Introduction
Truck drivers face unique tax challenges due to long hours on the road, high fuel costs, and out-of-pocket expenses. Whether you are an owner-operator or a company driver, knowing which IRS-approved deductions you qualify for can significantly reduce your tax burden.
This guide explains the top tax deductions for truck drivers, covering per diem rates, vehicle expenses, self-employment tax, and IRS compliance, along with step-by-step tax filing instructions to help you keep more of your hard-earned money.
Understanding Your Tax Status as a Truck Driver
Truck drivers fall into two tax categories, each with different filing requirements:
- Company Drivers (W-2 Employees):
- Receive a W-2 from an employer.
- Can no longer deduct unreimbursed expenses due to Tax Cuts and Jobs Act (TCJA) changes.
- May still qualify for per diem benefits if paid by the employer.
- Owner-Operators (1099 or Self-Employed):
- Considered independent contractors under IRC § 1402.
- Must file Schedule C (Form 1040) and pay self-employment tax (15.3%).
- Can deduct fuel, maintenance, insurance, meals, and other business expenses.
Example: W-2 Driver vs. Owner-Operator
- John (Company Driver): Paid by a trucking company on a W-2, with taxes withheld. He cannot deduct mileage but may receive a per diem reimbursement.
- Mike (Owner-Operator): A self-employed trucker leasing his own truck. He files Schedule C and deducts all business expenses, reducing taxable income.
Top Tax Deductions for Truck Drivers
2.1. Per Diem Meals Deduction (IRC § 162)
Truck drivers who travel away from their tax home overnight can deduct meal expenses using the per diem rate set by the IRS.
- 2025 Per Diem Rate: $69 per full day (CONUS) and $74 per day (OCONUS).
- Self-employed truck drivers can deduct 80% of per diem meals on Schedule C.
Example: Claiming Per Diem
Jessica, an owner-operator, spends 250 days on the road in 2025.
- 250 days × $69 per day = $17,250 in meal expenses.
- Deduction: $17,250 × 80% = $13,800.
2.2. Fuel, Maintenance, and Repairs (IRC § 162)
Owner-operators can deduct:
- Diesel and gasoline costs
- Tires, oil changes, and repairs
- Truck washes and maintenance services
2.3. Truck Lease and Loan Payments (IRC § 167)
- If leasing a truck, monthly lease payments are deductible.
- If buying a truck, depreciation deductions apply using Form 4562.
2.4. Depreciation of Equipment (IRC § 168(k))
Truckers who own their rig can claim bonus depreciation on assets such as:
- Tractor-trailers
- GPS, CB radios, and trucking software
- Office furniture and computers
2.5. Insurance Premiums (IRC § 162)
Deductible insurance costs include:
- Liability and cargo insurance
- Physical damage and bobtail insurance
- Health and disability insurance (for self-employed drivers)
2.6. Licensing, Training, and Union Dues
- CDL renewal fees and hazmat endorsements are deductible.
- Self-employed truckers can deduct training and trade association fees.
Step-by-Step Guide to Filing Taxes as a Truck Driver
Step 1: Track All Business Expenses
- Keep a detailed log of per diem days, fuel costs, and maintenance receipts.
- Use accounting software or an expense tracking app to stay organized.
Step 2: Report Income on the Correct IRS Form
- Company drivers file a W-2 tax return (Form 1040).
- Owner-operators file Schedule C (Form 1040) and Schedule SE for self-employment tax.
Step 3: Claim Eligible Deductions
- List all deductible expenses under the correct IRS categories on Schedule C.
- Use Form 4562 for truck depreciation.
Step 4: Pay Quarterly Estimated Taxes (Form 1040-ES)
Since trucking companies do not withhold taxes for owner-operators, estimated tax payments must be made quarterly:
- April 15, 2025 – Q1 Payment
- June 15, 2025 – Q2 Payment
- September 15, 2025 – Q3 Payment
- January 15, 2026 – Q4 Payment
Common Tax Mistakes Truck Drivers Should Avoid
- Not keeping detailed records – IRS requires logs for per diem, mileage, and expenses.
- Mixing personal and business expenses – Open a separate business bank account.
- Forgetting about depreciation – Claim depreciation on Form 4562 to offset truck costs.
- Failing to file quarterly estimated taxes – Results in IRS penalties under IRC § 6654.
Conclusion
Truck drivers can significantly reduce their tax liability by taking advantage of per diem deductions, fuel costs, vehicle depreciation, and other IRS-approved write-offs. Proper record-keeping and tax planning ensure compliance while maximizing savings.
To create a personalized tax strategy, schedule a consultation with Anshul Goyal, CPA EA FCA for expert guidance. Book an appointment here:
About Our CPA
Anshul Goyal, CPA EA FCA is a licensed Certified Public Accountant (CPA) in the United States, an Enrolled Agent (EA) admitted to practice before the IRS, and a cross-border tax expert. He specializes in IRS compliance, tax litigation, and assisting American businesses and Indian expatriates in managing U.S. tax obligations.
Frequently Asked Questions (FAQs)
1. What tax deductions can truck drivers claim?
Owner-operators can deduct fuel, per diem meals, truck lease payments, insurance, maintenance, and CDL fees.
2. How does the per diem deduction work for truck drivers?
Self-employed drivers can claim $69 per day (CONUS) or $74 per day (OCONUS) and deduct 80% of the total.
3. Can company drivers deduct expenses?
No, W-2 truck drivers cannot deduct unreimbursed expenses due to Tax Cuts and Jobs Act (TCJA) restrictions.
4. What tax forms do truck drivers need?
- Company drivers file Form 1040 (W-2 income).
- Owner-operators file Schedule C, Schedule SE, and Form 4562 (for depreciation).
5. Do truck drivers need to pay estimated taxes?
Yes, self-employed truck drivers must make quarterly estimated tax payments using Form 1040-ES.