Truck driver tax deductions completely reduce your taxable income and, therefore, conserve more of your hard-earned cash. As a truck driver in the United States, you may be able to take so many offers that can lower your overall tax liability. Tax season can be broken down to be so much less stressful if you understand which deductions you qualify for and how to file for them.
What Are Truck Driver Tax Deductions?
Tax deductions are expenditures that truckers can subtract from their revenue in order to lower their taxable income. For owner-operators and business drivers, these deductions reduce the cost of existing as a driver. Normal truck transmission deductions are for gas, food, and vehicle repair.
Vehicle Expenses
This is one of the top truck driver tax deductions that provides ownership and operation of a truck with a means of reducing vehicle expense.
- Fuel costs
- Repairs and maintenance
- Insurance premiums
- Depreciation (if you actually own the truck)
- Truck payments (if you lease the truck)
There are two ways that you can calculate vehicle expenses:
Standard Mileage Rate: With this method, you can claim a certain rate per mile driven for business. 65.5 cents per mile.
Actual Expense Method: This method allows you to deduct operating expenses associated with your truck, such as gas, maintenance and insurance. You do have to meticulously track all of your spending.
Meals and Lodging
But truck drivers, many of whom can spend months away at a time, usually have to pay for their own meals and lodging.
Fortunately for truck drivers, the IRS has provided truck driver tax deductions for these expenses. The rules are specific:
Meals: While travelling, you may deduct 50 percent of the cost of meals out. If you are submitting receipts and itemized logs of your food purchases.
Lodging: You can deduct the cost of most lodging including hotel stays if you must stay overnight away from home. Again, the receipts and records are key.
Truck Related Supplies and Equipment
However, the cost of any equipment or supplies you use to perform your job is another truck driver tax write off you can claim. This may include:
- GPS devices
- CB radios
- Protective clothing: boots, jackets
- Office supplies (if you are an owner-operator, for paper)
These are generally deductible so long as they are used only for business and you need them for your work.
Self Employment Tax
As an independent contractor or owner-operator, you must pay self-employment tax. You can deduct from your taxable income half the self employment tax you owe.
Benefits, including health coverage and retirement contributions
Health insurance premiums paid by self-employed truck drivers are also deductible. Contributions to retirement plans like a SEP IRA or solo 401(k) are also removable, meaning you can save for the future and lower your tax bill at the same time.
Other Business Expenses
As a truck driver, you may also have other business-related costs that are tax deductible, such as:
- Businesses use cell phone bills.
- Miscellaneous (anything stationary, stationary , etc.)
- Association membership fees
- Licensing and permit costs
- Keeping Accurate Records
How to Claim Your Truck Driver Tax Deductions
You need to maintain meticulous records of all costs. That might include saving receipts, logging mileage, and keeping track of overnight trips.
An app or software can also make it easier to track your expenses more accurately.
Conclusion
How Truck Driver Tax Deductions in the USA Can Save You Money! This way, you can maximize your deductions and make sure you are paying the lowest taxes possible, as long as you keep your paperwork in order and report your spending process closely.
Knowing what you can claim, whether it be for your self-employment taxes, your car expenditures, or your dining expenditures might be key to getting the most return from your taxes and keeping hundreds of dollars in your pockets.
You should consult with a tax expert to ensure you are maximizing all allowable deductions.
