Tax Time for a 1st Year Driver

DISCLAIMER: I am not an accountant, lawyer, or other professional. I am not rendering accounting, legal, or other professional advice. I am also not being paid by Intuit, the publishers of the TurboTax software that I use and recommend.

If you are paid straight mileage pay, you can take a standard daily rate for transportation workers subject to hours of service rules. See IRS Publication 463, page 6, center column. Basically, you have an allowance of $52 for each full day you are on the road. You have an allowance of 75% of $52, or $39, for each partial day (days you depart and return). Using your logbooks from last year (you did save them, right?) add up all the full and partial days, multiply the full days by $52 and the partial days by $39, and put that total in the line for your total meal expenses on Form 2106-EZ. You can deduct 75% of that total (multiply the total by .75, and enter that amount in Line 5 of Form 2106-EZ).

If you are paid per diem pay as opposed to straight pay, you have to subtract the portion of your pay that's on per diem from the total meal expenses. The difference is the *unreimbursed* portion of your meal expenses, and you can deduct 3/4 of that difference.

Also, if you have had to pay for parking at any truckstops, save those receipts, add them up, and enter them in Line 3 on Form 2106-EZ.

Anything you buy just for the truck is deductible, unless you are reimbursed for it.

I used TurboTax Online to do my taxes. It's super easy, much faster and cheaper than a tax service, and you can do a search for keywords and come up with good answers to most questions. For example, a search for "I am a truck driver. Where do I enter my meals deduction?" will pull up where to enter it in TurboTax so it ends up on your 2106-EZ.

If you contributed to your 401(k), you may qualify for up to a $200 tax credit. TurboTax will help with that.

If your state charges a state income tax, the state income taxes you paid last year are deductible from your income for the purposes of Federal taxes, unless you elect to deduct estimated state sales taxes. It's a choice of one or the other - you can't deduct both. If you're lucky enough to live in a state without an income tax, just deduct your estimated state sales taxes and be done with it

If you have a mortgage on your home, the interest is deductible. So are all your out-of-pocket medical expenses, including co-pays for doctor visits, treatments, prescriptions, eyeglasses, etc.

Keep track of how far your doctor is from your house and the number of times you visit - that mileage on your personal car/pickup is deductible.

If you add up all those deductions and come up with more than the standard deduction, it's time to itemize. TurboTax will add it all up for you and tell you whether you should itemize or take the standard deduction.

And, if you shell out the paltry price of TurboTax Online, you get one free E-File. My wife and I file jointly, so we got our taxes done for a grand total of $29 and about 2 hours of time once we dug out the box of old logbooks, receipts, etc.

The big thing is, be organized. Start now to prepare for next year. Keep all those pesky non-meal receipts - if they pertain to your job and you aren't reimbursed, you can probably deduct them. I deducted my electric cooler, my accordion file for receipts (I put the receipt for it in it! *chuckle*), the glass cleaner and paper towels I use to keep the inside of my windows clean, the few times I've had to pay for parking at truckstops... I even kept the receipts for the couple of times I've bought windshield washer fluid and didn't feel like sitting on hold with breakdown for 2 hours to get a Comchek for a $2.50 gallon of washer fluid.

Uncle Sam is sending my wife and me a nice big check this year

 

Good advice but what if you aren't paid by the mile but rather a % of the load? Does it matter? How about deducting stuff you bought for the truck like (a) GPS systme, (b) TV, (c) satellite radio, (d) gloves...etc?

What if the trucking company does NOT pay anything for food?

 

There is no difference in the deductions between the mileage pay or percentage pay.

 

Correct. I was thinking of straight pay or "per diem" pay, also called "subsistence pay" by some companies. If you are paid a percentage without a per diem, it's the same tax situation as if you're paid by the mile without a per diem package.

 

Does it give a place to put in the cost of supplies you listed and place for cell phone bill too? I am really debating on doing it myself this year. I have reciepts of all my husbands expenses such as washer fluid and such, and where he bought the cooler, portable stove, and crock pot all for the truck.

also, we have a home business - can I use that for it as well? Just want to make sure I get the most deductions cause I am allowed quite a bit with a home business and hubby being OTR too. Thanks

 

Taxes!!!!! I HATE Taxes!!!!!!!!!!!!!

 

You can put all those on Form 2106 or on Schedule A, Line 20. Dunno whether you'd have to expense the cooler/stove/crockpot or depreciate them; probably doesn't matter much either way. In any case, you add up the unreimbursed expenses and enter them where TurboTax asks you. I used the Deluxe version, can't really speak intelligently about the others.

 

A good thing to have is a tax book for truckers. I bought mine for about 5 bucks at hess truck stop. It has the truckers tax laws in it. It is a daily ledger and has a place for each days expenses. Everything is broke down and it tells you what you can deduct. All you have to do in write down the expenses each day in the box provided for it. I have seen these for about 20 bucks at other truck stops. It is for O/O's or company drivers. It tells you it will save you a couple grand each year in missed deductions.

 

Sounds great! Still need to save the receipts just in case of an audit, but that book sounds great! Seems like I saw something like that at some truckstop or other in Indiana. Might have been that one off I-70 at state highway 1, come to think of it. Can't remember the price, but I remember the truckstop...