Most trucking owner operators have a variety of different expenses they incur during the course of their business that they can deduct. Taking the time to do so means they end up paying less income taxes.

You will be able to depreciate the value of your truck over the course of several years. The amount you can take depends on the purchase price of the equipment. If you sell a truck or trailer during the year you should know that you will have to count that is income because you have already taken some of the depreciation on the equipment. You will also be able to deduct the interest you pay on your truck payments and trailer payments. You aren’t allowed to deduct the actual payments though, only the interest portion.

There are often tolls and fees for scales that truck drivers have to pay along their routes. These fees can be deducted as well. Make sure you keep track of what you pay for showers, truck parts, maintenance, and repairs. All of these items are deductible. You don’t need to keep your receipts for meals because the government gives you a per diem rate that you can claim. You need to make sure you keep track of the number of days you are out over the road though so you can figure the deduction.

Clothing can’t be deducted unless it is specifically for work related services. For example you can claim a bright orange vest and a hard hat that are required to be in a construction zone you may be delivering materials for. However, you can’t claim your jeans, tennis shoes, and shirts because they aren’t considered to be a required uniform for work.

You also can’t claim any traffic tickets or attorney fees you have to pay in order to fight tickets. Many truck drivers have attempted to deduct these expenses on their tax return. The result is they end up getting a bill from the IRS telling them they owe more money. In some instances there are fees and penalties assessed as well.

Fuel is the most common expense that truck drivers incur. Make sure you keep a close eye on those receipts because each one will likely be worth $100 or more. Losing these different receipts can really add up during the course of a year, and that means you will have to pay more income tax. Using a receipt scanner can help you track these receipts.

The use of a cell phone and a laptop are often common items truck drivers use. However you can only claim half of the cost of them because the government has the opinion that both of them will be used for recreational use as well as for business. Any maps, notebooks, pens, log books, or other items you buy specifically to use in your truck are deductible.

You do have to be careful though as there is a line between what is necessary and what is a luxury. For example you can deduct the cost of a special seat for your truck that is ergonomically correct. You can also deduct the cost of a refrigerator for your truck. Yet you can’t deduct a new stereo system or the customized curtains you buy to decorate your cab with.

The various tax deductions for owner operator truck drivers need to be carefully looked at. If you have a tax preparer they can take care of it for you. Make sure you keep all of your receipts together. It is a good idea to have a large envelope for each month of the year. This way you only have to provide your tax preparer with the figures instead of with the actual receipts. Keep them in a safe location for at least three years in case you end up getting audited by the IRS.

I hope that you have found this brief guide to taxes for truck drivers to be helpful to you.

Originally posted 2009-02-19 06:03:22. Republished by Old Post Promoter

As you know, there are many different trucking companies where the chances of you finding a job you enjoy driving a semi truck are very high. Yet you need to know that these companies all have different recruiting techniques that they use to entice new drivers to sign up with them. It is to your advantage to take a close look at the various trucking companies out there and see what they have to offer you. You need to evaluate each one on an individual basis.

You will want to find a trucking company which offers a terminal near the area in which you live. Otherwise you will find that you have to drive endless miles empty in your own vehicle if you are using a company owned semi truck. If you are an owner operator with your own truck then you will be driving these additional miles in the big rig without pay, which t is quite expensive.

Many of the larger trucking companies have terminals in many locations while the smaller ones may only offer one or two terminals. This will generally be the location where you drop of your paperwork, attend safety meetings, and take care of other essential tasks related to the trucking industry.

The amount of money you will get paid is very important, but you need to evaluate this carefully. Many trucking companies offer a sign on bonus if you agree to a contract of one year or more. This may be payable when you initially start or when you reach the time mark outlined in your contract. You need to find out if you will get paid by the mile or by the hour for your work.

It is important to find out when you will be paid for your work. Some trucking companies pay you a set number of days after you turn in paperwork for a load. Others have set pay dates. You also need to find out if you will get a check or if the funds will be direct deposit. If you are an over the road truck driver the direct deposit option generally works best so you can access funds even when you aren’t in the area.

Inquire about various benefits that the trucking company may offer you. These include health insurance, 401 k plans, and bonuses for attendance and safety. All of these items make up a complete employment package and they are worth investing in. It isn’t a good idea not to have health insurance and you should always have some type of savings plan in the works for your future.

The way dispatch works for different trucking companies can make getting loads a smooth process or it can be a nightmare. Look for a trucking company that has plenty of freight to offer. This way you can deliver your load, call dispatch for another load, and be on your way again. You will be wasting your time and your money if they continually leave you sitting around waiting for a load.

Find out how the company handles time off. You may be offered paid vacation time after you have been with the company for a set period of time. However, you may need to take a couple of days off to deal with issues that have been piling up or for a special occasion. Look for a trucking company to work for that understands these things arise and they are willing to work with you to get your personal needs met.

You also need to inquire about the equipment they operate because it needs to be up to date and safe. Even if you have your own semi truck you will be hauling their trailers so make sure they are well taken care of.

Follow these suggestions and you will find yourself working at the Best Trucking Job Companies.

Originally posted 2009-02-18 22:50:13. Republished by Old Post Promoter