When you think about all the various jobs that might earn you a lot of tax deductions, truck drivers probably wouldn’t be on your list. After all – the chances are high that someone else owns your truck, and you’re already getting reimbursed for gas. What more could there possibly be to claim once tax season rolls around?
The answer, as it turns out, is quite a lot. If you want to make sure that you’re making the most out of your truck driver tax deductions, there are a few in particular you won’t want to miss.
Insurance Premiums
By far, one of the most important tax deductions that truck drivers should always take advantage of comes down to insurance premiums. Know that not only can you deduct the premiums for any health insurance that you need to buy if it isn’t provided by your employer, but you can also deduct business-related insurance, too. That includes both liability and vehicle insurance, if applicable.
Medical Expenses
Another common type of tax deduction that many truck drivers take has to do with medical expenses that they incur throughout their lives. This includes both any out-of-pocket costs that they need to pay, as well as any other medical costs that are directly related to their life and career as a truck driver.
Work Clothing & Meals
Just because you spend all day on the open road doesn’t mean you don’t have to buy something like a uniform now and again. Not only do you get to deduct the cost of that uniform, but you can also deduct any work-related meals during a long haul. Note that there are specific IRS rules pertaining to this that you’ll want to research further before you file.
Tools & Equipment
Again – a lot of people who are on the outside of this industry looking inward don’t necessarily realize that truck drivers have to purchase their own tools and equipment, similar to other professions. Some truck driver tax deductions can include the cost of those tools and supplies, as well as expenses related to any other equipment that you have to buy to aid in your trucking duties.
Travel Expenses
This is where most people assume that the majority of a truck driver’s potential deductions will rest. This won’t necessarily apply quite as much to someone who works for the same company all day and who makes it back to their own home at the end of the night. But if you’re the type of truck driver who takes long trips that have you away from home for days or even weeks at a time, know that at the bare minimum, you can deduct costs related to any hotel stays or other lodging that you need, meals, and other transportation-related costs. That might mean taking a cab from the airport to your employer if you’re flying away from home and driving back to your original destination. It will obviously vary depending on the situation.
Personal Products
Many truck drivers don’t realize that they can also deduct the cost of a lot of personal products that they purchase, especially since they become essential items while you’re on the road for long periods. That can include any hygiene products that are necessary for trucking purposes. Some of the most obvious examples of this include but are not limited to things like hand sanitizers, shaving cream, and toothbrushes/toothpaste.
Vehicle Costs
Another major source of truck driver tax deductions comes by way of vehicle costs. This is especially true if you’re the type of truck driver who owns your own vehicle. You can get deductions for not only fuel but also any maintenance that may be necessary to keep you on the road. You can also take depreciation-related deductions relating to the truck as well.
Education
Sometimes, you may need to invest in specific training related to your trucking duties so that you can advance your professional career. In those situations, a lot of the expenses are likely tax deductible. Therefore, if this is a step that you’ve always wanted to take but hadn’t up to this point because you were concerned about the cost, it might not be the big issue you thought it was.
Association Dues
Depending on the area of the country that you’re based out of or even the types of clients that you take on, you may need to be part of a professional trucking organization. That organization may charge membership dues – exactly what that money goes to will likely be outlined in its charter. The good news is that those membership dues are generally deductible, especially considering that they’re directly related to the job you’re being asked to perform.
Office Expenses
Last but not least, just because you don’t have what most people would call a traditional office doesn’t mean that you can’t deduct a lot of office-related expenses from your taxes as a truck driver. The chances are high that you probably need to have a cell phone to stay informed while you’re on the go. The cost of that phone is deductible. The same is true of any laptop you need to buy, which is getting more and more common these days. Other office supplies that are used for not only trucking, but running a trucking-related business, can be deducted.
These are just a few of the examples of truck driving tax deductions that you should take full advantage of. Rest assured that there are many more, and you’ll always want to consult the help of a seasoned tax professional so that you don’t miss any.
If you’re interested in finding out more information about how to use truck driver tax deductions to your advantage, or if you’d just like to speak to someone about making sure that your career on the road is headed in the direction you’d always hoped it would be, please don’t hesitate to contact the team at Advanced Commercial Capital today.