What Can a 1099 Truck Driver Write Off?

As an independent contractor, a 1099 truck driver operates their own business, distinct from an employee who receives a W-2 form. This classification means they are responsible for their own taxes, including self-employment taxes for Social Security and Medicare. Utilizing business deductions is a significant advantage for these self-employed individuals. By reducing their taxable income, these deductions directly impact their overall tax liability. This guide explores write-offs for 1099 truck drivers.

Understanding Tax Deductions for 1099 Drivers

Tax deductions for independent contractors like 1099 truck drivers hinge on the “ordinary and necessary” rule. An expense is “ordinary” if it is common and accepted within the trucking industry. A “necessary” expense is one that is helpful and appropriate for running the business. Expenses must be incurred strictly for business purposes, not personal use. All eligible business income and expenses are reported on Schedule C, Profit or Loss from Business, when filing a Form 1040, which reduces a driver’s gross income and leads to a lower net taxable income.

Common Deductible Expenses

Vehicle expenses are a substantial category for 1099 truck drivers. Deductible items include:
Fuel, oil, tires, and routine maintenance and repairs.
Insurance premiums, vehicle registration fees, and truck lease payments.
Truck wash services.

Travel expenses are significant for long-haul drivers. Tolls and parking fees incurred during business trips are fully deductible. Lodging expenses, when a driver is away from their tax home overnight for business, are also eligible.

Operating costs are integral to a truck driver’s business. This category includes:
Licenses and permits, such as Commercial Driver’s Licenses (CDL), Department of Transportation (DOT) permits, and International Fuel Tax Agreement (IFTA) decals.
Scale fees.
Roadside assistance memberships.
Dispatch services.

Communication and technology expenses are necessary for staying connected on the road. The business portion of cell phone and internet expenses can be deducted. Costs for GPS devices and Electronic Logging Device (ELD) subscriptions also qualify.

Office supplies and equipment, even those used on the go, are deductible. This includes items like pens, paper, and logbooks. Larger items such as a printer or a computer, if primarily used for business, can also be written off.

Professional development helps drivers maintain and enhance their skills. Fees for trucking-related training courses, certifications, and professional association dues are deductible expenses.

Health insurance premiums can be a deductible expense for self-employed individuals. If a 1099 truck driver is not eligible for an employer-sponsored health plan, they may deduct premiums paid for medical, dental, and qualifying long-term care insurance. This deduction applies to premiums paid for themselves, their spouse, and dependents.

Business insurance provides protection against various risks. Premiums for liability and cargo insurance are deductible. These policies protect the business and its assets.

Professional fees paid for services directly related to the business can also be deducted. This includes fees paid to accountants for tax preparation and financial advice, and legal fees incurred for business matters.

Specific Deductibility Rules and Record-Keeping

Meal and lodging expenses for truck drivers have specific rules. Drivers can deduct either the actual cost of meals, supported by receipts, or use a per diem allowance. For transportation workers subject to Department of Transportation (DOT) hours of service limits, 80% of meal expenses are deductible. The per diem rate for travel within the continental U.S. for transportation workers is approximately $69 per full day for 2023, increasing to $80 per day for the 2025 tax year, with a reduced rate for partial days. Unlike meals, lodging expenses must always be deducted based on actual costs, as there is no per diem option for accommodation.

For large asset purchases like a truck, the cost is recovered over time through depreciation. Section 179 expensing and bonus depreciation allow for an accelerated deduction of these costs in the year the asset is placed into service. Section 179 permits businesses to deduct the full purchase price of qualifying equipment, including certain vehicles over 6,000 pounds gross vehicle weight rating (GVWR), up to an annual limit. Bonus depreciation (e.g., 40% for 2025) allows an additional percentage of the cost to be deducted in the first year, regardless of business profit. These provisions significantly reduce taxable income in the year of purchase.

The home office deduction is available if a specific area of the home is used exclusively and regularly for business as the principal place of business. Two methods exist for calculating this deduction: the simplified option and the regular method. The simplified option allows a deduction of $5 per square foot for the business-use area, up to a maximum of 300 square feet, capping the deduction at $1,500. The regular method requires calculating the actual expenses attributable to the home office, such as a proportionate share of utilities, rent, or mortgage interest.

The self-employed health insurance premium deduction is an “above-the-line” deduction, reducing adjusted gross income (AGI) and claimable without itemizing other deductions. Eligibility requires a net profit from the business and not being eligible for health coverage through an employer-sponsored plan, including one offered by a spouse’s employer. The deduction cannot exceed the net earned income from the business.

Accurate record-keeping is essential for substantiating all claimed deductions. The Internal Revenue Service (IRS) requires taxpayers to maintain records that support income, deductions, and credits. This includes receipts, invoices, mileage logs, bank statements, and credit card statements. Records should be kept for at least three years from the date the tax return was filed. For certain situations, such as significant underreporting of income or claims for bad debt deductions, a longer retention period of six or seven years may be necessary.