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lucky_ducker t1_j6p0wui wrote

Your dad was likely a contractor, working for himself. He's allowed to deduct the operating expenses of his truck, BUT he has to pay ~15% self-employment taxes PLUS normal income taxes on the net profit. $20K in SE and income taxes is consistent with right around $75K - $80K of net profit, i.e. gross revenue minus documented business expenses.

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