What Can a Truck Driver Deduct?

What Can a Truck Driver Deduct?

Truck drivers can deduct various expenses related to their work. Here are the main ones:

• Purchase of a Truck and Trailer: In the first year, you have a choice: deduct the entire cost immediately (using Section 179 or bonus depreciation) or depreciate it over 5 years. This requires a competent approach to calculations, as you need to understand that by deducting everything at once, you will have nothing left to deduct in subsequent years, which will lead to higher taxes.

• Registration of the truck and trailer with the DMV.

• Obtaining permits, licenses, and business registration.

• Rental/Leasing of the truck and trailer.

• Interest on a loan for the truck and trailer, if financed. NOT the entire payment amount, but only the interest.

• Maintenance of the truck and trailer (repairs, fueling, washing).

• Tolls and parking.

• Insurance.

• Meals (Per Diem): $69 per day (rate applied until September 30, 2024) and $80 per day starting October 1, 2024, for days when you are away from home. 80% of the per diem rate is allowed as a deduction on the tax return.

• Showers and laundry.

• Truck stop fees.

• Flights and hotels.

• Commissions (dispatcher, factoring, MC DOT numbers, safety).

• Any equipment and electronics purchased for work – phone, tablet, refrigerator, microwave, coffee maker, etc.

• Communication costs (phone and internet).

• Software fees for work (Super Dispatch, Central Dispatch, etc.).

• Additional equipment and tools for the truck.

• Mandatory medical examination and drug-tests.

• Accounting and consulting services.