I'm not a truck driver but I watch your videos just to be educated on the business side of it.i really felt 1099 was a company leaving the tax part of it up to you.thank for the great information.thats cool that you're honest about all this.thats 100
Over the last several years whenever I have a question related to trucking, I always end up on your channel. I have a hunger for success for myself and my family, and when I get there, this channel will be a major reason for it. Thank you for what you do!
This 1099 mess is rampant in my area. Worked for 1 week at a 1099 outfit until I informed myself, then I quickly got the hell out of there. 9 times out of 10, these 1099 gigs just want to pay 1099 while treating you exactly as if you were a w-2 employee. Not a chance in hell I'll ever touch that mess.
Can you and the owner operators use the same write offs ? Like fuel receipts? Hotel receipts etc etc I didn't get an LLC or ein number she went out of business ! Help
I'll be doing a 1099 contract with a 50/50 split after fuel, I am so happy to have found this video. It's a clear understanding of what I need to do, and that is to save every damn dime I get until I can afford my own cheap semi and lease on with a company. This insane that the government allows this to go on
I took your advice about 3 years ago and went and got a trucker CPA separate from the company. I was doing the lease for about a year. I was putting back 18 percent to cover my taxes, I pay quarterly and worked out great. I had enough money in that account to cover my taxes and had a little extra. I just recently went to work for a company that has me 1099. I don't pay for anything. Based on the new figures my CPA provided me it increased me in taxes by 1,700.00 a quarter I pay. I just put back 27 percent to be on the safe side. Great video.
Thanks Loshawn! This helped alot. I work for GOYA driving a daycab and i am going 1099 tommorow. I am most certai that i can write off everything you mentioned because the carrier showed the payments that they will take out weekly for fuel, truck lease, fuel, etc.... Im using this as a stepping stone to build business credit and be able to start a small family owned fleet business
You can pay for hotels every week on a 34 write it off as lodging also you can write off every single thing you purchase while on the road food showers etc
I ran 1099 for a smaller company and hated paying all the expenses and wasnt gonna own the truck got the hell out real quick, learning experience i reckon...
I didn't know. Now I'm 14 years in, in debt, and owe back taxes. as a local driver.... I wonder what's the consequences of filing form ss-8 against the company? Would it change the status of my past, un-filed 1099's? Wouldn't the employer have to go back and fix all the books and pay the owed taxes and re issue w2's to replace the previous 1099's? Putting things in the correct logical order, the way it was meant to be by law in the first place.... Or can the past not be changed???
But on a W2 the company doesnt does not pay your taxes, they withhold it from your check and pay it on your behalf. So whats the difference the amount owed is the same at the end of the year.
Thanks fam. As a rookie going in to test and get my class a with this situation you just presented, I am deeply grateful for your info. Gold man, GOLD. Thanks for your knowledge, and puttin it on wax. I feel more prepared to talk to my 1099 offerer. Deal offered: 1099, diesel cost out of settlements daily, and half of all days settlements, 50/50 between us; no repair bill or other costs involved, I can take my days off as I please with no penalty or bad feelings. Sounded great to me at the time…🤦🏾♂️🤷🏽♂️
You said per diem and the phone are the only write offs a OO's driver can write off. Here are a few more write offs an Independent Operator Driver can write off (less the Equipment interest/depreciation): IRS Business Start Up deduction. QBI Qualified Business Income deduction. IRS Exemption (at least one 'yourself'). Self-Employment Tax deduction. Business Equipment Interest Payments and Depreciation or Expense deductions. Percentage of: Health Insurance premiums. Health expenses which exceed a threshold. Personal vehicle business use or depreciation. Home Office use: space supplies materials equipment electronics and services. Property/Vehicle/fuel/consumer items Taxes. Interest: Business expensesloans credit card. Charitable Contributions. IRS Business credits may include: Earned Income Credit Dependent Credit State and Local Tax Payment Credits I have personally written off more than the Standard Deduction on multiple occasions before I owned a truck. But as an independent, you should volunteer to pay estimated taxes during the tax year. If you don't, it's not that the OO is scamming you, you're just not doing what you're supposed to do--so you're scamming yourself. That's what the video should have been about. Don't knock OO, 1099 is a legal and viable option for the right driver. Jo Bernard
I was going to drive as a 1099 employee for bolt express but it seemed like a scam . Came across your videos and everything thing you saying was absolutely right . Thanks for the information 👍🏻
Probably the most important video I've seen this year. The 1099 pay without vehicle write offs is a growing problem in the trucking industry. Many immigrants from Eastern Bloc nations are partaking in this sketchy business. Many of these companies are considered "Chameleon" companies because they change their DOT numbers so often because of their horrible safety record. The IRS, DOT and FBI are beginning to crack down on these unscrupulous people. If you're a 1099 without being an O/O you may as well walk around with a sign around your neck stating "audit me". You all better have an excellent CPA doing your books and a good attorney on retainer.
Cap'n Jack Everything you said in your comment is 100% truth! I couldn't have said it better other than they are scams, but you hit it right on the head.
It's not a scam. It people like you that popped up into the Business world without doing your own research, or having any clue of the Rules in the system. Once you learn the Rules, you can then begin to play inside the system. If you are 1099 and NOT have your own equipment write-offs, then you are losing. You didnt read the fine print. The company scammed you, because you didnt know about it (ignorant), not the IRS...The equipment write-offs is what saves you on your taxes at end of year. Become a real O/O, get out of the scam of Lease-Purchase through a company. Oh, btw, you get more tax breaks if you get Incorporated instead of being an LLC. Put back at least 25% of your gross Income ( every qtr) into a different bank account strictly for tax purposes.
I am basically a beginner having these issues with a conscience of the situation listening to your insights on either experience or hearing I'm having a meeting with my employers really soon. Enjoyed the video I may do one myself before and after the meeting 💯
This video helped me, as someone new to the industry there was a company trying to take advantage of me and make me a 1099. It through up some red flags, too much per mile for my experience level being the major one.
I respect you Bro but your perspective on this a little off. Being a 1099 contractor has nothing to do with a Scam. As an employee or a 1099 contractor, you wouldn't be able to write off equipment owned by someone else if you wanted. To write off fuel, you should pay for fuel. Being a 1099 contractor only means that you are responsible to pay your taxes. You would also be responsible for the 7% employee tax that is normally paid for you to the IRS by your employer in addition to your normal W2 tax liability. If you're on W2, I'm sure that employer would pay you less than if you were on 1099 because of the 7% Employee tax, Workers Comp, unemployment ins. that has to be paid for every W2 employee by the employer. The 1099 contractor could benefit by creating a legal corp structure, pay themselves a portion of earnings as a salary and then take a distribution on the remainder of the profits for a smaller tax burden. They would be able to write off some expenses as well, that they pay for. As a W2 employee, you write off much of nothing 0%. As a 1099 contractor, legally, they can't tell you when and when not to work also. The negotiating point for a driver being asked to work 1099 should be a higher per mile rate then get a service like Qbooks online to cover all the back office work for cheap; a tax write off!, lol. Disclamier: I'm not a tax professional so you should consult a tax professional for tax advice. My advice is for educational and second opinion purposes only.
If one is going to work as a 1099, you better be making at least $.75/mile, running 3000 miles a week minimum, no more then three days home-time a month, and stacking every penny to buy your own truck within six months. This is a "Russian Roulette" approach to truck ownership. It separates the men from the boys and the women from the girls... But it can be done. Also, employers may haggle about the salary. Just remind them that they are not paying unemployment insurance on you. That's the other part of 1099 that no one talks about.
I'm 1099.the trick is u file as a s corp I made 71,000.then took perdium off 18,000.left 53000.then split that 26500 in my business tax free account.then paid taxes on 26500,which came out took 5,500,and I had no deductions.single filing.thats 110.dollars a week total
I know this is an old video but i want to let ppl know that as a 1099 company driver , you can still write off a 401k,IRA,HSA, get your llc , you can write off food per diem , clothing, cell phone bill, electronics . You can keep more of your money than in a w2 position if you know what you’re doing so yes it’s good to be informative , but don’t forget to inform them of the potential perks of being 1099
Hey there! We loved your insights in this video, so we decided to feature you in an explainer video on our channel on this topic: Why You Should NEVER Take a 1099 Job as a Trucker. We hope you enjoy it and let us know what you think. Thanks!
I'm behind on my taxes and owe collections for hospital bills. as a local driver.... I wonder what's the consequences of filing form ss-8 against the company? Would it change the status of my past, un-filed 1099's? Wouldn't the employer have to go back and fix all the books and pay the owed taxes and re issue w2's to replace the previous 1099's? Putting things in the correct logical order, the way it was meant to be by law in the first place.... Or can the past not be changed???
I was offered a job 1099 at .48cpm I'm glad I saw this did. Thanks man! The pay seems kinda low to me for 1099. Most w2 jobs end up being about 22% tax but your right my tax guy said it would be 30% for me at that job which would equate to about another $100 bucks per week. I'm working on becoming owner op but have been out of the truck for a year. I got approved on that company's insurance and went and took the drug test already. Im all clear to start but The tax thing has me leary even though I would probably set up an IRA or something for my taxes. The owner is a foreigner.
If the carrier payed for gas and repairs and has their own trailers and I just drive and had no obligations ..i still am in titled to write things off ? I just kept a small portion of money for taxes …am I suppose to be getting more even tho they take care of everything ? Am I good or
Bro you are right about the 1099 scam I had called a guy on a job and he told me about 1099 position I ask him about the write off and he said it on me when I took out the tax burden I would only make 850 after tax
You keep on with the good info because as a employer I know all about those games they can play with employees it a dirty game that can make you lose alot more than you gain
Shawn THANK YOU! this video was really good i wrote stuff down. I like to Thank You for being a Big Brother to the new Truckers or 1 years. Alot of Companies want New Drivers to come into the industry but do things like this which scares away alot of ppl. So i dont kno if you Remember me when i first started i asked if i should go to Prime or Schneider and you told me Schneider which was the Best Choice and Advice you could give me Blessing to you for all your help, your Karma will Return in Good faith. Now just the other day i wasnt sure if i should go work for Fedex ( long term ) I want my Own Truck and Local Route or if i should go with a guy who told me i get 2gs a week make a 1099 work and drive 10 - 14 hours and at the end i gotta pay taxes. so yea am gonna go wit fedex for the 401k turtle wins the race and in a few years get my own truck and then write off the fuel the truck the insurences the parking lot expence and everything. i saw when you went live at 3 PM when i was headed home from, and i jus woke up to start my 2am shift lmao Respect n Love Lo * namaste *
Man! This brings a smile to my face to see that I was able to change someone's life off of information that they found a lot of value in. FedEx is a great way to go. Keep me informed
Great info. Question! What about “Behavior control” that’s listed on IRS website that reflects if a 1099 op is being controlled by company as where to get fuel, where to get repairs, and what’s required of the driver ect...that puts the “1099 driver “ as a W2. Your thoughts please. Thank you 🙏
So...if you put away a third of your pay every week or every month understanding that the 30% of your earnings belongs to Uncle Sam. You can still make good money at the end of the year if you are smart about budgeting. I was lost on the part of the video why a 1099 contractor has to pay 30% vs 15.4%. And what do you have to do to qualify for 15.4%?
Not to mention the fact that When the IRS catches up to the company and the driver and they hit you with MIS CLASSIFICATION status of the driver because that "1099" driver exclusively works for the company using the companies everything. Its going to be a SERIOUS PROBLEM LUCY. Potentially jail time and big fines for fraud AND tax evasion. Now chew on that.
I wish I would've saw this sooner. I started working 1099 this year and I just started with a second company doing it. What do I do now? Should I quit?
A 1099 IS YOU PAY YOUR ON TAX PLAIN AND SIMPLY. WHAT EVER YOU DO ON A JOB IS A TAX WRITE OFF..FROM PAYING TO PARK TO PAYING SHOWER IS A WRITE OFF .IF YOU TAKE OUT .23% of your gross that your tax ..if a company driver on a 1099 its up to him if he won't to file tax .....
$3000.00 a week for a Truck Driver ?? Bull, No truck owner could ever pay that amount to a driver. The average 1099 truck driver will make $60,000 to $70,000 per year. About 25% of the truck total annual gross revenue. And NO , 1099 is not for everyone , but some drivers love it !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Man...I really wish you get everything you ask for this year. You’re like the modern day Robin Hood but not really lol but you catch my drift. THANK YOU man THANK YOU for the heart you have.
I worked for a company with a 1099 for November n December of 2022 Im bout to work for a 1099 company again so what I have to do if I cant find a w2 company driver but they have 1099 company driver so is 1099 for owner operators
This is absolutely true the 1099 company drivers is a scammed. Not to mention the driver in addition to paying taxes at 30% without deduction. The company also charge drivers escort withholding to driver and charge Driver for any violations company gets. Let's say the police pull over the driver and found the truck to be in violation of some sort of issue with company trucks- maybe company don't have a proper document etc.polic give company a citation -then company's turn around and charge drivers for the citation..
The problem with 1099 is people dont know to be smart about it. Form an LLC and get taxed as an S-corp and get paid by payroll and dont pay as much taxes. They can treat it like an owner operator would. If they file as s corp they might be able to save on taxes and when they buy a truck it will all be set up already. Most guys do sole prop while 1099 and thats how people lose money.
Powerful LoShawn! Thanks so much for sharing this must know info. I am entering the world of trucking Nov 2018 and my goal once a year in is to become Owner Operator. I understand there's no best company out here right?
55. Cpm.. 3500 miles a week...log department is fixing ur logs.. So yes thats doable consistently.. 2000 a week take home consistently... Save for 6 to 8 months... Now u have 10 to 15k in saving u have not payed taxes on.. Who GIVES A FUCK! U go buy ur truck and now u can write off the truck note/deprecation at tax time and u have a truck! Respect Loshawn but there r much faster ways to get to thr top of the truckinf industry than through Prime... Mega carriers is a safe and slow method.. Want to fucking hustle out here for real.. U will have a truck U own.. No lease B.S. in a year easy...
If your not paying fuel, truck payments or repairs why should you be able to write them off? More like if you doing 1099 save your money don’t get 3000 and spend 3000
I’m working in my buddy trucking llc driving one of his truck and I’m confused on 1099 never worked 1099 before. I’m wondering as a 1099 contractor driving one of his trucks what percentage do I have to discount from each paycheck for my taxes and if there’s anything else I can use for tax right offs besides my personal phone that I use for work ?
1099 is only viable with a proper understanding of tax laws. Paying for a tax accountant and setting up the proper process is crucial. Have the numbers and process worked out and understood ahead of time...completely, before deciding, or pay the price.
Thank you for the great info and quality video.I was thinking of driving 1099 for pilot flying j in the oilfields. They are offering a contract no own lease hualing oil.The weekly settlement is over $4000 and after truck , trailer, maintenance fuel and all of that Would be paid out $2300 to $2700 .I am trying to think if you can write off that truck ect you would still pay almost 30% on that $2300+ anyway ? 🤔
Hey man, I know this is an old video. But I recently got into this situation. I am not a Llc tho. Should I get a ein or Llc. Also should I pay taxes monthly, wouldn’t that have a better impact on not owning a huge amount at the end of the year
Soooooo basically a young lady wants me to drive for her @$30 percent and max out at 35 percent she said she would take taxes out and send it in for me under my social security # to state federal and ficca & social security never told me about a ein or nothing other than I’m 1099 they will doing the write offs so basically this too is a scam ?
So do you get taxed at a higher percentage doing 1099 vs the w-2? Saving your money for taxes is one thing but if taxed more then that’s bad. No standard deduction I would imagine so just get a credit card and charge everything on the road and only use that credit card for road write offs. Use that as receipts for tax man. But if taxed at a higher percent or more than what your paid then I would go w-2
freeway jay I use to use ADP until I found out that they dont know how to handle interstate commerce employee taxes. They wanted to charge my employees as if they worked in North Carolina instead of there home state they reside in and that made shit a big headache. So I now use intuit payroll which understands interstate commerce. But ADP does have a excellent HR tool for sending job opening on zip recruiter that I do miss alot.
Trucking With LoShawn Parks That definitely can cause a headache. I have heard of iniut but dont know much about. Will look into it when the time comes. Appreciate the response big bro.
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I'm not a truck driver but I watch your videos just to be educated on the business side of it.i really felt 1099 was a company leaving the tax part of it up to you.thank for the great information.thats cool that you're honest about all this.thats 100
Joseph Boley no problem
Over the last several years whenever I have a question related to trucking, I always end up on your channel. I have a hunger for success for myself and my family, and when I get there, this channel will be a major reason for it. Thank you for what you do!
Probably the best video of this subject on RUclips. Thanks to LP!
This 1099 mess is rampant in my area. Worked for 1 week at a 1099 outfit until I informed myself, then I quickly got the hell out of there. 9 times out of 10, these 1099 gigs just want to pay 1099 while treating you exactly as if you were a w-2 employee. Not a chance in hell I'll ever touch that mess.
I couldn’t agree more
Can you and the owner operators use the same write offs ? Like fuel receipts? Hotel receipts etc etc I didn't get an LLC or ein number she went out of business ! Help
You are a very educated man.
Love listening to you.
This video touched a lot of nerves.
Hope, I can get out of this mess.
You so cute!! Did you ever get out the mess?
I'll be doing a 1099 contract with a 50/50 split after fuel, I am so happy to have found this video. It's a clear understanding of what I need to do, and that is to save every damn dime I get until I can afford my own cheap semi and lease on with a company. This insane that the government allows this to go on
Yo what was the outcome ?
Ayo! Same here. Wtf happened??
I took your advice about 3 years ago and went and got a trucker CPA separate from the company. I was doing the lease for about a year. I was putting back 18 percent to cover my taxes, I pay quarterly and worked out great. I had enough money in that account to cover my taxes and had a little extra. I just recently went to work for a company that has me 1099. I don't pay for anything. Based on the new figures my CPA provided me it increased me in taxes by 1,700.00 a quarter I pay. I just put back 27 percent to be on the safe side. Great video.
Awesome job and thank you for this comment.
Simple. And you put your money into investments..simple just pay you due share and invest the rest.
Thanks Loshawn! This helped alot. I work for GOYA driving a daycab and i am going 1099 tommorow. I am most certai that i can write off everything you mentioned because the carrier showed the payments that they will take out weekly for fuel, truck lease, fuel, etc.... Im using this as a stepping stone to build business credit and be able to start a small family owned fleet business
Please don't listen to him
@@kriswilliams5161 what do you mean?
Thx for the advice a carrier company in Houston,Tx tried to get me with that 1099 B.S. scam. Glad I watched this video first.
You can pay for hotels every week on a 34 write it off as lodging also you can write off every single thing you purchase while on the road food showers etc
Each one teach one, I just learned a few things.
Ali Dodda Good deal! My goal was accomplished
I ran 1099 for a smaller company and hated paying all the expenses and wasnt gonna own the truck got the hell out real quick, learning experience i reckon...
Anthony Miller yes. It's hard doing that. But even harder when u dont know... just food for thought.
I didn't know. Now I'm 14 years in, in debt, and owe back taxes.
as a local driver.... I wonder what's the consequences of filing form ss-8 against the company?
Would it change the status of my past, un-filed 1099's? Wouldn't the employer have to go back and fix all the books and pay the owed taxes and re issue w2's to replace the previous 1099's? Putting things in the correct logical order, the way it was meant to be by law in the first place.... Or can the past not be changed???
Blessed in the Philippines let me ask you this did you not put money aside to pay for your taxes or you just blew thru it
But on a W2 the company doesnt does not pay your taxes, they withhold it from your check and pay it on your behalf. So whats the difference the amount owed is the same at the end of the year.
Yeah but 1099 pay extra 7% for beeing pretty much like a owner
Thanks fam. As a rookie going in to test and get my class a with this situation you just presented, I am deeply grateful for your info. Gold man, GOLD. Thanks for your knowledge, and puttin it on wax. I feel more prepared to talk to my 1099 offerer.
Deal offered:
1099, diesel cost out of settlements daily, and half of all days settlements, 50/50 between us; no repair bill or other costs involved, I can take my days off as I please with no penalty or bad feelings.
Sounded great to me at the time…🤦🏾♂️🤷🏽♂️
You said per diem and the phone are the only write offs a OO's driver can write off. Here are a few more write offs an Independent Operator Driver can write off (less the Equipment interest/depreciation):
IRS Business Start Up deduction.
QBI Qualified Business Income deduction.
IRS Exemption (at least one 'yourself').
Self-Employment Tax deduction.
Business Equipment Interest Payments and Depreciation or Expense deductions.
Percentage of:
Health Insurance premiums.
Health expenses which exceed a threshold.
Personal vehicle business use or depreciation.
Home Office use:
space
supplies
materials
equipment
electronics
and services.
Property/Vehicle/fuel/consumer items Taxes.
Interest:
Business expensesloans
credit card.
Charitable Contributions.
IRS Business credits may include:
Earned Income Credit
Dependent Credit
State and Local Tax Payment Credits
I have personally written off more than the Standard Deduction on multiple occasions before I owned a truck. But as an independent, you should volunteer to pay estimated taxes during the tax year. If you don't, it's not that the OO is scamming you, you're just not doing what you're supposed to do--so you're scamming yourself. That's what the video should have been about. Don't knock OO, 1099 is a legal and viable option for the right driver. Jo Bernard
I was going to drive as a 1099 employee for bolt express but it seemed like a scam . Came across your videos and everything thing you saying was absolutely right . Thanks for the information 👍🏻
Started seeing "Red Flags" at new company I'm with. Lead me here. I'm on my research mode...
To make matters worse some companies are advertising 1099 positions paying wages that arent hard to find as a W-2 employee, some even lower.
Thanks bro this information helps me out a lot I'm looking at companies now and it helps me out before I even get to that stage
Tigerspimp I completed my task then. Awesome!
Probably the most important video I've seen this year. The 1099 pay without vehicle write offs is a growing problem in the trucking industry. Many immigrants from Eastern Bloc nations are partaking in this sketchy business. Many of these companies are considered "Chameleon" companies because they change their DOT numbers so often because of their horrible safety record. The IRS, DOT and FBI are beginning to crack down on these unscrupulous people. If you're a 1099 without being an O/O you may as well walk around with a sign around your neck stating "audit me". You all better have an excellent CPA doing your books and a good attorney on retainer.
Cap'n Jack Everything you said in your comment is 100% truth! I couldn't have said it better other than they are scams, but you hit it right on the head.
It's not a scam. It people like you that popped up into the Business world without doing your own research, or having any clue of the Rules in the system. Once you learn the Rules, you can then begin to play inside the system. If you are 1099 and NOT have your own equipment write-offs, then you are losing. You didnt read the fine print. The company scammed you, because you didnt know about it (ignorant), not the IRS...The equipment write-offs is what saves you on your taxes at end of year. Become a real O/O, get out of the scam of Lease-Purchase through a company. Oh, btw, you get more tax breaks if you get Incorporated instead of being an LLC. Put back at least 25% of your gross Income ( every qtr) into a different bank account strictly for tax purposes.
@@Kruilty LLC taxed as a Scorp....business checking account and write off everything and section179 your equipment.
I am basically a beginner having these issues with a conscience of the situation listening to your insights on either experience or hearing I'm having a meeting with my employers really soon. Enjoyed the video I may do one myself before and after the meeting 💯
This topic has been covered many times but I think you explained it the best... keep dropping those gems. Thanks bruh
Jay B I appreciate it. Yes it has been covered in a few other places, but still leaves people confused
This video helped me, as someone new to the industry there was a company trying to take advantage of me and make me a 1099. It through up some red flags, too much per mile for my experience level being the major one.
The best vid on 1099
Straight Facts For Free99💯thanks a lot
I respect you Bro but your perspective on this a little off. Being a 1099 contractor has nothing to do with a Scam. As an employee or a 1099 contractor, you wouldn't be able to write off equipment owned by someone else if you wanted. To write off fuel, you should pay for fuel. Being a 1099 contractor only means that you are responsible to pay your taxes. You would also be responsible for the 7% employee tax that is normally paid for you to the IRS by your employer in addition to your normal W2 tax liability. If you're on W2, I'm sure that employer would pay you less than if you were on 1099 because of the 7% Employee tax, Workers Comp, unemployment ins. that has to be paid for every W2 employee by the employer. The 1099 contractor could benefit by creating a legal corp structure, pay themselves a portion of earnings as a salary and then take a distribution on the remainder of the profits for a smaller tax burden. They would be able to write off some expenses as well, that they pay for. As a W2 employee, you write off much of nothing 0%. As a 1099 contractor, legally, they can't tell you when and when not to work also. The negotiating point for a driver being asked to work 1099 should be a higher per mile rate then get a service like Qbooks online to cover all the back office work for cheap; a tax write off!, lol. Disclamier: I'm not a tax professional so you should consult a tax professional for tax advice. My advice is for educational and second opinion purposes only.
Thanks u ezplained bettee dst 7% extra could make a big different though
If one is going to work as a 1099, you better be making at least
$.75/mile, running 3000 miles a week minimum, no more then three days home-time a month, and stacking every penny to buy your own truck within six months. This is a "Russian Roulette" approach to truck ownership. It separates the men from the boys and the women from the girls... But it can be done. Also, employers may haggle about the salary. Just remind them that they are not paying unemployment insurance on you. That's the other part of 1099 that no one talks about.
nattydreadlocks1973 yes federal unemployment and state unemployment for the state that the company is based out of.
I'm 1099.the trick is u file as a s corp
I made 71,000.then took perdium off 18,000.left 53000.then split that 26500 in my business tax free account.then paid taxes on 26500,which came out took 5,500,and I had no deductions.single filing.thats 110.dollars a week total
Less than a co driver pays
@@ChrisBrown-fx6ts This^...Understanding or paying for a good tax accountant advice can make it viable. Willy Nilly will equal a losing game.
Hi my friend thats exactly my plan but I need someone that knows about this is there any way to contact you?
I agree it is bad practice, but if it is illegal why is is still so prevalent
I know this is an old video but i want to let ppl know that as a 1099 company driver , you can still write off a 401k,IRA,HSA, get your llc , you can write off food per diem , clothing, cell phone bill, electronics . You can keep more of your money than in a w2 position if you know what you’re doing so yes it’s good to be informative , but don’t forget to inform them of the potential perks of being 1099
🙌🏼 yep
Yes was a company driver on a 1099
with no write offs at the end of the year. No work comp... its a scam
yellomane absolutely
What about food and gps and shit. You can write that stuff off
@@davidkattan1275 good question, I guess One can write it off!
Can only imagine the shock @ the end of the year . Taxes get so confusing. Good info here .
Ray David yes it does ray and it puts alot of people out of business, jail, or broke.
Hey there! We loved your insights in this video, so we decided to feature you in an explainer video on our channel on this topic: Why You Should NEVER Take a 1099 Job as a Trucker. We hope you enjoy it and let us know what you think. Thanks!
If you don't own the equipment you can't be a 1099. The law is clear.
I'm behind on my taxes and owe collections for hospital bills.
as a local driver.... I wonder what's the consequences of filing form ss-8 against the company?
Would it change the status of my past, un-filed 1099's? Wouldn't the employer have to go back and fix all the books and pay the owed taxes and re issue w2's to replace the previous 1099's? Putting things in the correct logical order, the way it was meant to be by law in the first place.... Or can the past not be changed???
I was offered a job 1099 at .48cpm I'm glad I saw this did. Thanks man! The pay seems kinda low to me for 1099. Most w2 jobs end up being about 22% tax but your right my tax guy said it would be 30% for me at that job which would equate to about another $100 bucks per week. I'm working on becoming owner op but have been out of the truck for a year. I got approved on that company's insurance and went and took the drug test already. Im all clear to start but The tax thing has me leary even though I would probably set up an IRA or something for my taxes. The owner is a foreigner.
Great advice thanks!
Great info..most companies out of Chicago try this scheme. And yet you still have to cover your own medical and dental.
Ronald Orr this is very true. Chicago area is filled with them.
last time i checked medical and dental are expenses
I work for a company out of Chicago they do this same thing SERBIANS
Excellent excellent explanation of info
If the carrier payed for gas and repairs and has their own trailers and I just drive and had no obligations ..i still am in titled to write things off ? I just kept a small portion of money for taxes …am I suppose to be getting more even tho they take care of everything ? Am I good or
Bro you are right about the 1099 scam I had called a guy on a job and he told me about 1099 position I ask him about the write off and he said it on me when I took out the tax burden I would only make 850 after tax
Lenny Nanthan that's how they get you. The number looks so damn good as a net number until you find out what you owe at the end of the year.
You keep on with the good info because as a employer I know all about those games they can play with employees it a dirty game that can make you lose alot more than you gain
Shawn THANK YOU! this video was really good i wrote stuff down. I like to Thank You for being a Big Brother to the new Truckers or 1 years. Alot of Companies want New Drivers to come into the industry but do things like this which scares away alot of ppl.
So i dont kno if you Remember me when i first started i asked if i should go to Prime or Schneider and you told me Schneider which was the Best Choice and Advice you could give me Blessing to you for all your help, your Karma will Return in Good faith.
Now just the other day i wasnt sure if i should go work for Fedex ( long term ) I want my Own Truck and Local Route
or if i should go with a guy who told me i get 2gs a week make a 1099 work and drive 10 - 14 hours and at the end i gotta pay taxes. so yea am gonna go wit fedex for the 401k turtle wins the race and in a few years get my own truck and then write off the fuel the truck the insurences the parking lot expence and everything. i saw when you went live at 3 PM when i was headed home from, and i jus woke up to start my 2am shift lmao Respect n Love Lo * namaste *
also the Contractor said i would go halves on the EZ Pass and Fuel.
Man! This brings a smile to my face to see that I was able to change someone's life off of information that they found a lot of value in. FedEx is a great way to go. Keep me informed
Ty lo shawn. Right now I'm going through it. I'm in debt w/ the IRS.
Great info. Question! What about “Behavior control” that’s listed on IRS website that reflects if a 1099 op is being controlled by company as where to get fuel, where to get repairs, and what’s required of the driver ect...that puts the “1099 driver “ as a W2. Your thoughts please. Thank you 🙏
So...if you put away a third of your pay every week or every month understanding that the 30% of your earnings belongs to Uncle Sam. You can still make good money at the end of the year if you are smart about budgeting.
I was lost on the part of the video why a 1099 contractor has to pay 30% vs 15.4%. And what do you have to do to qualify for 15.4%?
Not to mention the fact that When the IRS catches up to the company and the driver and they hit you with MIS CLASSIFICATION status of the driver because that "1099" driver exclusively works for the company using the companies everything. Its going to be a SERIOUS PROBLEM LUCY. Potentially jail time and big fines for fraud AND tax evasion. Now chew on that.
I wish I would've saw this sooner. I started working 1099 this year and I just started with a second company doing it. What do I do now? Should I quit?
Moses Black I’m 3 weeks in and I’m shocked 😂
Could you just take a percentage of your check out each week and save it and be fine at the end of the year?
This is what I would like to know.
of course, and you'll pay a braket %
That’s what I said, thought that was common sense
I'm a new driver and this is a great message!
A 1099 IS YOU PAY YOUR ON TAX PLAIN AND SIMPLY. WHAT EVER YOU DO ON A JOB IS A TAX WRITE OFF..FROM PAYING TO PARK TO PAYING SHOWER IS A WRITE OFF .IF YOU TAKE OUT .23% of your gross that your tax ..if a company driver on a 1099 its up to him if he won't to file tax .....
That’s crazy Lo. Me and King Drodge was just talking about W2 and 1099. Good info
Thank you so much !! This helps so much .
Thanks again lo very helpful just went active on my own authority
Eric Jones much success to you. Keep me informed on how going.
Will do thanks again for the motivation from your videos 👊🏿
Thank you for this informative video.
$3000.00 a week for a Truck Driver ?? Bull, No truck owner could ever pay that amount to a driver. The average 1099 truck driver will make $60,000 to $70,000 per year. About 25% of the truck total annual gross revenue. And NO , 1099 is not for everyone , but some drivers love it !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Man...I really wish you get everything you ask for this year. You’re like the modern day Robin Hood but not really lol but you catch my drift. THANK YOU man THANK YOU for the heart you have.
Insta Gram thank you. Blessings on to you as well.
I worked for a company with a 1099 for November n December of 2022 Im bout to work for a 1099 company again so what I have to do if I cant find a w2 company driver but they have 1099 company driver so is 1099 for owner operators
If I’m a truck driver for someone, and they 1099 me. Do I need to do my own taxes or let the guy I work for do my taxes??
Lo it helped me out alot thanks bro.
This is absolutely true the 1099 company drivers is a scammed. Not to mention the driver in addition to paying taxes at 30% without deduction. The company also charge drivers escort withholding to driver and charge Driver for any violations company gets. Let's say the police pull over the driver and found the truck to be in violation of some sort of issue with company trucks- maybe company don't have a proper document etc.polic give company a citation -then company's turn around and charge drivers for the citation..
The problem with 1099 is people dont know to be smart about it. Form an LLC and get taxed as an S-corp and get paid by payroll and dont pay as much taxes. They can treat it like an owner operator would. If they file as s corp they might be able to save on taxes and when they buy a truck it will all be set up already. Most guys do sole prop while 1099 and thats how people lose money.
If my company doesn't allow me to write off anything that has to do with the truck, but I'm on a 1099 with them does this mean it's illegal?
yes
Great Video, that's why I love prime. So many write offs
Smitty Da Trucker most definitely. Prime u can write it all off.
Thanks
Powerful LoShawn! Thanks so much for sharing this must know info. I am entering the world of trucking Nov 2018 and my goal once a year in is to become Owner Operator. I understand there's no best company out here right?
Kris Whisonant Lmao. That's right there no such thing as the best company out here, just which company fits your situation that's it.
Thank you
55. Cpm.. 3500 miles a week...log department is fixing ur logs.. So yes thats doable consistently..
2000 a week take home consistently... Save for 6 to 8 months... Now u have 10 to 15k in saving u have not payed taxes on.. Who GIVES A FUCK! U go buy ur truck and now u can write off the truck note/deprecation at tax time and u have a truck!
Respect Loshawn but there r much faster ways to get to thr top of the truckinf industry than through Prime... Mega carriers is a safe and slow method.. Want to fucking hustle out here for real.. U will have a truck U own.. No lease B.S. in a year easy...
If your not paying fuel, truck payments or repairs why should you be able to write them off? More like if you doing 1099 save your money don’t get 3000 and spend 3000
Thank You!
Thanks very helpful.
Appreciate this🙏🏾
Muzukashiijinsei Ichibandaijina no problem
Thanks I got burned last 22large
I’m working in my buddy trucking llc driving one of his truck and I’m confused on 1099 never worked 1099 before. I’m wondering as a 1099 contractor driving one of his trucks what percentage do I have to discount from each paycheck for my taxes and if there’s anything else I can use for tax right offs besides my personal phone that I use for work ?
Glad I got a weekly lease payment,fuel,ifta,cell phone etc that I pay for......
The Renaissance that's a true 1099 contractor
I'm with one now, 😆 🤣
Thanks for that.
Cedric Gibson my pleasure
Good info..Its also good to mention that taxes should be paid quarterly for 1099'ers.
What’s that per diem in the trucking job I am confused
Thanks bro!
Kris Whisonant my pleasure
1099 is only viable with a proper understanding of tax laws. Paying for a tax accountant and setting up the proper process is crucial. Have the numbers and process worked out and understood ahead of time...completely, before deciding, or pay the price.
Why would you want to write off fuel if the company is paying for the fuel? I don't get it
Bro u a real 1
Nice intro video... Thanks for everything...
nelson sepulveda no problem. Thank you
Thanks bro
Have you heard of transport max out of Chicago a lease purchase company
Do prime let the lease ops write off the truck and fuel?
Shawn McMullens yes sir.
Thank you for the great info and quality video.I was thinking of driving 1099 for pilot flying j in the oilfields. They are offering a contract no own lease hualing oil.The weekly settlement is over $4000 and after truck , trailer, maintenance fuel and all of that Would be paid out $2300 to $2700 .I am trying to think if you can write off that truck ect you would still pay almost 30% on that $2300+ anyway ? 🤔
Hey man, I know this is an old video. But I recently got into this situation. I am not a Llc tho. Should I get a ein or Llc. Also should I pay taxes monthly, wouldn’t that have a better impact on not owning a huge amount at the end of the year
This is great valuable information
30% of 90k with 20k untaxed seems decent
This is good info! I appreciate it, just got a 1099 offer or I can come on as company...had to do a lil digging before I got back to him
@5:47 have you taken this approach?
Love the videos
CryptoTrucker Thank you.
What Companies are w-2 ?
Soooooo basically a young lady wants me to drive for her @$30 percent and max out at 35 percent she said she would take taxes out and send it in for me under my social security # to state federal and ficca & social security never told me about a ein or nothing other than I’m 1099 they will doing the write offs so basically this too is a scam ?
So do you get taxed at a higher percentage doing 1099 vs the w-2?
Saving your money for taxes is one thing but if taxed more then that’s bad.
No standard deduction I would imagine so just get a credit card and charge everything on the road and only use that credit card for road write offs. Use that as receipts for tax man.
But if taxed at a higher percent or more than what your paid then I would go w-2
Looks like tax on 90-100 k is around 6-7%
30% seems high
Who's your payroll processing company? ADP? I hear they not only do the payroll but they handle a lot of other HR related issues.
freeway jay I use to use ADP until I found out that they dont know how to handle interstate commerce employee taxes. They wanted to charge my employees as if they worked in North Carolina instead of there home state they reside in and that made shit a big headache. So I now use intuit payroll which understands interstate commerce. But ADP does have a excellent HR tool for sending job opening on zip recruiter that I do miss alot.
Trucking With LoShawn Parks That definitely can cause a headache. I have heard of iniut but dont know much about. Will look into it when the time comes. Appreciate the response big bro.
What do you do if you did a whole bunch of work for someone and then months later they want you to fill out a 1099
YOU A BEAST LO👌💯🤔🔑
DEIZEL DA MOTIVATOR TRUCKER appreciate it homie.
Are you still hiring, if so how can I apply
Stay dropping gems💯💯💯💯✔
milktastictv that’s all I know how to do homie
I'm about to start a 1099 tommorow. Loshawn, can I get an s corp and be straight
But if you are responsible enough to put money aside with every check, is it still a bad idea? Serious question