Per-diem rules for over-the-road drivers
Self-employed OTR drivers can deduct the DOT-regulated per-diem amount ($80/day in CONUS as of 2025) for meals and incidental expenses on days away from their tax home. Company drivers lost the deduction under TCJA, but owner-operators still claim it.
Your tax home decides the per-diem
Per-diem only applies to nights away from your tax home, which is generally the area of your main work base, not automatically your house. Local drivers who sleep in their own bed every night don't get it. Drivers with no fixed base who live on the road can be treated as having no tax home at all, which kills the deduction entirely. Where the tax home sits is worth establishing on purpose, not by accident.
Section 179 and equipment depreciation
Trucks, trailers, and heavy tools qualify for Section 179 expensing up to annual limits, plus bonus depreciation. Timing a purchase to match a high-income year is a meaningful lever.
The owner-operator compliance stack
Beyond the 1040, owner-operators file Form 2290 heavy highway vehicle use tax each year, quarterly IFTA fuel reports through their base state, and assorted permits that are all deductible business costs. A missed 2290 stalls the registration renewal, so we put it on the calendar with the tax deadlines.
Fuel, maintenance, and tolls
Owner-operators deduct actual fuel, maintenance, repairs, tires, tolls, and permits. Contrast with the standard mileage rate, which typically doesn't apply to trucks over 6,000 lbs.
Tradesmen and temporary job sites
For skilled trades, the drive from home to a temporary job site outside your normal metro area is deductible business mileage. The daily run to one regular shop is commuting. Tradesmen who rotate across job sites should log the miles, because over a full year the difference is large.
Common questions
- Can I deduct meals on the road?
- Owner-operators yes, at the DOT per-diem rate (subject to the 80% deductibility for transportation workers). Company-employee drivers lost the deduction under TCJA.
- What's the IRS fuel tax credit?
- Form 4136 lets you claim a credit for off-highway fuel use and some specific exempt uses. Most OTR fuel doesn't qualify; refrigeration units and auxiliary power sometimes do.
- Should I incorporate my trucking operation?
- Once net income is consistently solid, an S-corp election often reduces self-employment tax. It has to be weighed against payroll costs and extra filings, so we run both scenarios on your actual numbers.
- What records do I need for fuel and maintenance?
- Receipts or fuel-card statements matched to the truck, plus IFTA mileage by state. A fuel card that reports by unit does most of the work for you.
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Personal Income Tax Preparation
Federal and state 1040 preparation with year-round planning. We handle W-2, 1099, K-1, rental, and crypto income for individuals in Florida and all 50 states.
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Tax Services for Daycare Providers
Time-and-space calculations, CACFP food program income, home-use expense allocation, and state licensing deductions for in-home daycare providers on Schedule C.
Tax Services for Mechanics & Auto Body Shops
Tool deductions, shop overhead, Section 179 for lifts and paint booths, and parts inventory accounting for mechanics, auto body shops, and self-employed techs.
Tax Services for Small Business Owners
Entity selection, quarterly estimates, S-corp reasonable salary, Section 199A, retirement plan design, and year-round planning for small business owners.
Tax Services for Executive Professionals
Stock options, RSUs, AMT planning, Section 409A deferred compensation, 83(b) elections, and state-to-state relocations for executives with equity compensation.