10 Tax Deductions Every Owner-Operator Should Claim in 2025

Amy Chavez

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For most owner-operators, tax season feels like a second job. Between fuel, repairs, and insurance, profit margins are already tight — so every deduction matters. But the truth is, many small carriers and one-truck operations miss out on thousands of dollars simply because they don’t know what they can write off or they don’t keep proper records.

Here’s a breakdown of the 10 biggest tax deductions every truck driver should know for 2025 — plus a cautionary IRS case that shows why keeping receipts matters just as much as earning the deduction.

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Don’t Let the IRS Take What You Earned

1. Meals on the Road

When you’re away from home, you don’t have to keep every truck stop receipt. The IRS gives truckers a daily meal allowance (known as “per diem”) that you can deduct instead.

That may not sound like much — but if you’re running all year, that per diem adds up to thousands of dollars. Just make sure you keep trip logs showing when you were away from home. No log, no deduction.

2. Fuel and Fluids

Every owner-operator knows fuel is the biggest expense of the year. Diesel, DEF, oil, and additives are all fully deductible — and they’re one of the easiest to track since they show up on your fuel card or credit statements.

Pro tip: keep your fuel receipts anyway. If the IRS audits you, having both digital and paper records shows you’re organized — and that goes a long way.

3. Tolls and Parking

Bridge tolls, turnpike fees, scales, and overnight parking — all count as business expenses.

These small charges pile up fast, especially for regional haulers or those constantly dealing with paid parking. Keep screenshots of app receipts or transaction logs if you pay digitally.

And if you ever wonder whether something counts, ask yourself: Would I pay this if I weren’t working? If not, it’s probably deductible.

4. Lodging

Sometimes you can’t sleep in the truck — and that’s okay. Hotel stays, motels, or even short-term rentals while you’re away on a job are deductible.

But here’s the catch: no receipt, no write-off. Digital receipts count too, but don’t assume your email is enough — screenshot it, save it, and file it in your “Lodging” folder every month.

5. Maintenance and Repairs

This one’s straightforward: if it keeps your truck safe, legal, or running, it’s deductible. Tires, brakes, fluids, even detailing before inspections — it all counts.

Still, it’s worth tracking who did the work and when. Having detailed records can help if a warranty or audit question comes up later.

And remember, preventive maintenance isn’t optional — it’s cheaper to write off regular service than to lose revenue from a breakdown.

6. Depreciation or Lease Interest

If you own your truck, the IRS lets you deduct part of its value each year through depreciation. That’s basically saying: “Yes, your truck loses value over time — you can claim that as a cost.”

If you lease or finance, only the interest portion of your payment is deductible, not the full amount.

It’s confusing, but this is where a good accountant earns their fee — they can help you decide between Section 179 (deduct all at once) or spreading depreciation out over several years.

7. Insurance Premiums

Insurance isn’t just protection — it’s a deduction waiting to happen.

Liability, cargo, bobtail, occupational accident — if it’s a policy you carry to operate legally or protect your truck, it’s tax-deductible.

Here’s a pro move: ask your insurance agent for a year-end premium summary. It’s an easy document that shows everything you paid, saving you hours during tax prep.

8. Licensing and Regulatory Fees

Running interstate? Then IRP plates, IFTA filings, and UCR fees all apply to you — and yes, they’re deductible.

These are some of the least understood costs for small carriers. Even single-truck operators owe them if they cross state lines. So keep digital proof of payments for every permit or registration you file.

This is also a good reminder to check your renewal dates early in the year — missing one can cost more in penalties than it’s worth in deductions.

9. Professional Services

You probably already pay someone to handle your taxes, or maybe to help with bookkeeping or compliance filings. Those costs are fully deductible.

Just make sure the service is tied to your business — your cousin doing your personal taxes doesn’t count. But a trucking-focused CPA, safety consultant, or dispatcher absolutely does.

And here’s something to think about: if your accountant doesn’t know what IRP or IFTA stand for, it might be time to find one who does.

10. Communications and Training

Today’s truckers don’t just haul freight — they run mobile offices.

Your cell phone plan, GPS, load board subscriptions, ELD service, and even online training courses or CDL endorsements all qualify. If you use it to run your operation, it’s a deductible business tool.

Membership dues — like OOIDA or state associations — also count. They might not seem like much individually, but across a full year, they add up fast.

Bonus: State-Specific Deductions

Some states, like Texas, Florida, and Indiana, offer deductions or credits specifically for trucking businesses. These vary every year, so double-check before filing.

Even if your accountant handles this, it’s smart to ask. The IRS won’t volunteer what you qualify for — and neither will your state.ts across the supply chain.

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⚠️ The IRS Case Every Trucker Should Know

In Trout v. Commissioner (2023), a truck driver lost every single deduction — meals, fuel, repairs, insurance — because his records were destroyed and he couldn’t provide proof. The Tax Court ruled against him, saying:

“Without receipts or logs, deductions cannot be substantiated.”

Even though the expenses were real, the IRS denied them all.

If you lose your documents, the IRS allows you to reconstruct records using bank and credit card statements, trip logs, or settlement sheets — but that takes time and effort. The smarter move is to set up a recordkeeping system now:

Snap a photo of each receipt and store it digitally.
Use an expense-tracking app built for truckers.
Save settlement reports, fuel receipts, and trip logs weekly.

A few minutes a day can save you thousands at tax time.

💡 Quick Tip from Bobtail

If cash flow is tight while you wait on brokers or shippers to pay, factoring your invoices can help you cover expenses like fuel, insurance, and maintenance without falling behind.
👉 Learn more about factoring with Bobtail

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FAQs: Owner-Operator Tax Deductions (2025)

1. Do I need a CPA to file my trucking taxes?
You can file your own taxes, but a CPA who understands trucking can help you find deductions specific to your business — often saving more than they cost.

2. Can I deduct my truck payment?
Not the full payment — only the interest portion or depreciation if you own the truck outright.

3. What if I lost my receipts?
You can try to reconstruct your expenses using statements or settlement reports, but without any records, the IRS may deny your deductions.

4. Are tolls and parking always deductible?
Yes — as long as they’re directly tied to business travel, not personal use.

5. Does UCR or IRP apply to small carriers?
If you cross state lines as a for-hire carrier, both UCR and IRP apply — even with one truck.

Final Thoughts

Knowing what you can deduct is half the battle — proving it is the other half. Keep your receipts, stay organized, and don’t wait until April to start sorting your expenses.

Don’t overpay Uncle Sam — claim what you’ve earned

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