Deduction for Truckers can become very confusing. Most Drivers don’t understand the basics of what they can or can’t claim as legitimate tax deductions. There are usually two types of Categories a trucker usually falls into which is OWNER/OPERATOR(self-employed) or Company Worker (employee). Knowing the difference between the key is to maximize your deductions for the Tax Year.
In Order to claim a deduction the Driver must have a”Tax Home”. This means a driver must have a permanent location to which receive mail and use to pay their taxes.
Truckers Should keep accurate log books and keep track of all receipts they occur OTR. This is imperative to have organized when you visit your Tax Preparer. When You are organized it minimizes the risk of your tax preparer of overlooking a deduction. It is your responsibility to provide all info required for the preparation of complete and accurate returns. You should retain all documents , cancelled checks & other data that form the basis of income and deductions. These may be necessary to prove the accuracy and completeness of the returns to a taxing authority.
List of Deductions
- you can’t deduct anything the company or customer pays for
- insurance, bonds, etc
- meals ( IRS per diem of between 37.00-59.00 daily)
- accounting ( tax prep, bookkeeping, software)
- advertising and materials
- broker fees
- factor fees
- children (money paid to help deliver flyers)
- office expense
- half of your cell phone
- Home office
- licensing and taxes
- supplies (cleaning, hygiene,paper towels, etc)
- Shipping & delivery Costs