Tax Guide for Truckers and Owner-Operators

If you're an owner-operator truck driver, you own or lease your truck and operate as a self-employed independent contractor, getting paid by the load or mile from freight brokers or carriers. Your tax situation involves significant vehicle expenses and a special per diem deduction that can substantially reduce your taxable income.

Income and Schedule C

Your gross revenue from hauling — minus any fuel surcharges passed to you — is your self-employment income reported on Schedule C. You'll receive 1099-NEC forms from each freight company that paid you $600 or more. Deducting allowable expenses brings this down to your net profit, which is what's subject to income tax and self-employment tax.

Truck and Vehicle Expenses

Your biggest deductions are truck-related. You can deduct fuel, truck payments (or lease payments), repairs and maintenance, insurance, registration and permits, tolls, and depreciation on the truck. Trucks qualify for Section 179 expensing and bonus depreciation, which can let you deduct the full cost of a new or used truck in the year of purchase rather than over several years.

Per Diem Deduction for Overnight Trips

When your work requires you to be away from your tax home overnight, you can deduct a per diem for meals and incidental expenses. The IRS special transportation worker per diem rate allows you to deduct 80% of a standard daily rate for days away from home. This deduction doesn't require saving receipts — you just need to track the days you were away overnight.

Other Deductible Expenses

Additional deductions include: CB radio and communication equipment, log books and dispatch software, drug testing and physical exams required for your CDL, scales and weigh station fees, safety equipment and protective gear, and business-use portions of your cell phone.

Quarterly Estimated Taxes

Owner-operators need to make quarterly estimated tax payments. With a high-grossing truck, the self-employment tax alone can be substantial. Setting aside 30-35% of net income for taxes and making quarterly payments prevents a large tax bill (and penalties) at year-end.