Trucker Tax Tips & Deductions

Looking for help... I am new to the industry and I am not sure on how the tax filing works for truck drivers. I have read over these post and seen people are talking about using turbo tax. I have used that for the last 3 years because of the lack of knowledge at HR Block. I typically use the free on online when I file because I don't itemize anything (Can I still use that or should I purchase the program?), I was going to college and working part time then I started doing this. I am just trying to get prepared for when tax time comes, also about this per-diem; I live in Ohio and I'm curious how this also works in the equation when you file taxes. Any and all advice is greatly appreciated, Thank you

 

Personally I use the deluxe version. I have never tried the "free" version but I suspect it is not as comprehensive as the paid versions.

As an otr truck driver you will have many deductions. ANYTHING you buy for the job that is NOT reimbursed by your employer will be a legitimate deduction on top of the daily per diem allowance ($59.00 per day 80% of which is deductible). The software will do all the calculations for you provided you answer the questions correctly. The key to qualifying for the daily per diem is you must be gone from your tax home long enough to require a break. This has been interpreted as a legal 10 hour break before returning home. Drivers that get home every day do not qualify for the per diem allowance. Partial days are calculated at .75% of the daily allowance. Regardless of when you left during the day the first day you leave your tax home and the day you return home can be claimed as .75%.

Examples of deductible items; tools, gloves, cleaning supplies, work uniforms, boots, cover alls, faxes, postage, fed ex fees, safety equipment such as; hard hat and vest, cb radio, satellite radio and subscription, laptop computer and internet service fees, atm fees, check cashing fees, training materials, union dues, industry publications, fax machine, flatbed scanner, laundry, even your cell phone provided you utilize it for work purposes.

Some agents say you can only claim a portion of the cell phone bill commensurate with your work usage while others claim they can make a case for writing off the full amount due to the driver being gone from his/her tax home for days or weeks at a time.

All the above (and more) are deductible expenses as a "company driver." Owner ops get even more deductions.

 

jlkklj777 thank you for the information, I think I will look into buying the program now, also on the cell phone, I have a 2 line family plan and I am the primary number, will the do a percentage because of that or possibly not deduct because of a family plan? I am only home maybe 6 days a month...

 

As long as you utilize your cell phone for work you can deduct a percentage of the primary lines cost. If it were used exclusively for business calls (calling customers, brokers, dispatch) then you could claim the full amount of the primary line.

Keep in mind the IRS has very few agents and rarely audit small fry filers. As long as the numbers you entered do not appear "out of the norm" then the computer program actually scanning your return will simply approve the return and no actual agent will ever bother scrutinizing it.

The key phrase with all deductions is; "usual and customary."

In your case I would write off the cost of the primary line and call it good. I have done the same on my return and have never had an issue with the IRS in 20 years. In the event of an audit I would simply show my logbooks as proof I was away from home and a call list would provide the proof that I contact customers, brokers, fellow drivers, and dispatch MORE than I actually call home. based on my calling plan I pay a flat fee per month for a nationwide plan which offers unlimited mobile to mobile calling, texting, and no roaming.

 

Ok peeps, it's been awhile since either of us drove a truck or done taxes in regards to truck driving. So, here's the deal - My husband is a SE regional driver, only home 2 days/week and gets .10 per diem. Would he do the $59/day x 80% on form 2016 + misc deductions and file a 1040? We are wanting to do married filing seperate since I have overdue student loans and the IRS always tries to take my loans from his refund. I know we'll miss out on some "married" money but, oh well. He'll also be claiming our 10 yr old son (I haven't worked this year so I'm not filing at all.).

Looking at using paper filing or a free online tax filing deal. Any help?

 

Ok it's understood that we get these deductions BUT where do you enter them on the tax forms?

If your a company driver and considering what your paid, it's to your advantage to be able to prepare your own taxes with TurboTax and etc. It seems that the vital information of WHERE to enter this stuff on the tax forms is some closely guarded secret only divulged when you actually HIRE a supposed tax professional who basically subtracts from your tax advantage of being a driver.

There should be someplace whereby a lowly driver with enough savy, can use TurboTax and understand WHERE to properly enter his/her tax deductions. If some trucker wants to hand over the "tax reigns" to a tax preparer, so be it. I would rather have the control and gain the knowledge and savings of doing my own taxes and am tired of gettin' my pocket picked.

My 2¢

 

Not a secret at all. Follow the guide and you will find the section called; "Deductions and Credits." Specifically "job related expenses" is where you add your business related deductions not reimbursed by your employer.

 

Can company drivers deduct miles driven that were unpaid (i.e., hub miles vs tariff miles)? If so, how is this calculated?

 

No.

Owner ops can deduct the price of their fuel, oil, additives, etc but cannot deduct the "miles" as lost earnings.

The same goes for working on your own truck. You cannot deduct the time you "worked" on the truck but can deduct the parts used and even the miles traveled to buy those parts.

 

thanks for the response.
I'd heard someone mention that for company drivers, unpaid miles were deductible as time that you spent working that did not get paid for, nor do you own the truck, therefore are unable to deduct any other things like fuel, etc as an O/O would.
Thought I'd ask around. Thanks for the response.