Tax-Saving Strategies for Independent Truck Drivers
Tax-Saving Strategies for Independent Truck Drivers Independent truck drivers face a unique set of expenses and tax rules. By understanding the deductions and credits available, owner‑operators can significantly reduce their taxable income and keep more of their hard‑earned dollars. Below are key strategies to consider. 1. Claiming Vehicle Expenses One of the largest deductions for truck drivers is vehicle-related costs. You have two methods: Actual Expense Method : Deduct the actual costs of fuel, oil changes, tires, repairs, insurance, and license fees. Standard Mileage Rate : Multiply your total business miles driven by the IRS standard rate (e.g., 65.5¢ per mile for 2023). Choose the method that yields the higher deduction and keep meticulous logs or use an electronic logging device (ELD) to substantiate your mileage. 2. Per Diem and Meal Deductions When on the road, you can deduct a per diem allowance for meals and incidental expenses instead of tracking...