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Owner-operators will learn tips and strategies to pay less taxes for their business.
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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
ATBSshow.com | teamrunsmart.com
ATBS
• Prepare more than 14,000 tax returns/year
• Consult with owner-operators year-round
Trusted Tax & Accounting Experts
for Independent Contractors
ATBSshow.com | teamrunsmart.com
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
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• Your Tax Liability• Mis-understood Deductions • Must-Have Tax Credits • Successful Bookkeeping • Successful Tax Strategies • Conclusion & Questions
AGENDA
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• 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?
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• 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?
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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
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• 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
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Collect taxes on their behalf including: • Social security • Medicare • Federal and state income tax
EMPLOYEE TAXES
Do you have employees for your business?
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• 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.
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• 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:
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• 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
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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
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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
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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
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• 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
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• 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
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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
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Employee Family Members
SUCCESSFUL TAX STRATEGIES
• Retirement contribution deduction• Travel expenses• Child wages deduction
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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
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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
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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
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• Not filing penalty – 5% per month• Filing but not paying penalty - .5%
per month
PENALTIES
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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