Filing Taxes

You'll need more then CC statements in the event of a future audit. You're biggest "write off" will be your daily meal IRS allowance if you're typically far from home most of the time. Also, a lot depends on if you're participating in a per-diem payroll plan.

 

There are a couple of ways in which you can handle road expenses. You can use your debit or credit card to make all purchases and that works well, but you may still want to keep your receipts. Another way is to take the daily per diem deduction. Rather than keeping all food and other travel related expenses the IRS offers a flat rate per diem rate you can take if you don't want to itemize those expenses. As I recall it was $59/day this year. If you do the per diem you need to make sure to keep your logs at a minimum to prove the deduction. You can write down the days you are out of town, put them in a spreadsheet or buy software that is geared for the trucking industry. There are a couple on the market just for drivers.

 

I have a calendar in my truck, mark the days I am out, write the total of each month. Year end, I just add them up. Transportation workers do get the cost of travel deduction, it probably is $59/day, but we get to deduct 80% of that $59, or $47.20/day of travel. IRS divides into half days, but to me, if I go to work, that's a day. If I come in from a trip, that's a day, as well. Our little secret.

Also, if you keep receipts? You'll have to go some to spend more than $47.2/day on travel cost. You get food and clothing, shelter cost, shoes and toilet articles, all included in the IRS allowance. Let me figure this for you: $47.20/day x 7 days/week = $330/week for travel cost. I figured my own at $11 - $12/day. Of course, drivers tell me I'm cheap. I am. Don't smoke, don't do fast food, don't do soda or snacks, buy at Walmart for food, and buy from Duluth and good quality mens clothes, wear my stuff for years. I don't keep that kind of receipts, I take the expense deduction....it's been a higher number every time. My truck, unusual expenses (my truck has been good so I don't have a lot)

I will say this with no sarcasm, it's important that you get this tax issue under control asap. I mean it when I tell you - don't wait.