It happens every year—tax time! That frustrating fiscal fiasco that, no matter how organized you are, can make you feel more disorganized than ever. While trucking does allow one to escape the norms of day-to-day life, it cannot evade tax time unfortunately. Luckily though, a truck driver enjoys a job that is filled with job expenses. In other words, the IRS allows truck drivers the potential to deduct a plethora of work-related costs and expenses.
In general, most truckers are aware of basic tax deductions that they are privy too. These include truck-related costs such as depreciation and interest on truck payments, as well as the expenses encountered for basic maintenance and repair.
However, there are several deductible items that truckers miss in their efile that they may just be unaware of altogether. For tax purposes, one of the first practices a truck driver should habituate is the practice of keeping receipts. Even an item costing less than $3.00 may be deductible on your tax return, so instead of chucking that receipt in the garbage, try keeping it in a folder, organizer, or even just an envelope, instead.
As far as learning what all can be deducted goes, you should always check with the IRS first; after all, as we all know, tax law is forever changing. Regardless though, some of the basic tax deductions that truck drivers can take advantage of include cleaning supplies, electronics, tools, clothing, load-related expenses, etc. Therefore, if you stopped off at a truck stop one day and bought some window cleaner to get the bugs off your windshield, you can most likely include that as a deduction, not just because it counts as cleaning supplies, but also because it was an expense related to your job. Other examples of simple, yet uncommon tax deductions may include curtains for the cab of your truck, rain gear in case of inclement weather, a new log book, etc.
While a loaded arsenal of deductions might sound beneficial all the way around, truckers have to be careful with what they deduct. For example, even though clothing can be deducted, there are certain rules and regulations that apply in order for it to be eligible. Let’s say the company you work for requires you to wear a long-sleeved company shirt with a collar. Since it is part of the company’s dress code, it is required and therefore, can be deducted. You must be careful when going through your financial information to determine what is safe to be deducted. You could end up being flagged for an audit by the IRS if too many red flags are triggered.
In the end, as long as you are informed and aware of what you are deducting, then you should be just fine. So don’t go and try deducting a speeding ticket or anything like that. Instead, get on your laptop (which may also qualify as an expense) and browse around on the IRS website to familiarize yourself with certain tax stipulations that apply to truckers. Aside from that, make sure you have a folder or something similar to keep track of financial information. Finally, keep your receipts!