01/29/2023
Schedule C - Contract Truck Drivers Deductible Expenses
An independent contract truck driver, also called an owner-operator, reports their income and expenses on Schedule C. Since they aren't an employee they won't receive a Form W-2 but should receive a Form 1099-NEC or 1099-MISC.
ALLOWABLE EXPENSES
Association dues - For example, to a union or a trucking industry association.
Cell phone and computer - A phone, tablet, or computer used exclusively for work is 100% deductible, including the cost of the monthly data or internet plan. If a device or service is used for both business and personal reasons, then only the prorated business portion of the expense can be deducted.
Clothing - Clothing such as a uniform and safety gear that is required for work is deductible. Clothing that can be worn every day isn't deductible, even if it's worn only for work.
Education - Training to obtain or maintain a CDL license, OTR certification, or other advanced certifications.
Load-related expenses and tools - Tools or equipment such as bungee cords, chains, flags, locks, ratchet straps, and tarps, along with tools.
Insurance - Premiums for commercial auto liability insurance, property damage insurance, and insurance to cover cargo or lost income due to a business interruption.
Meals - The cost of meals can be deducted when the driver is away from their tax home or when they are required to stop and rest due to the Department of Transportation's hours-of-service regulations. (The taxpayer's tax home is the their business address or their home.)
The taxpayer can choose to calculate the deduction using either a per diem or the actual expense including tax and tips. For the latter, the taxpayer will need to keep good records.
Travel costs - Airfare, hotel, laundry, parking, showering, and tolls. (Actual expenses must be used for these costs rather than per diem.)
Medical exam - A medical exam required to be able to drive.
Office expenses - Typical office expenses such as a calculator, copy and fax service, recordkeeping software, logs, paper, pens, postage, etc.
Personal products - This includes things to outfit and maintain a sleeper berth.
Subscriptions - A subscription to a trucking-related publication.
Taxes and licenses - Any taxes and licenses for business purposes, including the Heavy Highway Vehicle Use Tax and the cost of maintaining a CDL license.
Truck maintenance and repair - All expenses to operate the truck can be deducted, in addition to depreciation. (Actual expenses must be used for these costs rather than a calculation using standard mileage rates.)
