Trucker Tax Tips & Deductions

i was told there is a daily maximum you can deduct for "living expenses" on the road. How true is this and what are the limits. I dont have much paperwork for 2008 but i will make up some files for 2009 if it is worth it since i am a company driver. Thanks for the imput

 

i was told it was 80% of $52 per day, which works out to $41.60...PLEASE correct me if im wrong as i am about to do my quarterly taxes asap!

 

Yes same numbers from last year
The sad part is some drivers actually spend that much

 

The actual wording of this rule allows those that spend more to actually choose to keep the records to do the higher expense. The standard deduction is there like it is for itemized deductions versus standard deductions.

From IRS Pub 463

Special rate for transportation workers. You can use a special standard meal allowance if you work in the transportation industry. You are in the transportation industry if your work:

• Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck, and
• Regularly requires you to travel away from home and, during any single trip, usually involves travel to areas eligible for different standard meal allowance rates.

If this applies to you, you can claim a standard meal allowance of $52 a day ($58 for travel outside the continental United States) from January 1, 2007, through December 31, 2007.

Using the special rate for transportation workers eliminates the need for you to determine the standard meal allowance for every area where you stop for sleep or rest. If you choose to use the special rate for any trip, you must use the special rate (and not use the regular standard meal allowance rates) for all trips you take that year.

 

r u serious?...who do u know that can accually afford to eat Olive Garden and Red Lobster on a regular basis, in THIS Industry?...lol
if i were a celebrity making millions a yr your #### right i would eat like that...for now its Dollar Menu McDonalds!...lol

 

well keep doing that and you will never see your feet again

 

RoadMedic,
I heard on Trucking Business and Beyond tonight on XM...Kevin was talking about a cell phone deduction court case with the IRS. Apparently, they won't allow people to deduct business expenses on a personal cell? Do you have any info on this? I might not have the details right either...but it was something regarding cell phone deductions and a court case with the IRS and apparently they are not letting something be allowed as a deduction.

 

A quick check on this found that the IRS is after the phones that are provided by employers for the employees to use. A log of all calls made or received on the phone is required to be maintained. If not, the phone is to be treated as a perk or additional income to the user. The basis of this law is out dated due to the ease and many phones out there. Keeping a log is not even possible to do anymore. These cases are for the larger business ventures having multiple phones.

Will it be an issue for us? I have my doubts.

The trucker is usually required to have a cell phone by the employer. They use the phone on both sides to contact the employer or them to call the driver.

Are we talking large costs? No. With the way the packages are now, you pay simply for minutes whether used or not. You could lose a portion of the deduction during an audit, but not the entire cost.

 

Very informative page, thanx. This is my first year of 1099 I am not a o/o though. The company I work for has a contract set up that makes it look like your an o/o. I have to pay damages if I cause them. I do get re-emburst for scales, toll roads, etc. I have to pay my own unemployment insurance, health and life insurance. So all I have as a write off is per-diem, clothing, entertainment(tv,dvds',phone) I talked to a o/o and he said to plan on 40% quartely. and should have no problems. is this true? Also, can you do these write offs on state taxes too? I appreciate any input. I also was wondering if a company, driving their truck can leagally 1099 as a contractor.

 

I can't remember how that works....I've heard more and more about this...smaller companies treating their Employees like contractors...gets them out of having to pay various taxes and such. The thing to remember is that its not how THEY view you as a worker...its how the IRS views you. While its their equipment...normally that would make you an employee since you are taking no risk.

I think UPS or Fed Ex a while back had problems with this...viewed their workers as contractors instead of employees...they got in big trouble with this. Id say call the IRS, as fun as that is...see if you can get some answers.