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Anne
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2396
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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My husband just bought a big rig and I is contracted with a

Customer Question

My husband just bought a big rig and I is contracted with a company, he drives in about 20 states. I would like to know what I need to keep track of for tax purposes.

Also he hires helpers to help on various loads, he pays these guys cash. How would we write this off in our taxes? Should we be issuing 1099's for these guys? or is there another way to write off labor?

The company had his apply for a tax id number. If the company still basically under his name, not a company name? When tax season comes would we file taxes together, or does he have to incorporate to do taxes independently, what would be better?
Submitted: 3 years ago.
Category: Tax
Expert:  Anne replied 3 years ago.
Hi

Thank you for using justanswer.

I'm not really sure why it was suggested that your husband get a tax ID # (although it won't hurt anything)

That's generally something you need if you are going to be some sort of Corporation, Partnership, etc. It is something he doesn't have to do, and frankly I can see no advantage to changing his status away form Sole Proprietor at this time.

Sole Proprietors are the easiest way to file a business, since unlike Corps and Partnerships, they do not need a separate filing. The Schedule C is part of your personal tax return.

You will absolutely want to file jointly, if for no other reason that he gets to claim an exemption for you.

Form 1040 (Schedule C)

As for deductible expenses, You need to keep track of EVERYTHING.

First, your husband must keep track of his mileage (which should be in log books), along with receipts of anything and everything that he purchased to use on the truck.

I'm referring you to a list of deductions for truckers, since it would be easier to read it there than for me to make such a long list on your answer. Please see below:

 

http://www.saylersaccounting.com/Taxtips/TRUCKEREXPENSESLIST.pdf

If your husband pays one (or more than 1) helpers more than $600, then yes you and or your husband must send those wokerd 1099

Please let me know if you need any clarification, or if you just have a follow up question.

I truly hope this information is helpful but please do not rate until you are satisfied. If you want to click on 1 or 2 just click on the continue to work with me button instead. You will then be able to add any other info or respond to what I have posted so far. Rating 3-5 gives me credit and a good rating but you can still converse with me.