Truck driver expenses

10 minutes

by Jon Smith

The trucker’s deductions may include any expenses incurred in the course of doing business as a truck driver. In other words, you can only write off your business and travel costs if you have a tax residence.

When you submit your taxes, you can exclude certain items from your taxable income to reduce the taxes you owe.

If you are an owner-operator truck driver, filing your tax returns correctly can dramatically reduce your taxable income or self-employment tax liability.

Who Can Claim Truck Driver Tax Deductions?

Company drivers and owner-operators are the two primary categories of truck drivers. Company drivers are classified as workers and receive a W-2 tax form at the end of the year.

Truck driver tax deductions are not available to these corporate drivers. Truck drivers that work for themselves are owner-operators or contract drivers. These owner-operators obtain 1099 tax forms as business owners.

Additionally, they incur costs for maintaining their operations, which are tax deductible. As a result, these owner-operators are eligible for tax deductions for truck drivers.

Essential Owner-Operator Trucker Expenses

1. Insurance

   You'll require a number of business insurance products in order to operate your trucking company legally and safely. Examples include cargo insurance, general liability, non-trucking liability, and commercial vehicle liability.

   You may deduct the cost of these insurance policies when filing your taxes. Owner-operators who purchase their own health insurance are likewise eligible to deduct it from their taxable income, but they must do it in a different manner.

2. Repair and maintenance of trucks

   Truck maintenance and repairs are another substantial expense for many owner-operators. It could be tempting to skip certain maintenance to cut costs, but doing so would be a serious mistake. It is required by law to keep your truck in a safe operating condition, and delaying required maintenance just raises the probability of future expensive repairs. Plan for these trucking charges instead so you won't be caught off guard. Generally speaking, you should budget 10% of your total expenses for car maintenance and repairs, with yearly tire prices ranging from $1,000 to $4,000.

3. Annual licenses, authorizations, and paperwork

   The price of your yearly licenses and permits should be factored in. These are governed by law and may be different in each state. Contact the relevant government agency for the latest price information.

   - Business licenses;

   - The cost of the renewal;

   - Enabling transportation;

   - Vehicle inspections;

   
   
4. Medical expenses

   Commercial truck drivers must undergo routine medical examinations. Medical exams that you are required to have for reasons relating to your job might be written off as a business expense on your tax return.

5. Truck driver expenses for taxes

   Taxes should be considered as an owner-operator expense category as well. You may lower your business taxes using all the permitted deductions but proceed cautiously. You'll often need to prove your expenses because not all expenses are wholly deductible.

   Keeping track of your receipts is one method to do this. It's a good idea to keep meticulous records and consult with a tax attorney or CPA annually. Tax-related charges for truck drivers fall into several categories:

   - Personal and business usage of the road

   - Fuel

   
   
6. Qualified services

   Professional services are frequently seen as those that you pay for in order to increase your company's effectiveness. Owner-operators rely on a variety of specialized services.

   - Broker commissions;

   - Board membership load;

   - Factoring expenses;

   - Costs associated with paying a membership to a transportation management system quickly (TMS);