how to pay less taxes

HOW TO PAY LESS TAXESOwner-operators will discover important

deductions and commonly overlooked expenses that can lower liability.

ATBSshow.com | teamrunsmart.com

WELCOME

Todd Amen President & CEO of ATBS


ATBS

• Prepare more than 14,000 tax returns/year

• Consult with owner-operators year-round

Trusted Tax & Accounting Experts

for Independent Contractors


Are you handing over too much

money to the IRS?

Almost all owner-operators can significantly reduce the amount of money they hand over to the IRS every year.

INTRODUCTION


• Your Tax Liability• Mis-understood Deductions • Must-Have Tax Credits • Successful Bookkeeping • Successful Tax Strategies • Conclusion & Questions

AGENDA


• Income taxes – Fed and State• Employment taxes – SE taxes if IC• Social Security• Medicare• FUTA & SUTA

• Sales & Excise Taxes• Property Taxes• Fuel Taxes

WHAT TAXES ARE YOU SUBJECT TO?


• Income taxes – Fed and State (W2 or 1099)• Employment taxes – SE taxes if IC (1040)• Social Security• Medicare• FUTA & SUTA

• Sales & Excise Taxes• Property Taxes• Fuel Taxes

HOW ARE THE TAXES REPORTED AND PAID?


Set aside 25-28% of your weekly net income for quarterly taxes.

QUARTERLY TAX ESTIMATES

Quarterly payments include:• Self-employment tax • Federal income tax• State income tax


• Safe harbor - divide prior year tax liability by four to calculate the quarterly tax estimate.

• Actual income - useful for those with a fluctuating income. Calculate your quarterly income and pay based on this amount.

ESTIMATING QUARTERLY TAXES


Collect taxes on their behalf including: • Social security • Medicare • Federal and state income tax

EMPLOYEE TAXES

Do you have employees for your business?


• Do not wait until April 15th - penalties can apply

• Download the ATBS tax calendar at www.atbsshow.com/2014taxcalendar

TAX CALENDAR

Put time on your calendar each quarter to pay tax estimates.

http://www.atbsshow.com/2014calendar


• Truck Lease or Depreciation & Interest• Fuel, Maintenance, & Insurance Costs• Any expense incurred in normal course of business• Download a list of tax deductible items

www.atbsshow.com/tax-and-tax-resolution

COMMON TAX DEDUCTIONS

Minimize tax liability by claiming every legal deduction and credit available:

http://www.atbsshow.com/tax-and-tax-resolution




• Home Office• Out Of Route Miles• Guard Dog • Personal vehicle miles – 56 Cents/mile if used

for business purposes• Medical Expenses• Per Diem

OFTEN MIS-UNDERSTOOD TAX DEDUCTIONS


Per Diem• For meals on the days you are working away from

home. The current rate is 80% of $59/day.• Partial Day Per Diem is 75% • E-log records to count Per Diem days – these can be

used ONLY if you have the full year of e-log records• Download the FREE 2014 ATBS Per Diem Tracking

Calendar www.atbsshow.com/freeowneroperatortools

OFTEN MIS-UNDERSTOOD TAX DEDUCTIONS

http://www.atbsshow.com/freeowneroperatortools




Tax credits can make a significant impact on your bottom line: • American opportunity credit - can reduce tax

liability up to $2,500 for each child in college • Earned income tax credit (EITC) - supplements

wages for low-to-moderate income workers • Child-care and dependent tax credit - a child

must be less than 13 years old or a disabled dependent

MUST HAVE TAX CREDITS


Bookkeeping is Important for adhering to tax deadlines and employing successful tax filing. Records should include all financial transactions• Track Revenue – helps determine profit and

taxes due• Record and calculate expenses - save all

business receipts and record business expenses regularly

SUCCESSFUL BOOKKEEPING


• Know your profit - determines tax liability. (Gross income - allowable business expenses = net profit) • Know the IRS statute of limitations - the IRS

usually grants three years to challenge a deduction or income on your return.

SUCCESSFUL BOOKKEEPING

ATBS recommends saving bookkeeping records for 5-6 years


• Business goals are set when preparing a profit plan (a.k.a. budget)

• A P&L Statement can be used to compare goals to actual performance

ATBS prepares monthly P&L as well as state and federal taxes - which translates to an easy and seamless

tax preparation process.

TRACK BUSINESS PROGRESS


Tax deductions are only allowed if documentation can be provided to support the claims on the return.

Keep receipts, cancelled checks, log books, and other valid proof of payments for a minimum of three

years.

AUDIT PROOF YOUR BUSINESS


Employee Family Members

SUCCESSFUL TAX STRATEGIES

• Retirement contribution deduction• Travel expenses• Child wages deduction


Setting up a business structure could result in significant tax savings. Here are the options:• Sole Proprietor • Partnership • C Corp. or S Corp. • LLC or LLP ATBS recommends setting up an LLC and filing taxes as an S Corp.

CHOOSING A BUSINESS STRUCTURE


Paying Less Taxes Starts with You!• Tax burden can make or break your business.

Good planning and record keeping can help reduce tax liability.

• With the help of a tax professional you will be able to lower your tax liability and meet business goals.

CONCLUSION


Ready to start your 2013 Tax Return?• Download the Free 2013 ATBS Tax Organizerwww.ATBSshow.com/2013TO• Send tax documents to ATBS by March 7th

• If you cannot get your taxes done on time, ATBS can file an extension for you

RESOURCES

http://www.ATBSshow.com/2013TO


• Not filing penalty – 5% per month• Filing but not paying penalty - .5%

per month

PENALTIES


Thank You!Call ATBS at 866-920-2827 or go to

www.ATBSshow.com for more information.

Team Run Smart members (www.teamrunsmart.com) receive a

5% discount on ATBS Services.

RESOURCES

http://www.ATBSshow.com/

http://www.teamrunsmart.com/

how to pay less taxes

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