The North American Industry Classification System (NAICS) code for truck drivers is 484121, which is classified as “General Freight Trucking, Long-Distance, Truckload.
The Internal Revenue Service (IRS) uses a system of business codes to classify different types of businesses and industries for tax purposes. These codes, known as North American Industry Classification System (NAICS) codes, help the Internal Revenue Service (IRS) to determine which tax forms and schedules a business must file, as well as its tax liability.
If you are a truck driver, you will need to know your Internal Revenue Service (IRS) business code in order to properly file your taxes. In this article, we will discuss the Internal Revenue Service (IRS) business code for truck drivers and what it means for your tax obligations.
What is the Internal Revenue Service (IRS) Business Code for Truck Drivers?
The North American Industry Classification System (NAICS) code for truck drivers is 484121, which is classified as “General Freight Trucking, Long-Distance, Truckload.” This code applies to truck drivers who transport goods over long distances, typically traveling hundreds or thousands of miles, and deliver full truckloads to a single destination.
Truck drivers who operate within a specific region, such as a city or state, and typically make multiple deliveries in a day, are classified under a different North American Industry Classification System (NAICS) code (484110, “General Freight Trucking, Local”).
What Does the North American Industry Classification System (NAICS) Code Mean for Your Taxes?
The North American Industry Classification System (NAICS) code assigned to your business affects the type of tax forms and schedules you must file, as well as your tax liability. Here are a few key tax obligations for truck drivers classified under North American Industry Classification System (NAICS) code 484121:
Self-Employment Tax
As a self-employed truck driver, you will be responsible for paying self-employment tax, which covers Social Security and Medicare taxes. This tax amounts to 15.3 percent of your net income, and you will need to report it on Schedule SE (Form 1040).
Federal Income Tax
In addition to self-employment tax, you will also need to pay federal income tax on your earnings. The amount you owe will depend on your taxable income, which is calculated by subtracting your business expenses from your gross income.
Excise Tax
As a truck driver, you may be subject to the federal excise tax on the fuel you use for your business. You will need to file Form 720, “Quarterly Federal Excise Tax Return,” to report and pay this tax.
Depreciation
You may also be able to claim depreciation on your truck, which allows you to write off a portion of the cost of the vehicle over several years. This can reduce your taxable income and lower your overall tax bill.
Record Keeping
Keeping accurate records of your business income and expenses is critical, as it will help you determine your taxable income and ensure that you claim all the deductions you are eligible for. You will need to keep receipts and records of all your business expenses, including fuel, maintenance, and repairs, as well as other costs such as insurance and license fees.
Conclusion
Truck drivers who transport goods over long distances are classified under North American Industry Classification System (NAICS) code 484121, “General Freight Trucking, Long-Distance, Truckload.” This code affects your tax obligations, including self-employment tax, federal income tax, and excise tax on fuel.
Keeping accurate records of your business income and expenses is also important for determining your taxable income and claiming all the deductions you are eligible for. If you have any questions about your tax obligations as a truck driver, or if you need help with your tax return, consider working with a tax professional who is knowledgeable about the tax laws that apply to your business.