Tax Deductions For Truck Drivers – Apply & Save

For many truck drivers this time of year can really place an undue burden on your financial well being. But it doesn’t have to be that way. You can fight back. You can save money, but first you have to learn about the various tax deductions for truck drivers, and then you have to apply them.

Saving With Your Unique Opportunities

Before I share with you some of the great tax deductions that will save you $100’s of dollars on your yearly taxes, I want to share with you the mind-set of saving with your unique opportunities, and how it can mean the difference between financial freedom or financial bondage.

I want to teach you this mind-set through the use of an example. Then I want you to pour over it with your mind, picking it apart and seeing how you can personally apply it in your life, and within your unique situations. Many truck drivers spend a lot of money on the various meals that they eat when their on the road. So, with that in mind, let us now see if we can save money with this unique situation. Let’s say you’re spending an average of $5 dollars (although it could be much higher than that) for the basic 3 meals throughout the day that’s $15 dollars a day. Now, what if you do that 5 days a week for two months. That’s $600 smackers every two months, or $3,600 dollars every year, that’s a lot of money! So, you’re probably wondering, how do I save some of that money? Well, the answer is simple; learn to pay attention to your unique saving opportunities and then act.

Instead of buying those $5 dollar meals whenever you go on the road, start making your own. And you will be surprised at the amount of money you can save. I would even suggest that you cut-out some grocery store coupons from your local newspaper and save even more on the lunch meat, vegetables, fruit, bread, eggs and other things you buy to make your “travel meals” with. And if you really want to have a prosperous financial future, you will save or better yet, use the money that you have saved by making your own meals and apply it to your unique investment opportunities. But remember, be wise and do your research before you invest.

Tax Deductions

Truck Expenses – This is one of the most powerful tax deductions that you can use as a truck driver. For example, did you know that you can get a tax deduction for every time that you have to get engine work done on your truck. You can even get tax breaks for things like new antennas, new lights, CB’s and CB repairs, scanners, tires, or even repairs on your AC or heater.

Equipment Expenses – Here’s another great opportunity to save with your taxes. We’ve discussed how you can get tax deductions for your tuck, but did you know that you can even get them for things like hand tools, log books, pencils, calculators, flashlights, coveralls, tarps, tool boxes, gloves, maps… this list could go on forever! But you get the idea.

I hope that you liked the principles, ideas, and tips that I’ve shared with you today. Now remember, nothing will happen if you don’t apply the things you’ve learned. Applied knowledge is true power, and you can use it to save money!

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Income Taxes – 3 Tips for People Who Prepare Tax Returns

Do-it-Yourself (DIY) tax preparation is gaining popularity among filers throughout the world. The explosion of software providers on the scene are making it more accessible for individuals who have traditionally worked with a tax preparer in the past. However, with the increase in the DIY options there is also an increase in the number of returns that the Internal Revenue Service (IRS) rejects for errors. Here are three mistakes individuals should avoid when completing an income tax return. 

  1. Dependents. One of the most highly used forms of reducing income taxes involves the number of dependents that people claim. For most filers the more dependents they claim the less taxes they will owe. However, there are some exceptions to the dependency rule that filers should be aware of. For example, there are cases where adding certain types of dependents does not necessarily qualify for a tax deduction. A child in college who claims themself on their tax return disqualifies their parent to do the same. This error has been the cause of rejection for many tax returns and the result of lower refunds for filers. Alternatively, overlooking dependents such as parents, siblings, and other relatives is a deduction that people often miss. Discuss the details with a tax professional if you are not sure who you can claim as a dependent on your tax return.
  2. Claiming the wrong filing status. The IRS uses five major categories to identify people who file income tax returns. The categories include Single, Married filing joint, Married filing separate, Head of household, and Qualifying widow(er) with a dependent child. Most of the error in selecting a filing status is found on the returns of people who are separated but not divorced or Single but not Head of Household. Since the different filing status options are taxed a different rates a mistake here can prove significant in the amount of tax that a filer will have to pay.
  3. Misinterpreting tax law. With the growing numbers of tax preparation options on the market many people are looking to save money by becoming their own tax preparer. When you have a simple tax return this is a viable option for you. However, since tax rules change all the time they can be difficult to interpret, even for seasoned tax pros. The more complex tax scenarios are the greater the need becomes to understand the rules surrounding them. If you are facing a complex tax return don’t chance it. It is better to invest in good advice from a tax professional than to end up paying for tax mistakes later.

For helpful income tax advice, tools, and courses to minimize your personal and business taxes, visit http://www.tbsusa.com

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