Top 5 Overlooked Tax Deductions for Trucking Businesses

Running a trucking business comes with its fair share of expenses, and every dollar saved in taxes can make a big difference. While many truckers and trucking companies take advantage of standard deductions, some lesser-known tax deductions often go overlooked. These deductions can reduce your taxable income significantly, putting more money back in your pocket. Here are the top five overlooked tax deductions for trucking businesses:

  1. Per Diem for Meals and Travel Expenses

Truckers who spend nights away from home for work could be entitled to a per diem deduction for meals and incidental expenses. While most truckers know about this deduction, they may not be claiming the full allowable amount.

The IRS allows a set daily rate for meals, which is often higher than the actual expenses you might record. Using the per diem rate could save you time on record-keeping and maximizes your deduction. Remember to keep logs of your trips to support your claim.

  1. Cell Phone and Internet Costs

Your cell phone and internet are essential tools for staying connected on the road, managing loads, and communicating with clients or dispatchers. While many truckers use these services daily, they may forget to deduct a portion of these expenses.

If you use your phone or internet service for both personal and business purposes, you may be able to deduct the percentage used for business. Keeping a log of usage or having a separate line for work-related communication makes this deduction easier to claim.

  1. Association Memberships and Industry Subscriptions

Memberships in trucking associations, unions, or industry-specific groups can be a valuable resource for networking and staying informed. These dues and subscriptions can be deductible as business expenses.

Similarly, if you subscribe to industry publications, load boards, or apps that help you manage your business, these costs may also be deductible. Don’t overlook these small but impactful expenses.

  1. Depreciation on Equipment

Trucking businesses often invest heavily in equipment like trucks, trailers, GPS devices, and tools. The IRS allows you to deduct the depreciation of these assets over time.

Many truckers overlook this deduction because depreciation is not a direct out-of-pocket expense. However, it’s one of the largest deductions you can claim, especially for high-value equipment. Using a tax professional or software to calculate depreciation can help you maximize this deduction.

  1. Licensing, Permits, and Education

Keeping your trucking business compliant involves costs like CDL  renewals, permits (such as IFTA), and vehicle registration fees. These expenses may be fully deductible.

Additionally, any continuing education or training courses to maintain or improve your skills as a trucker—like safety certifications or dispatch training—can also be deductible. Investing in your professional development not only boosts your skills but also reduces your tax liability.

Tip: Don’t Forget to Keep Records

Bonus Tip: Learn more about IRS Guidelines

To claim these deductions, proper documentation is key. Keep receipts, invoices, and logs for every business-related expense. Using apps or accounting software can make tracking easier and ensure you’re audit-ready. Please always consult with a tax professional to confirm what you qualify for to be ducted.

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How Single Point Capital Can Help

At Single Point Capital, we understand that managing expenses and taxes can be a challenge for trucking businesses. While we specialize in freight factoring, we’re also here to support owner-operators and trucking companies with tools and resources to optimize their operations.

Partnering with us means more than just improving cash flow; it means having access to a team that’s committed to helping your business succeed—whether that’s through funding solutions or providing tips to lower your expenses.

By taking advantage of these overlooked tax deductions, you may be able to significantly reduce your taxable income and keep more of your hard-earned money. As tax season approaches, review your expenses and consult a tax professional to ensure you’re claiming all the deductions you’re entitled to.