What You Need to Know About Truck Driver Tax Deductions

(February 2025)

What You Need to Know About Truck Driver Tax Deductions

In This Article

Do you drive a truck for a living? Do you own or lease your truck? Do you travel long distances for your work? If you answered yes to any of these questions, you may be eligible for truck driver tax deductions. These are expenses that you can claim on your tax return to reduce your taxable income and save money on taxes. However, not all truck drivers can claim these deductions, and not all expenses are deductible.

You need to know the rules and regulations regarding truck driver tax deductions, and how to track and report them properly.

Are you curious about what these rules and steps are? Just focus your attention on this article to have a better understanding of how to take advantage of truck driver tax deductions and maximize your tax savings. Start reading now!

  1. Know What Truck Driver Tax Deductions Are
  2. Know Who Can Claim Truck Driver Tax Deductions
  3. Know the Common Truck Driver Tax Deductions
  4. Know How Distance Covered Can Affect Your Claim
  5. Know Non-Deductible Expenses
  6. Know How to Track Your Deductible Expenses
  7. Know Which Form to File And How to File It

1. Know What Truck Driver Tax Deductions Are

Think of truck driver tax deductions as expenses that are ordinary and necessary for your work as a truck driver. These expenses can include costs related to your vehicle, your travel, your equipment, your education, and more. By deducting these expenses from your income, you can lower your taxable income and pay less taxes.

However, you must have receipts or other documentation to prove that these expenses are related to your work and that you pay for them.

2. Know Who Can Claim Truck Driver Tax Deductions

Be aware that not all truck drivers can claim truck driver tax deductions. Check if you are self-employed to confirm your eligibility. This means you must be an owner-operator or an independent contractor, rather than a company driver, to be eligible.

You can tell whether you qualify by looking at what type of tax documents you get at the end of the year. If you get a W-2, you are a company driver and do not qualify. If you get one or more 1099s as an owner-operator, you can claim all available tax deductions for truck drivers.

3. Know the Common Truck Driver Tax Deductions

Note that many types of expenses can be truck driver tax deductions, depending on your situation. Here are some common deductions you may be able to claim:

  • Vehicle expenses: Deduct the costs of operating and maintaining your truck, such as fuel, oil, tires, repairs, insurance, registration, and depreciation. You can use either the standard mileage rate or the actual expense method to calculate your deduction. The standard mileage rate is a fixed amount per mile that you can multiply by the number of miles you drive for work.
  • Travel expenses: Deduct the costs of traveling away from your home for work, such as lodging, meals, tolls, parking, and laundry. You must be away from your tax home, which is your regular place of business, for longer than a normal workday and need to sleep or rest to meet the demands of your work. You can use either the actual cost method or the per diem method to calculate your deduction. The actual cost method is based on the actual costs you pay for your travel. The per diem method is based on a fixed amount per day that you can multiply by the number of days you are away from home. Choose one method and stick to it for the entire year.
  • Equipment expenses: Deduct the costs of tools and equipment that you use for your work, such as chains, tarps, straps, duct tape, tire irons, and electronic devices. You can deduct the full cost of the items if they have a useful life of one year or less, or you can deduct the depreciation of the items if they have a useful life of more than one year.
  • Education expenses: Deduct the costs of education that you use to improve your skills in your current line of work or that is required for your job, such as training to obtain or maintain a CDL license or other advanced certifications. You cannot deduct the costs of education that qualify you for a new trade or business, or that has no relationship to your work.

4. Know How Distance Covered Can Affect Your Claim

Understand that the distance you cover for your work can affect your claim for truck driver tax deductions. The more miles you drive for work, the more you can deduct for your vehicle expenses and your travel expenses.

However, keep a log of your mileage and your trips to substantiate your claim. You must record the date, the destination, the purpose, the odometer readings, and the miles driven for each trip. You must also separate your miles from your business miles. You can only deduct the business portion of your mileage and your travel expenses.

5. Know Non-Deductible Expenses

Keep in mind that not all expenses related to your work as a truck driver are deductible. Some expenses are personal or non-essential, and you cannot claim them on your tax return. These include:

  • Personal expenses: You cannot deduct any expenses that are primarily for your benefit or enjoyment, such as entertainment, gifts, fines, personal grooming, or clothing that is suitable for everyday use.
  • Commuting expenses: You cannot deduct the costs of traveling between your home and your regular place of business, such as your terminal or dispatch center. This is commuting, and it is not deductible. However, if you travel from your home to a temporary work site, or from one work site to another, you can deduct those costs as travel expenses.
  • Reimbursed expenses: You cannot deduct any expenses that your employer or client reimburses for you. If you receive a reimbursement that is more than your actual expense, you must report the excess amount as income. If you receive a reimbursement that is less than your actual expense, you can deduct the difference as an expense.

6. Know How to Track Your Deductible Expenses

 To claim truck driver tax deductions, keep track of your deductible expenses throughout the year. You must have receipts or other documentation to prove that you pay for the expenses and that they have relationships to your work. You must also keep a log of your mileage and your trips.

You can use a notebook, a spreadsheet, an app, or a software program to record your expenses and your mileage. Organize your records by category and by date, and keep them in a safe place. In addition, keep copies of your tax documents, such as your 1099s, your Schedule C, and your Schedule SE.

7. Know Which Form to File And How to File It

As a self-employed truck driver, file your tax return using Form 1040, the U.S. Individual Income Tax Return. You must also attach Schedule C, Profit or Loss from Business, to report your trucking income and expenses. Attach Schedule SE, Self-Employment Tax, to report your self-employment taxes.

You can file your tax return electronically or by mail, depending on your preference. You must file your tax return by the due date, which is usually April 15 of the following year, unless you request an extension. You must also pay your taxes by the due date, or you may face penalties and interest.

Recap

Truck driver tax deductions are not only beneficial for your finances, but also for the environment and the economy. By reducing your fuel consumption, you can lower your carbon footprint and help fight climate change.

By investing in your education and equipment, you can improve your skills and productivity and contribute to the growth of the trucking industry. By claiming truck driver tax deductions, you can make a positive difference for yourself and the world.

This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. . For comprehensive tax, legal or financial advice, always contact a qualified professional in your area. S’witty Kiwi assumes no liability for actions taken in reliance upon the information contained herein.

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