For truckers, tax season isn’t just about filing paperwork—it’s about finding every legal deduction to keep more hard-earned money in your pocket. The IRS offers numerous tax breaks for owner-operators and small fleet owners, but many truckers fail to take full advantage of them. Understanding the right deductions, including per diem, depreciation, and fuel credits, can significantly reduce taxable income and boost overall profitability.

The Power of Per Diem Deductions

One of the most overlooked yet powerful deductions for truckers is per diem. This daily allowance for meals and incidental expenses is designed to compensate for the costs incurred while on the road. Instead of tracking every receipt, truckers can use the IRS standard per diem rate, which simplifies record-keeping and maximizes deductions.

As of the most recent tax year, the per diem rate for truckers is $69 per day within the U.S. and $74 for travel outside the country. Since truckers often spend 250+ days on the road annually, this deduction alone can add up to more than $17,000 in write-offs. However, only 80% of this amount is deductible, meaning truckers can still claim a substantial reduction in taxable income.

To qualify, drivers must be away from their tax home for longer than a regular workday and require sleep or rest. Proper documentation, such as logbooks or electronic logging devices (ELDs), can serve as proof of travel.

Depreciation: Turning Equipment Costs into Savings

Buying a truck is one of the biggest expenses in the industry, but it also offers significant tax benefits. The IRS allows truckers to depreciate the cost of their equipment over time, reducing taxable income year after year.

Truckers have multiple depreciation options, including:

• Straight-line depreciation: Deducting an equal portion of the truck’s cost each year over its useful life.
• Accelerated depreciation (MACRS): Writing off a larger portion of the truck’s value in the earlier years of ownership.
• Section 179 deduction: Allowing immediate expensing of up to $1,220,000 (for 2024) on qualifying equipment, including trucks, trailers, and other business-related assets.

Many truckers choose Section 179 to deduct the full purchase price in the year of acquisition rather than spreading it out over time. This strategy is particularly useful for those looking to lower their taxable income significantly in profitable years.

Fuel Tax Credits: A Hidden Savings Opportunity

Fuel is one of the largest operating expenses for truckers, but it also comes with potential tax savings. The IRS offers a Fuel Tax Credit for certain types of fuel purchases, particularly for off-road fuel usage.

While diesel used for highway driving is taxed upfront, fuel used in auxiliary power units (APUs), refrigeration units, or off-road applications may be eligible for a refund. To claim this credit, truckers must keep detailed fuel purchase records, including receipts and usage logs. Some states also offer additional fuel tax refunds, so checking state-specific tax rules can uncover further savings.

Additional Deductible Expenses

Beyond the major deductions, truckers can write off numerous other business-related expenses, including:

• Maintenance and repairs: Oil changes, tires, engine work, and routine servicing are all deductible.
• Insurance premiums: Commercial truck insurance, liability coverage, and health insurance for self-employed truckers can be deducted.
• Licensing and permits: DOT fees, drug testing, and state permit costs qualify as business expenses.
• Professional services: Accounting, legal fees, and tax preparation costs are deductible.
• Training and education: CDL renewal fees, continuing education, and industry certifications may be written off.

How to Avoid IRS Red Flags

While maximizing deductions is important, truckers must ensure they remain compliant to avoid IRS audits. The key to keeping deductions legitimate is accurate record-keeping. Save all receipts, logbooks, fuel invoices, and tax documents in case of an audit. Using tax software or hiring a trucking-savvy accountant can help ensure deductions are properly claimed while minimizing red flags.

Truckers work hard for their income, and taking advantage of every legal tax deduction is essential for keeping more money in their pockets. By understanding per diem deductions, depreciation rules, and fuel tax credits, owner-operators and small fleet owners can significantly reduce their taxable income. The key to maximizing savings lies in proper record-keeping and a proactive approach to tax planning.