Managing taxes as a truck driver can be complex, especially with the various deductions, record-keeping requirements, and regulations involved. Many truckers make common tax mistakes that can lead to penalties, missed deductions, or even audits. Seeking professional help for trucking tax preparation can prevent costly errors and maximize savings. Here are some of the most common tax mistakes truck drivers make and how to avoid them.

1. Failing to Track Expenses Properly

Many truck drivers miss out on valuable deductions because they don’t maintain accurate records of their expenses. Fuel, meals, lodging, tolls, maintenance, and other business-related costs can all be deducted, but only if properly documented. Without receipts or a well-organized log, the IRS may disallow these deductions.

Solution: Use accounting software or mobile apps designed for truckers to track expenses in real-time. Keeping digital copies of receipts ensures that nothing gets lost.

2. Misclassifying Employment Status

Truck drivers may work as employees or independent contractors, and misclassifying this status can lead to tax issues. Independent contractors must pay self-employment tax and estimated quarterly taxes, while employees have taxes withheld from their paychecks. Incorrect classification can result in penalties.

Solution: Consult a tax professional to confirm your correct classification. If you’re an independent contractor, ensure you’re making estimated tax payments to avoid IRS fines.

3. Overlooking Per Diem Deductions

The IRS allows per diem deductions for meals and incidentals while on the road, but many truck drivers either don’t claim them or miscalculate the amounts. Per diem rates change yearly and vary depending on location.

Solution: Keep a detailed log of travel days and consult a tax expert to apply the correct per diem rates. This can significantly reduce taxable income.

4. Not Claiming Depreciation on Trucks and Equipment

If you own your truck, you can claim depreciation as a business expense. Some drivers fail to take advantage of this tax-saving opportunity or don’t apply the correct depreciation method.

Solution: Work with a tax professional to determine whether to use standard depreciation or Section 179, which allows for larger upfront deductions.

5. Neglecting to File or Pay Taxes on Time

Many truck drivers delay filing taxes or fail to make quarterly estimated tax payments. This can result in penalties, interest charges, and increased tax liabilities.

Solution: Set reminders for quarterly tax deadlines and work with an accountant who specializes in trucking taxes to ensure timely filing and payments.

6. Incorrectly Deducting Personal Expenses

Some truckers mistakenly deduct personal expenses as business costs, which can trigger IRS scrutiny. For example, commuting costs to a truck’s terminal or home office expenses without proper justification may be disallowed.

Solution: Maintain clear records of business vs. personal expenses and seek professional guidance to ensure compliance with IRS regulations.

Conclusion

Avoiding these common tax mistakes can help truck drivers save money and prevent unnecessary stress. Partnering with an expert in trucking tax preparation ensures that all deductions are properly claimed, tax obligations are met, and potential penalties are avoided. Investing in professional help can lead to long-term financial benefits and peace of mind.