Taxes

I like TurboTax. Every year I figure my taxes first with TurboTax.* Then I figure them all by hand. Some years TurboTax has caught some deduction or credit I didn't know about, and some years I've discovered something in the fine print of the instruction book that I qualify for that TurboTax couldn't have known about me that I didn't know to tell it.

Being a trucker is a huge tax advantage. Virtually everything you buy or spend for use in the truck or on the truck or while away from home driving the truck or to improve your quality of life while trucking is deductible. When I started trucking it was time to put away the children's versions of the 1040 and start itemizing: Battery charger for mornings the truck won't start. Work boots, gloves, and coveralls. Window cleaner and paper towels. Log books. Bed sheets. Snow shovel. Sunglasses. 12V appliances. Satellite radio with traffic and weather reports. Cell phone bill. $47/day for meals for every day spent away from home. This year approximately 25% of my gross income was tax-deductible. One of my trucker friends has had years where he has had no taxable income.

My favorite trucker tax rule applies to company drivers.** We can deduct any expenses that are not reimbursed to us. What I found (heh heh) is that any money reimbursed to the driver through his paycheck, and included in the wages line of the W-2 form, is considered by the IRS for tax purposes to be not reimbursed! When I discovered this  exception I started jumping up and down like a little kid on a snow day, since this is the way my company reimburses for expenses. Now I can deduct: Tolls and scales. Antifreeze, starter fluid, windshield wipers, light bulbs, glad hand seals, and any other truck fluid or part. Truck washes, repairs, any fuel that happens to get purchased with a T-Chek express code rather than the fuel card, and any other expense paid with a T-Chek. Bada-bing. I've actually been contemplating putting the EZ-Pass away so I can start racking up the 2011 deductions.

* The online version is free for anyone to use up to the point of e-filing.

** Disclaimer: I am not a tax expert. I am a taxpayer expressing here my understanding of US tax law as I read it. If you know something I don't know, please feel free to comment here. Actually, please do comment here! Preferably before reporting me to the IRS!