mortgage can be used in direct percentage relation to how much square footage is used, but your home office square footage must be only for business use.
- Medical expenses - Can sometimes be included if over a certain percentage of your income. Example: major inpatient surgery, new baby, etc.)
These are just a few of the basic extras I start to gather to make my life a little easier as I approach my appointment with my bookkeeper to settle up for the year. Getting it all together, going over it with a tax preparer, and knowing what you owe early in January or February can save you the anxiety of waiting until April 14th to to file last-minute. A great guide to learning tips like these, as well as how to get the most out of your business as an owner-operator, is the book “Build Your Business: An Owner-Operator’s Guide to Success” from ATBS. It gives some of these tips and many more to help you make sure you are reducing your tax liability as much as possible, keeping more of your hard-earned dollars for yourself. If you are serious about becoming a more successful owner operator, be sure to contact the nice folks over at ATBS at (888) 640-4829. Considering the amount of overhead and taxes involved in our industry, it is of the utmost importance to be informed and ahead of the curve and enlisting their services is a tiny investment to help make sure you are on the right track to success.
“Remember, action today can prevent a crisis tomorrow.” ― Steve Shallenberger, Becoming Your Best: The 12 Principles of Highly Successful Leaders