Taxation is a mandatory process that every qualified business has to undergo. Furthermore, no business can escape the taxation process, and those who escape have to face certain serious consequences. Though for most business organizations, it is not the best process that they want to undergo. Nevertheless, it is the most significant process that every organization has to endure. Talking from the viewpoint of a truck driver, they also have to file tax receipts. But during the process, there are certain deductions that can be claimed by them. Here are 9 important and significant tax deductions that a truck driver can claim:Read More
1. Charges Including Internet and Cell Phone
Smartphones and the internet are the two basic requirements that are needed by every individual. In fact, for truckers, these two are extremely vital. Other than this, when a driver drives, he certainly does not spend a lot of time on his cell phone and on the internet too. This is a fact that taxation authorities also agree with. As a driver uses his mobile phone for personal as well as professional use, he can deduct 50% of the costs that revolve around the mobile phone and the internet. In addition to this, if a driver buys a new cell phone or a laptop, then the amount can be fully deducted as communication costs also add up to the taxes.
2. Medical Evaluation
Medical checkups can also be deducted out of the amount of taxation. For instance, if a driver visits a doctor for a check-up or even if an employer requires a medical document that involves a health evaluation, then the amount can be easily deducted. Although medical expenses do not come under the category of deductible expenses, in this specific case, these come under the category of business expenses. As health is the primary concern of every individual, especially the drivers, the tax authorities have categorized the expenses under the business head and not the personal head.
3. Authorizing Charges
Authorizing charges or more commonly termed licensing charges are also deductible in nature. When a driver pays any amount to the authorities in order to get a license, the amount is completely deductible in nature and can be claimed back by the driver. While, on the other hand, if the employer also requests this thing, then also the whole amount can be claimed. In addition to this, during the training part, the amount is also regarded as the deductible expense and thus an individual can easily learn truck driving.
Truckers and truck drivers usually have to spend long hours away from home. In that situation, a driver is allowed to deduct a certain amount that he spends on food during the course of working. The taxation authorities are of the view that food is the basic necessity and thus a certain amount must be made deductible in nature. While this is not true in the case of local drivers as they can eat their food at home.
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Amounts that a driver spends for repairing or maintaining a truck that has not been repaid to him are of deductible nature and can be claimed later on. Irrespective of the position, i.e, it does not matter that if you are an owner-operator or a private driver, maintenance and repair costs are totally claimable. Although it does not include the labor cost in case you repair the truck yourself.
6. Union Dues
Drivers are mostly part of associations or unions. When a driver pays an amount to join these union groups, the amount is deductible and claimable. An individual can also deduct the cost if he simply joins the group but is not mandatory in nature. By offering proof that the membership actually boosts your career a driver can easily deduct the cost.
7. Individual Products
Individual products or items are the ones that are needed on the road while traveling or driving from one place to another. For instance flashlights, special clothes, equipment, and much more. One must keep a track of these items as later on they can be deducted.
8. Traveling Cost
When a driver owns his own truck then he can record the exact miles he traveled or drove from one place to another. The cost spent during these miles can be deducted as per the taxation authorities. While on the other hand when the expenses reach certain limits and the company does not repay you, then, in that case, they can claim the deduction.
9. Usual Deductions
There are certain casual and standard deductions that are not related to work but still, a driver can claim them. For instance, child tax credit, dependent care, and many other things.
Therefore, a driver has various options from which he can claim deductions. For this purpose, he must have complete knowledge and understanding about these things.