Is it deductable, purchases using reward points?

Discussion in 'Trucker Taxes and Truck Financing' started by TommyTrucker88, Jan 30, 2018.

  1. TommyTrucker88

    TommyTrucker88 Light Load Member

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    Hey guys wasn't sure if I should post this here or in the taxes section.
    Just wanted to know if using your reward points or gift cards on purchases for food or electronics can be a deduction for taxes.
    Reason I'm asking is I keep getting asked if I want a receipt for my free refill and now I'm thinking either it is there policy to ask or if people actually write that off.
     
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  3. STexan

    STexan Road Train Member

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    Food and drink items receipts are not necessary if you itemize and take the standard daily meal allowance for truckers which is currently $63/day when away from home. Just have some means to backup your days away from home number you're using in the event of audit

    Regarding other things that may be a deductible expense, it's okay to use points as long as the receipt shows the dollar value and tax amount at the bottom, which they normally do.
     
  4. MysticHZ

    MysticHZ Road Train Member

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    You can deduct anything you want ... It only becomes an issue in the case of an audit.
     
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  5. jammer910Z

    jammer910Z Road Train Member

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    That. Words of wisdom.
     
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  6. MsJamie

    MsJamie Road Train Member

    No, you can't deduct purchases paid for with points, unless you pay income taxes on the points.

    Use your points for food, and pay cash for the things not covered by a standard deduction.
     
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  7. MysticHZ

    MysticHZ Road Train Member

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    Use the points for showers, then we can all appreciate it.
     
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  8. ‘Olhand

    ‘Olhand Cantankerous Crusty

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    Just to clarify standard deduction(at least for now) is $63 and under transportation worker you are entitled to use 80% instead of the standard 50%
    So remember your Actual standard daily deduction = $50.40
     
  9. VolvoTerry

    VolvoTerry Light Load Member

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    MsJamie is correct. If you are audited and have used points without also claiming all reward points as taxable income they will be null and void.
     
  10. ZVar

    ZVar Road Train Member

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    I seriously doubt that. We are talking the IRS. If you are audited and they find unreported income (the points on the card) they will likely try and make you pay taxes on the points with all the associated penalties for the last 6 years. :)
     
  11. VolvoTerry

    VolvoTerry Light Load Member

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    My statement of "null and void" was lazy communication for " they wont see it the same way you are trying" You sir are correct that he would have to submit an amended return at the very least and get hit with fines and penalties for filing a fraudulent return.
     
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