Tax Benefits for Truckers

Trucking is a very important business in the United States because it moves goods all over the country. As a trucker, it is important to know the tax benefits available to you. These tax benefits can help you save money and reduce your tax liability.

In this blog, we will discuss the tax benefits available to truckers in the United States.

Deductible expenses for truckers: 

Truckers have several deductible expenses that they can claim on their tax return.

These expenses include: 

• Insurance Expenses: 

Truckers can deduct the cost of insurance premiums for their trucks.

• Fuel Expenses:

Truckers can deduct the cost of fuel used for business purposes. This includes diesel, gasoline, and other fuel types.

• Maintenance and Repair Expenses: 

Truckers can deduct costs like oil changes, new tires, and brake repairs that are needed to keep their trucks running.

• Travel Expenses: 

Truckers can deduct expenses related to traveling, such as meals, lodging, and tolls.

• Equipment Expenses: 

Truckers can deduct the cost of things like GPS devices, smartphones, and laptops that they use for work.

• Depreciation Expenses:

Truckers can deduct the depreciation of their trucks over time.

• Office Expenses:

Truckers can deduct expenses related to their office, such as phone and internet bills.

Per Diem Deduction:

Truckers can also take advantage of the per diem deduction. Per Diem is a daily allowance that is provided to cover the cost of meals and lodging while traveling. Truckers can deduct per diem expenses as a business expense on their tax return. The per diem deduction is calculated based on the days spent away from home.

For the 2022-2023 tax years, the per diem rate is unchanged at $69 per day. This means that if a trucker is away from home for 200 days, they can deduct $13,800 on their tax return (200 days x $69 per day).

Standard Mileage Rate: 

Truckers who use their personal vehicle for business purposes can also take advantage of the standard mileage rate. The standard mileage rate is a deduction that is calculated based on the number of miles driven for business purposes. For the 2022-23 tax years, the standard mileage rate is 65.5 cents per mile.

To take advantage of the standard mileage rate, truckers must keep a record of their business miles driven. They can then deduct the total mileage driven multiplied by the standard mileage rate on their tax return.

Self-Employment Tax Deduction: 

Truckers who are self-employed can deduct half of the self-employment tax on their tax return. The self-employment tax is the tax that is paid by self-employed individuals to cover their Social Security and Medicare taxes.

For the tax years 2022-23, the self-employment tax rate is 15.3%. This means that self-employed truckers can deduct 7.65% (half of the self-employment tax rate) on their tax return.

Truckers can take advantage of many tax breaks, such as deductions for expenses, per diems, standard mileage rates, and self-employment taxes. It is important for truckers to keep accurate records of their expenses and miles driven to take advantage of these tax benefits. By taking advantage of these tax benefits, truckers can reduce their tax liability and save money.

To learn more, stay tuned with Trucker Social.