Entity selection makes all the difference!
The type of entity you choose to set up your trucking business as will have a huge impact on what you pay in taxes and your liability if something unforeseen happens. Sole proprietor? LLC? Corporation? S Corporation? This is the number one biggest thing we see that truck drivers didn’t know when they started their business.
Tax Deductions that are Unique to the Transportation Industry
Per Diem Deductions: Understand how per diem payments work and how they can reduce your taxable income. The IRS has specific guidelines for per diem deductions for the transportation industry.
- Travel Expenses – Meals, Lodging, Tolls
- Truck Expenses – Truck Maintenance, Licenses
- Home Office Deductions
- Work-Related Supplies
- Communication Expenses
- Medical Exams
- Personal Products – for Life on the Road
- Cooler, Mini Fridge
- Bedding, Alarm Clock
- Sunglasses, Gloves, Cleaning Supplies
Tax Credits:
Check if you are eligible for tax credits, such as the Earned Income Tax Credit (EITC) or the Child Tax Credit, which can help reduce your liability.
Retirement Savings:
Consider contributing to retirement accounts like a 401(k) or an Individual Retirement Account (IRA) to reduce your taxable income and save for the future.
Need A Professional?
Consider working with an accountant like Leah Whittler at Taxes4Truckers who specializes in truck driver taxes to ensure you take advantage of all available deductions and credits. Leah stays up -to-date on the laws and changes in regulations, as they can affect your liability and financial planning. If you aren’t sure you have the right business entity for the best tax advantages, if you aren’t sure your last tax person took advantage of every deduction you were entitled to, schedule a free consultation with Taxes4Truckers.com. We will review with you your current situation, and your most recent filings and offer you advice on how to save on your taxes. Call 1-888-TAX-4-TRK now to schedule a free consultation with people who know your industry.
About the Author:
Leah Whittler, a 29-year veteran of the accounting and tax industry, specializes in the transportation industry. Leah’s dad was an over-the-road truck driver so she’s experienced firsthand the challenges drivers face like being away from home and needing accounting and tax help.
Leah has taught college classes in accounting, bookkeeping, and QuickBooks. Leah’s clients love her ability to make complex tax topics easy to understand. She becomes a driver’s trusted advisor and a partner for growth. Contact Leah at 1-888-TAX-4-TRK or email her at Leah@Taxes4Truckers.com to stop overpaying taxes!
The information in this article is general in nature and is not endorsed by Eckert & Associates, P.A.