What Can Truck Drivers Write Off on Taxes?

Understanding tax deductions can significantly reduce a truck driver’s tax liability. This guide clarifies common write-offs and their requirements. By understanding employment status, business expenses, and thorough record-keeping, truck drivers can effectively navigate tax filing.

Understanding Employment Status and Its Tax Impact

A truck driver’s employment status determines which expenses are deductible. The primary distinction is between self-employed independent contractors and employed W-2 employees, which dictates income reporting and deductions.

Self-employed truck drivers, often owner-operators, receive a Form 1099-NEC. They operate as a business, are responsible for their expenses, and can deduct ordinary and necessary business expenses on Schedule C (Form 1040) to calculate net profit or loss.

Employed truck drivers receive a Form W-2, with taxes withheld. For tax years 2018-2025, the Tax Cuts and Jobs Act (TCJA) eliminated the federal deduction for most unreimbursed employee business expenses. W-2 drivers generally cannot deduct expenses their employer does not reimburse, though state laws may differ.

This difference is crucial. Self-employed drivers are responsible for their expenses and taxes, but can claim more deductions. W-2 employees have taxes withheld and benefits, but limited options for work-related expense deductions.

Common Business Expenses

Self-employed truck drivers can deduct a variety of ordinary and necessary business expenses. An “ordinary” expense is common in the trucking industry, while a “necessary” expense is helpful and appropriate.

Meals and incidental expenses incurred while away from home overnight are deductible. Drivers subject to hours of service regulations can claim 80% of these expenses. For 2025, effective October 1, 2024, the per diem rate for travel within the continental U.S. is $80 per day, or $86 outside. Drivers can deduct the per diem rate or actual meal expenses with receipts.

Vehicle expenses are a significant deduction for owner-operators, including fuel, repairs, maintenance, tires, insurance, registration, tolls, and parking fees. Since a semi-truck is a qualified non-personal-use vehicle, drivers must claim actual expenses, not the standard mileage rate. Other costs include loan interest and depreciation if financed.

Communication expenses are deductible if used for business, such as dispatch, GPS, or general communication. This includes cell phones, internet services, and CB radios. If a device is used for both business and personal purposes, only the business portion is deductible.

Licensing and fees essential for operating a trucking business are deductible. This includes Commercial Driver’s License (CDL) fees, medical exam costs, hazmat endorsements, vehicle permits, and association dues.

Supplies and equipment necessary for the trucking operation are deductible. Examples include:
Tools
Logbooks
Cleaning supplies
Safety gear
GPS devices
Tarps
Straps
Items for the truck’s interior (e.g., microwave, refrigerator)
Personal protective equipment

The home office deduction is available if a dedicated space is used exclusively and regularly as the principal place of business or for meeting clients. Taxpayers can choose a simplified option ($5 per square foot up to 300 sq ft, max $1,500) or the regular method based on the percentage of the home used for business. The regular method allows deduction of direct expenses (e.g., painting) and a percentage of indirect expenses (e.g., mortgage interest, utilities).

Business insurance premiums are deductible as an ordinary and necessary cost of doing business, including general liability, professional liability, and commercial property insurance. Self-employed individuals can deduct 100% of health insurance premiums for themselves, their spouse, and dependents if not eligible for an employer-sponsored plan. This deduction is taken as an adjustment to income on Schedule 1 of Form 1040.

Professional development and education expenses related to improving trucking skills are deductible, including training, seminars, or certifications like hazardous materials training. Roadside assistance memberships, trucking association dues, and the business portion of tax preparation fees are also deductible.

Essential Record Keeping

Maintaining accurate records is fundamental for substantiating claimed tax deductions. The IRS requires documentation to support income, expenses, and credits. Without proper records, deductions can be disallowed upon audit, potentially leading to additional taxes, penalties, and interest.

Records should include receipts, invoices, mileage logs, bank statements, and credit card statements. Electronic records are acceptable for digital transactions if readily accessible and verifiable. Consistent expense tracking simplifies tax preparation and provides a clear audit trail.

For vehicle expenses, detailed mileage logs are necessary to distinguish between business and personal use. For per diem and travel expenses, documentation proving the need to be away from the “tax home” overnight is important.

Organizing records, physically or digitally, by category and date saves time. Digital solutions like scanning receipts or expense tracking software help ensure no deductible expense is overlooked and information is readily available if requested by tax authorities.

Filing Your Deductions

The process of filing deductions varies by employment status, with self-employed truck drivers having a more involved procedure. Owner-operators and independent contractors report income and expenses on Schedule C (Form 1040), “Profit or Loss from Business (Sole Proprietorship).” This form calculates net profit or loss by subtracting eligible business expenses from gross income.

The net profit or loss from Schedule C flows to Form 1040, impacting the driver’s taxable income. Self-employed truck drivers earning $400 or more in net self-employment income must also file Schedule SE (Form 1040) for “Self-Employment Tax.” This form calculates Social Security and Medicare tax contributions, which self-employed individuals pay themselves.

The self-employment tax rate is 15.3% (12.4% for Social Security, 2.9% for Medicare). Self-employed individuals can deduct one-half of their self-employment tax from gross income on Form 1040. Accurate reporting is essential to comply with tax regulations and minimize tax liability. While tax software is an option, consulting a qualified tax professional can ensure correct deductions and adherence to current tax laws.