Find out how to avoid the most common mistakes that can cause you problems and cost you money in your taxes if you make a mistake in choosing a tax professional:
- Mistake # 1: Not choosing the Best Truck Driver Tax Service
There are many tax preparers available, but very few are aware of the tax law that covers the transportation sector. There are tax preparers who work only seasonally and unfortunately, the experience they may have in tax preparation could be counterproductive for a truck driver.
Travel expenses, which apply to independent truck drivers, can be a strange concept for those who do not understand the taxes on this industry. Owner-operators are eligible to receive a deduction per day. Remember that the deduction per day can result in thousands of dollars in tax savings
Truckers should make sure they have a trustworthy tax preparer, who can show solid knowledge about the industry, and most of all about the law that applies to the sector. For example, when the food credit is applied. Your tax preparer should know how much credit you are entitled to. Also, he should know about the latest changes in the law.
- Mistake # 2: Incorrect presentation of your business expenses
As a trucker, if you do not hire the services of a tax professional who specializes in the trucking industry, this may NOT include expenses from your transportation business, which you would be entitled to claim. Also, if you claim expenses over the limit, this could result in an audit signal and cause problems with the IRS.
A tax preparer for truck drivers is generally one who prepares your tax return with minimal exposure to audits.
- Mistake # 3: Listening and sharing with other truckers
Truckers often talk to other people at gas stations, on CB radio, or in truck driver chats on Facebook, where tips on accounting and taxes are shared. However, you must remember that most of these people lack of tax knowledge and many times we receive wrong information.
The most advisable thing is to trust the tax professionals specialized in the transport sector. Jagg Tax Solution, Inc. offers advice and guidance on taxes, accounting, and representation for solving tax problems with.