Estimated Taxes for Owner-Operators: What You Need to Know
As an owner-operator, you're not just responsible for your truck, your route, and your load—you’re also in charge of your taxes. Unlike traditional employees, you don’t have taxes automatically withheld from your paycheck. This means it’s crucial to stay on top of your estimated tax payments to avoid penalties and surprises at tax time. At PRZ CPA, we understand the unique tax needs of owner-operators. In this post, we’ll walk you through the basics of estimated taxes and how they apply to you. What Are Estimated Taxes? Estimated taxes are periodic payments made to the IRS throughout the year on income that isn’t subject to automatic withholding. As an owner-operator, you’re likely receiving income from various sources—freight hauls, fuel rebates, and other independent contracts—that doesn’t have tax withheld. The IRS expects you to pay your taxes in regular installments instead of all at once when you file your return. If you don’t pay enough during the year, you may face underpay...