Having knowledge of how tax deduction is applicable on the commercial truck drivers can save them a lot of money, whether they are owners, independent truck drivers or commercial company people. The amount of income of the truck driver is reduced because of these deductions.
There are certain rulings regarding the overnight trips the driver makes. Deduction of $52 is done per day when the driver is away from his home. First 9 month period entails the largest deduction of amount when the driver is away from home. The Internal Revenue Service states that the driver is permitted to subtract 80% of the per diem for the year 2009. This is applicable for both commercial as well as owner drivers. The amount should be deducted from the total deductions if there are cases of reimbursements.
To determine the amount that will go in taxes, a study of previous years' calculations will help tremendously. It is a good idea to remove in advance at least 20 to 30% of the driver's income for paying the end year taxes. Further, when this is done another 20 to 30% should be deducted from the income amount.
The mileage also affects the tax deductions and is different for different purposes. For instance, if a car is driven for business, the deduction is 50 cents for 2010. For the trucks, the amount which is expended is counted and used for tax deductions.
In case of truck companies, the operating office from where the regular business is administered, the expenses incurred should be considered for tax calculations. There are two conditions and they are use of residence and ongoing business in the office. Dead-head miles are not considered for tax deduction but costs involved in operating the truck are included.
There are smaller amounts which are easily missed out by the independent and company drivers alike. These amounts include ATM fees, credit card fees, Cleaning supplies, Delivery fees, Drivers license fees, copying charges, fax charges, Association dues and Internet fees. Office stationery such as stamps, pencils, paper clips, staples and envelops and weather related clothing are also some of the things that can be missed out.
It should be the truck driver's endeavor to make some effort to reduce certain costs. These expenditures can include association fees, commercial truck insurance and owner operator insurance. All these things are necessary for the business however; some costs can be reduced easily. Drivers can benefit immensely on account of tax deductions if they are a little more careful with their expenses.