Tax Deductions Truck Drivers Need to Know About
The costs relegated to truck drivers continue to mount every year. This forces many truckers to find different ways to save money during tax season. Some listed here are obvious, some you may not know about. How do you save money during your work year?
There are a number of fees and expenses related to trucking that are tax deductible, and a well-organized trucker should be able to figure out how to take them all without running into trouble. If we haven’t made it clear – each person’s tax situation can be different, so don’t consider any of this specific tax advice – just a heads up list about what’s available. If you want to know specifically how to get around lots of truck driver tax traps, just consult with a licensed tax accountant.
What Can Truck Drivers can Deduct on Taxes?
Truck drivers, When You Do Your Taxes, Don’t Forget These Deductions:
- Data Access Fees:
- Internet, Cell Phones (if your carrier doesn’t provide it)
- Administrative Fees: ATM Fees, Check Reorder Fees, Association Dues, OOIDA, Teamsters, etc
- ComData/ComCheck Fees: Computer Software
- Personal Credit Card Fees (such as emergency repairs)
- Cleaning Supplies: Window Cleaner, Paper Towels, RainX
- Interest: Business Loan, Personal Credit Card Accounts
- Medical Exams (especially for Owner/Operators
- Postage Fees: For Mailing Invoices, etc.
- Real Estate Expenses: Mortgage interest, Mortgage prepayment penalties, Penalties of early withdrawals, Points on principal residence financing
- Real estate taxes
- Safety Gear
- Trucking & Business Related Subscriptions
- Uniforms (if your carrier requires them)
- Dry Cleaning Costs for your uniforms or protective clothing
Don’t make the same mistake as many truck drivers, falling into the trap of trying to claim too much and ending up with an audit. Here are some non-deductible expenses that many truckers’ need to leave off:
What Can’t Truck Drivers Deduct from Taxes?
NON-Deductible Expenses for Truck Drivers:
- Expenses that were reimbursed by your employer.
- Clothing that is adaptable to everyday wear
- Commuting costs (tolls, gas, parking)
- Home phone line
- Interest on personal loans.
- Personal vacations
- Student loan interest if adjusted gross income is greater than $65,000 (single) or $130,000 (married).
- Student loan principal.
Special Notes For Truck Drivers Who Are Owner-Operators:
- You CANNOT deduct the time you incur from working on your own equipment
- You CANNOT deduct the income lost as a result of deahead/unpaid mileage
- ONLY the expenses incurred to operate the truck during that time such as fuel, tolls and scales. etc.
- You CANNOT deduct for downtime