30 Dec What Support Can Truck Drivers Claim When It Comes to Taxes?
There are several costs, fees, and other deductions that can help support truck drivers when it comes to taxes. While the truck owner can reimburse some, independent drivers can also claim this support. Those expenses will add up if you are not mindful of what you can actually claim once tax season begins. Here are several costs and fees that you can claim:
Licensing and Renewal Fees can be claimed, not just for one Commercial Driver’s License (CDL), but if you are required to acquire all 3 for the different kinds of vehicles you need to operate the job, then you can claim for all of them. This also includes the physical examinations and drug screenings you are required to pass before acquiring a license.
Communication costs such as buying a new laptop, cell phone plans, and internet services are also included; you can claim 50% off these necessities. These are essentials for your job, especially when you are on long, out of town trips, and communicating with your employee or other co-truck drivers is required.
Personal costs that include a flashlight, electronic equipment such as a GSP, food storage can also be claimed. They may seem like small purchases, but in a year, they can add up. It’s advised that you keep track of these expenses; you’ll be surprised how much they can add up.
Food costs can also be reimbursed. You are entitled to a $59 “per diem” rate that can be deducted from your annual income. You can also opt to get the costs back at every paycheck instead of the total amount being deducted during tax time. The great benefit of the “per diem” rate is that it increases your edibility for student loans and also public assistance. These are not applicable to local drivers because they can go home after their shifts and eat at home.
Repairs, maintenance, cleaning, and truck parts can also be included whether you are the owner or the company driver. If there are expenses such as cleaning, supplies, and work clothes that were not reimbursed, they can be claimed. However, you are not allowed to include labor costs if you made the repairs yourself.
Association Fees are also deductible, whether you are a part of a collective group or a union. Fees that are included are deductible even if your employer does not require you to be a part of the group or groups. These memberships can also help your career in the trucking industry.
Non-trucking Standard Deductions such as lifetime learning credits, child tax credits, and child or dependent care are also other claims that truck drivers can add once they are computing for their AGI (adjusted gross income).
Remember always to have a list of the costs, fees, and other deductions that you can claim after every paycheck or annually. If you have any questions on other kinds of support you can get when it comes to your taxes, we invite you to contact the Golden Tax Relief team.