What You Need to Know About Truck Driver Taxes

It is not uncommon for truck drivers to hire tax return preparers to file their returns. With proper tax planning in advance, a truck driver may be able to lower their significant tax bill. In fact, there are tax attorneys and preparers who focus solely on preparing tax returns for truck drivers as a specialty tax area.

A truck driver should always ask any prospective tax preparer regarding their specialty concerning truck driver tax planning.

Who Can Claim Deductions For Truck Drivers?

Employees who receive a W-2 from a trucking company at the end of the year are not able to claim tax deductions that are reserved for truck drivers.

Self-employed truck drivers who receive 1099-NECs from any customer that paid more than $600 during that tax year are eligible for truck driver-related tax deductions. Gathering those 1099s alongside your own income and expense records, you’ll fill out the Schedule C section on the Form 1040 tax returns. To report self-employment taxes, you may also be required to complete the Schedule SE on Form 1040.

What Expenses Are Tax Deductible?

Several expenses can be claimed as deductions if you are a truck driver. Below is a list of several standard deductions:

• Clothing worn solely while working; especially specialized safety gear
• Education and training to maintain a CDL or other certifications
• Chains, tire irons, ratchet straps, and various other necessary equipment
• Meals if eaten during work while away from your “tax home”
• Insurance for auto liability (commercial) and property damage
• Travel costs such as hotels or tolls
• Regularly required medical exams
• Office expenses, such as accounting software or physical office supplies
• Association dues if part of a union or other trucking association
• Cell phone/computer or percentage used for business
• Taxes and licenses
• Vehicle expenses such as fuel, registration, etc.: standard mileage method is not available to truck drivers
• Subscriptions to trucking-related publications,
• Personal products, such as toiletries, cleaning supplies, GPS, cooler/minifridge, flashlight, log book, alarm clock; anything used solely in traveling for business

What Expenses Can You Not Deduct?

Certain expenses may seem like they could be deductible for truck drivers but are not. A few typical costs that are unable to be counted as deductions on a truck driver’s taxes are:

• Expenses that your company reimburses
• Travel and meal expenses during personal trips
• Home phone line
• Everyday-appropriate clothing
• Commuting between home and business headquarters

When trying to understand what is deductible for a truck driver or not, decide what you have a recordable expense of and what is necessary strictly for the business.

What Problems Do Truck Drivers Have While Preparing Taxes?

The most common problem when dealing with a truck driver’s taxes is knowing what expenses can count as deductions. If you’re looking ahead to a tough tax season, or especially if this is your first year as a truck driver, give us a call and speak with our team.