Entity selection makes all the difference!
- The type of entity you choose to set up your trucking business will have a huge impact not only on what you pay in taxes but on your liability if something unforeseen happens. Sole proprietor? LLC? Corporation? S Corporation? This is the #1 biggest thing we see that Truck Drivers didn’t know when they started their business.
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 tax 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.
Tax Professional: Consider working with an accountant like Leah Whittler at Taxes 4 Truckers who specializes in truck driver taxes to ensure you take advantage of all available deductions and credits. Leah stays updated on changes in tax laws and regulations, as they can affect your tax liability and financial planning.
If you aren’t sure if 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 Taxes 4 Truckers. We will review with you your current situation, your most recent tax filings and offer you advice on how to save on your taxes.