Tax Reform and the American Trucker
6PM ET Call in 347-826-9170
Join us and special guest Dennis Bridges, as we discuss Everything Truckers Need to know about the 2018 Tax reform bill. Dennis is a CPA, a best-selling author, and Executive Director of eTruckerTax. Mr. Bridges has been in practice for over 30 years, and for the past 25 years has specialized in assisting transportation professionals.
The long awaited tax reform bill was finally passed December 2017. Corporations will see huge decreases in their taxes reducing the U.S. corporate tax rate to 21% from 35% and the standard deduction for ALL taxpayers will nearly double.
For many company truckers, all this may mean higher wages, by either paying less taxes ( being in lower bracket) or by receiving a raise from their employer. (Companies are getting a huge tax cut, they'll pass it on to their employers ??) Owner Operators are also expecting to see their bottom lines increase significantly.
Truckers have many questions however about the new bill, Among the most concerning, is the question about standard deductions.Although the standard deduction for all taxpayers nearly doubles (Single taxpayers, from $6,350 to $12,000. Married tax payers filing jointly, $12,700 to $24,000), under the new law, there will be no deduction allowed for work-related expenses for company drivers,or all other employees paid on a W-2. That includes company driver per diem deductions.
Owner Operators will also need to make sure they are set up properly in order to take advantage of tax cut bill's new 20 percent deduction on net business profits, known as “pass-through entities.”