As the saying goes, nothing is certain but death and taxes. Tax season is upon us, and at K&J Trucking we want to make sure you are prepared so we asked resident expert in trucker taxes, tax preparer Tara Thompson, for her expertise. Here are five common deductions that all OTR drivers should be taking on their taxes.
1. Per Diem
DOT Transportation workers are allowed to take a per diem deduction of $63/day for any day they are working. To account for the partial days leaving and returning, your deduction is reduced by 20% (IRS Pub 463).
Drivers can take a deduction for the percentage of the time they use their personal phone for work. For example, if you spend 30% of your phone time speaking with dispatch or shippers, you can deduct 30% of your total phone bill.
3. Showers & Laundry
These are both allowable deductions. You probably won’t get a receipt for laundry, so keep a log of how much you spent on laundry and when. The important things to include in the log are dates and cost, locations are also an added bonus.
4. Trippaks, Faxes and Postage
Most companies will reimburse for these costs, but if not, they are a tax deduction. Just be sure you save those receipts!
5. Electronic devices
If they are USED FOR WORK, some tablets, scanners, or computers may be deductible. If you are curious if your device qualifies for the deduction, consult with your bookkeeper or accountant.
We hope this list was helpful as you prepare your tax return. If you have any trucker taxes questions for Tara, let us know in the comments below!
At K&J we are always looking for awesome regional drivers (as well as other OTR drivers)! If you are interested, click below for more information!