As everyone knows, the profession of truck driving has many challenges. Taxes are rising these days, and this is one of the significant challenges of the trucking profession. Up until two or three years ago, everyone was eligible for certain deductions for truck drivers. But now, as a result of the changes to the tax code, only self-employed workers can deduct truckers' expenses from their taxes. This means that you must be an owner-operator or contract driver instead of a business driver to qualify. Today, we are going to talk about three tips that every truck driver should do for tax deductions.
First of all, the deduction for mileage allowances. The mileage allowance is a deduction that drivers can deduct from their federal income tax return. This deduction allows truckers to decrease the amount of taxable income they report. The deduction is based on the distance travelled behind the wheel of a commercial vehicle. The mileage tax deduction rules generally allow you to claim $0.56 per mile in 2021 if you are self-employed.
The second one is the deduction for tools and supplies. As a truck driver, one of the significant things you need is your tools and supplies. You can deduct many tools and supplies when you file your tax returns. As a truck driver, you can spend all your tools and equipment expenses during the production of your taxes. This includes the cost of the tools themselves, as well as the cost of any related repairs and replacements. If you're like most truck drivers, you likely have a toolbox in your truck. Things like hammers, wrenches, pliers, tire irons, and even electrical tape are all deductible. This deduction is especially useful if you use a lot of costly equipment while driving.
The third one is meal expenses. This deduction is only applicable to drivers who are away from home long enough to require a break. If you drive locally, you may not be eligible. Drivers who are subject to the "hours of service" regulations may claim 80% of meals bought on the road. You can either keep all your meal receipts and deduct your actual expenses or use the daily allowance method. With this method, you simply charge a fixed fee per day, which varies by location. Self-employed truck drivers may also deduct 80% of the special standard meal allowance rate or their actual expenses. The 2018 special standard meal allowance is $63/full day within the US, $68/full day outside the US, $47.25/partial day within the US, and $51/partial day outside the US.
To sum up, if you are a trucker, you probably know that there are several tax deductions you can take each year to save you money. Although the benefits are not often important, it is always good to know that you can take advantage of them. We hope that you found some useful information in this blog post about tax deductions for truck drivers.