Tax Tips for Owner-Operators: Maximize Your Deductions

As an owner-operator, you’re running a business on wheels. That means plenty of deductions—if you know where to look. Here’s how to keep more of your hard-earned money.

Essential Deductions

Per Diem

The IRS allows truckers to deduct meal expenses using a simplified per diem rate:

Current rate: $69 per day (or $80 per day for travel outside the continental U.S.)
Partial days: Pro-rated for departure and return days
Keep a log of your travel days as documentation

Vehicle Expenses

Two methods for deducting vehicle expenses:

Standard Mileage Rate

Currently $0.67 per mile for business use
Simpler to calculate
Good for newer owner-operators

Actual Expense Method

Deduct real costs: fuel, repairs, insurance, depreciation
Requires detailed record-keeping
Often better for high-expense years

Equipment and Supplies

Don’t forget these commonly overlooked deductions:

ELD devices and subscriptions
CB radios and antennas
Chains, straps, and load securement
Tools and repair equipment
Safety gear and clothing
Cleaning supplies for your truck

Business Expenses

Phone and communication plans
GPS and navigation subscriptions
Load board memberships
Professional association dues
Business insurance premiums
Accounting and legal fees

Record-Keeping Best Practices

What to Save

All receipts (digital copies are fine)
Bank and credit card statements
Mileage logs
Per diem travel records
Maintenance records

Tools That Help

QuickBooks Self-Employed: Popular among truckers
TruckingOffice: Industry-specific software
Excel spreadsheets: Free and effective

Common Mistakes to Avoid

Missing the per diem deduction - This is big money left on the table
Not separating business and personal expenses - Use separate accounts
Losing receipts - Go digital with scanning apps
Waiting until April - Track expenses year-round
Not consulting a professional - Trucking taxes are complex

Quarterly Estimated Taxes

As a self-employed trucker, you likely need to pay quarterly:

Due dates: April 15, June 15, September 15, January 15
Amount: Estimate your annual tax liability and divide by four
Penalties: Underpaying can result in penalties

When to Hire a Professional

Consider a tax professional if:

This is your first year as an owner-operator
You’ve made significant equipment purchases
You have complex situations (multiple businesses, etc.)
You want to maximize every deduction

Look for CPAs or tax preparers who specialize in trucking—they know deductions others might miss.

Resources

IRS Publication 463: Travel, Entertainment, Gift, and Car Expenses
IRS Per Diem rates page
OOIDA (Owner-Operator Independent Drivers Association) tax resources

The Bottom Line

Good tax planning can save you thousands of dollars a year. Start tracking now, keep good records, and don’t be afraid to get professional help. Your future self will thank you.