Save Money: 13 Truck Divers Tax Deductions You Need to Know

Owning a truck or being a truck driver is not easy. As a trucking company owner, you rack up a lot of expenses from licensing your business, buying the trucks, maintaining and repairing the trucks, and office expenses.

Truck drivers spend long hours on the road making deliveries. You incur many expenses, from fuel, meals, lodging, and phone bills. These eat away your earnings, but did you know there are tax deductions write-offs you can use to reduce your taxable income? These deductions can save you money and put more cash back into your pocket.

Understanding what deductions you are eligible for as a truck owner/driver is crucial. This blog post explores 13 tax deductions that every truck driver should know.

But first, let’s see if you are eligible; then, we will throw in a bonus of tips on efficiently filing your taxes and maximizing these deductions.

Trucking Tax Deductions Eligibility

Before diving into specific deductions, ensure you are eligible for these tax breaks. As a truck owner/driver, you must meet certain criteria to claim these deductions.

Firstly, the IRS must consider you self-employed or an independent contractor. This means you own your own trucking business or work for a company but are responsible for your own expenses.

Trucking tax deductions reduce your taxable income, while trucker driver credits lower your tax debt. However, self-employed truck drivers are not eligible for tax credits.

Note: If your company gives you a W-2 Form, you are the company’s driver and are not eligible. But, if you receive the 1099 Forms, then the forms can be used together with your income and expense record to claim trucker tax deductions.

Tax Deductions Every Truck Owner/Driver Must Know

Let’s see how much you can slash off to reduce your taxable income and increase your earnings. You must have impeccable organization and tracking skills to take advantage of all the deductions available for truckers.

A deep understanding of tax laws can also help you ensure you are filing your taxes correctly. Tax preparation for truckers can be overwhelming on top of running your business and being on the road daily. You must also keep track of your daily accounting needs.

Meals and Lodging Deductions

While on the road, it’s inevitable that you will have to spend money on food and lodging. These expenses can be deducted from your taxes. You must be away from your home long enough to warrant food and rest to qualify for this deduction. This is typically more than 24 hours.

You must keep track of all receipts and records of where and when you ate and stayed. You can then deduct 80% of these expenses from your taxable income. Alternatively, you can opt for the per diem rate for travel and meal expenses, but it excludes lodging expenses.

Cell Phone Plans

Since a cell phone is considered an essential tool for truck drivers, you can deduct the cost of your monthly plan as a business expense.

However, if you also use it for personal calls, only the portion used for business purposes is deductible. You can also deduct the phone cost if it’s only used for the business.

Vehicle Expense Deductions

Owning and maintaining a truck is expensive; luckily, several deductions can help offset these costs. These include fuel expenses, repairs and maintenance, insurance premiums, vehicle registration, lease payments or interest on loans for purchasing the vehicle, and even tolls and parking fees.

Travel-Related Expenses

If you have to travel away from home overnight for work-related purposes, you can deduct all expenses incurred, such as fuel, parking, toll fees, and hotel costs, such as meals and dry cleaning. Just be sure to keep detailed records of all your receipts.

Insurance

As a truck driver, it’s crucial to have proper insurance coverage in case of accidents or unexpected events. This includes commercial liability insurance, cargo insurance, bobtail/non-trucking liability insurance, and even health insurance premiums if you are self-employed.

All these can be deducted as they are business expenses. You can use Schedule 1 Form 1040 for your health insurance and that of your dependents.

Truck Repair and Maintenance

Regular maintenance and repairs are necessary to keep your truck in top shape. Suppose your vehicle is qualified for non-personal use, so the expenses are 100% deductible.

This includes oil changes, tire replacements, brake repairs, and general upkeep costs. Save your receipt whenever you visit your mechanic.

Medical Expense Deductions

Healthcare is a major expense for everyone, but it’s even more crucial to stay healthy for truck drivers who spend long hours on the road.

Truck drivers must have full body checkups and regular medical and fitness checks. These are counted as business expenses and are deductible, but personal hospital expenses cannot be deducted.

Office Expense Deductions

Whether you operate from a home office or a separate office space, tracking your everyday expenses for your trucking business is wise.

These expenses include rent/mortgage payments, utilities (electricity/internet/phone), office supplies such as paperclips, printers, pens, stationery, and anything else considered essential for your business operations.

Licensing Fee

To legally operate your trucking business or drive commercially for a company, you must obtain various licenses and permits. These include CDL licensing fees, Heavy Highway Vehicle Use Tax, and state permit fees, all of which are deductible.

Work Clothing and Personal Products Deductions

As a truck driver on the road for extended periods, you need to keep certain essential items with you. These include work clothes, boots, safety gear, and personal hygiene products. You can deduct these items as business expenses on your taxes.

Association Dues

Suppose you are a member of any trucking associations or organizations that provide resources and support for your profession.

In that case, you may be able to deduct the membership dues from your taxable income. However, you must ensure that being in the association is necessary for your business and helps advance your profession.

Training Expense Deduction

Truck drivers must stay up-to-date with industry regulations and enhance their skills. As such,  it’s important to attend training courses or workshops related to trucking. The expenses incurred are deductible.

Tools and Equipment

As a truck driver, you need certain tools and equipment to perform your job efficiently and stay safe. This includes GPS devices, cargo straps/tarps/chains, logbooks/ELD systems, and other necessary supplies. These items can be claimed as business expenses on your taxes.

Tips to Help You File Taxes Efficiently

Considering all these deductions, keeping detailed records throughout the year is essential to make filing your taxes easier when the time comes.

Make sure to save all receipts and invoices related to deductible expenses, use tax preparation software or a spreadsheet, and consult a tax professional for assistance.

Final Thoughts

Maximizing tax deductions is essential for every truck driver looking to reduce their taxable income and increase their earnings.

You must stay organized by tracking and recording all your expenses and saving the receipts. This will help you take advantage of eligible deductions and significantly lower your tax bill.

And remember, always consult with a tax professional for personalized advice on maximizing your savings.