![]() If you need specialized clothing and safety gear including goggles or back braces for your occupation, including their laundry costs, then these costs are deductible.ĬDL licenses, advanced certifications, and training are generally paid for by drivers. The amount you can deduct only depends on how much you used it for business purposes as compared to personal purposes. Your monthly data or internet plan and your device costs are 100% deductible for tablets, smartphones, and laptops you use primarily for work. The fees you pay in order to become a member of a union or a group can be deducted as long as they are necessary for your business or career. Paying dues to trucking associations is common among truck drivers. Some of the common deductions that you can claim are listed below: There are a variety of income tax deductions that owner-operators often claim. Tax Deductions Common To Independent Contractor Truck Drivers Furthermore, truckers without a regular business or duty place and no permanent residence, are considered transients, and their tax residence is wherever they are employed. ![]() Where the truck driver lives would be considered his or her tax home if there is no place of business. The principal location of a business is considered as the tax home if it has more than one workplace. The tax home of an individual is the whole city or the general area where the work/business is performed. The residence or home address of the truck driver is irrelevant. Tax homes are typically the places where a business regularly operates. There may not be sufficient deductions available for truckers without a tax home. To be eligible for trucker income tax deductions, truck drivers must maintain a tax home. The expenses you incur when working as a freelancer or independent contractor can be deducted on Schedule C when you are self-employed or an independent contractor. Schedule A, Itemized Deductions, allows truck driver employees to deduct miscellaneous truck driver expenses for tax purposes. You can reduce your independent contractor taxes as a truck driver by deducting unreimbursed expenses that are related to your job. How Independent Contractor Truck Drivers Reduce Their Tax ![]() Those two forms, along with your Form 1040 tax return, go with your tax return. ![]() Additionally, Schedule SE may be required for the self-employment tax return. Your trucking income and expenses will be reported on Schedule C using your 1099s and your own accounting records. ![]() When you are the owner-operator of your trucking business, every customer who paid you more than $600 during the year should send you a 1099-NEC at year's end. The IRS permits truck drivers to deduct certain trucking-related expenses when they are self-employed. Those who work for a trucking company at the end of the year receive a W-2 statement but are not eligible for deductible expenses. Who Qualifies For Independent Contractor Truck Driver Tax Deductions? Independent contractor tax deductions can be claimed during tax season so that you can get some of that cashback. Unfortunately, truckers and trucking companies can experience major issues due to this lack of knowledge.įuel costs and meal costs contribute significantly to the number of expenses you incur as a truck driver. It happens all too often that truckers who convert from being employed to owner-operator trucking companies are not as knowledgeable about the tax laws that apply to them as they should be. However, employer-paid expenses cannot be deducted. There are many business expenses that truckers incur and the IRS offers income tax deductions to independent contractor truck drivers. ![]()
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