Taxi driver can enjoy several tax deductions from federal income tax return on the basis of work related expenses. Tax deductions can be varied on the basis of different factors such as the taxi driver is worked as independent contractor or an employee as well as all expenses are reimbursed or you have lease your own vehicle. It is a big deal for both taxi driver and IRS (Internal Revenue Service). If you want to get all these benefits then you have to design taxi receipt. Taxi receipts are important for both taxi driver and traveler. Usually, the people who travel frequently through taxi get blank receipt from driver after payment of cash for the fares.
These blank taxi receipts prove helpful for the income tax purposes and also to show employer the amount of money spent on the taxi fare on business trip. Usually, celebrities and journalists also require blank taxi receipts in order to receive reimbursement for their expenses.
Contents of Taxi Receipts
Blank taxi receipts are given to passengers for their own convenience and the passengers are required to fill the taxi receipts with correct information. Following are some important contents that should be written on the taxi receipts:
Taxi receipt should include address and phone numbers of customer, date and time, pick up point, the destination and the amount of fare, including any tip that is given to the driver.
It will be good to fill out the receipt in the taxi during travel to take the signature of taxi driver. If you cannot take the signature of the taxi driver then do not worry as it is not actually required to have signature on the receipt.
If you are unable to get the taxi receipt from taxi driver then do not worry as you can get the free taxi receipt from internet. Good record of taxi receipts will help you to calculate all travel expenses related to business at the end of tax year.
Income Tax Benefits for Taxi Receipts
If you own or lease a vehicle you use for the taxi services then you are not allowed to take the flat mileage rate presumption on your income tax return. You can deduct the actual expenses you have paid for your car throughout the tax year. You have to keep the receipts of all transactions so that you can deduct the expenses while filing your taxes. Taxi receipts will help you to take the advantage of tax deductions.
It is essential to avoid all troubles with the IRS because any approximation or estimate will cause problems for you. It is essential to keep all taxi expenses receipts with you to get the tax exemption. Proper record should be arranged according to dates and serial numbers as it will prove really beneficial for taxation purpose. Carefully check everything before filing your data for taxes. It is necessary to carefully analyze all receipts before discarding them. Keep them for at least one year with you to present them in case of any confusion.
Here is preview of a Free Sample Taxi Receipt Template created using MS Word,
Here is download link for this Taxi Receipt Template,