January 31st is almost here and we all know what that means... It's tax time! Yes, I know we all dread filing taxes and waiting for that refund. Hoping that it'll be a big one this year.
Truckers, what if I told you that there are many items you can put on your tax return that you may not know about? That's right! There are over 100 items that are usually overlooked by truckers when they file their taxes. So stick around to make 2020 your biggest tax refund ever!
Standard & Itemized Tax Deductions
To help make sure we are all on the same page, it's important to understand the difference between itemized and standard tax deductions. You can either claim the standard deduction or itemize your deductions -- whichever lowers your tax the most.
Standard deductions are a base amount of income used to reduce your taxable income depending on your filing status, age, whether you’re disabled or claimed as a dependent on someone else’s taxes. Standard deductions are generally less hassle than itemized deductions, but may not give you the biggest tax break.
An itemized deduction is an eligible expense that individual taxpayers in the United States can report on their federal income tax returns in order to decrease their taxable income. After computing their adjusted gross income (AGI), taxpayers can itemize their deductions (from a list of allowable items) and subtract those itemized deductions (and any applicable personal exemption deductions) from their AGI amount to arrive at their taxable income amount.
Truckers: Get The Most From Your Tax Deductions
Who knew that cleaning supplies would be considered a tax deduction? If you have bought air fresheners, hand sanitizer, trash bags, etc. these can be used and deducted!! Some other items you may not know about are; bedding, alarm clock, ATM Fees, drug testing, CB radio, cellular phone, atlas, logbooks, shower shoes, vaseline, duct tape, coolers, and so much more! See the full list in the graphic below.
The folks over at CDLLife.com have put together an infographic to illustrate some of the truck driver tax deductions that are often overlooked. While things such as writing off your atlas or duct tape may seem small, these are tools used for the job that can add up when doing an itemized tax deduction. Take a look at over 100 tax deductions you might be missing...