Tax Help for Truckers
Trucker Tax Assistance
Tax Preparation for Truck Drivers
Our fleet of truck driving customers is growing rapidly, truck drivers’ word of mouth is what has worked best for us.
Our tax preparation service for truck drivers has a very simple goal: Lower your tax liability and claim all business expenses.
Tax Resolution for Truck Drivers
Tax Service master’s enrolled agent has a high level of experience helping truck drivers with tax relief.
More importantly proven tax case resolution results within the trucking industry.
Payroll for Truck Drivers
Have you recently switched your corporate identity to an S-Corp?
By IRS law you are required to file payroll. Book a free tax consultation today and let’s get your tax navigation set so you can rest-stop easy.
Truck Driver – Deductibles and Expenses – IRS Resources Truck Drivers – Tax Information
Trucking Tax Center
https://www.irs.gov/businesses/small-businesses-self-employed/trucking-tax-center see more.
About Form 2553
https://www.irs.gov/forms-pubs/about-form-2553
Form 2553 – S-Corp Election PDF Form
https://www.irs.gov/pub/irs-pdf/f2553.pdf
Heavy Highway Vehicle Use Tax Return
https://www.irs.gov/forms-pubs/about-form-2290
Truck Driver – Deductibles and Expenses
My Trucking Business Is An LLC, Can I still File as an S-Corp?
Yes, if your business entity is structured as an LLC, you can still file taxes as an S-Corp. Just to reiterate, even if your business is named Johns Trucking LLC you can still file as an S-Corp.
The only difference is you will file your taxes on form 1120S instead of a Schedule C form. Before filing as an S-Corp you must tell the IRS you are switching tax structure from self-employed / LLC to an S-Corp using form 2553 (as a client, we do this for you).
Truck Drivers Legal Structure VS. Tax Structure
When setting up your trucking business, registering with the State is considered setting up your “Legal Structure / Entity”. Your “Tax Structure” is setting up how you wish to report and file taxes for your legal structure / entity.
You must register your tax structure with the IRS in order to obtain an Employer Identification Number (EIN). To ensure that taxes are paid correctly and on time, it’s important to understand how different structures are taxed. That way you can select the best option for your business.
If you just started a small trucking business, registering with your State as an LLC provides basic protection. However, the taxation process is different than a standard LLC. To save on payroll taxes as well as avoid double taxation, filing additional forms to become an S-corporation can be beneficial from a tax advantage standpoint.
It’s recommended to seek out professional tax help when deciding to switch from LLC / Self-Employed to S-Corp. A tax professional will ensure all requirements for the switch and ongoing maintenance are met. Once set-up, you will be able to enjoy the accompanying tax benefits that come along with being classified as an S-corporation.
Note: You CAN change tax structure from Self-Employed to S-Corp, you CANNOT then change back from S-Corp to LLC.
Note: When you switch from Self-Employed to S-Corp, you must file form 2553, it’s the formal way of electing S-Corp status with the IRS.
Truck Driver Employees / W2 Employees
If I’m a Truck Driver Who Receives W2 Income Can I Claim Tax Deductions?
Truck drivers whose wages are paid and reported on a Form W-2 no longer qualify for tax deductions on job-related expenses (IRS Form 2106). However, if you also earn income as an independent contractor then YES, you can claim deductions from qualified expenses related to income earned as an independent truck driver.
If you’re an employee, you can deduct the expenses of traveling away from home if both are true:
- You’re required to be away from your tax home for substantially longer than a day’s work.
- You need to sleep or rest to meet the demands of your work while away from home.
As a trucker, you’re not considered to be traveling away from home if both are true:
- You leave your terminal and return home on the same day.
- You have an hour off for lunch in between.
Get more details on this topic here: https://www.irs.gov/publications/p463
Self Employed – Truck Driver
Schedule C, Independent Contractor, Self Employed, Owner-Operated Truck Driver
If your trucking business is structured as a self-employed, owner-operated independent contractor you can claim business expenses and qualify for tax deductions from the following:
- Travel Costs (Hotels, Tolls, Parking)
- CDL license fees (Medical Exams etc.)
- Cell Phones / Navigation Tablet / Work Laptop.
- Tax Preparation Fees.
- Vehicle maintenance.
- Meals – daily allowance.
- Work Related Personal Products.
- Training.
- Union Fees.
- Office Expenses.
- Load expenses.
- Protective clothing.
- Tools and electronics.
- Transportation expenses.
- Vehicle cleaning supplies.
- Insurance – Commercial, Property / Damage, Auto, Cargo Etc.
- Insurance – Health (Reported on Schedule 1)
- Subscriptions – Business Related
S-Corp – Truck Driver
Should a Truck Drivers’ Tax Election be Self-Employed / LLC / Schedule C or S-Corp – Opinion
Net earnings below $65,000 – Schedule C sole-proprietorship
Net earnings more than $65,000 – LLC taxed as an S-Corporation
Note: It is important to note that entity classifications like Limited Liability Company (LLC) and Limited Liability Partnership (LLP) are a function of state law and not federal. For federal purposes the entity type is a tax election.
Schedule C
Pros
One owner
No requirement to pay W-2 wages.
Lower tax compliance costs.
No quarterly employment taxes to remit.
No unemployment taxes to pay.
Simpler income tax return.
Qualifies for 20% pass-through deduction applies to net income.
Cons
Owner cannot take non-wages draws not subject to self-employment tax.
All income is subject to self-employment tax.
Higher income tax rates.
S-Corporation
Pros
One owner.
Owner can take non-wage draws not subject to self-employment tax.
Only wages are subject to self-employment tax.
Lower income tax rates.
Qualifies for 20% pass-through deduction applies to net income less wages.
Cons
The owner must receive reasonable wages.
Higher tax compliance costs.
Quarterly employment taxes to remit.
Annual unemployment taxes to pay.
Requires Form 1120S.
Common Tax Deductions – Owner-Operator Truck Driver
We regularly get asked about what tax deductions are applicable to a CDL trucker or trucking owner-operated business.
In this section, we will help answer this question by discussing some overlooked owner-operated truck driver tax deductions.
CDL Truckers & Trucking Owner-operators are not just responsible for calculating and paying their personal taxes, they’re also responsible for labeling / deducting business expenses, which can notably lower their tax liabilities with the IRS. See Truck Driver Tax Deductions Below.
If you’re a self-employed CDL truck driver that wants help with your taxes? Fill out our Trucker Tax Assistance Webform & we’ll call you!
Tax deductions for truck drivers may include any expenses that are ordinary and necessary to the business of being a truck driver. Taxes and deductions that may be considered “ordinary and necessary” rely upon you, what the position or job you’re doing is, and importantly what the expenses are for with regards to truck driving.
A semi-truck is considered a qualified non-personal-use vehicle to the IRS. As a truck driver, you’ll want to claim your actual expenses for vehicles of this category.
To deduct actual expenses for the truck, your expenses should include, but are not limited to:
- Fuel / Oil / DEF.
- Repairs.
- Tires / Tire Chains / Tire Re-Treads.
- Loading fees.
- Tolls.
- Cell phones that are exclusively for business use.
- Licensing and fees for truck & trailer.
- Interest paid on loans for truck and trailer.
- Truck Washing.
- Insurance.
- Logbooks.
- Merchant and Bank Fees.
To see a full list continue reading.
Depreciate your Truck and Trailer
Over three years for a semi-truck for regular tax — or over four years for the Alternative Minimum Tax (AMT).
Over five years for a trailer for regular tax — or over six years for AMT.
Insurance – Tax Deductions for Owner Operator Truck Driver
Business insurance, cargo insurance, physical damage insurance, bobtail insurance and some..
health insurance related expenses can also be deducted as a business expense.
Meal Expenses – Tax Deductions for Owner Operator Truck Driver
The per diem rate is set by the IRS. The current rates can be seen / downloaded here..
Fuel, DEF, and Travel – Tax Deductions for Owner Operator Truck Driver
Fuel costs that you incur on the road, as well as with any of the fuel taxes you must pay when filing your quarterly IFTA report are tax deductible.
You can claim tolls and parking fees if they are incurred while traveling for work as well.
Medical Expenses – Tax Deductions for Owner Operator Truck Driver
Truck drivers are required to get a regular DOT medical fitness exam every 2 years with a certified CDL medical examiner to maintain their CDL, if not the State can relinquish your CDL A or B classification.
You can deduct the cost of these medical exams as a business expense. Any medical exams or treatments that are not directly work-related are only deductible as personal expenses, not business, and you can only claim them if you itemize your deductions.
Trucking Supplies / Tractor Supplies – Tax Deductions for Owner Operator Truck Driver
Many of the truck supplies that you need can be deducted, lowering your taxable income. A few examples of the supplies that can be deducted are:..
If the supplies are common to your profession and appropriate or helpful in developing or maintaining your business, they can be considered tax deductible.
- Cargo Chains / Cargo Straps.
- Air Lines & Hoses.
- Fire Extinguishers.
- Mattress.
- Ice Scrapers.
- Refrigerator.
- Coffee Pot.
- Microwave.
- TV.
Trucking Business Fees – Tax Deductions for Owner Operator Truck Driver
Any expense that is directly associated to your business can be deducted when it comes time to file your taxes.
Some of the more common trucking business fees to remember are:
- Dispatch Fee
- Licensing Fees
- Subscriptions
- Association Dues
- Bank and Merchant Fees
Remember, all of these must be directly tied to your trucking business. That means subscriptions, associations, or any education that is outside of trucking shouldn’t be deducted.
Maintenance – Tax Deductions for Owner Operator Truck Driver
Generally, if a maintenance repair makes the equipment better, restores the equipment back to its normal condition, or modifies the property for a new or different use, then the expense can be depreciated over several years.
Maintenance expenses that don’t fall under these categories can be deducted in full in the same year the expense was paid. A few examples of maintenance expenses that can be deducted are:
- Repairs
- Parts
- Labor
- Oil
- Tires
- Tools
A simple rule of thumb when it comes to maintenance expenses is “If you repair stuff, you can deduct it”.
Office Supplies – Tax Deductions for Owner Operator Truck Driver
Office supplies are tangible and traditional items regularly used in offices by businesses or organizations.
A few examples of the office supplies that can be deducted are:
- Paper Clips
- Calculator
- Paper
- Ink Cartridges
- Pens
- Envelopes
- Stapler
- Fax Machines
- PC / Laptop / Computers
Any office supplies that were used during the year that were needed to help run the business aspect of your trucking operation can be considered tax deductible.
Personal Supplies – Tax Deductions for Owner Operator Truck Driver
For personal supplies to be considered tax deductible they must be ordinary and necessary for operating your business. A few examples of personal supplies that can normally be deducted are:..
- Uniforms
- Gloves
- Boots / Steel Toe Boots
- Reflective Jackets / Vests
- Rain Jacket
- Sunglasses
- Fire-resistant Clothing
Commonly reported personal supplies for truck drivers are listed above, and the IRS is aware of these items. Think of the words ‘ordinary’ and ‘necessary’ to your business when considering personal supply items that are tax deductible.
Communication – Tax Deductions for Owner Operator Truck Driver
Like the previously mentioned truck driver tax deductions, any equipment, machinery, or tech needed for communication to run your business can be considered a deductible expense. There are many methods of communication that you will be able to deduct from your taxes. A few examples of comms that can be deducted include:..
- Electronic Logging Device (ELD)
- CB Radio
- Cell Phone
- Wi-Fi / Internet / Hotspot
- Radio
Remember that these methods of communication should be used exclusively for business in order to qualify as deductible.
Expenses Considered Non-Deductible
It is not advisable to claim the expenses that aren’t necessary and ordinary for your business. Here is a list of some of the common expenses that are not tax deductible:..
- Commuting expenses.
- Clothing that isn’t part of your uniform.
- Personal Vacations.
- Reimbursed Expenses.
Discover more about owner-operator truck driver tax deductions and see some forgotten tax deductions that truck drivers commonly forget about. See a list of owner-operator truck driver expenses & transactions for truck drivers. If you have any questions, fill out our Trucker Tax Assistance Webform & we’ll call you!
