An important tax form called the W-2, Wage and Tax Statement, should be received by company drivers no later than the beginning of February. This form lists the income from wages you receive as an employee.
While a company driver may seem to have a straight-forward tax filing, he/she will need to pay attention to some key tips to be sure they maximize your tax refund.
Tip #1: Take Advantage of Tax Credits
Some common tax credits a Company Driver can take advantage of include:
The Adoption Credit If you adopted a child at some time during the tax year for which you are filing, you may claim a credit of up to $13,570 for 2017 and 13,840 for 2018.
The American Opportunity and Lifetime Learning Credits This allows the taxpayer, their spouse, and their dependent[s] who attend college or trade school up to $2,500 with the American Opportunity credit, and up to $2,000 with the Lifetime Learning Credit. The credit amount will depend on your tuition and fees paid.
Child and Dependent Care Expenses If you are working and had dependent care expenses for children under the age of 13 or have a dependent or spouse who is disabled, this credit helps you claim the expenses associated.
Child Tax Credit For taxpayers who have children under the age of 17, you may receive a credit of up to $2,000 per child.
Earned Income Tax Credit Developed for low-income workers, this credit may be claimed by those with or without children and will credit up to $6,431 for 2018.
Energy Credits This one is often overlooked. If you made energy improvements to your home that help your energy efficiency, you could qualify for a tax credit.
Job Hunting Costs Job Hunting costs are no longer deductible for 2018.
Tip #2: Invest in Yourself and Your Family
If you invest in a retirement plan or IRA, you may receive up to $1,000 credit per taxpayer.
Tip #3: Keep Your Receipts
All professional drivers need to keep receipts related to their job. Whether it’s an envelope in the truck, or a container at home, drivers may be able increase their refund or reduce their tax liability, but the IRS wants drivers to keep a record. ATBS recommends drivers save tax-related paperwork for at least 5 years.
Tip #4: Hire a Professional
There is no science to preparing taxes -- rather, it is an art. With an IRS tax Code that exceeds 79,000 pages, professional drivers should consider consulting with an expert team who knows about company driver tax returns and owner-operator tax returns. Experts can identify not only an optimal tax preparation, but can also advise on things you can do this year to positively impact your taxes for the following year. This type of proactive advice can help taxpayers. You can reach ATBS at 866-920-2827.