Question:
Here is a quote from U.S. Department of Labor, Bureau of Labor Statistics - Occupational Outlook Handbook

Most self-employed truckdrivers are primarily engaged in long-distance hauling. After deducting their living expenses and the costs associated with operating their trucks, they commonly have earnings of $20,000 to $25,000 a year.
Do you guys feel this is accurate? I have heard that all of your expenses out on the road are tax deductible. Is that going to make up for the increased expense of living in a truck?
"Men are disturbed not by things, but by the views they take of them."
Epictetus


Answer:
Originally posted by Kananga:
Here is a quote from U.S. Department of Labor, Bureau of Labor Statistics - http://www.bls.gov/oco/ocos246.htm#earnings
_Most self-employed truckdrivers are primarily engaged in long-distance hauling. After deducting their living expenses and the costs associated with operating their trucks, they commonly have earnings of $20,000 to $25,000 a year. _
Do you guys feel this is accurate? I have heard that all of your expenses out on the road are tax deductible. Is that going to make up for the increased expense of living in a truck?
_"Men are disturbed not by things, but by the views they take of them."_
Epictetus
For many Owner Operaters (which is what they are talking about) after all is said and done they do earn about 20-30,000 per year, if they are lucky. Some make a lot more and some make a lot less so the average is probably in the ball park of what the report listed.
As far as the tax deductions go. This gets complicated. Some items give you a dollar for dollar deduction on your taxes and you end up having to pay zero dollars in tax on those items, while other items you only get to deduct a percentage of that particualr item.
Operating a truck is very expensive, and when all is said and done many do not make any more than a company driver, (and there are some that make a lot less) but at the end of the day they may have a little more freedom than a company driver.
I will always be a mutter trucker at heart.
Answer:
they commonly have earnings of $20,000 to $25,000 a year
I have met some that made even less after expenses..
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Learning experience in progress


Answer:
I would say that might be accurate, but it is hard to verify any income range in the Occupational Outlook Handbook because they don't take into account for different costs of living, tax rates, etc.
When you are an O/O, you are making more per mile, but the expenses are overwhelming. You have truck payments, repairs, insurance, base plates/permits, fuel, and in many cases, health insurance, etc. So you won't take home nearly all you make, and in addition, you will be doing a great deal of paperwork and worrying about equipment. I would say that being an O/O is basically all the stress of driving a truck and all the stress of running a business without enough pay for both.
You will incur most of these expenses even if the truck does not move. So if you go on vacation and park the truck, you will have to pay for everything but the fuel even though nothing's coming in.
Owning a truck has its positives, but trucking company pay scales have not kept up with the rising costs of operating a truck.
It is also not easy to sell a used truck in today's market and they depreciate fast.
Many O/O's choose to incorporate as a business, and therefore are taxed differently. When this is done, all income goes into the business account from which is paid all expenses, including the driver's weekly salary. But if there are lean times, guess what expense has to take the cut.

Answer:
Many O/O's choose to incorporate as a business, and therefore are taxed differently. When this is done, all income goes into the business account from which is paid all expenses, including the driver's weekly salary. But if there are lean times, guess what expense has to take the cut.
I don't think most owner-operator incorporate. It's too costly and has little benifit just for one truck. The attorneys make the money when a driver incorporates.
The $25,000 seems a little low. I would guess 35,000 - $40,000 a year.
Still in everyones way!!
Answer:
they commonly have earnings of $20,000 to $25,000 a year
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they write off everything they can dream of.
standard meal deduction,health insurance deduction
their own vehicles run rotella truck oil.Washer fluid,grease,wipers and any other thing bought for the cars/pickups are charged to the truck if they think they can get away with it.
Rolls of Bounty and other household cleaning supplies,are charged to the truck.Need a new clothsline for the backyard,no it was rope for cargo securement.
every tool they bought,was because the truck needed it.
anyone from down south can probably write off all winter clothing,workboots,gloves
leased to a big company,shop for shirts in the company store and write them off as uniforms.
phone bill
The company driver looks at their W-2 and forgets about all the little stuff,windex,ect.Plus lots of the above stuff,the o/o write off the cooler,CB,TV,sat dish you name it.
Mystery lumpers or change the receipt from $80 to $180
People that use brokers probably just forget about some off the checks they got.
I met one guy that sells his used trucks for parts,bring cash.He is always writing off 100% of his new trucks,because he has no trade in.
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Answer:
OK Zigzag, I see your point, but company drivers can write off some things and don't have to pay for others:
Company drivers can take standard meal deduction.
Can deduct phone bill used for business purposes.
Things for the truck such as oil, wiper blades, light bulbs, etc., are charged fully to the company.
Even with a tax deduction, a company benefits plan is usually cheaper than one on your own.
Lumpers are paid for by your company.
Company pays all liability, truck payments, repairs, fuel, and other insurance.
Broker checks "getting lost"? Better hope and pray you don't get audited.
If you buy a truck, can only write 1/10 off to depreciation each year legally on corporate tax statements.
Also, remember if you are paid as an independent contractor, as many O/O's are, there are no taxes withheld on your paycheck, including SS or Medicare. You will have to pay all of these taxes yourself, including the employer's portion, and can only deduct up to a certain point. Most people find it more economical to take the standardized deduction, which means that you can't itemize.
Incorporating is actually a recommendation by accountants and attorneys. It has costs, but limits your individual liability (important for something like trucking).
I come from a background in management where I was responsible for commercial vehicles, buildings, and equipment. My best advice here is that if you are an O/O with serious tax questions or are thinking of becoming one, talk to a CPA and get some sound advice before going out and just making deductions.

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As far as company drivers go, what would you say they make on average? I know there are extraneous expenses that normal jobs would not entail such as eating in truck stops instead of cooking your own meals, paying for showers etc...
From what I've read company drivers start out at 30 to 32k per year but after you factor in the additional expenses aren't they back to 20k or worse, especially when you consider all the unpaid overtime?

Answer:
"aren't they back to 20k or worse" Yes they are. Some even worse. Inparticular first year newbies and many in the 2nd and 3rd years are still in the 20's. 30k a year minus up to 150. a week for food and supplies is not that great of a pay. Then your first year you have all the time spent in school and in OTR training. For some that can be up to a total of 6 months. Your pay before exspenses will not even be close to 30k. But your road cost will remain very high. That is a big reason so many new drivers quit. They realize that a $10.00 job at home actually nets them more money and a far better home life.
Unfortunatly most companies advertise a fairly nice yearly income. They just leave out the cost and the realities of being a newbie in the industry. Also unfortunatly many newbies ignore things they are told by experienced drivers and choose to listen to the companies. The most unfortunate part of it all shows up after they decide to quit driving. They no longer have that dream career that wasn't what they thought it would be. They are also stuck with trying to pay the bills that went unpaid while driving and the school bill that can be very large with very high interrest. The result is poor credit and alot of waisted time. Hopefully they will still have their family when they do decide to quit, many do not.
Is trucking worth it for the majority and will they last? Easy answer proven by the turnover, NO

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Stop it Stuffs! Your Facts and the truth are not welcome on "Fantasy Island".
Talk about the Sun rises/sets,the Freedom of the open Road,Gourmet Dining in the "Dweller Kitchen/Dining Room". Don't forget all the Intellectual/Charming folks you meet including the "Dwellers"with the six figure incomes.
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Not to mention wearing a 'cool' hat to show everybody else wearing a 'cool hat' how 'different' you are(snicker), and running around pretending you're one of 'The Last Cowboys'. Not that it impresses anybody with a mental age over 10 ...
The 'big tax deductions' are a wash after all is said and done, and after all the angles are implemented, you get a few hundred dollars of your own money back. you can pretend it means you make more, but you can also tell yourself you're SuperMan.You'd do much better just buying on the cheap, you will save a lot more than having the attitude that because it's 'deductable' that means it's free, like a lot of morons run around thinking. There is no such thing as a 'dollar for dollar' tax deduction; the tax structure is bracketed.
There are tons of excellent tax guides out there, and the government , both state and federal, gives them out free, for those who can read; there is no reason to not do your own taxes,; it can be intimidating a t first, but after the initial hump it's just a matter of updating every year, in case new laws or regs have come about.
The richest truck driver I know runs a dozen used Schnieder COE's, and doesn't owe a red cent on anything. Ask him if he gives a crap about 'writeoffs' or 'depreciation'. LOLJay Gould
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This post coming to you live, from Jesus Land !!!

Answer:
Now I know where I screwed up. I dont own a cool hat. You might have to define "cool hat". Have to make sure I get the right one.
I dont know why that sounds so silly but rings so true.
I believe any business person will tell you that write offs will kill you if you get to many. Your just waisting your own money. Keeping those things to a bare minimum is a key to keeping the money you make. It's like going shopping for a shirt. While in there you see some shoes on sale so you buy them. Did you really just save some money or did you just waist money on something you didn't really need.
Oh well. I just hope I'm awake enough the next time I see a sunset or sunrise to enjoy it. Usually when the sun comes up It just makes me mad and uncomfortable. The light hurts my eyes because they have been open for the last umpteen hours. But I'll try to see it's beauty. Then I can talk about how pretty it was.

Answer:

In my opinion, if you're spending that much a week for food and supplies, something is wrong. After you go solo, spend that 150 on a fridge and an oven. It might be alot of money to spend right at the start, but in the long run they will pay for themselves. As far as showers, most TS give you one free if you put on at least 50 gallons of fuel. For laundry, bring enough clothes from home that you don't have to worry about doing it while you are out. Cleaning supplies for your truck are pretty cheap if you buy them while you are home and not at in TS. If you smoke, buy them before you go, or plan on buying them when you're in a state that sells them cheaply.
Chris takes $50 with him when he goes out, and that covers anything that he might need, including a few dinners out when sitting in the truck gets old.

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"Chris takes $50 with him when he goes out" It's good you have a husband that makes sacrifices for his family. Because that is what he's doing. You'll never convince anyone with experience of anything different.

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I wasn't trying to convince anyone of anything, I was just throwing my opinion in there. It's not my fault that he can live on a budget, and that I can run our household on a budget.
And as far as the sacrifices go, we both had to make them when he decided he wanted to go into this field, and somtimes I think I got the short end of the deal.