Tax Deductions for Truck Drivers
Whether you're an owner-operator or company driver, understanding your tax deductions can save you thousands. Here's a complete guide to trucking tax write-offs.
Common Deductions for Truck Drivers
Per Diem Meals
The IRS allows truckers to deduct meals at 80% (instead of the standard 50%) when traveling away from home overnight. Use the DOT per diem rate of $69/day for 2025.
Truck Payments and Lease
For owner-operators, truck loan interest or lease payments are deductible. The truck itself can be depreciated over time.
Fuel Costs
All diesel and DEF (diesel exhaust fluid) expenses for your truck. Keep all fuel receipts or use fuel card statements for documentation.
Maintenance and Repairs
Oil changes, tire replacements, brake repairs, and all maintenance costs to keep your truck running safely.
Insurance Premiums
Commercial truck insurance, cargo insurance, liability coverage, and occupational accident insurance premiums.
DOT Physical and Drug Tests
Required DOT physicals, drug screenings, and medical examinations necessary to maintain your CDL.
Electronic Logging Device (ELD)
ELD hardware, monthly subscription fees, and related compliance technology costs.
Truck Accessories and Supplies
CB radios, GPS units, dashcams, chains, tarps, load locks, and other equipment necessary for your routes.
Expenses to Track
Owner-Operators vs. Company Drivers
Tax deduction rules differ significantly based on your employment status:
Owner-Operators (Self-Employed): You can deduct virtually all business expenses on Schedule C, including fuel, truck payments, insurance, and per diem. This guide focuses primarily on owner-operator deductions.
Company Drivers (W-2 Employees): Unfortunately, due to the Tax Cuts and Jobs Act (2018-2025), W-2 employees cannot deduct unreimbursed employee expenses on federal returns. However, some states still allow these deductions on state returns. Check your state's specific rules.
Understanding Per Diem for Truckers
The IRS provides special rules for transportation workers:
- 80% deduction rate: Instead of the standard 50% for business meals, DOT workers can deduct 80%
- Standard per diem rate: $69 per day for 2025 (no receipts required if using this rate)
- Partial day rules: Use a partial day rate for days you depart or return home
- Tax home requirement: You must have a "tax home" (permanent residence) to claim per diem
Calculating Annual Per Diem
If you're on the road 280 days per year:
- 280 days x $69 = $19,320 in meal expenses
- 80% deductible = $15,456 deduction
This is one of the largest deductions available to truckers.
Truck Depreciation Options
When you purchase a truck, you have several depreciation options:
- Section 179: Deduct the full cost in the year of purchase (limits apply)
- Bonus Depreciation: 40% bonus depreciation for 2025 (phasing down from previous years)
- MACRS Depreciation: Spread deduction over 5 years (3 years for trucks under 6,000 lbs)
For expensive trucks, a combination of these methods may be optimal. Consult a tax professional for your specific situation.
IFTA and Fuel Tax Credits
The International Fuel Tax Agreement (IFTA) requires quarterly reporting of miles traveled and fuel purchased in each state. While not a direct deduction, proper IFTA compliance ensures you:
- Receive proper fuel tax credits for states where you purchased excess fuel
- Avoid penalties and interest from fuel tax underpayment
- Maintain accurate records that support your fuel expense deductions
Lumper Fees and Detention Pay
- Lumper fees: Payments for loading/unloading services are fully deductible
- Detention pay: Income received for waiting time is taxable, but keep records as it affects your per-mile earnings analysis
- Deadhead miles: Miles driven empty to pick up a load can be tracked for business expense purposes
Keep receipts for all lumper fees, as they can add up to several thousand dollars annually.
Use the special DOT per diem rate - you don't need individual meal receipts if you use the standard rate.
Keep a trip log with departure/return dates to document days away from home for per diem.
Save all fuel receipts or download monthly fuel card statements for documentation.
Track lumper fees, scales, and tolls separately - they're easy to forget but add up significantly.
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