What Are Some Tax Deductions for Truck Drivers?
Feb 6th 2023
Tax deductions can provide significant financial relief for those who qualify. Most people know they can get a deduction for things like supporting children or donating to charity. What you might not realize is that some truck drivers can get tax deductions for work expenses. Keep reading to learn about tax deductions for truck drivers.
What Is a Tax Deduction?
A tax deduction is pretty simple. Every year, you have to pay taxes based on your annual income for the previous year. A deduction is a legal excuse to pay the government less money. For example, you can get a deduction when you have children or dependents living with you; this deduction makes sense because you need that money to support those people.
Which Truck Drivers Get Deductions?
Only owner-operators are eligible for annual tax deductions because company drivers are considered regular employees. If you’re not sure which kind of driver you are, just look at your tax paperwork. If you get a W-2 form, then you’re a company driver and you’re not eligible for work-related deductions. However, if you have 1099 forms instead, you are eligible.
What Can You Deduct?
Tax deductions for truck drivers include work-related expenses. There are many kinds of expenses you can deduct, including the following:
- Truck and cargo insurance
- Health insurance
- Meals
- Work clothing
- Truck cabin items (alarm clock, GPS, etc.)
- Fuel
- Business license fees
- Truck maintenance costs
- CDL fees
- Association and union dues
What Is the SHIP IT Act?
The Safer Highways and Increased Performance for Interstate Trucking (SHIP IT) Act is a proposed bill with bipartisan support. The goal of the bill is to address the ongoing logistics crisis by helping to recruit and retain drivers, among other initiatives. If passed, the bill would offer temporary tax credits for truck drivers, including a $10,000 tax credit for new drivers.
Deduct Your Cab Improvements
Upgrading your cab’s driving seat isn’t cheap, but it’s well worth the expense. GRA-MAG’s air ride seats for semi-trucks can protect your spine and muscles from road vibrations and increase your comfort. As a work expense, you can expect to count some or all of the cost of a new seat in your annual tax deductions.