Tax Breaks In Trucking
There are many tax breaks and incentives related to trucking. Let’s take a look at some of them!
Cell Phone And Internet Deduction
A lot of truckers are relying on cell phones and wireless Internet service while on the road. The IRS recognizes that and allows truckers to deduct 50% of their cell phone and internet costs. This tax deduction can be a real boon for truckers who are self-employed and use their phones to make business calls or send emails from the road. It could help offset income from side gigs like driving Uber, TaskRabbit tasks or delivery services such as Postmates and Caviar. But it’s important to know that the IRS scrutinizes claims for sizable cellular service expense deductions, especially those that combine personal and business uses. This means proving that your cell phone is used for business purposes and segregating private and work-related calls on an itemized bill is necessary to avoid an audit from the IRS.
Truck drivers who belong to a professional association or union may be able to deduct the fees they pay. These include membership fees, dues, and voluntary contributions. Association dues are one of the few tax deductions that are available to owner-operators and contract drivers. These are the fees you owe to your association for services and programs they offer to their members. ATA members, which include motor carrier and Allied members, receive access to a wide range of expert knowledge on issues impacting the trucking industry, including safety, economics, law, technology and regulatory affairs. They also get discounts on ATA products and services, access to member-only webinars and Calls on Washington, and member-led forums and committees. The Association has been an essential voice for the trucking industry, providing leadership that helps it survive tough times.
Whether you’re an owner-operator or a company driver, you may be able to deduct some clothing expenses on your taxes. This includes work uniforms and safety gear that must be worn on the job. But before you can claim any clothing as a deduction, you have to keep two things in mind. First, you need to be sure that the clothes aren’t ordinary and necessary for everyday use. Second, you must make sure that they’re only used during work hours. Otherwise, they’ll count as a business expense instead of a clothing deduction. Some common clothing items you might be able to deduct include goggles or back braces, safety gloves, HAZMAT gear and company-branded shirts. Similarly, if you rent some distinctive clothes for a photoshoot or a gig, you might be able to deduct the cost of those items as a tax write-off.
As a trucker, you may be eligible to deduct certain business expenses. These can include subscriptions to trade publications, association dues and educational courses related to your trucking career. Many owner-operators can deduct their DOT physicals, drug tests and sleep apnea studies. They can also deduct the costs of specialized clothing such as overalls, rain gear or HAZMAT safety equipment. In addition, many owner-operators can deduct their truck insurance premiums. This includes both company-paid and personal paid insurance policies.