Taxes and Long Haul Trucking.

If you are new to living on the road as a long haul truck driver there are a few key things about taxes you will need to know. Especially, if you have been hired as a independent contractor with a trucking company. Meaning you get a 1099 NEC at the end of the year. 

This short article will cover some basic and common write-offs for the long haul truck driver. Long haul trucking is when you are crossing state borders. Let’s get started!

1. What does it mean to be a 1099 NEC contractor? For tax purposes you are responsible for paying your own federal taxes against any income earned and  self employment taxes (SE).Self employment tax covers social security and medicare tax for people who work for themselves. 

2. What are estimated taxes? And why should I pay them quarterly? When you pay estimated taxes you are essentially paying in your social security, medicare and income tax but on a quarterly basis. You pay estimated taxes every year 4 times a year. By paying in quarterly you are building up a credit that will get applied to any tax balance you may owe after you have deducted any write-offs. If you do not pay quarterly then you will be assessed a penalty when you file your tax return. 

3. What is a schedule c? In most cases you will file a schedule c form when you file your personal taxes. Here is where you list out all of your allowable tax deductions against any income you have earned.

4. What are some of my allowable deductions I can write off on my taxes? 

Owner / Operator Expenses - if you own your own rig you can write off the following.

• Interest paid on any financing 

• Gas, lube and oil 

• Truck Washes 

• Repairs & Maintenance

• Tires 

• Insurance 

• Licensing and registration fees 

• Permits 

Other expenses (you pay out of pocket and are not reimbursed for). 

• Lease truck payments 

• Security bond 

• Travel card fees 

• Union Dues 

• License/permit/fees 

• Delivery Expenses / Supplies 

• Overnight stays (hotels, motels)

• Car rental 

• Physical DOT test 

• Legal and professional fees 

• Laundry / Shower supplies

• Transportation: airfare, bus, and train etc. 

• Cell phone, internet, air card 

• Parking tolls 

• Meals 

• Platform fees (gps, app to track mileage etc). 

• Association fees and membership fees

• EZ pass 

• Contract labor *if you use contract labor and pay them more than $600 a year you will need to issue 1099 NEC’s to these people. WE will discuss this in another article in the future.

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Pretty much anything you use to do your job and live on the road you can deduct. Some trucking companies will provide you with a year end statement that may also show other deductions from your loads. Such as: 

• Administrative fees 
  

• Gas, insurance fees 

• Tolls, toll fees, tickets 

• Supplies

PRO TIP #1: The best way to keep track of your expenses is to use a dedicated credit card or debit card so you can provide a tax professional with a year end profit and loss statement, tax organizer and or worst case 12 months of bank statements or credit card statements. 

There are also many app scanners you can use for your smartphone that will keep track of your receipts. 

PRO TIP #2: Better yet! Hire a bookkeeper who you can check in with monthly. They can help you stay organized and make it a breeze for you to file at the end of the year, so your tax professional will thank you for not dropping off a box full of receipts! 

Save time and money and come file with us today! We hope this gives you an idea on what kind of expenses you can write off at the end of the year!