Savings on the Road: Tax Deductions for Truck Drivers

Truck drivers work diligently year-round, but their efforts become particularly evident during tax season. Truckers can claim several business-related tax deductions and generate a lower tax bill. 

However, certain limitations and exceptions apply to tax write-offs for truck drivers. This article explains everything you need to know about truck driver tax deductions to maximize your savings.

Are Truck Drivers Eligible for Tax Deductions?

Self-employed truck drivers, known as owner-operators, can generally claim tax deductions for business-related expenses. Owner-operators purchase and drive their own vehicles, acting as independent contractors. 

Note that truck driver deductions apply to unreimbursed expenses for self-employed truckers only. Trucking business employees who earn W-2 wages cannot deduct travel expenses. Transportation company drivers often receive employer reimbursements and incur fewer out-of-pocket expenses.

Truck Driver Tax Deductions

What tax deductions can truckers claim?

Truck drivers can deduct several types of job-related expenses. Tax deductions for truckers include the following:

• Travel expenses, including meals

• Vehicle costs

• Medical expenses

• License fees and association dues

• Office expenses

CPAs specializing in truck driver tax deductions can help you find more write-offs and lower your tax bill.

Travel Expenses

Deductible travel expenses represent costs incurred on business-related trips. Eligible trips include long-distance travel away from the trucker’s tax home.

Your tax home represents the entire city or general area where you conduct business or work, regardless of where you maintain your family home. If you work as a truck driver in more than one place, the IRS considers your tax home to be the general area of your principal place of business or work.

Truckers may only deduct travel expenses incurred on temporary work assignments. Indefinite work assignments (lasting longer than one year) cannot generate tax write-offs.

Owner-operators can also deduct work-related trucking expenses such as:

• Fuel costs

• Scale and truck weighing fees

• Tolls

• Parking fees

• Lodging or accommodations

Additionally, self-employed truck drivers can claim a tax deduction for the cost of meals on long-distance trips. The IRS provides guidance on calculating this write-off, which we’ll explain below.

Meal Expenses

The IRS allows independent contractors to deduct a percentage of meal expenses incurred during long-distance business travel. To determine your write-off, total your actual expenses or use the standard meal allowance for each day of travel. 

• Actual expenses: Keep records of all meal costs during your trip. Deduct a portion of your total spending on meals.

• Standard meal allowance: Use the IRS per diem rate for each day of the trip. You can deduct 3/4 of the per diem rate for your departure and return days.

The IRS establishes special rates for the transportation industry. Starting October 1, 2024, truckers can use a per diem rate of $80 for travel within the continental United States. A $86 per diem applies to travel outside the continental U.S.

Truckers can deduct 80% of the total meal expenses or standard allowance. (Other industries have a 50% deduction limit.)

For example, consider a driver making a four-day trip within the continental U.S. The standard meal allowance uses the following approach: 

• Per diem standard allowance:

  • Day 1 (departure): $80 x 75% = $60

  • Day 2: $80

  • Day 3: $80

  • Day 4 (return): $80 x 75% = $60

• Total standard allowance: $280

• Meals write-off: $280 x 80% = $224

Note that local drivers cannot deduct meal expenses for single-day travel.

You can avoid tedious paperwork and receipts. Consult trucking tax professionals for help calculating the highest meal expense write-off for your business tax return.

Vehicle Costs

Truckers can claim numerous tax deductions for vehicle ownership, such as repairs and maintenance, cleaning costs, and transportation fees. 

Owner-operators can write off the business-related portion of the following expenses: 

• Repairs and maintenance

• Batteries, tools, and tires

• Cleaning supplies

• Heavy highway vehicle use tax

• Property damage insurance and cargo insurance premiums

• Vehicle loan interest

• Depreciation expense

Unlike many taxpayers, truck drivers cannot claim the standard mileage deduction. The IRS allows a standard mileage rate method for business travel, but the deduction excludes commercial trucks.

Trucking CPAs at 1-800Accountant can help with complicated business tax calculations.

Medical Expenses

The IRS limits personal medical expense deductions for most taxpayers. However, truck drivers can deduct work-related medical expenses.

For example, many truckers must complete medical exams to qualify for work assignments. The following medical expenses may represent additional tax deductions for truck drivers. 

• Health insurance premiums

• Trucking uniforms

• Safety gear

• Work-related doctor visits

License Fees and Association Dues

Truck drivers can deduct license fees and association dues necessary for career advancement. For example, many owner-operators obtain a commercial driver's license (CDL).

Keep your receipts for the following items so you can deduct the expenses on your tax return: 

• CDL classes and training programs

• CDL testing costs

• License application fees

• Trucking association or union dues

We also recommend retaining proof that your work assignments require a CDL or association membership. Your professional CPA can help you determine which records to keep.

Office Expenses

Small business owners incur numerous operational costs related to business management. Self-employed truckers can claim tax deductions for the business-related portion of the following expenses. 

• Accounting software

• Outsourced bookkeeping costs

• Record-keeping devices, such as logbooks

• Industry-related subscriptions

• Cell phone and internet usage

Retain records to support the business-use percentage of each item. For example, if your work-related cell phone calls represent 25% of your total usage, you can deduct 25% of your bill as a business expense.

Standard Deduction

All taxpayers can take a standard deduction on IRS Form 1040, U.S. Individual Income Tax Return. 

The tax year 2024 standard deduction varies by filing status, as follows:

• Single or married filing separately: $14,600

• Married filing jointly: $29,200

• Heads of household: $21,900

The standard deduction reduces your individual taxable income. If you prefer to itemize your deductions on IRS Form 1040 Schedule A, you’ll forego the standard deduction. Tax professionals can help you calculate the most advantageous tax deduction for your return.

Non-deductible Trucking Expenses

Truck drivers can claim numerous business tax deductions, but non-business costs do not qualify. 

Owner-operators cannot write off the following items.

• Clothing for daily wear

• Personal expenses, such as a home phone line

• Reimbursed expenses

• Lost income due to downtime or illness

• Time spent on truck maintenance

How to Claim Tax Deductions as a Truck Driver

Self-employed truck drivers can claim tax deductions by filing IRS Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship). Use Part II, Expenses, to report your trucking business tax deductions.

Independent contractors must also file IRS Schedule SE (Form 1040), Self-Employment Tax. Owner-operators must use Schedule SE to calculate the self-employment tax liability.

File Schedule C and Schedule SE with your IRS Form 1040.

Talk to 1-800Accountant Tax Professionals for Maximum Tax Savings

As a truck driver, it's critical to know which tax deductions you're eligible for and take advantage of potential tax savings. 

Are you looking for professional guidance on your taxes this year? If so, consider working with expert accountants and bookkeepers specializing in your commercial truck tax needs.