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Thread: Question re: tax deductions

  1. #1
    Charlie777 is offline Rookie Charlie777 is an unknown poster at this point.  Don't let him/her around power tools just yet.
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    Default Question re: tax deductions

    My son-in-law is totally new to the trucking industry, and since I usually do their taxes, I am not sure what he can deduct. He tells me he can deduct his cell phone costs and home telephone costs. I highly doubt this. He does not get "per diem", so what is the amount he can deduct for meals, etc? Does he need to have all receipts for meals, lodging, etc? Would appreciate some guidance or a link/website where I can find all this info. Thanks!

  2. #2
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    I fhe uses his Cell ont eh road then it can be claimed as a busines expense also he get to claim 75% OF 52 dollars a day as a meal allowance so 39 dollars a day for every day he was out. Also he can deduct any clothing costs separate bedding laundry supplies heck anything he kept reciets for as a expense as long as it is related to his employment.

  3. #3
    Charlie777 is offline Rookie Charlie777 is an unknown poster at this point.  Don't let him/her around power tools just yet.
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    Default thanks for quick reply -- just a couple more questions

    Can he claim all this even if they don't itemize and only use 1040A? Can he deduct the full monthly billing cost of the phone, or only a portion?

  4. #4
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    File a LONG FORM 1040 or use a program like Turbo tax or go to H&R Block did mine when I drove and I was never audited either. Just because he does the long form does not mean he will be audited the IRS knows he is an OTR driver and allows certain things.

  5. #5
    Uturn2001 is offline Senior Board Member Uturn2001 is on the right path.  You could probably safely loan them a quarter.
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    Default Re: thanks for quick reply -- just a couple more questions

    Quote Originally Posted by Charlie777
    Can he claim all this even if they don't itemize and only use 1040A? Can he deduct the full monthly billing cost of the phone, or only a portion?
    With taxes you either itemize or you take the standard deduction. You can not do both.

    Unless he has more than $5350 if filing single or $10,700 filing jointly with a spouse or $7850 as head of household in itemized deductions he will be better off taking the standard one.

    As far a claiming the cell phone goes he can deduct the percentage it is used in business. So if he uses it 50% for business calls and 50% for personal issues then he can claim 50%. Same goes with the house phone. (just a note here. If he is a company driver or an owner/operator leased to a company he is going to have a very hard time justifying the home phone deduction in the event of an audit). Once again this is if you itemize.

    The figures on the meal allowance was correct. That is 75% of $52 per 24 hours away from home for the standard meal allowance deduction. To claim the standard deduction and to prove it he really should have his log books for the entire year. Otherwise he will need some other form of proof or have saved his meal receipts and take the actual cost.
    Finding the right trucking company is like finding the right person to marry. I really comes down to finding one whose BS you can put up with and who can put up wih yours.

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