Updated: May 7
We often get asked about the most overlooked tax deductions. Because owner-operators are responsible for calculating and paying their own taxes, they are also responsible for deducting expenses, which can significantly lower their tax burden. While the IRS does not conveniently list every deduction possible for an owner-operator, we are here to review and advise clients on their tax returns.
In this article, ATBS looks at commonly overlooked tax deductions. One area of commonly overlooked tax deductions is the internet, smartphones and other devices. These gadgets are quickly becoming an integral part of the owner-operator’s world. You now have a license to play around on the Internet and find the tools and apps that are most helpful to owner-operators -- especially now, since you can write-off the costs associated with these tools!
Write-Off #1: Smartphone Apps
There is a growing list of apps that owner-operators rely on to make their life and business run smoothly. From Cat Scales App to Load Boards and from the Pegasus Smart Phone Scanning to TA Petro’s TruckSmart App, the list is growing! Any and all costs associated with apps can be claimed as a business expense on your tax filing. Just be sure to keep a record of your purchase and the costs associated with them so you can easily write them off at tax time.
Write-Off #2: Business Portals
Businesses that offer owner-operators a secure, online portal where you can access scanned receipts, review your profit and loss statement, obtain tax estimates, and review your profit plan [aka, your budget!]. The cost to have business at your fingertips is deductible so be sure and consider this when approaching a business partner who can manage your taxes, accounting, and your online portal.
Write-Off #3: Internet Costs
If you are able to bring Wifi into the cab, this cost is a tax deduction. Consider investing in the ability to have Wifi in your sleeper giving you the chance to be productive at the end of your day or the end of your route. Many owner-operators opt to create an office in their truck’s cab and can offer advice as to the set-up and organization.
Write-Off #4: Devices
Today’s mobile technology is more affordable than ever and owner-operators are investing in tablets, Smartphones and laptops for their business that takes them on the road. The cost of these business tools are a deduction so you’ll want to save the receipt and send them to your tax preparer who can use this to lower your tax liability.
Technology today can be fun and importantly, smart for your business success. Owner-operators are on the road a lot and they are in an excellent position to invest in and write-off technology tools.
At ATBS, we analyze our clients' expenses and help drivers take every legal tax deduction they are entitled to. Give us a call at 866-920-2827 to speak with an enrollment specialist who can set you up with tax services from ATBS.