06 May Trucking Fees and Expenses That Are Tax-Deductible
Ever truck driver or owner-operator knows that the IRS offers many tax deductions on a lot of expenses and fees. The trucking industry has numerous credits available, and without the tax deductions, most truckers would have a hard time getting by.
All in all, it’s that these exist, but many truckers are not aware of which exact fees and expenses are tax-deductible. That’s why we wanted to give you an overview so you’ll know from now on where you can save a lot of money.
Rules to Remember
- There’s a big difference between owner-operators, or self-employed drivers, and regular truckers who are employees. The difference usually lies in the fact that there are many more tax deductions for independent drivers.
- Any expense or fee that your employer reimburses you for is not tax-deductible.
- To claim a deduction, a trucker must have a permanent residence – a location where you pay taxes and receive mail.
- Most tax deductions for truckers who are employees are business deductions
Tax Deductible Fees and Expenses for Employed Truckers
- Per diem meals for each day on the road are deductible.
- Expenses for truck maintenance and fuel are entirely deductible – even if you don’t own your truck. Truck maintenance deductions include tires, parts, repairs, batteries, cleaning supplies, and sponges.
- Medical expenses which occur during required medical examinations are deductible as they are mandatory for truckers.
- The full cost of subscription fees to all trucking-related publications is deductible.
- Telephone or internet access fees are up to 50% tax deductible. Additionally, the price of a laptop and phone is also deductible.
- Union and other trucking groups memberships are entirely deductible as most truckers are required to be a part of at least some of these. Even voluntary association fees can be deducted if you can show that they assist you in your career.
- Commercial driver’s license fees are deductible, both in the case of obtaining or maintaining a license.
- In the end, all necessities of a personal nature which are required for are deductible. These include a wide variety of items, even some that might not be considered as work-related, like sunglasses and calculators.
Tax Deductible Fees and Expenses for Self-Employed Truckers
It’s important to note that all previous tax deductions for employed drivers in trucking companies are also deductible for self-employed truckers.
However, there are plenty more which only self-employed truckers can deduct:
- Insurance premium costs
- Truck leasing fees
- Interest payments for loans used for purchasing a truck
- Any other business-related loans and mortgages
- Depreciation amounts for vehicles each year
- Depreciation amounts for other property used in business
- Business-related credit card, bank, and ATM fees
- Home office
- Casualty financial loss
- Satellite radio subscription fees
- Contributions to your and your spouse’s retirement plans
The Bottom Line
All in all, as you can see, there are plenty of expenses and costs that can be deducted when you’re a regular employee driver, and even more when you are self-employed.