Com Checks & T-Checks Income/Expenses
In the Trucking industry, Brokers/Shippers provide Com Checks and/or T-Checks to the Carriers in order to advance partial payment for expenses related to the load being carried. These electronic checks, when “cashed”, provide immediate cash to the Carrier. The entire advance is supposed to cover the anticipated road expenses; however, sometimes this isn’t the case.
Income Tax Reminders:
• Income is taxable even if provided in an advance form. Regular business expenses can be utilized to offset the earned income from the advance such as fuel, insurance, tolls, repairs etc.
• If utilizing a Com Check/ T-Check option on a load, then maintain a spread sheet related to the load that you’re on in order to keep track of the cash in/out flow
• If a balance remains in the account after all the expenses are paid, then this is a balance sheet item, and is considered a cash balance in the Com Check/T-Check account and must be reported on the balance sheet.
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