Truck drivers have one of the most complex tax situations of any profession in America.
Therefore, here are a few truck driver tax debt tips and tax debt relief options.
Truck Driver Tax Debt Tips
The following tips can help truckers maximize deductions and minimize tax liability.
Track Truck and Driving Expenses
Keeping your log book up to date does not just keep the DOT happy. In fact, it also helps you track your truck driving expenses so you can write them off. Rather than using an old-school logbook, make your life easier by downloading an expense-tracking app.
Pay Heavy Highway Vehicle Use Tax (IRS Form 2290)
When you first start driving a truck, you have to fill out IRS Form 2290 and pay your heavy highway vehicle use tax by the end of the month following the first month you used the truck.
Make Self-Employed Truck Driver Quarterly Tax Payments
Self-employed trucker? You will need to estimate your truck driver tax liability and pay it every quarter. Remember, do not wait and pay it all in April when it is due, since you could get hit with an estimated tax penalty by the IRS.
Truck Driver Tax Deductions
As a truck driver, you can claim a number of deductions on your taxes.
Truck Driver Travel Expenses
Truck driver travel expenses include everything from parking to toll roads to hotel accommodations.
Truck Maintenance and Repairs Expenses
You can deduct the cost of all truck maintenance and repairs that you pay for out of pocket as a truck driver.
Truck Driver Union or Association Fees
Do you belong to a union or truck driver’s association? You can deduct your membership fees.
Truck Driver Professional Clothing Expenses
You may be able deduct the cost of professional trucker apparel. Basically, if your job as a truck driver requires you to wear a specific uniform or a certain type of protective clothing, you qualify.
Truck Driver Licenses and Certification Fees
As a truck driver, you are required to keep a number of licenses and certifications up to date, including your CDL. There are often fees involved, but you can deduct these from your taxes.
Truck Driver Insurance Fees
As a self-employed trucker, you can deduct both your truck insurance fees and your medical insurance costs that you pay for yourself.
Truck Driver Meal Expenses
As of 2022, truck drivers can deduct a meal expense of up to $69 each full day and $51.75 each partial day you are on the road.
Truck Driver Tax Debt Relief
The IRS has several tax debt relief programs for truckers.
Truck Driver IRS Payment Plans and Installment Agreements
Rather than paying your tax debt off all at once, you can pay it over time with a payment plan. In some cases, a period of up to seven years (84 months) in monthly installments. The IRS looks at your monthly income as a trucker and household expenses to determine a reasonable payment amount.
Truck Driver Offer in Compromise
If you are suffering a long-term financial hardship, the IRS might agree to settle. They may accept less than what you owe as payment in full. At Wiztax, we can review your situation to determine if you qualify and can help you apply for OIC relief with the IRS. Get started for free.
Truck Driver Currently Not Collectible Status
If you are suffering a financial hardship as a truck driver that is more short-term, you can request currently not collectible (CNC) hardship status. CNC status prevents the IRS from levying your property, garnishing your wages, or actively trying to collect your tax debt until your situation improves.
Truck Driver Tax Penalty Relief
The IRS will often abate the penalties that have been added to your tax debt if this is your first time having tax issues.
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