I'm sitting here starting to get the documents together to file the wonderful cluster known as the Federal Tax Return. Curious to see if y'all use accountants that specialize in trucking to get your deductions, or try to handle it yourself with a software program (or god forbid paperwork)?

If you use an accountant, who do you go with. I've had problems locally with the Walmart of proccessors HR Block and the like. Also, how much does your accountant usually charge?

 

I use quicken and a wife who went to school for accounting :lol:

 

Foglinesoftware has a program for company drivers which helps to keep you organized. They go under the name of TrucknPro or Foglines and is available at some truck stops for about $45 or $50. If you are an owner operator, they have a program for $75. It isn't much money for helping you to stay organized. It is one of the less expensive programs and is very easy to use. I believe they have an online demo. www.foglinesoftware.com. There are some other programs on the market for owner operators. Whether you use an accountant or software, you still need to keep organized. With the right software, you have all of your information available with the stroke of a button. It can also reduce the cost of using an accountant by keeping records organized and up to date.

 

GMAN - Thanks, I wondered if that program was worth the money. My main concern is the actual filing of taxes, however. I've kept all my records, receipts and other financial documents in order and ready to go, I'm really just wondering if I can maximize the amount of deductions available to me by using a CPA that works with truckers (or if that even matters), or just go ahead and file a 1040 on my own like I usually do. This is the first full tax year I've been on the road, so it's become a bit of a different situation... and at first glance at the '05 tax tables, unless I can take some deductions, I'm going to owe Uncle Sam rather than getting a refund.

 

depending on your situation, if you got many dependents, own your home, etc etc etc.... you also made more than $40.000 in a year and have many deductions and expenses from the truck , I would use an accountant to do the math, and their fee is also a tax right off I think.

I try to do my own if I don't have to use the long form because of all the right offs, but it looks better if you got someone else to blame if their is a problem. It's sometimes better to find someone who knows how to add up all your receipts and stuff and do the math for ya and let them prepare your taxes because then IRS won't blink an eye at it and think its all groovy, but if you did it and sent in all your paper work chances are they will want to audit you for something like a simple receipt was left out or something stupid didn't add up right and a red flag stops them in their tracks, so a accountant is nice if you need one.

 

I have been doing my taxes for many years and have done fairly well at the end of the year. I am considering going with an accountant because I am thinking about buying more trucks. I already have a complex tax situation, which I won't go into here, so I can see some value to having someone else do your taxes. Uglymutt is correct in that fees paid to a CPA is deductible, however, unless you don't want to do them yourself, you may just want to go with the software. There are tax software packages like Turbotax which can help you plug in the numbers. If your records are in order, all you only need to do is put the numbers in the correct spot. If you use the software properly, you will have excellent documentation for Uncle Sam. I believe Quicken and some of the other accounting programs work with Turbotax. The problem is that it isn't designed specifically for the trucking industry. One nice thing about the software is that if you put everything in you can easily see what you are spending and where. There could be some areas that you could change spending habits to keep more of your money. I see the software as a way to track personal habits as well as keeping records straight. It isn't that much money, and is also tax deductible. 8)

 

Very much so! It always amazed me at how many of my fellow drivers threw away receipts and other documents, and spent money so casually - wondering why they would always burn through a check in a week with nothing to show for it. While on the road, I was originally keeping tabs on everything in a filing system, but once I got this laptop, I switched into a Quicken like program. I've got some interesting deductions because of my live in "security" (dog) on the truck, plus the government per diem (I made sure not to enroll in the company programs) - It's good to know that I might be able to just handle things myself, since I wasn't looking forward to finding a CPA if I could avoid it.

 

For what its worth, I have filed electronically using the turbo tax program for the last 5 years, with no problem. They have all kinds of software for simple to complex returns. Makes having a laptop almost a necessity if you are OTR.

 

One of the primary advantages to having everything on computer is that you do your books along the way throughout the year and it doesn't pile up on you at the end of the year. You still need to keep all of your receipts, but it sure makes it easier to do a little at a time. As a driver you do have some limitations as to your deductions. Owner operators have much more which may be deducted. I am not recommending that you go out and buy a truck at this point in your career, but just pointing out some differences. There are many things you can deduct while on the road. I mostly use a debit or credit card for all my purchased while on the road. Some banks are set up to work with Quicken. You can import your records over the internet and it is supposed to plug the numbers into the right slot. By using a debit or credit card you have a double method of keeping your records. If you happen to lose a receipt, you still have a record of expenses.

You could always use a spreadsheet, but it is much simpler to use a program specifically designed for the trucking industry. Although you may already be aware of the deduction, the Feds allow you to have a standard deduction which permits you to take a standard deduction without having to worry too much about your receipts. I am not sure what it is going to be this coming tax year, but it was $42/day. You just need to document the number of days out. You can do this by hanging on to your log books. Let us know what you decide. 8)

 

Thanks GMAN. I did a bit of light searching, and if I can figure exactly what the meal allowance is going to be this year (apparently it's undergoing revision until 2008?), I may sit down and file a "dummy return" to see how it works out - if I don't feel like I can get all the deductions that should be allowed to me, then I'll probably try to get ahold of my friends' CPA who's worked with truckers for some 20 odd years and see where I went wrong.