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1. #Independent contractor expenses on schedule c drivers#
2. #Independent contractor expenses on schedule c driver#
3. #Independent contractor expenses on schedule c professional#

If you use a sleeper berth, you may be surprised at the items you can deduct. Examples of tax-deductible office supplies include logbooks, clipboards, writing supplies, maps, and staplers. If you use supplies to keep track of your route or your day, these are deductible. Cleaning expenses for your clothing are also deductible when you are away from home.

This includes specialized work gear like protective gloves, goggles, or boots. Uniforms are considered deductible, but only if they are required, and if your employer does not pay for them. If you pay fees as part of a union or trucking industry organization, you can deduct these fees from your taxable income. Keep in mind if your employer reimburses you, you cannot deduct it. These expenses can include oil changes, new tires, washer fluid, and cleaning supplies. If you pay out-of-pocket for truck maintenance and supplies, you may be able to deduct these costs. This can vary even on an individual level, but some expenses are generally accepted.

#Independent contractor expenses on schedule c drivers#

The IRS allows truck drivers to deduct “ordinary and necessary” business expenses. This form is used to assess business profit and loss. Statutory and self-employed drivers should also fill out Schedule C. If you are an agent or commission driver, you may see the “Statutory Driver” box checked on your W-2.

This is used to report miscellaneous income. However, if you have worked as an independent contractor for a company, you will receive Form 1099. Owner-operators have a couple of different options when reporting income. The short form, or Form 1040EZ, does not allow you to take advantage of trucking industry deductions. You will report this income on your Form 1040 or 1040A. Employers must mail these forms to the employees by the end of January. Many company drivers receive a W-2 form that reports their wages and income.

#Independent contractor expenses on schedule c driver#

Therefore, it is important to have a tax home for truck driver tax deductions. This left him with substantial penalties for underpaid taxes. The IRS disallowed over $19,000 of per diem and hotel expenses he deducted on his return. However, he did not live there or help pay rent or any other living expenses.

Since his out-of-state employer did not require him to return to a base, the driver used his mother’s address as his permanent address. If you are an owner-operator using a residence as a tax home, make sure you help maintain the property while out on the road.Īccording to a 2015 article in the Journal of Accountancy, a Missouri trucker found this out the hard way. For some drivers, this may be a base or dispatch center. A tax home has nothing to do with where you live. The IRS defines a tax home as the city or general area in which you work. If you claim certain long-haul expenses without having a tax home, the IRS will not allow these deductions. Truck drivers must maintain a tax home to claim some deductions.

#Independent contractor expenses on schedule c professional#

In this blog post, you will learn why you need a tax home, which tax forms to use, when to take deductions, and when to seek professional help. It is important to know which expenses are deductible and which are not. Drivers are subject to specific requirements. When you are part of the trucking industry, every tax return is unique.