19 Aug What Are Some Tax Shelters for Truck Drivers?
Spending so much time on the road and away from home becomes expensive for truck drivers. Fortunately, many of those expenses can be claimed as truck driver tax deductions.
Truckers should make sure to keep a careful record of all their costs from being on the road. A number of fees and expenses related to trucking can be deducted, so a well-organized trucker should take all tax deductions available.
Here are a couple of tax shelters you can claim while on the road:
Cell Phone and Internet Fees
Nowadays, truck drivers can’t go without a cell phone and wireless internet access. These can lead to expensive internet and mobile fees, which the IRS is well aware of. Nevertheless, this tax deduction covers only 50% of truckers’ mobile and web usage costs since these tools can be used for both personal and professional purposes. Additionally, the total cost of a mobile phone and a laptop is deductible, as well.
Medical Exams and Food
Out-of-pocket fees for medical exams that are required by an employer are deductible, but truck drivers should keep in mind that medical expenses may require a minimum amount before they can be seen as tax-deductible.
Per day meal costs are also deductible. Truckers spend their days and nights on the road, and understandably, they need to eat and drink. Such expenses can be substantial, so the IRS has provided a per diem rate of $66 standard meal allowance for drivers who travel in the US, and $71 per day meal allowance for those who travel outside the US.
Fuel and Other Costs
This category includes routine maintenance, repairs, fuel, and other travel costs. Regardless of the ownership (whether the truck is leased, owned by the driver, or owned by their company), routine maintenance, cleaning, and the fuel that was not reimbursed by the company are considered a business expense and are tax-deductible.
Items such as luggage, uniforms, food storage, flashlights, calculators, logbooks, binders, GPS tracking devices, and others can also be deducted, so long as they are used for business purposes. There are additional trucker tax deductions available, like interest costs, leasing costs, and insurance premium costs for owner-operators. Truck-owners can also claim their truck’s depreciation for every year that they own and use the truck.
Most truckers are required to be affiliated with unions or other trucking groups. The membership dues are completely deductible. This includes voluntary memberships, but only if the drivers can demonstrate that the group assists in their career.
Subscriptions to Trade Publications
Because trucking-related publications often discuss new regulations and valuable information, the IRS allows truck drivers to deduct their full cost. Drivers should demonstrate that the reason for their subscription is pertinent to their employment.
As a trucker, you have a number of tax deductions available that are specifically designed for your employment. If you want to learn more or are unsure what deductions apply to your situation, seek help from the professional tax resolution specialist, Golden Tax Relief!