1. Keep Good Records
With the tax-filing complications of the trucking industry,
dozens of truckers get audits in the mail every year. While an
audit is never a "good" thing, as long as you have your
financial information organized then you should not have
anything to worry about. Throughout the year, keep your receipts
and financial records together and safe in a box. When its time
to get your taxes done, take the whole box in so that you have
all the info you need.2.
Business Deductions
If you are self-employed, there are many truck-driving expenses
you can look into deducting. The basic rule of thumb with these
deductions is that about anything that goes on or in your truck
can be deducted as a business expense. This can include
decorations for the inside of your cab, the materials you use to
clean your truck, and even repair expenses.
3. Itemizing Tips
While it is not true that itemizing deductions will
automatically give you an audit, it does make sense that
itemizing can make it more "likely". This is only due to the
fact that itemizing uses more paper; therefore the IRS spends
more time looking over your return. This is not a bad thing
however, just be sure to keep good records and keep all
receipts. If you do not receive a receipt for a truck wash or
other expense, write down the amount, description and date in a
"receipt book", which the IRS should accept.
4. Meal Allowances
According to the IRS, you are allowed to deduct up to $52 worth
of meal allowances, as long as you are on the road that full
day. Keep a logbook with dates and amounts that you eat while on
the road or it will be very difficult to come up with an
accurate number.
5. Multiple States
Perhaps the biggest tax headaches truck drivers face is the
taxes they have to pay in every state they are registered to
drive their truck in. For some truckers, this is can be as
little as 1 or 2 states. However, for truckers driving across
the country, this number can quickly add up. Each state will
collect vehicle registration fees, and some states will charge
other tax fees as well. Make sure your tax preparer is up to
date on each state's tax codes regarding out-of-state truck
drivers.
6. Weight
If you drive a truck with a large gross weight (over 55,000
pounds) you will need to pay the federal highway use tax by
August 31st every year. If you have not already purchased a
truck with this weight, be aware that if you do, this tax will
be due for the first time at the end of the month in which you
make your truck purchase. After you have paid it for the first
time, you can decide to pay it every year in August, or in
quarterly payments to reduce the burden.
7. Fuel Taxes
Luckily for truckers, most states appreciate your purchase of
their fuel and will give you specific tax breaks. Therefore it
is imperative that you keep good track of your mileage and fuel
purchases.
8. Hire a Professional
With so many IRS rules and regulations as well as deductions and
credits available to truck drivers, you should definitely
consider hiring a tax professional to help you sort it all out.
You may even find that your tax preparation fees pay for
themselves, as a professional will be able to tell you any and
all deductions you are eligible for, even the new ones you may
or may not know about yet.