If you're working as a 1099 freight agent, taxes work very differently than when you're a W2 employee. No automatic withholding, no employer contributions—just you, your business, and the IRS. But with smart planning, you can stay compliant and keep more of what you earn.
Here are key tax tips every independent freight agent should know:
1. Set Aside for Taxes Monthly
The biggest mistake new agents make? Waiting until tax season to think about taxes. As a 1099 contractor, you’re responsible for federal, state, and self-employment taxes. A good rule of thumb: set aside 25–30% of your income into a separate account.
2. Track All Business Expenses
You can deduct a wide range of expenses as a 1099 agent:
- Phone/internet
- Office supplies
- Load board subscriptions
- TMS and software tools (like CloneOps.ai or your Select-provided system)
- Business travel and meals
- Marketing expenses
Use software like QuickBooks Self-Employed or Keeper to automatically track, categorize, and store receipts.
3. Make Quarterly Estimated Payments
If you expect to owe more than $1,000 in taxes for the year, the IRS requires you to make quarterly payments. Set calendar reminders for:
