A Complete Guide to Truck Driver Tax Deductions

Editorial team of TFX

• 01.09.21 • 5 min read

Filing taxes can be stressful: there are so many aspects of the tax law one should know to do everything right. In this article we are going to talk about truck driver tax deductions: how much can a truck driver claim on taxes, what is the difference between an owner operator and a company driver in terms of their duties and deductible expenses, what forms a truck driver should file, and more.

What is the difference between an owner-operator and a company driver?

There is a certain difference between owner operators and company drivers in terms of their duties, responsibilities, and tax deductions. 

Generally, it’s considered that owner operators are paid better in comparison to company drivers. They are free to operate as they choose, too. However, owner operator truck drivers also have a burden of responsibility for literally everything. 

Owner operator’s expenses

An owner operator truck driver is a business owner. As it is known, business owners take lots of responsibility, and owner operators are no exception here. They are responsible for such truck payments and repairs, insurance, and all the other costs that come up. Owner operators also pay for their meals, showers, and fuel. 

When they are setting the price for their service, owner operator truck drivers should consider expenses that might arise later: if something is broken — they will need money to fix the problem; they should also include taxes because none will be subtracted from the paycheck.

Owner operators should get prepared for a tax year themselves, it’s extremely important to save all the paperwork you have, so the experts could take care of your tax returns properly. It’ll also help to reduce income tax owed.

Company truck driver’s expenses

Company drivers do not own a truck — a company provides them with one. The company has full responsibility for all the truck related, insurance, and fuel payments. 

Company truck drivers also have such travel expenses as food, shower, and cell phone. Some companies offer a per diem. Per diem rate is an estimated sum of money that is supposed to be enough to cover the daily needs of a truck driver. Usually per diem is added to the paycheck which means that drivers still have to pay for those expenses themselves but they’ll get reimbursed later. If a driver spends less than a daily limit, the rest is left as a bonus for them.

There's one more advantage of being a company driver: they say that companies replace the old trucks with new models, so drivers get to drive newer vehicles.

What forms truck drivers should file?

Forms that you should file as a truck driver depends on your type of employment: we’ll see the options for both owner-operators and company truck drivers.

1099 tax deductions for truck driver

If you work as an owner-operator, filing Form 1099-misc is the best option for you to file and pay taxes. 

What is Form 1099-misc? This form is used to report miscellaneous earned income. On this form, people report payments that are made due to the operation of a business or trade.

Do you need a truck driver's 1099 tax advice? You got it: as an independent contractor you are eligible to claim various tax deductions, so don’t miss your chance. If you do not feel confident about all that tax preparation-related stuff, let our team of tax professionals take care of your tax return.

Form W-2 for company drivers

As a company driver, it’s likely that you’ll receive or already received a W-2 form, Wage and Tax Statement. Usually, employers send this form to the employees. You’ll need this form to fill out a 1040 form. 

1040, 1040A, or 1040EZ

One more income tax form for drivers is Form 1040, U.S. Individual Income Tax Return. You might also file Form 1040A or Form 1040EZ. Form 1040A is a shorter version of 1040 but it is more extended than 1040EZ. If you’re looking forward to using tax deductions, think carefully when choosing Form 1040EZ.

Truck drivers’ standard tax deductions

When you claim work-related tax deductions, you also reduce your AGI (adjusted gross income). Which, in its turn, means that you will pay less in taxes. 

Truck driver write off list

Let’s see the list of trucker tax deductions for both owner-operators and company drivers.

1. Medical examinations. In this business the state of your health is crucial, so you can deduct all visits to the doctor that you had to make due to work-related problems.
2. Lodging. It is important to save all the receipts when you’re going to include lodging to your truck driver tax deduction form.
3. Meals. Company drivers can’t deduct meals costs; however, owner-operators can.
4. Vehicle-related expenses. It includes parking fees, truck repairs and maintenance, standard mileage rate, fuel and oil expenses, and more.
5. Cell phones and the internet, GPS. The driving job will be impossible without making calls and checking the road.
6. Licensing fees. You can get a tax refund for licensing and education.
7. Association dues. Many drivers have to be members of professional truck driver associations
8. Safety gear. Safety gear is what truck drivers need for sure, so you can expect to get a deduction for that, too.
9. Additional expenses. If you’re required to wear a uniform, there will be expenses for laundry or clothes themselves; log books, flashlights, cleaning supplies, and more.
10.  Office supplies. There are such business expenses as computers, notebooks, staples, clipboards, and more.

Remember that if the expenses were reimbursed by your employer, those expenses are considered non-deductible. As for local drivers, deductions can be a little bit different, too. Get professional tax advice to be sure.

We know it’s tricky to keep in mind the whole list, so we’ve created a downloadable truck driver tax deductions worksheet. Get yours and mark every checkbox as you go. 

Non-deductible truck driver expenses 

Unfortunately for truck drivers, not all the expenses are deductible. Let’s see what non-deductible expenses are:

1. Everyday clothes
2. Expenses that have already been reimbursed
3. Vacations
4. Interest on your loans

When is the deadline for filing tax returns for truck drivers?

The deadline for filing your 2020 tax return as a truck driver is April 15, 2021. Make sure all the forms are prepared correctly before submitting them.