Top Tax Mistakes Route Owners Make (and How to Fix Them)

Are You Paying Too Much in Taxes as a Route Owner?

If you're running your own distribution route, you already wear a lot of hats: driver, manager, sales rep, and business owner. But one area many route operators struggle with, or unknowingly neglect, is taxes.

At DSA Tax & Bookkeeping, we’ve worked with thousands of route owners across the country. The pattern is clear: too many are overpaying, under-deducting, or filing the wrong type of return altogether.

Here are five signs you might be leaving money on the table,  and how we help you fix it.

1. You’re Still Filing as a Sole Proprietor

It’s one of the most common (and expensive) mistakes we see: route owners operating under their personal name and social security number instead of forming a business entity. Why does this matter?

Sole proprietors pay higher self-employment taxes and miss out on potential protections and savings. At DSA, we help you set up your Corporation or LLC and elect S-Corp status when appropriate, which can lower your tax liability significantly.

2. You’re Missing Industry-Specific Deductions

Not all accountants know the route business, and if they don’t, they may not be taking full advantage of your deductions.

Expenses like:

• Gas and vehicle maintenance

• Truck payments or leases

• Warehouse rent and storage

• Uniforms and hand tools

• Insurance premiums

• Business use of your cell phone

These can all be written off, but only if they're tracked and filed correctly. DSA works with distributors every day, so we know what counts and how to document it.

3. Your Returns Aren’t Tailored to Route Ownership

Many new clients come to us after using a general CPA or national tax chain. The problem? These providers often treat route income like standard 1099 self-employment, missing crucial nuances that apply to distribution businesses.

We've reviewed hundreds of returns where the wrong form was used, elections were never made, and deductions were underutilized. Even worse, we've seen clients penalized because their accountant didn’t understand what forms to file for an S-Corp.

We don’t just fix errors. We give you a better system.

4. You Don’t Have a Year-Round Tax Strategy

Tax season should never feel like a surprise. If your accountant only shows up in March and leaves you on your own the rest of the year, you're probably not maximizing your financial strategy.

At DSA, we offer year-round support. That means:

• Quarterly tax estimates

• Real-time bookkeeping

• End-of-year planning

• Business formation guidance

• Loan or lease documentation support

We’re not just here to file your return, we’re here to help you grow.

5. You’re Not Sure If You’re Doing It Right

If you’ve ever second-guessed your tax return or felt unsure about your setup, it’s time for a review. A 30-minute call with our team could uncover missed deductions, overpayments, or better ways to structure your business.

We’ll look over your previous return, explain what we see (in plain language), and offer next steps to improve your setup, all with your bottom line in mind.

Let’s Fix It, Together

You work too hard to give the IRS more than you owe. DSA Tax & Bookkeeping is built specifically for independent operators like you. From business formation to bookkeeping and tax filing, we’ve got you covered, with accuracy, transparency, and industry expertise.

Ready to take control of your taxes? Contact us today to schedule a free tax return review.