What Percentage ? To set aside Weekly for O/O Taxes......

Great question

 

FWIW, I set aside 9% of gross every 1/4 for the FEDS and it's worked for me.
I'm not a huge revenue producer but don't have many deductions either. Keep in mind, this was when the truck was my only source of income. Good Luck

 

Kevin Rutherford talked about this recently. He recommends 5% of gross revenue as a starting point. Depends on your situation if you need more or less than that.

 

I set back 20%. And that is overkill.

But!! I take what I don't need after the end of the year and spend it on whatever I want. Kind of like getting a refund. Only I get the interest and not the feds.

 

20% is a good number. 20% of your gross, after general overhead before taxes. You're going to have to do quarterly's as well. I send in estimated payments every quarter. Or you can pay the penalty and interest at the end of the year.

 

Best answer. The cover all solution with a happy feeling on tax due day.

This way, while you pretend to listen to others woeful miserable stories of borrowing money to pay tax bills ( I knew a guy like this) - you get to comb your hair in the reflection of new chrome.

 

I think you should be talking net pay and not gross pay ... to many ops are focused on gross pay and not the net . gross pay has a lot more variables and doesn't really matter of how much you gross it is about how much of it is yours ... I am leased to a carrier and I keep 10% back for taxes and that's after fuel and insurance .... but still have maintenance and truck deprete

 

hit wrong button lol . and the per diem and miscellaneous expenses tolls ect . I am incorporated so I get a weekly Salery which is subject to the 13% social security tax and income tax ... would advise you to incorporate sooner than later because you can file either way and you get the 20% pass through deduction .. it's best to talk to a tax person who does truck taxes instead of truck drivers ( thats not really a bad idea on just about anything ) but I have been doing the 10% of the adjusted gross pay for several years and have always had enough money .... but it is impossible to save up to much money

 

This is my first qtr of tracking this stuff. Doing it myself. So far appears to be 10% of my net.
Seems low. I’m still working on it.