How To Maximize Tax Deductions as a Truck Driver
Truck drivers can claim a variety of expenses on their personal tax return. Here is a list of tax deductions you can claim:
Meals and Travel
- Food and meal costs are claimable when working overtime. If you have been paid an allowance by your employer, you can make your claim without having to keep any receipts. (However you must show how you calculated the amount you spent.)
- Hotels, accommodation expenses and meals can be deducted when you are required to stay someplace overnight for work. Allowances from your employer are claimable in full, provided it is shown on your PAYG payment summary. Expenses not paid with an allowance will require receipts to prove the amount you spend.
- Parking, tolls, taxis and public transport are deductible if you are required to travel to attend seminars, meetings and training courses not held at your usual place of work. Overnight accommodation and meal expenses can be claimed for this purpose as well.
- Parking fees, bridge and road tolls are deductible if incurred while driving between your depot and your clients depot while on the job. Travel expenses while driving from home to work are generally not deductible.
- Personal vehicle expenses can be deducted if you use your own car for work. If you travel to meetings, attend training courses, pick up supplies or drive around job sites a percentage of your vehicle’s KM is deductable. Keep a record of KM travelled while working to calculate your total deductible amount at the end of the year.
- Under certain circumstances you can claim the cost of using your own car to travel to and from work. You qualify for this deduction if you transport bulky tools and equipment for work in your personal vehicle, but only if there is no secure area to leave these items on site overnight.
Work Clothing
- Uniform expenses such as shirts, pants, skirts, and jumpers are deductible if they include the business’s logo on it.
- Laundry expenses related to your uniform (including dry cleaning and cost of repairs or alterations)
- Sun protection items (sunscreen, hats, sunglasses and protective shirts and jackets)
- Protective equipment costs not supplied by your employer (including but not limited to gloves, goggles, overalls, high visibility vests, masks, steel-capped boots and winter jackets)
Training
- Cost of work-related training courses can be claimed. Qualifying courses include first aid, OH&S, truck and heavy equipment driving and vehicle maintenance courses that are not run by a University or TAFE. All supplies, fees, stationary, books, phone and internet usage, tools, equipment and travel expenses are deductible, including overnight accommodation and meal expenses.
- Self-education courses run by a University (excluding HECS/HELP fees) or TAFE that relate specifically to your current work are claimable. Equipment, books, stationary and travel expenses incurred while studying can also qualify.
Work Tools & Equipment
- Deduct the cost of buying and repairing equipment and tools used at work (including radio, portable refrigerator, sleeping bag, laptops and cell phones)
- Truck repairs, maintenance, spillage and cleaning is deductible if you are not reimbursed by your employer for these costs.
- Materials or other supplies that you buy and use for work (such as first aid packs, backpacks, belt bags, safety gear, stationery, log books, work bags and briefcases).
General Expenses
General expenses are tax deductions all employees can claim on their personal tax returns:
- Total amount of donations to registered charities. If you receive an item in return for your donation, such as a raffle ticket or other novelty item it is NOT deductible.
- Bank fees charged on any of your investment accounts
- Insurance such as income protection and sickness and accident premiums are deductible. Sickness and accident insurance will protect your income by paying you your normal wage if you are sick or injured and unable to work. If you do not have this insurance, speak to your financial advisor or ask us and we will refer you to a trusted agent. This type of insurance protects you and your family and is fully deductible.
- Tax preparation fees (the amount you pay to your accountant to prepare your tax return each year)
- The cost of travel to your tax agent such as KM travelled, parking, meals and accommodations are deductible.
It is recommended to keep receipts for ALL WORK RELATED PURCHASES even if they are not listed above. When we prepare your tax return we will determine if they qualify as a tax deduction or not.
Pay less taxes, save your hard earned money and maximize your deductions this year! If you would like to get started today, or have any other questions about the deductions you are entitled to, contact us at info@taxsolutionsbrisbane.com.au