I tried a search on this and didn't find anything so hoping I could get some advice on here. I did try the Truckers Tax Haven and they recommended I post the question here.
I'm an Owner Operator's wife who is under his own authority and signs a contract with a broker (or multiple brokers for that matter) that arranges loads, collects the money and pays the carrier - and takes a %, and sends me the balance. At the end of the year who needs to issue a 1090? What about someone that may factor for you? They do pretty much the same thing, but more of an Agent? Carrier packets include the Broker's W-9, but then ask for a W-9 back, and I thought the reason one needed a W-9 was for preparation of a statement of income made at year end (1099, etc).
I've tried to read the tax books, but this one is confusing me, or I'm over thinking it. I would think I'm actually paying the broker a % of the load (even though he's taking it out of the net pay, and cutting me a check), so I think I need to issue him a 1090, but they always ask me for my W-9 so just confused on what is right. Then again, they are contracting with me to haul the load, and issuing me a check. Trying to plan for year end. Nothing special in any of the carrier agreements (they are all pretty much the same). Thank you. Appreciate the info.
Save travels to all.
1090 Broker or Carrier?
Discussion in 'Trucker Taxes and Truck Financing' started by Desperado, Oct 8, 2010.
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Thank you for the info - I think I'm just over-thinking the whole topic.
I'm familiar with what both the W-9 and 1099 forms are and how to complete them (& know where to find them), I just wasn't sure who was working for who - from a 1099 issuance perspective. Would that be the same for someone factoring for us as well?
So they'll issue a 1099 (a total for the year) for the net pay of all loads to us? How are the brokers fees captured, meaning since we paid the broker a % from the load, how and where, and can I even capture that expense on my taxes? Or is it simply the net check amount (and the fee is already removed from the net check I get that would tie with the amount reported on the 1099 at the end of the year)?
What's the logic in them providing me a copy of their completed W-9 in the packet of new carrier documents they send to me - a little confusing (am I missing something)? What do I need their completed W-9 for? Do I need it for any reason?
Again, many thanks again for the info. -
Are you going to pay the broker for hauling the loads?
Or is the broker going to hire you and pay you to haul the loads?
Simply put.
You will complete a W-9 and send it to the broker.
After the first of the year, the broker will send you a 1099 for services rendered. -
You cannot recapture the percentage that the broker took off the top for his fee.
Simply because you never had this money. If you had gotten the full amount for the load then cut him a check you could. But you never had that money, thus you cannot claim it as an expense.
Another example.
I have seen drivers ask many times how they claim dead head miles. Since they had to drive to the shipper, many think that they can claim those miles as a loss.
They cannot however, since they were not paid for those miles.
They can claim the fuel and maintenance of all miles, but cannot claim the loss for dead head.
Though I have heard of several that do in fact try this, it will not hold up with the IRS on an audit.
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