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Itemizing Deductions on Income Tax for Truck Drivers

Deductions for truck drivers could significantly reduce their overall tax burden

Truck driving can be hard and expensive work. Thankfully you may be able to lower your tax burden by deducting some of your expenses.

If you are an employee, you can take these deductions on Schedule A [Itemized Deductions]. If you are a statutory employee or are self-employed, you can take these deductions on Schedule C [Profit or Loss from Business].

Here are some of the deductions you can claim:

  • vehicle expenses – you can deduct parking fees and tolls, standard mileage rates (or else the actual expenses), as well as maintenance, repairs, and supplies, which can include oil changes, tuneups, vehicle inspections, tie-down straps, jumper cables, chains, tarps, fuel, bungee cords, floor mats, etc.
  • personal care items – things you need to take care of yourself when you’re on the road including shaving supplies, tissues, laundry detergent, fabric softener, towels, toiletries, pillows, sheets, sleeping bags, grooming supplies, and hand cleaners, as well as shower and laundry facilities Continue reading “Itemizing Deductions on Income Tax for Truck Drivers”
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iPad Tax Deduction

How to deduct your tablet computer on your taxes

All you Apple addicts out there will be happy to know that you can deduct the cost of your iPad. In order to take the deduction, however, you must actually use your iPad for business. If all you do is play Angry Birds on the subway or entertain your petulant children in the backseat you won’t get any tax benefit.

Business Expense

If you operated a business or practiced a profession as a sole proprietor than you can very likely claim the cost of an iPad as a business expense.

As far as the IRS is concerned, the same rules that govern computers also govern iPads. In order to deduct your iPad (or anything else for that matter) it must be usual, necessary, customary, and reasonable for the type of business that you are engaged in.

In order to take a deduction you must have acquired your iPad specifically for use in your trade or business. You can use your iPad for personal purposes too, but at least 50% of your use must be for business. Continue reading “iPad Tax Deduction”

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A Tax Savings Guide to the Holidays: Charitable Contributions

Get into the holiday spirit with gifts to charities and you could be gifting yourself a tax deduction

These days the holidays tend to involve lots of buying stuff, partying, and hectic travel. Don’t get me wrong, these activities can all net you some pretty valuable tax deductions as long as they’re done according to IRS rules.

But you can also get a tax deduction by getting into the more traditional spirit of the season, the spirit of giving.

Not only does giving to charity fit in well with the spirit of the holidays, but December also conveniently falls at the end of the year. That means that you can pretty accurately look ahead to tax season and plan your charitable giving (and by extension your deductions) so that you get the biggest possible tax benefit. You may even be able to give enough to charity so that you get bumped to a lower tax bracket.

But in order to get a deduction you have to make your donations to a group recognized by the IRS as a charitable organization. These groups must be nonprofits of a religious, charitable, educational, scientific, or literary nature or they must be involved in preventing cruelty to animals or children. Continue reading “A Tax Savings Guide to the Holidays: Charitable Contributions”