When it comes to tax deductions for truck drivers, you may be confused about what items are actually deductible. If you are a truck driver, you stand to benefit greatly from the deductions put in place by Uncle Sam. Whether you're preparing your taxes on your own, or you have a professional tax preparer, you need to know exactly what deductions apply to you. This article will minimize your confusion and maximize your tax relief.
Understanding Your Tax Deductions
Truck drivers are in a special tax class. Whether you drive for a company or are an owner/ operator, you incur a special set of expenses that most tax payers do not. Items such as blankets, ATM fees, showers, motels, parking and toll fees and tires can be deducted from your taxes. Basically, any item that you purchase for or related to your truck will be deductible. As for not-so-obvious examples, a blanket is deductible because some drivers choose to sleep in their trucks, and ATM fees are deductible when a driver is on the road and is away from their local bank and is forced to pay out of network fees.
Possible Tax Deductions For Meals
Once again, truck drivers fall into a special category when it comes to meal deductions since truck drivers can receive a standard meal allowance. There are restrictions to this deduction. If you pass your home during the day, you will need to pro-rate your deduction. Some truck drivers who consume more than the standard per diem can apply for a greater deduction. It's important to keep all receipts to prove your deduction.
Establish A Tax Home
Travel expenses can really add up to a hefty deduction for truck drivers; however, if you do not have a physical home, you cannot collect on these benefits. Many truck drivers live in their trucks and cannot claim travel expenses. A tax home must be a physical address, not just a post office box. You must also prove that you make payments, such as rent, mortgage and insurance to sustain your house.
Are business clothes tax deductible? It may be difficult to believe, but some employers require specific uniforms without providing any reimbursement when the employee purchases these items.
Looking for child care provider tax deductions? It's refreshing to note that the IRS does indeed provide tax relief to working parents who must utilize the services of a child care provider. As with all other possible tax deductions and credits, there are some strings attached.