Q. How often are my estimated tax payments changed?
A. Your estimated tax payments on a monthly basis. Every time you send in an envelope, we update your financial projections. This allows us to estimate your taxes accurately. For this reason, it is very important to keep up-to-date on the envelopes and to notify us if your tax situation changed (i.e., you become a trainer, you may no longer claim a child, your marital status changes, etc.)
Q. When are estimated tax payments due?
April 15
June 15
September 15
January 15
Q. LLC or a corporation, which it best?
A. There is another complete web site on this question. Go there now!
Q. Can I deduct deadhead miles?
A. All expenses for “deadhead” miles are already being taken. Since 100% of the expenses for the operation of the truck are usually captured and deducted on the tax return, the “deadhead” miles never need to be kept track of.
The IRS does not give an allowance for “lost revenue” or “deadhead” miles. For example: if the truck is paid for 900 miles and the truck is actually driven 1200, there is still no extra deduction for those unpaid miles. As long as you are taking 100% of the fuel, repairs, supplies, etc. it takes to drive all miles put on the truck you are taking all you are entitled to under IRS rules.
Q. Should I buy or lease my truck?
The biggest question is what is the resale market for trucks. If we could predict the future on this issue, the buy versus lease question would be much simpler.
What is certain over the full term of the lease or purchase, the tax deductions and out of pocket expenses are going to be very similar. A purchase may allow you to take advantage of advanced depreciation, thus you could expense more of the purchase price in the first year. This allows you to be more flexible in the amount of deductions in the first year.
A lease is sometimes easier to get out of, thus is a more conservative approach to being an owner-operator.
If the lease is considered a capital lease (you own the truck at the end of the lease) the tax consequences are different from a lease where ownership is not going to transfer.
When you lease a truck the entire lease payment is taken as an expense when paid. When you buy a truck, an expense is taken for depreciation and for interest paid on the loan.
If you take the same truck and keep it for the full term of the contract the cash out-of-pocket as well as the deductible expenses are approximately the same. A purchase is a lot more flexible in regard to first year depreciation and trading or selling the truck prior to the end of the contract. Under a lease you have to keep an eye on the value of the truck versus the payoff amount prior to any trade or disposal because of high residual amounts at the end of the lease.
Each scenario is different and needs to be analyzed before making the lease vs. buy decision.
The following summarizes some of the important filing dates for individuals and businesses using a calendar year end. When the due date falls on a weekend, the next business day becomes the date due.
Jan 15th Due Date 4th quarter (prior year) Estimated Tax Payment Form 1040ES
Jan 31st Due Date to file Payroll Tax Return (Form 941) and State Payroll forms for the 4th Quarter (prior year).
Due Date to mail annual information statements to recipients of payments made during prior year (1099’s, W-2’s, etc).
Feb 28th Due Date to file information returns with IRS (1096, 1099, W-2, W-3, etc).
Mar 15th Due Date to file corporate income tax return for prior calendar year C-Corporation, and all S-Corporations, unless extension is filed.
Apr 15th Due Date to file Form 1040, unless extension is filed. Late penalty and interest starts if tax is not paid by April 15th, even if extension is filed.
Due Date to file Application for Automatic Extension of Time to File – Form 4868.
Due Date of 1st quarter Estimated Tax Payment – Form 1040ES.
Due Date for (prior year) calendar year Partnership to file Form 1065, unless extension is filed.
Previous year IRA Contribution is due. SEP IRA contributions due unless tax return extension is filed.
Apr 30th Due Date to file Payroll Tax Return (Form 941) and State Payroll forms for the 1st quarter.
Jun 15th Due Date for 2nd quarter Estimated Tax Payment – Form 1040ES.
Jul 31st Due Date to file Payroll Tax Return (Form 941) and State Payroll forms for the 2nd quarter.
Aug 15th First extension deadline for filing Form 1040 for calendar year taxpayers, unless 2nd extension is filed. Application for Additional Extension of Time to File – Form 2688.
Aug 31st Due Date to file Form 2290 Heavy Road Use Tax. Full payment in the amount of $550 must be made at this time.
Sep 15th Due Date for 3rd quarter Estimated Tax Payment – Form 1040ES.
Oct 15th Second extension deadline for filing Form 1040, 1065 (calendar year taxpayers).
Oct 31st Due Date to file Payroll Tax Return (Form 941) and State Payroll forms for third quarter.
Q. When are the 2290 (Heavy Highway Vehicles Tax) due and do I owe for the 2290?
The 2290 is a tax assessed for the year beginning July 1st and ending June 30th (installment option is no longer available).
The 2290 tax is assessed to the owner of the truck on the 1st of July if the truck is driven at least 5,000 mile after that date. If the truck was not driven 5,000 miles after July 1 the purchaser of the truck would owe the tax, no matter when the truck was purchased. The tax due is generally $550 per year and is due August 31st.
866-900-1040 if you have more Questions
