Tax Deductions for Truckers
Truckers are entitled to deductions from their income for a great many items. Tax deductions for truckers generally include just about anything that goes on or in a truck.
Tax Deductions for Truckers
The trucker who is an independent is actually running a small business and he is entitled to take all of the regular business deductions. His truck is his place of business and the list of items that either go in, on, or around the truck is quite extensive. The cost of cleaning materials and repairs are included in this list. The IRS guidelines refer to expenses that are ordinary and necessary. This is usually taken to mean just about anything that is commonly used within that business.
As with anyone hoping to itemize deductions, accurate record keeping is the key. The trucker’s log book is a good record for his miles driven and his number of days actually on the road. Receipts must be saved for everything else that could possibly be considered an expense. In some cases, receipts are impossible to obtain, and the IRS understands this. Hand written receipts for such things as truck washes and even pay telephone calls can be used. Simply write the date and the amount and nature of the expense on a sheet of paper. It will generally be accepted as long as the amounts and totals are normal and not excessive.
If the trucker maintains a home of record, he will be entitled to a per diem travel expense or he may take his actual meal receipts. A home of record is an actual address where the trucker resides when not on the road. It can not be a post office box and it can not be the sleeping compartment of his truck. If he does maintain a home, the per diem amount of $36.00 a day, which is the standard meal and travel allowance, can be deducted for everyday on the road. This amount usually exceeds actual expenses on most days, and eliminates the need of excessive record keeping.
If the trucker drives by his home, or spends any part of the day taking a break there, he must prorate the per diem amount to reflect this. The way to do this is to divide the day into divisions such as 6 hour blocks. There would be four time periods. If you are home during any one of the periods, you simply take 3/4ths of the per diem for that day.
Tax deductions for truckers are much the same as any other independent contractor unless the trucker is employed by a trucking company. In this case, he may still take a great deal of deductions including the standard travel allowance unless the expenses are paid by the Company or returned to him in any manner. Once again, accurate record keeping pays dividends when tax time rolls around. The trucker should assume that just about anything he spends while operating his rig is a potential deduction.