I am a company driver. What is deductible when I’m on the road?

While self-employed individuals can generally deduct any expenses incurred to earn their income, company drivers are limited to non-reimbursed expenses required by their employer. You are entitled to per diem for overnights and motel expenses. A good rule to follow for deductions would be any expenses incurred that are necessary or required in the performance of your job and/or operation of the truck but are not reimbursed by your company, such as uniforms, gloves, logbooks, maps, cell phone, CB, tools, Windex, paper towels, showers, etc. Remember, as a company driver, these deductions are only available if you itemize and are not available if you take the standard deduction.

  What is the per diem rate?

The per diem rate for meals in 2011 is 80% of $59 per day.
The per diem rate for meals in 2010 was 80% of $59 per day.
The per diem rate for meals in 2009 was 80% of $52 per day.
The per diem rate for meals in 2008 was 80% of $52 per day.
The per diem rate for meals in 2007 was 75% of $52 per day.
The per diem rate for meals in 2006 was 75% of $52 per day.
The per diem rate for meals in 2005 was 70% of $41 per day.
The per diem rate for meals in 2004 was 70% of $41 per day.

The per diem rate for meals when in Canada is 80% of $65 per day

Per Diem can only be taken when the driver spends the night away from home.

Unemployed in 2008
For those taxpayers who were unemployed in 2008, it is important to remember that unemployment compensation is taxable on federal and most state tax returns. Income tax is not automatically withheld from unemployment compensation, however, individuals can elect to have taxes deducted. If you did not have taxes withheld throughout the year, you may have a potential balance due when you file your 2008 income taxes.
For those taxpayers looking for a job during 2008, there are deductible costs they can claim if they itemize deductions, including:

• Mileage costs accrued on a personal vehicle while job hunting including trips to job interviews and to the unemployment office. Between January 1, 2008, and June 30, 2008, taxpayers can claim 50.5 cents per mile. Between July 1, 2008 and December 31, 2008, taxpayers can claim 58.5 cents per mile.
• Costs for creating, printing and mailing a resume
• Costs for a headhunter or job placement agency
• Transportation costs such as a bus, taxi, train or plane to an interview
• Meals and lodging if out of town for an interview
• Parking and tolls when driving to an interview
• Long distance or mobile phone call charges directly associated with a job search
• Business research services
• Physical exam expenses if required by a potential employer

If a taxpayer accepted a new job which required relocation, he or she may be able to deduct qualified moving expenses not reimbursed by the new employer. Taxpayers should keep receipts related to all moving expenses in order to substantiate these expenses.