TAX DEDUCTIONS FOR OWNER-OPERATOR TRUCKERS

 

Tax season is right around the corner. It may not be your favorite time of the year, but we want to help make it as painless as possible. Truck driver tax deductions are a great way to save money on taxes. Here’s a list of the most common deductions for owner-operator truckers:

 

  • Advertising: Business cards, signage for truck and/or trailer, website & fees.

  • Banking Fees: Checking account costs, NSF fees, ATM fees, credit card fees, money order fees.

  • Per-Diem Costs: The IRS allows drivers to deduct a specific amount. The average per-diem rate is $66.00 a day for 2020. Track every city and get the exact per diem rate at https://www.gsa.gov/portal/content/104877.

  • Truck Maintenance Costs: Expenses related to truck maintenance and cleaning are deductible. This deduction includes: tires (which may be depreciated) batteries, sponges, cleaning supplies, truck wash, CB repairs, truck parts, and repairs.

  • Vehicle Expenses: These may include parking fees, tolls, actual expenses (such as maintenance and repair, oil, fuel, and depreciation if you are the vehicle’s owner).

  • Insurance: Cargo, workers comp, terrorism, occupational accident, trailer, truck and car if used for business. All types of insurances for your business.

  • Licensing Fees/Permits/Fees: The costs associated with obtaining and maintaining your CDL, truck license and permits required to enter various states are deductible fees. Any schooling you might need to maintain your CDL are also deductible. Scale & weighing fees, state fuel fees. NOTE: You can’t deduct traffic tickets or any penalties.

  • Medical Examinations: Drivers required to undergo medical examinations for employment can deduct these costs as long as they are paid out-of-pocket. (DOT physicals, Drug Tests, Sleep Apnea Study)

  • Dues and Subscriptions: You can deduct the cost of publications that are related to your field because they keep you up to date with law requirements and changes. You must be able to prove that the publications are work related. Association dues related to the trucking industry. (OOIDA, Teamsters Load Board Subscriber fees, trucking industry magazines, Etc.

      Telephone or Internet Fees: Cell phones, satellite, Sirius/XM for your rig. You cannot deduct your home phone line.

  • Office/Cleaning Supplies

  • Postage: For mailing invoices, bills of ladings, etc.

  • Safety gear: Steel-toe boots, work gloves, cargo straps, Bungee cords, flags, flares, jack straps, rain gear, load chains& locks, GPS system & Updates, flash light batteries, crowbar, safety vests.

  • Uniforms: Dry cleaning of your uniforms or protective clothing.

  • ComData/ComCheck Fees: Computer Software, credit card fees.

  • Computer and Software: PC/Laptop used for business, computer software related to business usage (Accounting/Antivirus, MS Office)

  • Professional Fees: Legal fees, bookkeeper/CPA fees.

  • Other supplies: Maps/atlas, tools, circuit tester, road chains, small appliances used in your truck either, alarms, lights, surveillance, booster cables, power cords and anything truck related.

  • Home Office: You can use a home office deduction, but you must follow the rules strictly. Please refer to https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction.

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