Industry News & Tips for Truckers

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Written by: HandshakeFleet

March 08, 2023

Technological advances happen in a blink of an eye. When you think of transportation innovations, what comes to your mind?

How will transportation change in the future?

Why does transportation need to change?

In this article, we will discuss the future of transportation.

Future Transportation Ideas

Scientists have come to the conclusion that transportation technology is all about efficiency, ease, and safety. Here are some future transportation ideas.

Hyperloops

Hyperloops are a proposed transportation system for freight and passengers. Their speed would surpass the speed of a commercial airline. Using powerful magnets to propel the passenger tube would save on energy and the cost it takes to operate the technology. Hyperloops are still being put to the test, but are a travel method of the future.

Underground tunneling

There’s no mystery to underground tunneling. It’s exactly what it sounds like. This is a transportation method and system to transport people or goods below the Earth’s surface. This form of travel minimizes traffic congestion and can travel at higher speeds. Underground tunneling would also improve the overall environmental effects of current car travel.

Autonomous vehicles

Autonomous or self-driving vehicles are something every major car manufacturer hopes to achieve. Something like this at one point seemed impossible, but now self-driving cars are becoming a reality. These vehicles take millions of data points into account every second through a variety of sensors, software, and GPS. This method of transportation is relatively new but will ultimately have a massive impact on the overall future of transportation.

Last-mile robots

Last-mile robots will change how the shipping industry operates. Instead of relying on a delivery driver or postal worker to drop off the item at your front door, companies are now employing robots that traverse cities and glide down sidewalks to deliver your package straight to your door.

Electric vehicles

Electric vehicles have advanced transportation. Because electric vehicles rely on a battery charge, refueling at a gas station is slowly becoming a thing of the past. Also, electric bikes and scooters have become viable transportation methods for traversing neighborhoods or entire cities. These vehicles provide ease of use and convenience that hasn’t been provided by other last-mile forms of transport.

Flying taxis

Companies like Uber, Boeing, and Airbus have started developing flying taxi technology. Uber is working towards building flying taxis. The goal is to build a flying taxi that is electrically powered and that will take passengers to their destinations.

An example of such a flying taxi is the Volocopter, an autonomous aircraft powered by electrical energy. NASA will use the latest airspace management computer models and simulations to assess the impact of small aircraft – from delivery drones to passenger aircraft with vertical take-off and landing capabilities – in crowded environments.

Multi-directional elevators

These elevators would move horizontally rather than vertically up and down a shaft. They would consist of several elevators that operate on an electromagnetic track. Following the principles of maglev (magnetic levitation), the cabins move up one shaft, move horizontally, and descend to another shaft, creating a continuous loop.

Compared to conventional cable-operated elevators, the new system requires fewer and smaller shafts, which increases the usable area of ​​a building by up to 25 percent.

Transportation in the Future

The pandemic has certainly changed transportation and how people think about it. Here are some future transportation trends.

Remote work and distance learning

The pandemic has changed transportation because of distance learning or remote jobs. Because of this, there is less travel. As time goes on, car sales may drop due to less demand. Also, public transportation won’t be needed as much and may experience a decrease in utilization and services.

High-speed travel

Bullet trains and transport capsules are being developed to change traveling speed. Hyperloop, a proposed high-speed transportation system for both public and goods transport can change transportation worldwide.

High-speed travel will change commute times which may affect real estate markets and home prices along the route. Hyperloop will help transport time-critical, high-priority supplies such as medical supplies and food.

Revolution of MaaS

MaaS, or mobility as a service, is the concept of a personalized and on-demand transportation service. In the future, MaaS apps could offer real-time information on, e.g., crowding levels, and even the frequency of cleaning of public transport, to better estimate travel times and risks related to it.

Rethinking tourism and business trips

Business trips and tourism have suffered globally during quarantine. We are already seeing new habits acquired during the quarantine, such as social distancing, as well as the fears that will remain, which have a lasting impact on the way we travel during vacations. Also, large events, conferences, and concerts may witness smaller visitor numbers. Business travel has decreased, thanks to the remote working possibilities learned during the crisis.

Solar panel roads generating electricity

Solar technologies are developing rapidly, with new concepts and ideas constantly entering the markets. Solar panel roads could potentially boost renewable energy production, power the lights and smart street infrastructure, charge EVs driving on it, and melt ice and snow.

AI and data-driven maritime transport

AI or artificial intelligence can calculate optimized routes and transport velocity by combining weather and sea current data. Ships produced through their smart systems could represent the most significant leap in the shipping business since the introduction of containers.

Road traffic as a software

Software directing the traffic flows can make congestion history by efficient management and can improve safety significantly. The role of AI is vital in forming an adaptive system that can take into account both the needs of humans as well as those of the transported goods.

To conclude, the futuristic transportation in The Jetsons doesn’t seem so outrageous or merely a figment of your imagination. Next time you consider the future of transportation, just think to yourself, “Meet George Jetson...”

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Written by: Kate Williams

January 16, 2023

Many truck drivers enter the industry because the pay is good, and the jobs are secure. But not many of the young men and women who earn their CDL consider what a truck driver retirement plan may entail. In fact, it’s not uncommon for people who opted for a career in the trucking industry over spending hundreds of thousands of dollars on a four-year college degree to expect to work until they’re eligible for social security.

But the high salaries today’s professional big rig operators earn can easily position you for early retirement or set you up for particularly comfortable golden years if you play your financial cards well. If you are a veteran driver or a rookie choosing among a variety of truck driving jobs, consider how these long-term investment strategies could set you up later in life.

Parlay Your Truck Driver Salary into Long-Term Wealth

Consider for a moment that, according to the Bureau of Labor and Statistics, the average truck driver earned $49,920 in 2022 or approximately $24 per hour. Top-paying trucking companies continue to increase salaries to secure the help of experienced truck driving professionals. Among the highest of pay are reported top earners making $110,000. Many companies are also offering incentives such as cash bonuses to sign on, health care, and profit sharing in some cases. If you have an entrepreneurial streak, Owner Operators are pulling down upwards of $220,000 in some cases.

The point is that for those thinking about truck driving as a paycheck-to-paycheck career, you may want to take notice that you can make a great deal of money. The question is: how to invest that hard-earned cash? These are some of the traditional investment strategies that truckers can use to augment their financial portfolio and plan for your truck driver retirement days with little effort.

• Invest in a 401(k): A 401(k) is an employer-sponsored retirement savings plan that offers significant tax benefits. You select a percentage of your income to be automatically taken out of each paycheck and most employers will make a matching contribution, essentially giving you free money. Beware, check the fine print as there are stipulations to earn the match! You will always completely own, or be vested, in your contributions and can not lose this portion. If you leave the employer, you do have the ability to transfer your account to a new retirement plan without penalty or tax consequences. However, any withdrawals before age 59½ will be subject to an early withdrawal penalty and ordinary income tax. The contribution limits change annually; for 2023 you may allocate $22,500 to this type of truck driver retirement fund.

• Mutual Funds/Exchange-Traded Funds (ETFs): This is done by groups of people pooling their resources and having a manager use the resources to purchase long-term diversified investments. They tend to be relatively low risk and good earners. However, these types of investments have their ups and downs. An index fund is a type of mutual fund that by its nature tends to have lower costs and may be an attractive investment for a truck driver's retirement strategy.

• Stocks: This is a classic long-term wealth strategy used by everyday Americans to build a nest egg for their retirement years. Consider working with a financial planner early in your trucking career on stocks that are steady earners. The point is to select stocks that you cash in 10 to 20 years down the road.

• Bonds: Corporate bonds, municipal bonds, and U.S. Treasuries are considered relatively safe investments with proven yields. If you don’t like risk, this class of investment might be right for your portfolio.

• Certificates of Deposit: This type of investment earns a set profit over a predetermined time period. Any truck driver can go online and research which financial institution offers the best CD rates. You can walk into most banks and invest in a CD. Just be aware of the fact that early withdrawal generally results in penalties.

Along with these methods of investing the salary you earn as a professional freight hauler, traditional and Roth IRAs also remain viable options to discuss with a qualified tax advisor.

If you decide to utilize these strategies, it may be prudent to direct a percentage of your salary toward developing a healthy financial portfolio, investing early and often to take advantage of time for potential growth. But there are alternative pathways for funding one's truck driver retirement plan.

Flipping Land Can Yield High Return on Investment

Television is loaded with reality shows about house flipping. Someone buys a blighted property and directs contractors to revitalize it and, boom, they sell it for a significant profit. That scenario doesn’t lend itself particularly well to the truck driving lifestyle. The home-flipping industry is far too hands-on and uncertain. But land, well, they aren’t making any more of it.

What doesn’t make reality TV is that overgrown properties near neighborhoods and main roads can be quite valuable once they are prepped for building. During your travels, keep an eye out for buildable lots that are still raw. For relatively little investment, you may have an opportunit to purchase a lot, have it professionally cleared, and have a local real estate agent put it on the market for a hefty profit. It’s essential to work with a local real estate professional to understand the market trends in the area.

This proactive wealth-building strategy doesn’t require a great deal of your time. It also puts your travel experiences to additional use. How many occupations provide people with geographical information that can be leveraged?

Real Estate Investments for Truck Drivers

There are trending real estate strategies that may be well suited for long haul truckers. These include multifamily properties and buying your retirement home first. If that sounds counterintuitive, consider the following reasoning why truckers are uniquely positioned for this type of financial strategy.

Buy Your Retirement Home First

Although this may seem like putting the cart in front of the horse, over-the-road truckers spend a lot of time away from home. That minimizes, to some degree, the need to make a substantial investment into your home base. That reality has prompted some drivers to pivot, buying property in luxury areas suited each truck driver's retirement plan.

One of the key strategies is to buy a property that can earn strong rental income, such as a beach community or even college town. Then, enlist the services of a property management company to oversee rental, maintenance, and day-to-day operations. You may also block out times when you use it for vacationing much like a timeshare. The only difference is that you own it. The best part of using this financial strategy is that the property will get paid off from rental revenue. With some due diligence, you may turn a profit while your retirement property gets paid off.

Multifamily Properties for Truck Drivers

A more difficult road is buying a multifamily property that you live in and collect rents. Like the previous scenario, you may enjoy having the rentals effectively pay the mortgage and taxes while holding on to more of your own money. The downside is that it can be challenging to have tenants living next door. You will also need someone reliable to oversee the property while you are earning a living on the open road. Although this might not be the easiest road to take, it can work out well financially for some truckers.  

Plan for Your Truck Driver Retirement Early

Getting that first big truck driving paycheck may make you want to indulge yourself by purchasing things you have always wanted. It’s certainly a time for celebration because you have arrived in a good paying career. But consider putting away a portion of every paycheck toward investments that can strengthen your long-term financial health and well-being.

CDLjobs.com is not a financial advisor. The content on this website is for informational purposes only. In order to make the best financial decision that suits your own needs, you must conduct your own research and seek the advice of a licensed financial advisor if necessary. Know that all investments involve some form of risk and there is no guarantee that you will be successful in making, saving, or investing money; nor is there any guarantee that you won't experience any loss when investing. Always remember to make smart decisions and do your own research!

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Written by: Kate Williams

January 12, 2023

If you work as a truck driver or plan to enter the industry, you’ll want to consider how to file your taxes. Tax obligations depend on your current employment status. Owner Operators will have to file differently than company truck drivers. Staying on top of your tax requirements will help you manage your income and expenses better. Remember to keep all expense receipts to make the tax filing process go smoothly.

Company driver tax deductions

Drivers, including those who work for trucking companies, will receive a W-2 form from their employers. In years past, truck drivers could make deductions on their tax returns for certain expenses despite being employed by a private company. Write-offs included mileage and travel expenses. However, the Tax Cuts and Jobs Act eliminated travel expenses claimed by truck drivers who receive W-2s from their employers. Once you become an independent Owner Operator as a driver, you will report income through Form 1099 and can claim deductions to reduce tax payments.

The transition from employee to owner operator

Many truck drivers may start as private employees. With taxes automatically deducted from their paychecks, the drivers may not realize filing requirements have changed. Keep in mind that if you switch from an employee to a self-employed employee mid-year, you must file a W-2 and 1099. The tax return will need to show your self-employment income as well as your earnings from an employer.

Another part of transitioning from an employee to an Owner Operator is establishing your tax status. A frequent mistake is incorporating too quickly. Instead, accountants recommend working as an independent contractor for at least a year before changing tax status to a sole proprietorship or establishing an LLC. As an Owner Operator, you will make tax payments every quarter. An individual, sole proprietor, or partner, will use Form 1040-ES to estimate tax payments. Corporations rely on Form 1040-W to calculate taxes owed.

As a new Owner Operator, you’ll want to set aside approximately 20 to 30 percent of your income to pay taxes, according to Keeper Tax. After operating independently for at least a year, you could also use the safe harbor method to estimate tax obligations. Drivers can look at the year prior’s tax liability and divide the amount by four to figure out quarterly payments. Any driver anticipating owing more than $1,000 to the IRS must make quarterly payments to avoid penalties.

As of 2022, the self-employment tax rate set by the Internal Revenue Service is 15.3 percent. The rate includes 12.4 percent for social security and 2.9 percent for Medicare. Higher Medicare taxes may apply to Owner Operators who earn more than $125,000. Tax deductions and tax credits reduce a driver’s liability. 

Truck driver tax deductions

Owner Operators and contract drivers can claim tax deductions on their income tax returns. If you get one or more 1099s, you can submit itemized deductions. Any write-off would need proof of payment, meaning you must save all receipts. The following are the top deductions that relate to owning and operating a truck business:

• Truck payments. Truck drivers can write off vehicle depreciation and loan interest accumulated. Additional vehicle costs qualify as tax deductions, including registration payments, fuel, and truck maintenance.
• Mileage. The IRS permits either a standard mileage rate deduction or a vehicle expense deduction. Tolls and parking fees may also qualify as a write-off.
• Insurance payments. Any insurance premiums related to your business can act as a write-off. Types of insurance related to a trucking company include commercial liability, cargo insurance, and property liability.  
• Education. You can claim CDL programs as a tax deduction on your taxes. The IRS also accepts write-offs for licenses and permits.
• Travel. For non-local drivers, you may list a certain amount of travel expenses on your taxes. Included travel expenses are lodging, meals, and laundry.
• Association dues. Remember to list any union or association dues as a deduction for truck drivers. If you subscribe to any trade publications, you can include them in your tax return.
• Office supplies. Claim any electronics costs and office supplies related to your business on your tax return. Examples include GPS units, mobile phones, computers, CB radios, and stationery.
• Personal products and Trade-related tools or equipment. Many truckers need personal care products, including bedding, coolers, cleaning supplies, tool sets, and flashlights. An accountant can often include these items as well as itemized deductions.

Truck driving tax credits depend on your eligibility. Tax deductions reduce your taxable income, while tax credits lower your tax liability dollar for dollar. Examples of tax credits include Earned Income Tax Credit, Child Tax Credit, and American Opportunity Tax Credit.

Non-taxable truck driver expenses

Remember, you can’t write off non-business expenses on your taxes. You can’t deduct any clothing or gear purchased for personal use. Any mileage between your home and office isn’t a write-off either. Meals or travel expenses on vacation also don’t count toward your deductions. If you’re a contracted driver reimbursed by your client for any costs, they also won’t be included.

You should hire an accountant familiar with the industry to reduce the chance of filing in error or getting audited by the IRS. You'll be subject to penalties and fines if you’re audited and can’t provide supporting documentation. Keep all truck driving expense records for a minimum of three years before purging any records in case of an audit.

CDLjobs.com does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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Written by: Kate Williams

June 17, 2022

Truck drivers face a myriad of laws and regulations on the topic of whether or not they are allowed to carry a firearm when driving over the road and crossing state lines. 

Learn what it takes to ensure safety and legal compliance as a responsible gun owner and commercial truck driver.

CAN TRUCK DRIVERS CARRY GUNS?

Gun laws in the United States have long been a hotly debated topic. Attention to the issue has intensified recently after a mass shooting at Robb Elementary in Uvalde, TX left 19 children and two teachers dead.

Truck drivers and the trucking industry at large are acutely aware of gun control controversy. While many truckers exercise and defend their Second Amendment right to bear arms for the safety of themselves and others, many drivers advocate for stricter regulations to combat America’s unparalleled gun violence. With various state and local laws, and new federal legislation reportedly imminent, it’s important to understand… can truck drivers carry guns?

DIFFERING GUN LAWS BY JURISDICTION

Are truckers allowed to carry guns? The answer isn’t always straightforward. One of the trickiest aspects truckers face is the countless gun laws that vary not only from state to state, but even within different cities of the same state. Although there is no national law that prevents truck drivers from carrying a properly permitted gun, they can run into issues driving through a state or city with strict gun laws.

For example, New Jersey has very tough laws on how gun owners can store their weapons for transporting. The law states guns must be unloaded and stored in a closed and fastened case or locked in the trunk while traveling. A trucker coming from a different state might not realize these laws and face penalties or fines for unknowingly breaking the law.

Truckers carrying a weapon should consult the state firearm laws database before they hit the road if they’re unsure of an area’s gun policy.

CONGRESSIONAL FRAMEWORK FOR NEW NATIONAL GUN LAWS

After gun control garnered national attention in the wake of another deadly mass shooting, a bipartisan group of Senators have agreed to a framework for new federal legislation. The measure is expected to receive near unanimous support among congressional Democrats and enough votes from Senate Republicans, the greatest impediment to new regulations, to overcome a filibuster. Notably, Senate Minority Leader Mitch McConnell announced his approval of the proposed reform.

Once Congress passes a bill, it will likely be signed by President Joe Biden. The President urged Senators to pass this agreement. Biden called it a “step in the right direction” while simultaneously stating that it doesn’t go far enough to combat gun violence.

The handshake Senate deal, which is not yet an introduced bill, encourages states to implement red-flag laws. This allows authorities to keep guns out of the hands of people a judge has deemed a threat to themselves or others. Further, the agreement includes federal criminal background checks for gun buyers younger than 21 years old that consists of searching juvenile justice and mental health records. It also invests billions of federal dollars into new school security and mental health programs.

Until more details are shared when a bill is formalized, it is unclear how this will affect truckers.

INACTION ON MIKE'S LAW

For decades, gun control measures have failed in Congress. One example stems from a heartbreaking story in the trucking industry. The Small Business in Transportation Coalition (SBTC) proposed a bill in 2014 called Mike's Law. It was named after Michael Boeglin, who was shot and killed inside his truck while he was parked in an abandoned lot waiting to pick up freight.

The proposed bill would have created a nationwide gun permit designed specially for truckers allowing concealed carry. However, the National Rifle Association (NRA) lobbied against the bill in favor of more universal gun accessibility proposals. Mike’s Law, and the subsequent Michael's Law Amendment, were both ultimately scrapped.

WHY DO TRUCKERS CARRY? SAFETY CONCERNS

The top reason truckers report why they carry a gun while driving is for their own safety. Sadly, slayings can occur while truckers are on the road. One such case, which remains unsolved, involves 52-year-old Piotr Pietrzykowski from Illinois, who was found stabbed to death in his truck on March 8, 2016. While truck driving often makes the news as one of the most deadly occupations because of highway accidents, it is stories like Pietrzykowski’s that prompt debate over whether truckers should carry guns for protection.

NOT ALL TRUCKERS THINK GUNS ARE NECESSARY

However, not all truck drivers think it's essential to carry a gun when on the road. Debra, a truck driver from Florida, believes carrying a gun is dangerous and unnecessary. While emphasizing that she doesn't blame the victims, she does point out that many of the incidents occurred because truck drivers stopped illegally in parking lots at abandoned buildings. She says she's very careful about planning where to park and rest and with all the apps available "there's no reason to park illegally or in an unsafe place.”