Trucker Tax Tips & Deductions

I have heard this before in regards to having a dog on the truck. However I believe the key to this being an "acceptable deduction" is the dog must have been through a training class for personal protection. If this is in fact accurate you may want to rethink trying to deduct "rovers expenses."
Best advice at this point is consult your cpa and ask him for the exact statute that allows or disallows the deduction. Make hin earn his pay.

 

just a heads up, h and r block has this years deduction at 75% of 59 dollars a day.

 

Where do you take the per diem and other trucking related deductions? Im using Turbo Tax and would like to figger that out. I think I can also take off expenses from training...correct? not sure where to do that either.

 

You should have been asked in the beginning of the "interview" on TurboTax whether you were subject to the DOT Hours of Service or not. You have to check the box, and then it asks you for how much you're claiming later.

I've never liked the way they ask in the interview process. It would be nice to have something that would automatically do the calculations if you typed the number of days worked.

Why can't TT (Intuit) come up with "job modules" that you can download specific industries or jobs? How nice would that be to have a tax program that knew all the right deductions and questions to ask?

 

Leased Employees
And
Per Diem/ Meal
Reimbursement​

Small to medium size trucking companies are leasing drivers and other workers from employee leasing companies. Approximately 50 percent of all trucking companies pay per diem (meal reimbursement) to their drivers. Many labor leasing companies are treating up to 40 percent of driver compensation as "per diem"/meals expense, not as wages.
ISSUES:

1. Whether payments to employees for the alleged purpose of reimbursing travel costs are made pursuant to an accountable plan under Treas. Reg. § 1.62-2, such that they are excluded from employees’ gross income and from employment tax requirements, but are subject to the 274(n) deduction limitation.
2. Who is liable for the 50 percent reduction of meals as required by I.R.C. § 274(n), the trucking company, or the employee/labor leasing company?
3. Whether per diem represents “meals only” or both “meals & lodging”.
4. Whether the employee leasing company has reported per diem payments from their customers as income. A number of companies have failed to report per diem payments from customers as income and in turn have not deducted the per diem as an expense, thereby avoiding the 274(n) limitation on meal expense.
5. Whether or not an employer can pass responsibility for the I.R.C § 274(n) adjustment to their client in a 3 party relationship under I.R.C. §274(e)(3)(B)

 

Effective
12-31-2000
Meal/Per diem deduction
Section 274(n)(3) provides a special rule that increases the percentage that can be deducted for meals of persons, such as truck drivers, who are subject to the hours of service limitations established by the Department of Transportation.
Meals Deductible Percentage Under 274(n)(3)
55% for years beginning in 1998, 1999
60% for years beginning in 2000, 2001
65% for years beginning in 2002, 2003
70% for years beginning in 2004, 2005
75% for years beginning in 2006, 2007
80% for years beginning in 2008, 2009
Trucking associations have lobbied for several years to return the meals deduction to 100 percent for truck drivers.​

Wow! I can't believe how low it was before.

 

E. Important Revenue Rulings or Revenue Procedures

1. PER DIEM / MEAL REIMBURSEMENT
   Section 4.04 of the following revenue procedures allows a special per diem rate for meals and incidentals of drivers in transportation industry.

Rev. Proc.
Period
Limit
2007-63
10-01-07 to present
$52
2006-41
10-1-06 to 9-30-2007
$52
2005-67
10-1-05 to 9-30-2006
$52
2005-10
01-1-05 to 9-30-2005
$41
2004-60
10-1-04 to 12-31-2004
$41
2003-80
11-1-03 to 9-30-2004
$41
2002-63
10-1-02 to 10-31-2003
$40
2001-47
10-1-01 to 9-30-2002
$38
2000-39
10-1-00 to 9-30-01
$38
2000-9
1-1-00 to 9-30-00
$38

 

Being my 1st year in trucking as o/o anybody use H+R Block for their taxes ? Or any good recomendations for a company i could or should not use.. thanks for any and all advice

 

Wiseone what a great idea. As O/O twice a year I order (14)shirts,(2)hats and a jacket and have them sent directly to a shop that stitches our logo on everything. All deductable according to our cpa. As he is out two to three weeks at a time this looks professional and is the same as a free clotheing allowance. Don't forget boots and gloves. Every penny counts. Keep every single reciept.

 

Every day clothing is not technically deductible. However, what if the clothing was damaged or ruined during the use as the truck driver? Personally, I take the replacement cost for the damaged clothing and write it off.