Why Truck Drivers Need a Tax Home

All truck drivers, whether they are owner-operators or employed with a company, need to have a tax home. In this article, we want to explain why this is the case and give some more information on tax homes and what they are.

Furthermore, you’ll end up learning something new about taxes for truck drivers, which will help you get more from your taxes! Let’s dive in.

What is a Tax Home?

Before we start, here’s how the IRS describes a taxpayer’s tax home:

‘’Your tax home is your regular place of business… regardless of where you maintain your family home. It includes the entire city or general area in which your business or work is located.’’

A tax home is essentially the address where you receive your mail. Consequently, this can be your personal residence, the headquarters of the business you work for, or your own business.

In the case of owner-operators, their tax home is the headquarters of their business or their personal residence. In the case of company truck drivers, their tax home is the headquarters of the company where they work. It’s that simple.

This place is important because the IRS requires truck drivers to have a tax home. If you don’t, you are considered a transient, and you won’t be allowed to deduct your travel and other business expenses.

When all of this is considered, it becomes entirely counterproductive not to have a tax home. By not having it, you would essentially be giving up on additional money you get through deductions!

Essential Things to Know about Tax Homes

Many truckers are often confused about tax homes, or they simply have never considered them. That’s why a simple explanation of what a tax home is often not enough. So let’s cover more.

  • As a truck driver, you travel across the country all the time. Due to this, many truckers get confused about their tax home because they are mostly on the move. What you need to know is that it doesn’t matter where you at any given moment. The IRS will consider your place of business your tax home.
  • When you don’t have a place of business, you virtually do not have a tax home, and the IRS will not allow you to make tax deductions.
  • If you are just starting as an independent truck driver, it’s important first to determine where your tax home is and report that to the IRS.
  • As a company driver, if you get temporarily transferred to another place where you will conduct your business, your tax home will not change.

Accurately determining a tax home for truckers can sometimes be complicated, as you can probably guess by now. To make things even more precise, you can take a look at this Tax Court case involving a truck driver without a tax home.

If you are still having doubts about your tax home, feel free to contact Golden Tax Relief, and we’ll help you out with further explanations. Additionally, if you need help with IRS issues and uncertainties, we are there for you as well!

 

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