With 2014 now in full swing and most of us braving the weather and slightly slower freight flow, 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 those treacherous storms! The one thing you also need to remember that may not be as obvious are the important forms you will soon be receiving and needing to gather in order to prepare the taxes for your business and yourself.
Starting this month, employers and carriers will be sending out earnings statements for 2013 to all of their employees and contractors. Whether your earnings arrive in the form of a 1099-misc or a W-2 withholding form, you will need to make sure to have these ready for tax time to give to your accountant or tax preparation service. 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. Here are a couple of categories I have started to gather up statements and receipts for that you may want to consider, if you are not already doing so:
- 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)
- Health Insurance Premiums
- Home office expenses and square footage dedicated solely for its use (expenses incurred such as electricity and rent/mortgage can be used in direct relation to how much square footage is used, but office area must be only for business use)
- Student loan repayment interest
- Medical expenses (can be included if over a certain percentage of your income. Example: inpatient surgery, new baby, etc.)
- Credit card statements for “interest paid” record
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. 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 I recently began reading titled “Build Your Business: An Owner-Operator’s Guide to Success” from ATBS. It gives some of these tips and many, many more to help you hang onto more of the money you work so hard for. I have recently commandeered a copy and am about halfway through it, finding even a few new things out that I may have otherwise overlooked and will now make sure I take advantage of. If you are serious about becoming a successful owner operator, be sure to pick yourself up a copy as well by calling 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 this is a tiny investment to help make sure you are. After all, “Fortune favors the prepared mind!” – Louis Pasteur.