Tax Deductions for Trucking Supplies What You Need to Know .pdf
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Tax Deductions for Trucking Supplies - What You Need to Know
The arrival of fall means summer vacations are over, and it is time to get back to work. Truck drivers start seeing things
pick up as well, especially in advance of the holiday season that always brings more loads to haul. The increased activity
makes fall the perfect time to start thinking about taxes.
Truck drivers file their taxes as either self-employed independent contractors or employees of their carriers. How they
file determines the kinds of deductions they can take for the trucking supplies they purchase. Those supplies can include
everything from truck tarps to protective clothing to in-cab electronics.
Before we get into the differences between filing as a self-employed individual and a company employee, we need to
first discuss state and federal taxes. The IRS is the primary taxing authority in this country. States do assess their own
taxes, but they tend to defer to the federal government. For example, those that collect income tax will often rely on
federal calculations for things such as deductions and taxable income. Therefore, it is of vital importance that truck
drivers understand the federal regulations to keep the IRS happy and correctly file state returns.
Filing as an Independent Contractor
The IRS regards independent contractors as self-employed individuals operating their own businesses. There can be some
gray areas depending on the relationship of the truck driver to the company or companies he or she hauls for, so any
questions about tax status should be referred to an experienced tax attorney.
The independent contractor who truly qualifies as self-employed under the law can essentially deduct any and all
trucking supplies obtained for the purposes of conducting business. This would immediately bring to mind things like
truck tarps, bungee cords, chains and straps, wide load flags, etc. But it also includes other things as well.
For example, a trucker required to invest in steel-toed boots and a hard hat in order to haul certain kinds of loads would
be able to deduct those expenses as long as the purchased items are used exclusively for work. The same holds true for
things such as GPS units, hand tools, and so on.
Filing as a Company Employee
The number of deductions allowed for company employees can be significantly less depending on how trucking supplies
are obtained. Anything an employer gives directly to the driver is obviously not deductible. A driver also cannot deduct
the cost of any trucking supplies for which he or she is reimbursed by the employer.
With those restrictions understood, the same kinds of things qualify for deductions. Drivers can deduct cargo control
supplies, protective clothing, electronics, hand tools, and even limited transportation expenses. For example, if a trucker
has to fly to some specific destination to pick up a truck, the cost of airfare and accommodations can usually be deducted
if not reimbursed by the employer.
The one thing to be aware of for both independent contractors and company employees are deductions for meals. This is
one area where IRS regulations are ambiguous. The reason is simple: truck drivers have to eat just like every other kind
of worker. The fact that they eat while on the road does not change that. So just like an office worker cannot deduct
groceries as a business expense, truck drivers can only deduct meal expenses under certain conditions.
Truck drivers can use work-related expenses to reduce the tax liabilities. This is actually a smart thing to do. But truckers
need to be careful, too. If they don't know what they're doing, they should leave their taxes to the professionals.
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