Tax Planning for Truck Drivers

Planning for a successful delivery should include keeping detailed tax records.

Truck drivers transport goods all across the nation, incurring multiple expenses in the process. Fuel, tolls and meals are just a few of the expenses regularly incurred by both long-haul and city drivers during a typical work day. For self-employed drivers and statutory employees -- those drivers who receive commission from an employer -- many of these expenses can be deducted from taxable income to reduce the amount of taxes owed for the year. Planning for deductions beforehand will ensure that during tax preparation, records will be readily available and well organized for efficient filing.

Get Organized

The best form of tax planning for truck drivers is to maintain an organization system all throughout the year. Staying abreast of the general rules for common industry tax deductions will help you keep better records for those deductions during your regular routine. For example, knowing that you can deduct purchasing and upkeep expenses for work equipment will encourage you to keep receipts from purchases of items such as gloves or boots and invoices from uniform cleaning services.

Create a filing system for receipts, expenses, insurance premiums and other such items that might be tax deductible. Business banking transactions, income received and previous tax records should also be organized for efficient access.

Track Expenses

Keep a reliable record of expenses and organize receipts to substantiate them. Fuel, tolls and parking fees, vehicle maintenance and repairs are expenses that might be tax deductible. Travel expenses, in particular, should be logged by date, time and amount. This detailed travel information, in addition to receipts saved for each trip, will create a sound record for tax and auditing purposes.

Avoid an Audit

Nondeductible expenses should not be deducted from taxable income and could result in an audit. For example, although uniform cleaning expenses are deductible, work clothing that is adaptable to everyday wear does not qualify. Any expenses that were reimbursed by an employer can not be deducted from taxable income. Knowing the basic tax rules for your commonly deducted items will keep these mistakes to a minimum.

Use a Qualified Tax Professional

Planning to use a qualified tax professional who has extensive experience with self-employed and statutory employee truck drivers may be the best option for career drivers. Tax filings with several complicated expense records and deductions, such as meal per diems, will be easier to manage for an experienced professional who understands how to generate the best result for workers in this industry. This upfront expense could actually save money in the long run by reducing your overall taxable income.

References

• Jackson Hewitt Tax Help Center: Driver