08 May Why Do Truckers Have Special Tax Deductions?
The trucking business is unique when it comes to tax deductions, and if you have been following our blog for a while now, you know at least some of the various tax deductions a trucker can claim.
If you’re not, then you should read up on it on our blog, as you can save a lot of money on many of these deductions.
Now, even if you know about these deductions, you are probably not aware of the reasons behind the existence of these tax deductions. That’s why we wanted to dedicate an entire article and explain why these deductions – which are so essential for the survival of each trucking business – exist.
The Nature of the Business
First of all, it’s important to say that the trucking business is somewhat unique – it differs in many ways from other industries. It is especially true when it comes to the truckers themselves.
As you incur many different expenses while on the road; you also need to be reimbursed for many of those. It is the case as a lot of these expenses, like hotels or motels, food, gas, and a lot more – are essential on the road. Simply put, you wouldn’t be able to do your job without these amenities.
That’s precisely why these deductions exist. It wouldn’t be fair for any person to have to spend a lot of money to do their job. And with the individual tax deductions for truckers, you don’t have to. Technically you do, but at least you get reimbursed afterward.
Your boss reimburses many of these expenses if you are a trucker and not an owner-operator, but many come as part of per diems which enable you to get tax deductions and other reimbursements.
What’s more, the recent changes in the tax law have made this whole process even more comfortable. You can read more about that here.
Special Tax Deductions for Owner-Operators
When it comes to self-employed truckers, there are even more tax deductions, all of which combined make your professional life a lot easier and save you a lot of money.
The IRS is reasonably fair in these cases, as they allow for tax deductions on a wide variety of things which might not seem essential to a layman’s eye. Nevertheless, they are very convenient for truckers.
For example, self-employed truckers can deduct things like:
- Subscriptions to publications which discuss the trucking industry or follow new and emerging laws and regulations on trucking. They are essential for staying informed which is why the IRS allows you to deduct the full cost of these publications in the form of business expenses.
- Internet and phone fees can be deducted as they are considered essential on the road.
- Licensing fees and association dues are also considered essential for the business, which is why they are fully tax deductible.
The Bottom Line
All in all, it’s clear that most of the unique tax deductions for truckers exist due to the very nature of the business. Furthermore, the fact that plenty of expenses for both employees and self-employed truckers are necessary for the very existence of these jobs and companies, it’s relatively clear why most of these individual tax deductions exist.
If you want to know more, or maybe receive some help in your dealings with the IRS, feel free to contact us at Golden Tax Relief, and we’ll make sure to provide you with the advice and help you need.