Jaunary is now a memory and 2017 is well underway. This means it's the time of year that we find the conversation switching from new year's resolutions to tax returns and deductions. Oh yes, it's time to get those taxes filed for 2016.
So, here's a question for truck drivers - are you going to get your maximum tax refund this year? Better yet, are you aware of all the tax deductions for truck drivers?
Odds are, there are a few truck driver tax deductions you're overlooking...especially if you opt for itemized deducations. For example - did you know you could write off air fresheners and paper towels?
Before we get into many other items that can be written off, let's take a look at the difference between itemized and standard tax deductions for truck drivers.
Standard & Itemized 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: Maximize Your Tax Deductions
Much like planning a route or managing a fleet, itemized tax deductions take some organization and are best done with a really good system in place to keep track of everything. The best place to state, of course, is being aware of what all can be considered an itemized deduction for truck drivers.
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...