21 Nov 4 Tax Preparation Tips for Truck Drivers
We are very aware of how complicated it is to prepare your taxes in the US, especially for truckers who need to consider many additional rules and laws.
With that in mind, we figured it would be good to provide you a list of some vital tips. It will help you in the complicated tax preparation process for truck drivers.
1. You Must Have a Tax Home
Your tax home has nothing to do with your residence; it’s usually the base or a dispatch center which depends on the company you work for. To get all the deductions and returns you can from the IRS, you must have a tax home, or they will give you nothing because without a tax home you don’t have the right to claim deductions.
2. Filling all the Necessary Information
The IRS is very detailed, as is the law, so you will always have to provide all the necessary information in all the needed forms. You will have to provide several forms, and you should know that the 1040EZ, which is the short version of the 1040 form, will not allow you to take full advantage of deductions designed for the trucking industry.
Owners or operators have a couple of different options as well. You can rely on detailed records or use the 1099 form if you have worked as an independent contractor for a company.
3. Know the Available Tax Deductions for Truckers
The trucking industry differs from others, which is why it has its set of rules. The IRS allows truckers to deduct several ordinary and necessary business expenses. Naturally, these differ from person to person, but there are several types of deductions that are accepted for most; if not all truck drivers.
- When you pay for truck maintenance and supplies out of your pocket, you can deduct these costs.
- If you have a union or you are part of a professional association, you may try to deduct the fees you pay for them.
- All the travel expenses, while you’re on the road, can be deducted.
- If your employer requires uniforms and they don’t pay for them, you can deduct them as well.
- All office supplies are deductible.
- A cell phone used for work, GPS units, and CB radios are deductible as well.
- Many more deductions which we do not have the time to cover, but you can contact us to learn about them.
In the end, you should also know that all the expenses which are reimbursed by your employer, cannot be deducted.
4. Software Doesn’t Always Do the Trick
You probably use some software when it comes to your taxes and their preparation. Even though they do a decent job, they can’t always do everything, and there are things only a professional can help you with.
If you require assistance with tax preparation, you should contact Golden Tax Relief, because we specialize in helping truckers and have had a lot of experience with taxes of the trucking industry.