Secrest Direct Inc. is an independent Landstar agent (DUV/RKY).
| Questions? 877-441-9128 Contact Application Login |
Secrest Direct Inc. is an independent Landstar agent (DUV/RKY).
| Questions? 877-441-9128 Contact Application Login |
A practical starting point for understanding common business deductions, estimated taxes, per diem rules, and the records that support an owner-operator tax return.
Evergreen guide Reviewed August 2026 General educational information
Tax treatment depends on your business structure and individual facts. This page is general information, not tax, legal, or accounting advice. Confirm current rules with the IRS and a qualified tax professional.
Jump directly to the information that matters most to your business.
An owner-operator working as an independent contractor is generally dealing with business income, business expenses, and taxes that are not automatically handled through employee withholding.
The exact return depends on how your business is structured. Many sole proprietor report business income and expenses on Schedule C, while other entity structures can have different filing requirements.
The useful question is not “Can truckers deduct this?”
It is whether the expense is ordinary and necessary for your business, how much of it is business use, and whether you have records to support it.
Track the business income.
Settlement statements and information returns do not replace complete business records.
Separate business from personal spending.
Mixed-use expenses often require a reasonable business-use allocation.
Plan for taxes during the year.
Self-employed taxpayers may need estimated payments rather than waiting until the annual return is due.
There is no universal trucking deduction checklist that applies the same way to every return.
These categories are a useful place to organize expenses for review with your tax professional.
Fuel, repairs, maintenance, tires, truck washes, commercial insurance, registrations and permits may be business expenses. Truck purchases, improvements, lease costs, depreciation and interest can follow additional rules.
Accounting, business-related legal services, licensing, bank fees, office supplies, postage and qualifying tax-preparation costs can be part of the business expense picture.
Qualifying lodging and meal expenses can be deductible when business travel meets IRS away-from-home rules. Transportation workers can also have special standard meal allowance rules.
Tolls, parking, scales, business-related roadside costs, ELD services, GPS, load-planning tools and other operating software may qualify when they are ordinary, necessary and tied to the business.
Phone, internet, computers, tablets and software can have a deductible business-use portion. Personal use needs to be separated rather than treated as a business expense.
A home office may qualify when IRS requirements are met. Health insurance, retirement contributions, depreciation and other items can follow separate rules and should not be treated as automatic Schedule C deductions.
A business deduction generally reduces taxable business income. A tax credit generally reduces tax liability when you meet the requirements for that specific credit. Do not treat retirement contributions, charitable donations or other deductions as “business tax credits” without checking the applicable rules.
The fact that an expense happens while you are a truck owner does not automatically make it deductible.
Personal living costs, mixed-use purchases, capital assets, reimbursements and expenses governed by special rules need to be handled correctly. That is one reason a clean set of records matters more than a giant list of supposed “write-offs.”
Personal or family expenses — personal costs do not become business deductions just because they are paid from a business account.
Mixed business/personal expenses — deductibility may be limited to the documented business-use portion.
Large equipment purchases or improvements — depreciation, expensing and capitalization rules may apply.
Government fines and penalties — these are generally not deductible as business expenses.
Reimbursed expenses — reimbursement can change what, if anything, you may deduct.
Owner-operators should not rely on a blanket rule such as “always set aside 25%” or “always set aside 30%.” The amount you may need depends on income, deductions, filing status, other income, credits and state obligations.
Self-employed taxpayers who do not have enough tax withheld may need estimated tax payments during the year. Form 1040-ES is the IRS starting point for calculating and paying federal estimated tax.
Income
Keep settlement and business-income records current instead of trying to reconstruct the year at filing time.
Expenses
Update deductible business expenses throughout the year so estimates are based on net business results, not only gross revenue.
Payments
Use current IRS instructions and your tax professional to determine whether estimated payments apply and how much to pay.
State Taxes
Federal estimated tax is only one piece. State and local obligations depend on where and how the business operates.
Per diem is one of the strongest tax search topics on this site, but it is also one of the easiest places to repeat an outdated rate or oversimplify the rule.
The IRS travel rules focus on whether you are traveling away from your tax home and whether the trip requires sleep or rest to meet the demands of the work. Transportation workers can have special meal-allowance rules, and the rates can change.
For that reason, this evergreen hub does not hard-code an annual per diem amount.
Tax home: Where is your tax home under the IRS travel rules?
Away from home: Does the business trip keep you away substantially longer than an ordinary workday?
Sleep or rest: Does the work require sleep or rest while you are away?
Current rate: Are you using the current transportation-worker meal allowance and the correct partial-day method?
You do not need a complicated system. You do need a system you use consistently.
The IRS says business records should be kept as long as needed to prove income or deductions. Many tax-return records are kept for at least three years, but longer periods can apply depending on the document or issue.
Income
settlement statements, invoices and information returns.
tolls, parking, scales, lodging and qualifying travel records.
support for phone, internet, technology, vehicle or home-office allocations.
Filing taxes as an owner-operator can be difficult, especially if you are new to the road. A tax professional who is familiar with the trucking industry can help you find deductions and credits that you are eligible for.
Tax professionals can also help you avoid expensive mistakes.
Self-employed owner-operators may be able to deduct ordinary and necessary expenses related to running their trucking business. Common categories can include fuel, truck repairs and maintenance, tires, commercial insurance, permits and registrations, tolls, scales, ELD and business software, accounting costs, and the business portion of qualifying phone or internet expenses.
Truck purchases, lease payments, depreciation, meals, travel, health insurance, retirement contributions, and home-office expenses can follow additional rules. A cost isn’t automatically deductible just because it was paid while operating a truck.
For meals and away-from-home travel, review the Truck Driver Per Diem Tax Guide.
There is no single tax percentage that applies to every owner-operator. The amount depends on net business profit, filing status, deductions and credits, business structure, other household income, and applicable state and local taxes.
For many self-employed owner-operators, federal taxes can include both income tax and self-employment tax. The federal self-employment tax rate is generally 15.3% under current IRS rules, but that does not mean an owner-operator simply pays 15.3% of gross trucking revenue. Business expenses reduce net earnings, and Social Security and Medicare rules affect the final calculation.
Because every situation is different, use current IRS guidance or work with a qualified tax professional rather than relying on a fixed percentage such as “set aside 25%” as a universal tax rule.
Owner-operators generally pay taxes as self-employed business owners rather than having an employer automatically withhold taxes from each settlement. Depending on the business structure, taxes may include federal income tax, self-employment tax, and applicable state or local taxes.
Many sole proprietors report trucking income and business expenses on Schedule C with Form 1040 and calculate self-employment tax using Schedule SE. Owner-operators who expect to owe enough tax may also need to make estimated tax payments during the year using Form 1040-ES.
For current filing dates and annual tax reminders, see the Owner-Operator Tax Season Guide.
Many sole-proprietor owner-operators report business income and expenses on Schedule C with Form 1040. Schedule SE is generally used to calculate self-employment tax, while Form 1040-ES can be used to calculate and make federal estimated tax payments.
The forms required can change if the business is structured as a partnership, S corporation, corporation, or certain types of LLCs. Information returns such as Forms 1099 may also document income received, but they do not replace complete business income records.
Some owner-operators do. Individuals, including sole proprietors, generally may need to make estimated federal tax payments if they expect to owe $1,000 or more when their return is filed, after accounting for withholding and applicable credits.
Estimated taxes are based on expected income, taxable income, deductions, credits, and taxes for the year. If business income changes during the year, the estimate can be recalculated rather than relying on the same fixed percentage every quarter.
Check the current Owner-Operator Tax Season Guide for annual filing and payment reminders.
Government fines and penalties paid for violating the law generally are not deductible business expenses. That includes treating a traffic citation as an ordinary trucking expense simply because it occurred while operating the business.
Other payments, fees, or contractual penalties can follow different tax rules. Keep documentation showing what the payment was for and ask a tax professional when the treatment is unclear.
Keep tax and business records for as long as they may be needed to support income, deductions, credits, or the basis of business property. In many ordinary federal income-tax situations, the IRS period of limitations is three years, but longer periods apply in certain circumstances.
Records involving a truck or other depreciable business property may need to be kept much longer. Generally, keep those records until the applicable period of limitations has passed for the year in which the property is sold or otherwise disposed of.
A tax professional can be particularly useful when you’re starting or changing a business entity, buying or selling a truck, choosing depreciation methods, separating business and personal expenses, evaluating meal or per-diem deductions, hiring drivers, or correcting a prior tax return.
It can also make sense to get help when your trucking business becomes more complicated. Tax treatment can differ substantially based on business structure and individual circumstances, so general trucking tax guides should be used as a starting point rather than personalized tax advice.
Use the supporting pages below to move from compensation into freight planning, equipment, insurance, requirements and the formal application process.
Understand how freight search, load selection, destination, deadhead and available planning tools connect to the business.
Understand why trailer decisions can affect both compensation and expenses.
Learn about current purchasing programs that may help eligible owner-operators manage certain business costs.
Check current driver, tractor, documentation and qualification requirements before starting the formal process.
