Make your living trucking?

For tax purposes it is either a job or a business. Both have options for deductions where expenses are concerned.  We have the experience in walking you through checklists geared to finding the real costs of getting the job done.    

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W-2 Wage Earner

As a traditional employee, a company truck driver doesn't usually get to claim losses on the federal tax return, as an independent contractor or self-employed worker is able to do. The driver can still claim unreimbursed expenses directly related to work requirements, provided the truck driver has sufficient deductions to meet the IRS' requirements for miscellaneous business expenses.

Miscellaneous Deduction Rules

Traditional employees, including company truck drivers, must itemize eligible business expenses to claim these deductions on their federal tax returns. The IRS requires a taxpayer to claim these deductions using Schedule A of Form 1040. These deductions must exceed 2 percent of the taxpayer's adjusted gross income before the IRS will allow any itemized deductions on Schedule A. The IRS will only allow deduction amounts exceeding this 2 percent requirement. For example, a company truck driver earning $30,000 annually must have at least $600 in business expenses to qualify.

Unreimbursed Employer Expenses

A truck driver may have to fuel up while making delivery runs throughout the day. An employer may choose to compensate the driver for the cost of refueling the vehicle or may require the driver to pay for the fuel. The truck driver may take a miscellaneous tax deduction using Schedule A of IRS Form 1040 for any unreimbursed costs of working, including paying for fuel for the delivery truck. The driver should save all receipts for unreimbursed fuel costs to make it easier to total the deduction amount at the end of the year.

Continuing Education Requirements

Earning additional certifications to operate commercial grade vehicles may be a requirement for a truck driver's career and a condition of employment. A driver may deduct the unreimbursed costs of attending required continuing education classes, including tuition and material costs, from his federal tax return. Attending classes from an accredited college, university or technical school may also qualify the truck driver for education tax credits, including the Hope Credit and American Opportunity Credit. A taxpayer does not need to itemize deductions to claim these education credits but should still itemize to directly claim the unreimbursed work expenses.

Working Away From Home

A company truck driver usually has a regular delivery route or a defined area where deliveries are made for the employer. A driver required to work away from the tax home -- the geographic location where business is regularly done -- may deduct the cost of travel from the federal return. To qualify, the work must be a temporary assignment and require the driver to stay away from home overnight. Eligible travel deductions including the whole cost of hotel stays and up to 50 percent of meals consumed.

Independent / Self-employed

Vehicle Expenses

Vehicle expenses may be deducted whether or not the truck driver owns the truck he or she is driving. If the driver owns the truck, expenses such as fuel, maintenance and depreciation are deductible  If the driver does not own the truck, expenses including parking fees, tolls and standard mileage rates may be deducted. The standard mileage rate for business use of a vehicle for 2012 is 55.5 cents per mile.

Travel Expenses

Local truck drivers usually cannot deduct travel expenses. However, many truck drivers are on the road for extended periods of time and incur travel expenses when making long-distance trips. The cost of lodging for these trips may be deducted. It is recommend that a driver keep a detailed log book of the total hours driven, miles traveled and the purpose of travel expenses. All receipts for these expenses should be kept in the log book in the event that the IRS asks for evidence of the driver's travel expense claim.

Food

Everyone needs to eat. When driving long hours and making trips that can last weeks at a time, truck drivers often need to eat at restaurants and fast-food establishments while working. Rather than deducting actual expenses for the cost of meals, the standard meal allowance is used. This meal allowance varies by locality and changes yearly. For a detailed list of standard meal allowances, see the handy U.S. General Services Admin search engine, "Per Diem Rates."

Uniforms

If a driver is required to wear a uniform by his or her employer, the cost of uniforms and related expenses may be deducted. In order to qualify for the deduction, uniforms must not be suitable for street wear. For example, if a driver is required to wear an Oxford shirt with the company logo and jeans while working, the cost of the shirt may be deducted but not the cost of the jeans. The cost of care and cleaning of uniforms also may be deducted. If a driver chooses to wear a uniform, but it is not required by his or her employer, uniform expenses may not be deducted.

Union and Professional Dues

It is common for truck drivers to be members of unions or other professional organizations. These memberships usually come with monthly or annual dues, which may be tax deductible. These dues can be deducted from the worker's paychecks or paid out of pocket. Any expenses paid to a recognized professional organization that are not reimbursed by the driver's employer may be deducted.

Miscellaneous Deductions

The expenses listed above are some of the more common deductions for truck drivers. Other deductions include, but are not limited to, professional publication subscriptions, license fees, cargo losses, insurance premiums, occupational taxes and leasing fees (if the driver pays to lease a vehicle from the company).