Issue link: https://read.dmtmag.com/i/112433
OWNER OPERATOR SOLUTIONS By: Scott Christensen, Vice President of Tax Services at EQUINOX Owner-Operator Solutions The Leader in Business Services for Transportation The Five Most Overlooked Tax Deductions for Drivers N ew year - new taxes. That���s what many drivers are thinking after the latest round of tax increases. Dubbed by some as ���Taxmageddon���, a $494 billion tax increase will be felt by most Americans this year. That���s an average increase of nearly $3,200 for every worker in the United States. In fact, according to the Tax Foundation, 77 percent of American households will pay more taxes this year, meaning you���ll likely contribute to the tax increase. While you can���t legally dodge taxes, you can trim them. The options for doing so may have even been under your nose your entire trucking career. Let���s take a look at the ���ve most overlooked tax deductions for drivers. 1 - Uniform Some carriers require drivers to wear uniforms. Others are OK with a ���annel shirt and jeans. If a carrier requires you to wear a uniform, you can deduct it on your tax return. To qualify for a tax-deduction, the uniform must be: ��� Required by your carrier ��� Not suitable for everyday use You probably wouldn���t wear a uniform unless required, so the ���rst item is easy enough to determine. As for the second item, ask yourself whether or not you���d wear it voluntarily. If yes, don���t take the deduction. If no, save some money! 2 - Laundry Your uniform and other clothes will need to be cleaned from time to time. Fortunately, you can claim related expenses on your tax return. While on the road, your laundry expenses are tax-deductible. This is provided that you don���t live in your truck, as you must be away from home to utilize this deduction. Keep all receipts for laundry expenses to ensure this deduction goes smoothly. 3 - Satellite Radio According to Scott Christensen, Vice President of Tax Services at EQUINOX Owner-Operator Solutions, ���Many drivers are not aware of this, but satellite radio expenses are tax deductible. Since a driver can use it as a tool for weather and traf���c information, a business need for this device is established and the IRS treats / OWNER OPERATOR/ MARCH 2013 / / 44 OO 0313_text.indd 44 2/5/13 11:21 AM