Tax time can bring a welcome bonus to owner operators in the trucking business or be a stressful time of year. There are several tax deductions for owner operator truck drivers that can lower your tax burden and make the season go smoothly.
Like any self-employed business owners, there are several tax breaks owner operators can take advantage of such as travel expenses, trade association fees and vehicle expenses. Many of the costs associated with running and operating your trucking business are tax deductible.
Per Diem Expenses
Knowing what the government counts as your tax base can help you calculate the available deductions. Per diem expenses allow you to track daily expenses without necessarily proving the actual costs. These expenses include incidentals and meals.
Keeping a file with your receipts throughout the year can help you better take advantage of all the tax savings available to you. A log book for your miles can be handwritten or stored in the cloud. The tax rules also change slightly year over year. An accountant should be able to address any additional questions.
Good records are the main way to take advantage of all tax deductions for owner operator truck drivers. Knowing exactly how money was spent and what it was used for can help you maximize those deductions saving you money.