13 Tax Deductions for Truck Drivers

Understanding tax deductions is essential for your tax strategy throughout the year. Here are the top 13 deductions for people in the trucking business need to be aware of.?

1. Meals and Lodging Deductions

Long-distance truck drivers (not local drivers), can deduct the cost of food and accommodations incurred while on the road from their annual income tax return. The criteria is that you are required to be away from your ‘tax home’ (either your home address or business headquarters) for long enough to require food and rest—typically overnight. You have the choice to itemize deductions and claim up to 80% of expenses paid, or you can opt to take the per diem rate for travel and meals expenses. This rate varies depending on where and when you’re traveling for work. The per diem rate does not include lodging costs.

2. Insurance Plan Deductions

Many truck drivers out of necessity invest heavily in different kinds of insurance. This necessities includes commercial auto liability insurance and property damage insurance, but you may also purchase cargo insurance covering goods lost in transit or in the event of business interruption. The premiums can add up, but the good news is they are tax deductible.

3. Cell Phone Plans

Cell phones are one of a trucker’s many job-related expenses. If you have a cell phone line that is dedicated to your work, you can deduct 100% of the cost of the plan from your business tax return. The same goes for the cost of the phone itself, along with tablets or laptops that are for business purposes.?

4. Vehicle Expense Deductions

If you drive a semi-truck as a professional independent contractor, the IRS considers it a qualified non-personal-use vehicle. This means that all the expenses that come with owning and operating the vehicle can be claimed as a tax deduction. This includes depreciation, insurance, loan interest for financed vehicles, registration, tires, parking fees, tolls, cleaning, and more.

5. Fuel and Travel Expenses

Save your gas station receipts! Fuel is a constant and often significant expense for self-employed truck drivers, so it’s good to know that it is considered a tax deductible business expense. As with other travel expenses, you can only claim this deduction if you itemize all your deductions. Alternatively, you can take the per diem rate and simplify the process.

6. Truck Repairs/Maintenance

In addition to other vehicle expenses, repairs and maintenance to your qualified non-personal-use truck are 100% deductible from your yearly tax return. Save your receipts every time you have the truck serviced or repaired by a mechanic.

7. Medical Expense Deductions

It’s not uncommon for truck drivers to be required to get medical exams as a condition to work. If you pay out-of-pocket (not through your health insurance coverage) for these exams, the expense is considered a 100% deductible business expense.

8. Office Expense Deductions

Whether your business is headquartered in a home office or a separate space, it’s a good idea to track and deduct the everyday office expenses you incur. This includes stationery, pens, paperclips, printers, laptops, photocopiers, and anything else the IRS considers ‘usual and necessary’ for your industry.

9. Licensing Fees

Any license fees (and other taxes) you incur as you run your trucking business can be deducted from your taxes. This includes the Heavy Highway Vehicle Use Tax and the fees associated with maintaining your commercial driver’s license (CDL).

10. Personal Products Deductions

Trucking is somewhat unique when it comes to deducting certain items from your federal tax return. Small, necessary purchases for working on the road (called sleeper berth expenses) might include a small refrigerator, kettle, GPS, bedding, cleaning supplies, and gloves, among others. These are deductible business expenses, along with the costs of doing laundry and showering while working on a route.

11. Association Dues

Did you know that you can deduct the dues you pay to your trucking association and/or union? The only stipulation for claiming these fees as deductions is that they’re required for your business and help you advance your career.

12. Education Expense Deductions

If you spend money on training (trucking school) to get or maintain your commercial driver’s license, or for certification in more advanced courses, be sure to save all receipts. The costs of educational courses necessary for your business can be completely deducted from your tax bill.?

13. Tools and Equipment

Truck drivers depend on a number of tools and pieces of equipment to do their job and stay safe on the road. These expenses are deductible if they’re needed for your business, and might include chains, tarps, straps, tire irons, tape, and anything else of that nature.?

Tracking tax deductions can make a big difference to your bottom line. For more money-saving business savvy tips, find us online at https://www.216logistics.com/blog.