Attending a truck driving school is one of the crucial steps in becoming a certified truck driver. Trucking schools assist individuals in preparing for the CDL exam and obtaining a class A license. The cost of truck driving school and CDL fees can vary depending on the school you choose and where you live. The entire cost will normally range between $3,000 and $7,000, depending on your location.
A tax deduction is a work-related expense that reduces your annual reported income. That usually implies you owe less tax. In most cases, the costs of learning a new profession or skill are not tax deductible. The truck driving school is ineligible for any of the educational tax credits available to students. However, it may be deductible if you are training to improve your current job.
Read on to learn more about the types of tax deductions you can get for trucking school, whether you qualify, and alternatives.
Tax Deductions for Students
So is trucking school tax deductible? Yes, it is. If the truck driving school is accredited, they must issue a Tuition and Education slip. Any course for which you spend more than $100 qualifies for the Tuition and Education amount. You can claim the following tasks and deductions.
American Opportunity Credit
The American opportunity tax credit allows you to claim the first $2,000 spent on tuition, books, equipment, and school fees but not living expenses or transportation, plus 25% of the next $2,000, for a total of $2,500.
The Lifetime Learning Credit
The lifetime learning credit is not limited to students or their parents. The credit is available to undergraduate, graduate, and non-degree or vocational students, and there is no time limit for claiming it. As a result, it is perfect for graduate students or anyone attending seminars to learn new skills, even if you have previously claimed the American opportunity tax credit on your taxes. The American opportunity credit and the lifelong learning credit cannot be claimed in the same year.
Educational Tax Form
Your school will give you Form 1098-T, a tuition statement, in January. You’ll utilize that form to seek an education tax credit or deduction on your tax return. If you or your parents took out student loans, you may be allowed to deduct the interest. Your servicer will issue you Form 1098-E if you paid over $600 in interest. If you paid less than $600 in interest, ask your servicer for the form. Up to $5,250 of tuition reimbursement or employer student loan repayment can be deducted from your taxable income.
Tax Deductions for Professional Truckers
Tax deductions for truck drivers may include any expenses that are regular and necessary to the business of being a truck driver, such as fuel, maintenance, and insurance. Taxes and deductions may be considered common and essential. Here are some of the deductions you can claim.
- Vehicle Expenses: The majority of what you need to keep your mobile office functioning is deductible. Maintenance like changes and new tires, as well as necessary repairs, are included.
- Fees for License and Regulation: Fees for getting and maintaining your CDL. Furthermore, the expense of any mandatory classes or training to advance your employment knowledge is often deductible.
- Fees for Union and Trade Associations: Union and truck driving association dues are frequently tax deductible. In some circumstances, even voluntary membership dues are tax deductible if the membership aids in your job performance.
- Electronics are generally deductible when utilized solely for business purposes. CB radios, GPS, GPS map updates, and ELDs are a few examples. Furthermore, the costs of repairing these devices are frequently deductible. You most likely use your cell phone, data plan, or laptop for both business and personal reasons. As a result, these purchases are frequently only 50% deductible.
- Tools: almost every roadside item your profession requires can be deducted from your tax return, including duct and electrical tapes, hammers, pliers, tire irons, and more.
- Clothing: Items that are required to execute your job can usually be deducted. Overalls, rain gear, safety glasses, safety vests, and hard helmets are all examples of specialized apparel.
- Medical Checks: DOT physical, a drug test, and possibly a sleep apnea screening are all likely to be needed of you as part of your employment. If you pay for any of things out of pocket, the expenditures are usually tax deductible in most cases.
- Travel Expenses: Accommodations, meals, and other expenditures are included in the cost of traveling.
Conclusion
Tax savings for truck drivers are accessible to both professional and prospective drivers, and they should be aware of these opportunities. They must take advantage of them. Everyone, however, has unique employment and tax status. This essay is not intended to offer particular tax advice but to make you aware of taxes you can deduct. If you have specific questions about which deductions apply to your case, please see a tax specialist.