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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThis Tax Day, Some Truckers are Unhappy with Trump
This Tax Day, Some Truckers are Unhappy with Trump
The 2017 tax overhaul is hitting long distance drivers with unexpected bills.
Hannah Levintova
Last month, Dennis Bridges, a CPA who runs an accounting firm just north of Atlanta, had to break bad news to a client. Bridges specializes in doing taxes for truck drivers around the country, and this tax season hes had to tell dozens of truckers that after years of being able to count on receiving tax refunds that they in fact would owe thousands of dollars. This particular client from New York owed $4,000. It could have been worse: about 20 percent of Bridges trucking clients have owed more than $5,000.
When Bridges firm called the driver to deliver the news, the line first went silent. Then the driver went into a panic, Bridges recalls. He was just asking, Where on earth am I going to get the money to pay this thing?' For years, he had received an annual refund in the ballpark of $1,500.
They got screwed, says Kevin Rutherford, a small fleet owner who hosts Trucking Business and Beyond, a daily satellite radio show, and also runs an accounting service geared to drivers. After the tax bill became law in late 2017, Rutherford asked his clients and radio listeners for their 2017 and projected 2018 tax data. Using their numbers, he ran about 50 scenarios, finding that for most company drivers, losing the per diem would mean theyre going to pay more tax. Only a handful of scenarios came close or about even to the filers past returns. It depends on how many kids they have and a couple other things, but for the most part, it was a pretty big loss, he says.
Trucking is a popular vocation, employing about 3.5 million drivers nationwide, making it, by some counts, the most common job in 29 states. While all but three of those states went to Donald Trump in 2016, the tax overhaul enacted by the president and the GOP Congress in 2017 hit American truck drivers hard by stripping a key exemption for dining and living expenses while on the road. Millions of long-haul drivers employed by trucking companies are finding themselves slapped with massive and unexpected tax bills, according to accountants, professional trucking associations, and drivers.
more...
https://www.motherjones.com/politics/2019/04/trump-tax-bill-truckers-truck-drivers-deduction/
A HERETIC I AM
(24,368 posts)The per diem for me amounted to about $14,000 in 2017 but I had a change in filing status so even though I lost that deduction, I still got a refund.
Not sure how it will work out for me next year though.
Truckers werent the only ones to lose that either.
Anyone involved in the transportation industry, from pilots to railroad workers that are affected by hours of service regulations and spend nights away from home lost it.
babylonsister
(171,066 posts)Glad you weren't effected this year. Maybe knowing where the tax grenades are will help you avoid them.
George II
(67,782 posts)....based on how much already paid in vs. actual tax liability.
For example:
2017 $5000 tax liability, $4500 withheld, net payment of $500
2018 $5500 tax liability, $6000 withheld, net refund of $500
Although the 2018 refund is higher, the tax in 2018 is $500 more than 2017, and increase of 10%. All the analysts on television talk about "refund" vs. actual tax. Many Americans are paying a higher tax, regardless of their "refund".
A HERETIC I AM
(24,368 posts)The answer to your question is;
I dont know off hand and since I use TurboTax and my login info is saved on my desktop PC, I cant access old returns on the road, which is where I am as I type this.
Response to babylonsister (Original post)
Post removed
katmondoo
(6,457 posts)The Democrats just gained control in January of 2018
marylandblue
(12,344 posts)Response to katmondoo (Reply #4)
JayhawkSD This message was self-deleted by its author.
JayhawkSD
(3,163 posts)Delmette2.0
(4,165 posts)yellowcanine
(35,699 posts)So he owns it. And it was a Republican House and Senate which passed it. So the Republicans own it also.
ProfessorGAC
(65,042 posts)The dems have run the house for less than 3 months.
Given that irrefutable fact, you sure you want to stick with that opinion?
rgbecker
(4,831 posts)<iframe width="718" height="404" src="
" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>keithbvadu2
(36,806 posts)Cicada
(4,533 posts)The itemized deduction for unreimbursed employee business expenses has been repealed for federal returns for the years 2018;through 2025. My state still permits employee costs. And those truckers who work for themselves are not employees so they continue to get this deduction.
rgbecker
(4,831 posts)FYI
Cicada
(4,533 posts)The airlines tend to reimburse for meals during travel but less than the per diem rate allowed by the IRS so pilots etc have gotten a lesser benefit. Also traveling salesmen, some construction workers. Here in California a fishing crew on a California boat fishing off Ecuador got venereal disease in a whorehouse in Ecuador. The workers compensation board ruled that was a work injury and granted them worker compensation benefits.
Blue_Tires
(55,445 posts)Y'all wanted the crazy bastard in office, so real the whirlwind...
durablend
(7,460 posts)But at least they stuck it to us libs real gud!
keithbvadu2
(36,806 posts)Drives libruls crazy
Dave Starsky
(5,914 posts)They can have a good yuk-yuk about it with their families over a bowl of thin broth with a piece of pork fat floating in it.
Blue Owl
(50,381 posts)Asked for a refund, but the man said no...
Mr. Evil
(2,844 posts)Last edited Mon Apr 15, 2019, 01:19 PM - Edit history (1)
voted for this monster should've known what he was about. It seems that those that voted for him put aside whatever reasoning to do the right thing and vote for the obviously more qualified candidate aside and voted for him. I can think of only one main reason they did that. Racism and bigotry in one form or another.They obviously didn't give a diddly damn about his multiple frauds, bankruptcies, cheating, lawsuits and failures. All giant red flags, so...
barbtries
(28,795 posts)that's why it makes me a little crazy when my sister protests to me that she isn't a racist. of course she is.
Honeycombe8
(37,648 posts)Did no one tell them?
NEVER go by "refund." Go by an estimated tax amount.
The deduction for federal tax can change. It's irrelevant. What matters is the AMOUNT you will probably owe for the year. THEN you can look at how much is being prepaid by you, to see if you'll have to pay or will get a refund.
I feel for them. These aren't wealthy workers. These are blue collar workers, most with families. Driving a truck is tedious, dangerous work. They've earned their money.
I wonder why the per diem exemption was taken away? Makes no sense.
Honeycombe8
(37,648 posts)https://www.ccjdigital.com/trucking-industry-support-helps-propel-donald-trump-to-victory-in-2016-presidential-race/
Crunchy Frog
(26,587 posts)I feel bad for the ones who didn't vote for this.
littlebit
(1,728 posts)I got a refund this year. But it was about a 1/4 of what I have gotten in the past.
Thomas Hurt
(13,903 posts)Cops, firefighters, docs, nurses and teachers get props, but truckers are largely anonymous.
Another blue collar crowd Trump has s*it on.