Are you idling in doing your taxes?

accounting, report, credit card-761599.jpg

I know, doing taxes is something you want to avoid if possible.  Unfortunately, it is inevitable and not filing your taxes might cost you more money than what you should have paid because of penalty and interest.

As a truck driver; below are some expenses that you might be able to write-off to reduce your tax liability.

Meal and Beverage Expenses – being always on the road, meals is the most common expense a trucker has. You can claim 50% of your meal and beverage expense (even if you go to grocery and cook it yourself) or 80% if you are a long-haul driver (To be considered a long-haul truck driver by the Canada Revenue Agency, you must be an employee whose main duty is to transport goods, passengers or both using a long-haul truck. A long-haul truck is defined as a freight truck with a gross vehicle weight rating of more than 11,788 kilograms).  If your meal and beverage expense claim do not exceed $46/day, you don’t need to keep receipts to support your claim (e.g. batching method).

Lodging (including showers) – you can claim lodging expenses or cost of showers if you have slept in the cab of your truck instead of hotels.  You need to keep your receipts for this expenses.

For meals and lodging expenses, you need to fill out (or your employer fill it out for you) form TL2 and have it certified by your employer (https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/tl2/tl2-21e.pdf ).

In case you are an owner-operator, you may also be eligible to claim certain operating expenses as business expenses.  Examples of those expenses includes:

  • Insurance
  • Maintenance and repairs
  • Fuel costs
  • Management and administration fees
  • Capital cost allowance
  • Advertising
  • Rent
  • Utilities
  • Legal, accounting, and other professional fees
  • Membership dues
  • Bank fees and interest
  • Business-use-of-home expenses

Overwhelm or confused?  Contact us at info@bridgingnumbers.ca or visit our website at https://bridgingnumbers.ca/ and we will definitely help you out.    Remember, finding a good accountant is like finding a good mechanic, it will cost you more now but will definitely save you a lot of money in the long-run

Sources:

Meals and lodging (including showers)

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22900-other-employment-expenses/transportation-employees/meals-lodging-including-showers.html

Meal expenses of long-haul truck drivers

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22900-other-employment-expenses/transportation-employees/meal-expenses-long-haul-truck-drivers.html

Business expenses

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses.html