Tag: truck driver

Comprehensive Guide to Truck Driver Expenses

Posted on May 1, 2024 by - truck driver

Truck driver expenses are a critical factor in the demanding world of long-haul transportation. From fuel and maintenance to compliance, taxes, and tech solutions, there is a lot to track. Understanding these financial aspects is essential for drivers, owner-operators, and fleet managers.

Our Guide to Truck Driver Expenses unravels the fiscal intricacies of the industry. Whether you’re a new driver, owner-operator, or fleet manager, you need practical tips to manage your budget.

Trucking Company Expense Categories

There are many items that can be deductible expenses for a trucking company or owner-operator. We’ll list here some of the most common, but companies may have different expenses depending on their unique situations.

Vehicle and Maintenance Costs

One of the biggest expenses that any trucking company incurs is related to their largest assets — the trucks that make up their fleet. These costs include the purchase or lease of vehicles and trailers and any expenses related to maintenance. Fleets can even deduct expenses related to depreciating property as the value of these assets declines over time and with use.

Insurance

Trucking companies often carry a wide range of insurance types, including but not limited to:

  • Motor truck general liability
  • Motor truck cargo
  • Physical damage coverage
  • Non-trucking liability
  • Heavy truck roadside assistance
  • Rental reimbursement with downtime
  • Trailer interchange agreement
  • Limited depreciation coverage
  • Mechanical breakdown insurance
  • On-hook coverage

Premiums for business insurance coverage can be deductible expenses come tax time.

Licenses

Any fees paid related to licensing for a trucking company are deductible expenses as well. This includes fees related to CDLs, USDOT numbers, motor carrier numbers, business entity fees, and any specialty fees needed to conduct business.

Taxes

Trucking companies pay taxes on highway use, fuel, and vehicle purchases. Owner-operators also have income taxes and self-employment taxes. Fortunately, many taxes paid throughout the year can also be business tax deductions. 

Other Operational Costs

Other operational costs a trucking company may incur include:

  • Fuel
  • Office expenses
  • Payroll and employee benefits
  • Phone and internet costs
  • Banking, loans, and credit card fees
  • Uniforms and laundry
  • Any other costs required to conduct business
Tax Deductions for Truckers

How to Calculate and Manage Tax Deductions for Truckers

The keys to getting the most out of trucking tax deductions are organization and documentation. By carefully calculating and tracking expenses throughout the year, you’ll have a far easier time claiming them as deductions come tax time.

There are two basic requirements for all tax deductions. 

  1. The expense must have a valid business purpose.
  2. The expense must have proper documentation.

Additionally, any expenses used for both personal and business use must have proper proportional allocation or pro rata. This means that if the expense is used only 25% for business purposes, you can only deduct 25% of that expense.

Trucking Expense Sheet

One of the easiest ways to organize and manage trucking expenses is by using a trucking expense sheet. There are many free templates available online, but they may be missing valuable deductions. 

Instead, consider subscribing to a trucking management software solution like TruckLogics. This will help you track expenses and claim deductions while offering other benefits like a trucking dispatch system, driver management system, and load board. Best of all, there are packages for any size business, from owner-operators to large fleets and brokers. 

FAQs 

What expenses can a truck driver claim?

There are many expenses that a truck driver or trucking company can claim as tax deductions. These include expenses related to their trucks and maintenance, insurance premiums, taxes and fees, and other operational expenses.  

How do I categorize my trucking business expenses?

This will vary depending on your business and the expenses you incur. Some suggested categories include:

  • Maintenance
  • Fuel
  • Insurance
  • Taxes and fees
  • Meals overnight expenses
  • Equipment
  • Office supplies

What is included in a trucking expense sheet?

A basic expense sheet should list all of the categories of expenses you wish to track, along with plenty of space to track the date and cost of those expenses as they come up. It should also include a way to track large assets like trucks, trailers, office equipment, phones, etc. For these items, you should track both the cost of acquiring the equipment and the price you sell it for when you’re done using it or it’s time to upgrade.

On the Road to Savings: A Comprehensive Guide for Truck Driver Taxes

Posted on July 10, 2023 by - truck driver

Not having a plan for truck driver taxes is like hitting the open road without knowing where you’re headed — a surefire way to run into unnecessary mishaps and expenses.

Mapping out a plan of action for your tax season will not only save you time and money, but it will help keep you from making a mistake that could lead to a future IRS audit or penalty.

Staying on top of your truck driver taxes can feel overwhelming, though, so we’ve put together the ultimate guide for truck driver taxes, including everything you need to know about tax deductions and IRS tax forms for truck drivers. We’ve also provided all the tips and tricks to maximize your tax returns. Let’s get started!

Common Tax Deductions for Truck Drivers 

More than just a vehicle, your truck is also your place of business, which means everything you need to operate your truck could also count as a tax deduction. Here’s what you need to know about truck driver tax deductions.

Per diem expenses for truck drivers

Per diem expenses are one of the most significant truck driver tax deductions you can make as a contract driver or owner-operator. But what exactly does per diem mean?

Deriving from a Latin phrase that translates to “by the day,” per diem is simply reimbursement for meals and other incidental expenses that occur while on the road (for example, dry cleaning a uniform or tipping a server).

According to the IRS, truck drivers need to meet the following criteria to qualify for per diem expenses:

  • Your work requires you to be away from your “tax home” longer than a standard workday
  • You need to rest and sleep to carry out your duties (while away from home)

What exactly does this mean for truck driver taxes? Basically, you get to claim a set amount for every day you’re away from home. However, if you drive locally, you likely won’t qualify. And for the days you leave and come back home, you can only claim a partial day allowance.

While the per diem rates vary for each city and state, the IRS abides by the General Services Administration’s current rates.

Truck maintenance and repair expenses

Because your truck is designated as a non-personal-use vehicle, you can deduct everything you pay to maintain and repair it. For example, common truck driver tax deductions for vehicle maintenance could include the following:

  • Washing your truck
  • Replacing the tires
  • Truck lease payments
  • Depreciation value of your vehicle
  • Fuel, toll fees, and parking fees

Home office deductions for truck drivers

While doing your truck driver taxes, you’re likely to come across some traditional office expenses to run your business. You can also count these as deductions, including the following:

  • Log books or accounting software
  • Pens, pencils, paper, and staplers
  • Cleaning supplies 
  • Postage and envelopes
  • Faxing and photocopying
  • Calculators

Other common deductions for truck driver taxes

Here are some other common expenses that truck drivers can count toward their tax deductions:

  • Electronics – Cell phones, GPS units, GPS map updates, power boosters, and CB radio
  • Tractor supplies – Bunk heaters, coolers, and window screens 
  • Tools – Bungee cords, chains, tarps, electrical tape, and flashlights 
  • Safety clothing – Gloves, boots, sunglasses, and thermals 
  • Insurance – Commercial auto liability, property damage insurance, and loss of cargo insurance (if you pay for your own health insurance, you’ll count it as a deduction on a separate tax form) 
  • Licensing fees – State business licenses, your commercial driver’s license (CDL), etc. 
  • Education – Training for CDL licenses, business courses, etc. 

IRS Tax Forms for Truck Drivers 

Running your own trucking business is no easy task, especially when it includes filing and distributing IRS tax forms. Here’s a rundown of everything you need to know as a truck driver and owner-operator.

1099 forms

Whether you work as an independent contractor or you hire one out for your trucking business, you’ll still have to report how much money was paid. That’s where 1099 forms for truck drivers come into play. 

1099 forms for employers

If you paid an independent contractor more than $600 in a tax year, you’ll need to report the compensation you gave them on Form 1099-NEC. 

To file a 1099 form, you’ll include the following:

  • Your business name
  • Your business address
  • Your EIN
  • Your independent contractor’s name
  • Your independent contractor’s EIN or social security number
  • Your independent contractor’s address

If you need your independent contractor’s information, you can request it through a W-9.

There are also additional federal and state details you’ll need to know, depending on where you live. This could include state income, payer state number, and withheld state tax.

1099 forms for truck drivers

As an independent trucking contractor, you’ll need client 1099s to report the income you earned during the tax year.

If you haven’t been making estimated quarterly payments, then you’ll likely end up owing the IRS for state and federal taxes, social security, and Medicare.

Schedule C forms

Every taxpayer must file the IRS Form 1040.

If you’re an owner-operator, you’ll also file Schedule C along with Form 1040. This is what independent contractors use to report their trucking income (from your 1099s) and expenses (from your deductions) for the tax year.

Usually, if you file Schedule C, you’ll also have to file Schedule SE to report self-employment taxes.

Form 2290

Form 2290 is used to pay the Heavy Vehicle Use Tax, which the IRS collects for highway construction and maintenance.

If your truck weighs 55,000 pounds or more and you operate it on public highways, you must file a 2290 form.

To file a 2290 form, you’ll need the following information:

  • Your employer identification number (EID)
  • Your full name (must match your EID)
  • The vehicle identification number for each truck you own/operate
  • The taxable gross weight of each vehicle

You must also file a 2290 form to get your stamped Schedule One, which you’ll need to renew your plates for your truck or to be leased by a company.

However, the due date for Form 2290 is not tied to your vehicle registration date. Instead, it depends on the first month you use your truck (a taxable vehicle) for business. Typically, the tax period begins on July 1 and ends on June 30 of the following year.

If you miss the deadline to file your 2290 on time, you’ll face a penalty fee and an additional interest charge on late payments.

Other IRS tax forms for truck drivers

Other possible tax forms could include the following:

  • Form 2016 – Use this form if you provide your services as an employee and need to claim business-related expenses.
  • Form 8849 Schedule 6 – Use this form to claim any taxes you made in excess.
  • Form 1040-ES – Use this form if you’re an owner-operator that has an expected tax liability of $1,000 or more.

Estimated tax payments

If you’re a self-employed truck driver and expect to owe at least $1,000 in taxes, you must make estimated tax payments each quarter.

Your estimated quarterly payments include self-employment tax and federal and state income tax.

So how much should you set aside for these quarterly tax payments? Generally, you’ll want to allocate between 25%-30% of your monthly income. That’s because your income tax will likely fall into the 10%-12% income tax bracket, and self-employment tax will be roughly 15.3% of your net earnings. (The self-employment rate includes a 12.4% Social Security tax and a 2.9% Medicare tax).

You can pay your federal tax estimates online or via the IRS mobile app. (If you have an electronic federal tax payment system account, you can make your payments there.) Many states also let you pay your estimated taxes online.

Pro tip: If you find that you earned more than you expected in the tax year, make a large payment in the fourth quarter. That way, you can bridge the gap between your estimations and the actual tax amount you owe (and avoid any IRS penalties).

State Tax Laws for Truck Drivers

Overview of state income tax

Forty-three states and the District of Columbia have state income taxes.  The seven states that do not impose individual income taxes are Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.

The definition and rules of taxable income vary by state. For example, New Hampshire and Tennessee residents only pay tax income from dividends and interest.

To stay on top of your state taxes, check your state’s government website for more information on where you live and work.

State-Specific Truck Driver Taxes

Truck driver taxes also vary from state to state. For example, in Washington, independent contractors and owner-operators could be subject to public utility tax, business and occupation tax, retail sales tax, and use tax. Again, check your state’s government website for more details.

Tips for Maximizing Your Tax Returns

Keep accurate records

Stay on top of tracking your expenses, so you can have accurate records when it comes time to report your truck driver tax deductions. Here are a few tips to keep everything in order so you can maximize your tax returns:

  • Always ask for a receipt, even for smaller expenses — those small snacks on the road can add up over time!
  • Sort and organize your receipts by expense — like food, fuel, equipment, etc.
  • Store your receipts in one central place, whether in a labeled folder or a spreadsheet.
  • Keep a log book that documents the date, time, and purpose of each trucking trip.
  • Track your miles as you go so you don’t forget to record any trips or stops.
  • Consider using accounting software or another form of digitized tracking to easily record your expenses and the income you’re bringing in.

Take advantage of tax credits

Before you file your truck driver taxes, check if you’re eligible for any tax credits.

For example, if your truck is registered as a Heavy Highway Motor Vehicle and it was stolen, destroyed, or sold before June 1, you can count it as a credit vehicle. Similarly, if your truck is registered as a heavy vehicle and you use it for 5,000 miles or less (7,500 miles or less for agricultural purposes), it will also qualify as a tax credit.

A truck that qualifies as a plug-in electric drive motor vehicle can also be claimed as a tax credit.

And, if you donate to charities and nonprofits during the tax year, you can claim these donations on your truck driver taxes as well.

Truck driver taxes have a lot of nuances, which can be confusing and take a lot of time to sort out. Consider working with a tax professional that’s knowledgeable about the truck driving industry, especially if you’re filing as an owner-operator for the first time.

Filling your 2290 Forms

You’ll also have to go through an IRS-approved third party to e-file your 2290 forms. That’s where ExpressTruckTax can help. As a market-leading Form 2290 e-file provider, we make it easy for business owners to file online for themselves or for their drivers. Whether you’re filing Form 2290 for one truck or multiple trucks, filing with ExpressTruckTax only takes a few simple steps. And if you have any questions along the way, our dedicated support team of experts is available to help. What are you waiting for? File with ExpressTruckTax today for a fast and easy Form 2290 filing experience!

Common Questions About Truck Driver Taxes

Q: What tax deductions can I claim as a truck driver?

A: As a truck driver, you can claim per diem expenses, truck maintenance and repair, home office supplies, and anything you need to run your truck-driving business, like electronics, tools, and safety clothing, for your deductions.

Q: What IRS forms do I need to file as a truck driver?

A: Essential IRS tax forms for truck drivers include Form 1049 (which might include Schedule C and Schedule SE), Form 1099, and Form 2290.

Q: What are the state tax laws for truck drivers in my state?

A: Truck driver taxes vary from state to state. Check your state’s government website for more information on the taxes for where you live. 

Q: How can I maximize my tax returns as a truck driver?

A: Maximize your tax savings by keeping clear records of your tax deductions and working with a tax professional who understands the ins and outs of the truck driving industry.

Your One-Stop Solution For A Cleaner Truck This Spring

Posted on April 4, 2022 by - semi truck maintenance, truck maintenance

Your One-Stop Solution For A Cleaner Truck This Spring

Spring is approaching soon and that means it’s that time of year when people like to clean and refresh their homes and cars. This can also apply to truck drivers since for many their truck is like their second home. It is important to keep your home clean. Below you will find some helpful tips for keeping your truck clean as well as some products that might help it become more organized. 

Organizing Files and Paperwork

A folder or small file cabinet for important documents can be essential especially to keep in the front of your cab in case you need to quickly access your documents. If you label folders and keep everything in a set place, it will make it easier to find all of your documents.

Storage Containers

Things that you don’t need access to while driving like shower supplies and other essentials can be stored either in a storage bin or under your bed. Plastic bins and drawers can be helpful for storing essentials that aren’t needed while driving. They help reduce clutter and they can be easily organized or even labeled if desired. They can come in a variety of shapes, colors, and sizes for the ultimate customization. Storage containers can also be used in a truck’s mini-fridge to keep food organized. 

Wall Space

You can use wall space in a lot of creative ways to help keep your truck free of clutter. Hanging organizers can be a great way to do this, especially using adhesive strips and velcro. Collapsible hangers can help hang your clothes in limited closet space or even in the wall. Adhesive hooks are also a good way to hang up hats, coats, and bags. Always make sure to secure everything before you start driving.

Trash Can

Have a small trash can handy so that trash can be easily disposed of instead of it leading to clutter. 

Other Tips

Getting Pollen Off And Keeping It Off Your Truck

Now that it is spring the interior of your truck might not be the only thing that has to be cleaned. Pollen starts to fall and cover vehicles making them yellow and unsightly in appearance. Some ways to get rid of pollen from your truck can be to rinse and wash it whenever you get the chance. Adding a coat of wax to the truck can make it harder for pollen to stick to your truck. Cleaning your wiper blades can also be helpful to keep pollen from spreading across your windshield. 

Benefits of Cleaning Your Truck

Cleaning your truck can have more benefits than you might think. A clean working and living environment can help you both mentally and physically. Some of these benefits include:

  • Lowering stress and fatigue
  • Reducing allergy and asthma symptoms
  • Improving safety
  • Lessening the spread of germs
  • Keeping pests away
  • Better sleep
  • Increase happiness
  • Increased focus and productivity
  • More enjoyable downtime
  • Increased immunity

Organization and cleaning may seem tedious at times but a clean living and working environment can make it a more positive experience and can help improve your quality of life on the road.

5 Tips to Help Truck Drivers Avoid Stress on the Road

Posted on January 19, 2022 by - Trucking Stress

When most of us picture long-haul trucking, we imagine an open road with scenic landscapes and the experience of driving across America.

While this is an exciting part of the job for many drivers starting out, there are also some harsh moments out on the road. The occupation can be lonely at times and exhausting, both physically and mentally. 

Experts claim that the stressful aspects of life on the road add to the challenge of retaining drivers long term, the University of Arkansas even released a study, citing stress as one of the biggest contributing factors for drivers leaving the transportation industry. 

Here are some tips that will help you tackle the stress and loneliness on the open road! 

Stretch it Out

When you aren’t feeling your best, you can’t always perform at your best, that goes for all occupations. However, for truckers, long hours on the road mean you don’t always have the opportunity to stretch and move freely. 

While you can’t exactly turn your cab into a yoga studio (although if you have done this, please share, we want to know!), you can take time out of each day to incorporate some light stretches. 

This video from HeathyTrucker offers some simple stretches that will have you feeling better in no time! https://www.youtube.com/watch?v=SKuignxEZd8

Try Meditation

Keeping yourself in a healthy state of mind is a great way to ward off stress and anxiety out on the road. There are a number of great apps that offer guided meditation, calming music, and tips for reducing and handling stress.

Even taking a few minutes at the truck stop to breathe deeply can reduce your stress levels and allow you to mentally reset for the next stretch of your trip. 

Better Sleep

We have heard this from our clients before, getting quality sleep on the road can be a challenge. Our bodies can’t function to the best of their ability without a good night of sleep.

While nights out on the road may never be as calm and restful as nights spent at home, there are some ways to improve the quality of sleep you are getting. 

If you are kept awake by the lights and sounds of the road, we suggest trying a sleep mask. Some of them even have earbuds built-in! Put on your favorite nature sounds or music and you may forget that you’re not at home in your own bed. Need total silence? A pair of noise-canceling headphones may work for you. 

Podcasts and AudioBooks

Sometimes driving for endless hours can become boring and make you feel like you are in a mental fog. One of the easiest ways to combat this is to bring some excitement and engagement to your trip. You can do this by listening to an audiobook, getting lost in a story can make time fly by.

Another option is to find some podcasts that interest you, in addition to keeping you feeling engaged, this can also give you a great sense of community even though you are alone on the road!

Bringing your Pet on the Road

If you have been scrolling through TikTok recently, you may have noticed a growing trend among truckers, bringing their pets along for the ride!

Nothing makes time on the road more relaxing than spending it with your furry friend. 

Shout-out to @old_trucker, whose rescue kitten, Bobbie, will bring you many smiles as she rides shotgun in the glovebox and naps on the dashboard!

We hope that our tips bring you some restful and stress-free time on the road.

In the meantime, our team is here to help you combat the stress of e-filing your Form 2290. Create your free ExpressTruckTax account today to get started!