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Mon Apr 15, 2019, 09:45 AM

This 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 he’s 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.

“I thought Trump was giving us a tax cut. And where the heck is it?”


“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 they’re 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/

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Arrow 29 replies Author Time Post
Reply This Tax Day, Some Truckers are Unhappy with Trump (Original post)
babylonsister Apr 15 OP
A HERETIC I AM Apr 15 #1
babylonsister Apr 15 #2
George II Apr 15 #20
A HERETIC I AM Apr 15 #25
Post removed Apr 15 #3
katmondoo Apr 15 #4
marylandblue Apr 15 #5
JayhawkSD Apr 15 #6
JayhawkSD Apr 15 #10
Delmette2.0 Apr 15 #13
yellowcanine Apr 15 #7
ProfessorGAC Apr 15 #9
rgbecker Apr 15 #8
keithbvadu2 Apr 15 #19
Cicada Apr 15 #11
rgbecker Apr 15 #15
Cicada Apr 15 #29
Blue_Tires Apr 15 #12
durablend Apr 15 #16
keithbvadu2 Apr 15 #17
Dave Starsky Apr 15 #18
Blue Owl Apr 15 #14
Mr. Evil Apr 15 #21
barbtries Apr 15 #24
Honeycombe8 Apr 15 #22
Honeycombe8 Apr 15 #23
Crunchy Frog Apr 15 #26
littlebit Apr 15 #27
Thomas Hurt Apr 15 #28

Response to babylonsister (Original post)

Mon Apr 15, 2019, 09:54 AM

1. I'm in that group but I still got a refund

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 weren’t 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.

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Response to A HERETIC I AM (Reply #1)

Mon Apr 15, 2019, 10:08 AM

2. I thought of you and a few others at DU.

Glad you weren't effected this year. Maybe knowing where the tax grenades are will help you avoid them.

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Response to A HERETIC I AM (Reply #1)

Mon Apr 15, 2019, 11:58 AM

20. What was your tax this year vs. last year (not prying, a % would do). A refund is only....

....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".

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Response to George II (Reply #20)

Mon Apr 15, 2019, 01:03 PM

25. I appreciate you typing all that out, but I'm well aware of what the refund is

The answer to your question is;

I don’t know off hand and since I use TurboTax and my login info is saved on my desktop PC, I can’t access old returns on the road, which is where I am as I type this.

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Response to babylonsister (Original post)


Response to Post removed (Reply #3)

Mon Apr 15, 2019, 10:16 AM

4. The House was in control of the Republicans when that tax bill was written

The Democrats just gained control in January of 2018

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Response to katmondoo (Reply #4)

Mon Apr 15, 2019, 10:19 AM

5. That should say January 2019

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Response to katmondoo (Reply #4)


Response to katmondoo (Reply #4)

Mon Apr 15, 2019, 10:26 AM

10. I stand corrected. nt

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Response to katmondoo (Reply #4)

Mon Apr 15, 2019, 10:35 AM

13. +1,000

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Response to Post removed (Reply #3)

Mon Apr 15, 2019, 10:25 AM

7. Trump supported it and signed it.

So he owns it. And it was a Republican House and Senate which passed it. So the Republicans own it also.

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Response to Post removed (Reply #3)

Mon Apr 15, 2019, 10:26 AM

9. A Little Research Appears In Order

The dems have run the house for less than 3 months.
Given that irrefutable fact, you sure you want to stick with that opinion?

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Response to babylonsister (Original post)

Mon Apr 15, 2019, 10:25 AM

8. Fuckin, Truckin Trump.

<iframe width="718" height="404" src="" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>

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Response to rgbecker (Reply #8)

Mon Apr 15, 2019, 11:36 AM

19. Driving

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Response to babylonsister (Original post)

Mon Apr 15, 2019, 10:28 AM

11. This applies to employees, not owner operators

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.

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Response to Cicada (Reply #11)

Mon Apr 15, 2019, 11:05 AM

15. Google says about 10% of 3.5 million truckers are owner operators.

FYI

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Response to rgbecker (Reply #15)

Mon Apr 15, 2019, 06:02 PM

29. This change also hurts air employees

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.

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Response to babylonsister (Original post)

Mon Apr 15, 2019, 10:29 AM

12. Deal with it...

Y'all wanted the crazy bastard in office, so real the whirlwind...

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Response to Blue_Tires (Reply #12)

Mon Apr 15, 2019, 11:20 AM

16. Cost them their life savings

But at least they stuck it to us libs real gud!

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Response to durablend (Reply #16)

Mon Apr 15, 2019, 11:30 AM

17. Drives libruls crazy

Drives libruls crazy

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Response to durablend (Reply #16)

Mon Apr 15, 2019, 11:35 AM

18. Yeah, they sure pwned us libruls!

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.

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Response to babylonsister (Original post)

Mon Apr 15, 2019, 11:04 AM

14. Truckin... down to Mar a Lago...

Asked for a refund, but the man said no...

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Response to babylonsister (Original post)

Mon Apr 15, 2019, 12:28 PM

21. I believe one of the main reasons anyone over 40 years of age

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...

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Response to Mr. Evil (Reply #21)

Mon Apr 15, 2019, 12:41 PM

24. i agree.

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.

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Response to babylonsister (Original post)

Mon Apr 15, 2019, 12:33 PM

22. Oh, no. They didn't realize they were losing the per diem exemption?

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.

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Response to babylonsister (Original post)

Mon Apr 15, 2019, 12:37 PM

23. "Trucking industry support helps propel Donald Trump to victory in 2016 presidential race"

Not only did Trump garner broad support from truck drivers, he also secured more in financial campaign contributions from the trucking industry, whose political spending is largely made up of bigger carriers and fleet-backed lobbyists.

https://www.ccjdigital.com/trucking-industry-support-helps-propel-donald-trump-to-victory-in-2016-presidential-race/

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Response to babylonsister (Original post)

Mon Apr 15, 2019, 01:24 PM

26. Play stupid games, win stupid prizes.

I feel bad for the ones who didn't vote for this.

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Response to babylonsister (Original post)

Mon Apr 15, 2019, 01:45 PM

27. I have been a trucker for 22 years

I got a refund this year. But it was about a 1/4 of what I have gotten in the past.

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Response to babylonsister (Original post)

Mon Apr 15, 2019, 01:50 PM

28. We take truckers for granted in this country...IMHO

Cops, firefighters, docs, nurses and teachers get props, but truckers are largely anonymous.

Another blue collar crowd Trump has s*it on.

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