Truck driving isn’t just a job. The services of truck drivers are directly or indirectly needed by every industry known to the modern human economy. As a result, the IRS sees truck driving as a profession that is eligible for tax deductions. But how many of them do you know about as a truck driver?
The expenses a truck driver incurs daily can add up quickly. In some cases the IRS allows drivers and owner operators to claim certain costs through tax deductions. Some claimable items include the food you eat on the road, license and registration renewal costs, truck maintenance repairs, tolls, parking and even internet.
To make sure you save as much as you can from your next trip, we have prepared for you a list of 15 tax deductions you can claim as a truck driver today. But before we delve into these deductions, who can claim these deductions?
By the way, you should always consult a certified financial advisor before taking any deductions on your taxes.
Who Can Claim Truck Driver Tax Deductions?
Not all truck drivers can claim tax deductions. You can claim most of the tax deductions if you are a company-employed truck driver. However, whatever deductions you claim must be nothing your employer already reimburses you for. If you’re an owner-operator, you can claim some of the following tax deductions, but not all.
For those who are eligible to claim, you must first have a tax home where the IRS can reach you. Your tax home could be your home address or company headquarters, but that may not be the case for everyone. Confirm where your tax home is if you’re not sure.
Also, it would do you a lot of good to keep all the receipts for every out-of-pocket spending. Keep track of every expense. But if piling up heaps of papers isn’t your thing, there are smartphone apps that help you convert images to PDFs to scan and fax where they need to go.
15 Tax Deductions to Claim as Truck Driver
Now that we’re clear on who can claim what, here’s a list of the truck driver tax deductions you may potentially claim on your next tax returns.
1. Meals on the road
You are eligible to claim deductions on meals on runs that require that you spend nights away from your tax home. As a result, this deduction is only reserved for over-the-road truck drivers.
The general deduction can go as high as 50% across the board for other professions. But truck drivers who are working within the limits of the Department of Transportation’s “hours of service” can claim up to 80% on meal expenses.
This deduction is best for truck drivers who don’t claim the per diem deduction (more on that below), probably because they spend a lot on meals. If you fall into this category, try to keep each meal receipt as proof.
2. Per Diem
Per Diem deduction is another way to help truck drivers save on food expenses on the job. The IRS allows for daily deductions of up to $63 in the 2021 tax year for trips outside of the country. There are also some regions within the US the IRS considers as high-cost areas, and trips to these areas are up to $70 daily.
But just like in the category above, this deduction is not available for local drivers because they can always go home and eat after the day’s work. OTR drivers, however, can claim the per diem deduction. And contrary to the category above, your logbook is enough proof to help you claim this deduction.
Other things the per diem tax deduction covers include laundry expenses and room service on the road.
3. Cell Phone and Internet
The IRS understands that cellphones and the internet may be the only companions of truck drivers on long trips, and the institution has made it less costly for them through this deduction. But things get a little tricky, as most truckers use their cellphones and the internet for personal use and professional purposes. As a result, the IRS just pegs a 50% deduction on phone and internet expenses.
4. Medical Exams and Expenses
Your health as a truck driver is nothing to joke with, and the IRS knows this. As a result, medical expenses which are not normally tax-deductible are deductible for truck drivers. They are regarded as business expenses instead of medical expenses in this situation.
Thanks to these deductions, truck drivers can now enjoy sizable tax deductibles on medical exams, as long as your employer requests them. Examples of such medical exams include drug tests, DOT physical examinations, and sleep apnea studies.
Also, every expense paid to the hospital or a medical practitioner for a work-related health issue is deductible, including your medications.
However, the medical expense is only deductible if the amount is more than a certain threshold set by the IRS.
5. Insurance
Insurance is a necessity to keep you out of unnecessary debt while on the job. But not everyone gets to need the services of the insurance company, as it is unlikely that you have accidents every single day. The good thing is that you can claim a tax deduction on your insurance.
The insurance expenses that tax deductions cover are commercial auto liability insurance, cargo insurance, property damage, and lost income.
You also get to claim tax deductions on health insurance expenses. But this is unlike the medical expenses up there, where the deductibles are classified as business expenses. Rather, you can claim this insurance tax deduction on your dental, health, and vision expenses for your dependents, your spouse, and yourself.
6. Licensing fees
Updating your industry-related knowledge and skill is critical to the growth of the trucking industry and your productivity. And that is why the IRS allows you to claim tax deductions on truck driving-related training and licensing expenses. Examples of such expenses include the cost of renewing your driver’s license and your CDL license.
7. Truck maintenance and repairs
Truck repairs and maintenance costs are often some of the highest expenses the truck driver has to shoulder. They can pile up to as high as $13,000 in a year. Fortunately, you can claim deductions on these as well.
Whether you’re an owner-operator or a company truck driver, you can claim tax deductions on expenses incurred on truck maintenance and repairs. The tax-deductible items include tires, batteries, truck parts, and vehicle inspections. But you can’t claim the labor costs of repairs you carried out yourself.
8. Association dues
Employers often ask truck drivers to join some association or group that is work-related. Examples of such associations include Teamsters and OOIDA. All dues paid to these groups are fully tax-deductible.
Also, dues paid to other associations or groups you join, which aren’t mandated by your employer, could be claimed on tax deductions. However, you must be able to prove with clear evidence that the group is beneficial to your trucking career or job performance.
9. Travel costs
The items that are tax-deductible in this category go on and on. In fact, some tax-deductible items here may fall into other categories on the list. But common examples of items you can claim tax deductions in this category include lodgings, parking fees, tolls, transportation to and from meals.
As for the lodging expenses, there’s no standard deductible percentage for it. So it is in your best interest to keep your receipt for every night you spend away from home. Also, the lodging must be somewhere away from your tax home.
The expenses incurred from mailings you post from any location on the trip to your employer also fall within this category. You can also claim fueling costs on tax deductions.
10. Personal products
As a truck driver, there are some personal products you can’t do without. And although they are for your personal needs, they are of immense help to you on your job. And as a result, you can claim tax deductions on them. Examples of such items include logbooks, flashlights, gloves, binders, coolers, sunglasses, and luggage.
Other miscellaneous expenses that can be claimed under the personal products category include coffee makers, bedding, clipboards, and calculators. Personal care equipment, such as razors, soap, toothpaste, grooming products, and first aid supplies, also fall into this category.
Generally, you may claim up to 100% on tax deductions on these expenses for these items. But make sure you can prove that they relate to your work, and keep all receipts for each purchase.
11. Clothing
Your work-related clothing is also eligible for tax deductions. And as a truck driver, some clothing necessities are boots, safety goggles, rain gear, hard hat, and any clothing item that has the logo of your employer on it.
Apart from the clothing, any expenses incurred in maintaining the clothing are also tax-deductible. These expenses include laundry soaps, hangers, laundry bags, and adjustments or repairs of work-related uniforms.
However, any clothing that isn’t a uniform and can pass as everyday personal clothing is not tax-deductible.
12. Reading items relating to the industry
You can also claim tax deductions on expenses on industry-related publications. It could be annual subscriptions or one-time purchases. As long as the publications are industry-related and not for recreational purposes.
13. Cleaning supplies
The cleaning supplies aren’t those you use for your home or personal items. They are those you use in cleaning your truck, such as paper towels, window cleaner, hand cleaner, portable vacuum, hand cleaner, and trash bags. Whatever supplies you need to keep your truck clean falls here.
You can claim tax deductions on these items regardless of whether you’re an owner-operator or an employee truck driver, as long as you can provide receipts for their purchase.
14. Tools
You can also claim tax deductions on the tools you need for the smooth running of your truck driving. Wrenches, power tools, pliers, duct tapes, hammers, and the likes all belong here.
Tools used in holding down your cargo, such as bungee cords, locks, wide load flags, load chains, and ratchet straps, are also tax-deductible.
15. Electronics
The electronics that are sure to get you tax deductions if you claim them are those you only use for work. These include GPS and GPS map updates, ELD, and your CB radio. Any expense incurred for maintaining and repairing these electronics is also tax-deductible.
Non-Deductible Expenses
We now have an extensive list of tax deductibles that you can claim. But there are some expenses you can’t claim. You could end up with an audit if you tried to claim them. These expenses include:
Personal commuting costs (tolls, gas, parking)
This should not be confused with the travel costs you incur on your job. Personal commuting costs are yours to bear. However, some employers pay their truck drivers for commuting costs coming to work.
Personal vacations
While it is important to have fun on your vacation, make sure to not have any fun beyond your budget. There are no truck driver tax deductions for that.
Home phone line
Your expenses from your tax home are completely yours to bear. Only when you spend nights away from home on a work-related trip do the tax deductions cover you.
Expenses your employer already reimbursed you for
You can’t and must not claim any expense your employer has already reimbursed you for.
Interest on personal loans
Your personal loans are separate from your truck driving job. Therefore, you won’t get tax deductions on them.
Fines and tickets
You get to pay for your recklessness from your pocket. Please be more careful the next time you’re on the road.
Conclusion
Before we go, understand that your tax situation is unique to you. The items on this list are generic. There may be some you aren’t eligible for. There are also instances where being eligible for one makes you ineligible for another. For instance, if you claim per diem, you can’t claim on meals. And there are instances where a tax-deductible expense falls into more than one category. In this case, don’t claim one deductible more than once.
Finally, please refer to your accountant or your licensed tax to know what you can or can’t claim.