As a truck driver, you must develop a preventive maintenance schedule to be safe from claims from the IRS.
Firstly, you need to pay taxes to the IRS; luckily, you have an array of expenses deductible from the tax. Specifically, you could cut all the travel costs from the tax, including all the protective gear, equipment, etc.
Scroll down to find tips for truckers to save them from the IRS.
Who Will Get The Truck Driver Tax Deductions
Before claiming any deduction, check out your existing tax papers. You are available for a tax deduction when you have papers such as the 1099s. Otherwise, paying the original tax amount is the only option to go.
As everyone has different requirements, it’s better to have a free trucking tax guide to have a kickstart on it.
Tips for Truckers to Save Them from IRS
Below are the points you should focus on regarding a tax deduction. Go through each of them and check whether you could utilize these options. Most of the time, you will get great options that save you a handful of cash immediately.
1. Count Insurance Premiums
Any property insurance on your truck to protect it will be deducted as a business expense. Primarily, the insurance premiums will be counted to take off the amount from your tax. But, it’s good to remember this kind of insurance falls in another form but not in the business expense list.
2. Check For Protective Clothing
When you use any protective clothing and gear for your job, all of these are tax-deductible. Moreover, if you have protective boots, gloves, or goggles, all of these materials should let you deduct taxes. Meanwhile, regular daily clothing would not be considered a tax deduction.
3. List The Meal Expenses
If you are a long-distance truck driver, all your meals are subject to deduction. You could list all the expenses or follow the default IRS per diem allowance. Meanwhile, if you are a local driver working on a short-distance basis, your meal expenses would not fall in the mentioned category.
4. List Down Personal Electronic Devices
Do you own electronic devices such as cell phones, tablets, or laptops? All of the costs of these gadgets are deductible if you use them only for work purposes. At the same time, if you use these devices for both business and personal tasks, list down the cost used for business. It’s that simple.
5. Look for Truck Repairs and Maintenance
As you need to maintain and repair your truck, all these costs will also be deducted. For example, you might have to fix the engine of your truck or buy out truck parts. Have a proper counting of these costs and use it for a tax deduction.
List of Expenses Which is Non-deductible
Apart from the deductible expenses, you have other types of costs as well. These are the costs that are not deductible from the total tax amount at all. Let’s talk about these expenses and learn more about them.
Reimbursed Expenses
Expenses that your employer has paid will not be counted at all. For example, if the contracted employer pays for your meal, it will be considered for reimbursement. This is why you always have a separate expense paid to you.
Personal Cell Phone
All the phone call costs you have spent for personal reasons are non-deductible. As we have mentioned, if you use a cell phone for both, only list the portion you used for work. Plus, remove the portion you used solely for personal use.
Conclusion
These are the ultimate tips for truckers to save them from the IRS. With our curated tips, you could save a hefty amount on your tax. But, you need to keep track of all the costs that fall under business expenses. It would make your task a lot easier.
As the tax deduction process takes time, you must keep patience.
First, understand all the costs and count them out. Then use it at the annual tax window.
FAQs
Here are some of the questions you should have for trucking on.
What Are The Best Tax Preparations For Truck Drivers?
To have the advantage, you should be working with the best preparer possible. Plus, the preparer should operate within your business hours as well. Most of all, you should arrange your file and credentials way ahead for better preparation.
Do Owner-Operators Get A Tax Refund?
In general, the owner-operators don’t get tax refunds. But in rare cases, they get refunds if they overpaid the tax amount beforehand. This is why it’s best to keep a check even after paying the taxes.