12-28-2023

Save Big: Navigating Tax Credits for Truck Drivers

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Mike Gallagher (R-Wisconsin) and Abigail Spanberger (D-Virginia) have reintroduced Tax Credits for Truck drivers in the U.S. House of Representatives to allow qualifying commercial truck drivers to receive a refundable income tax credit.

It's critical to comprehend tax responsibilities and possible credits in the trucking sector. There are several Tax Credits for Truck Drivers that can drastically lower your tax obligation.

The Strengthening Supply Chains Through Truck Driver Incentives Act is a piece of legislation aimed at encouraging new drivers to enter the industry and keeping current ones employed by offering temporary incentives. In the long run, both lawmakers think this would boost supply networks.

The plan is just one of several attempts by both parties to address the nation's current driver shortage, which is driving up freight rates and causing shortages of basic commodities.

The measure might give New York Highway Use Tax if you had a commercial driver's license (CDL) in the past but it has since expired. By removing the typical barriers that states and other third parties frequently encounter while delivering exams, it aims to expedite the CDL application process.

Current Tax Incentives and Credits for Truck Drivers

1. The Per Diem Deduction: This deduction can significantly lower your taxable income even though it isn't a tax credit. After examining the accurate records of the date, time, trips, and receipts, the IRS offers a standard deduction.


2. Fuel Tax Credits: Truck drivers can receive fuel tax credits if they utilize fuel for off-road business uses like cooling products. To claim this credit, submit Form 4136, "Credit for Federal Tax Paid on Fuels."


3. The Disabled Access Credit: A truck driver with a disability may be eligible for the Disabled Access Credit if he operates a trucking company that hires disabled workers. For small firms that spend costs in order to give access to people with disabilities, it offers a nonrefundable credit.


4. The Work Opportunity Tax Credit (WOTC): This federal tax credit is offered to firms that recruit members of specific target groups, such as veterans and those receiving government assistance.


5. Energy-Efficient Vehicle Credit: If a truck driver operates an electric truck or alternative fuel vehicle then he is eligible for this credit. These credits can partially cover the cost of energy-efficient automobiles and are a part of the government's commitment to promote their use.



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6. Energy-Efficient Vehicle Credit: If a truck driver operates an electric truck or alternative fuel vehicle then he is eligible for this credit. These credits can partially cover the cost of energy-efficient trucks and are a part of the government's commitment to promote their use.


7. Upkeep and Repairs: The truck driver can subtract the cost of upkeep and repairs for the truck as an expense of the business.


8. Materials and Tools: Generally, truck drivers can deduct any supplies or equipment that they need for their job as truck drivers, including gloves, logbooks, maps, and GPS units.

Recommendation for Tax Credit Claims

1. Maintain Extensive Records: Whether it's for meals, petrol, or vehicle purchases, maintaining thorough records is essential to obtaining tax deductions. This entails keeping track of all of your receipts and travel reports.


2. Stay informed: Over the course of the year, tax regulations and credits are subject to change. To get the most of your possible credits, keep up with the most recent tax rules and regulations.


3. Seek Advice from a Tax Expert: Tax regulations may be intricate and perplexing. It is always a good idea to speak with a tax expert who is knowledgeable about the trucking sector and can offer specific guidance.

It's critical to stay away from frequent mistakes while claiming tax credits for truck drivers, such as reporting income or spending incorrectly, failing to maintain complete records, and forgoing professional advice. Truck drivers may save a lot of money by knowing about and making good use of tax benefits.