Of all things in life that are certain, taxes are probably near the top of the most dreaded. Each year truckers pull out their receipts and logs to catalogue earned income and figure out deductions. But because nearly $1 billion is left on the table after tax season, it’s important to know all the deductions you qualify for.
Here are our tax tips:
- Don’t forget these critical deductions: association dues if you belong to one; ATM and check order fees; cleaning supplies such as Windex or Rain-X; interest on credit cards and business loans; any and all office supplies, such as paper clips, pencils, pens, and paper; access fees for satellite and Internet; fees from DOT physicals and drug tests; mortgage interest and real estate taxes; steel-toe boots; work gloves; load board subscriber fees; industry magazines; dry cleaning costs for uniforms; tolls and fuel (if you are on the job); and tools such as duct tape, flashlights, hammer, pliers, and screwdrivers.
- Non-deductible expenses are those that were reimbursed by your employer. Other non-deductibles expenses include commuting costs, vacation, interest on personal loans, and everyday clothing.
- You can’t deduct income lost as a result of unpaid mileage, and you can’t deduct for downtime.
- To claim a deduction, you must have a “tax home,” or a permanent location where you receive mail.
- The IRS allows drivers to deduct the specific amount of the costs of their expenses while on the road, called a per-diem cost. Check to see what the per- diem cost is before you file.
- Fuel that is paid out-of-pocket can be deducted as long as it exceeds $100.
- Truck owner-operators can deduct the cost of insurance premium payments, leasing fees, and interest payments made. They can also deduct the annual depreciation amount of their truck.
- Handwritten receipts can be presented as long as they are not excessive and are considered normal for business operating expenses.
- Prove how many days you were away from home (to calculate per-diem costs) with your logbook. You don’t need to save every meal receipt.
- Per-diem costs can be used for company drivers as well.
- Donations to a charity are deductible.
- Always keep meticulous records and stay organized. When you can, keep every receipt just in case.
- Self-employment payments can be made online or by phone using debit or credit cards, or through the Electronic Federal Tax Payment System (EFTPS). You can also pay by check made out to the “United States Treasury” and include Form 1040-V.
These tips are meant to be a guide, and not a substitute, for a tax professional’s advice. What other tips have you found regarding trucking and taxes?
