As an owner-operator, you are a business owner. Being a business owner, it’s usually best to work with a tax professional, as they are best suited to provide you with advice on your particular tax situation. 

To get you started filing your taxes, we’ve compiled a quick overview of some of the things you’ll need to consider. 

Gather all necessary documentation

Before you start filling out your tax return, make sure you have all the documents you need, such as your 1099 forms, receipts for business expenses, records of your earnings, and miles driven, and anything else that may be pertinent to your tax filings.

Calculate your business income

To determine your business income, you'll need to add up all the money you earned as an owner-operator during the tax year including your load payments, fuel surcharges, and any other payments.

Deduct your business expenses

As an owner-operator, most of your job-related expenses should be tax deductible. Make sure to keep accurate records of all eligible expenses. Here are some examples of expenses that are tax deductible:

• Truck depreciation and interest payments
• Truck maintenance and repairs
• Insurance premiums
• Fuel costs
• Trucking association fees
• Cell phones, computers, and internet expenses
• Tools and equipment (snow chains, tire iron, etc.)
• Business insurance, taxes, and licensing costs

Remember, it's important to keep accurate records of all your business income and expenses throughout the year to make tax time easier and ensure that you're claiming all the owner-operator tax deductions you're entitled to.

There are also some great technology solutions available to help you keep track of your expenses in real time. Capturing receipt images in an app as you incur expenses, for example, instead of saving receipts throughout an entire year, could significantly simplify your expense management when it comes time to do your taxes. 

Fill out your tax forms

There are several forms that you, as an owner-operator, are likely required to fill out. For example, Schedule C (Form 1040) is used to report your business income and expenses. For more information and to get the forms applicable to you, visit the IRS website and speak with a tax professional.

Pay any taxes owed

As a self-employed owner-operator, you'll need to pay both income taxes and self-employment taxes on your earnings. Make sure to pay any taxes owed by the tax deadline to avoid penalties and interest charges.

File your taxes on time

You should also look to file your taxes by the tax deadline to avoid any added penalties and interest charges. If you need more time to file, you can file for an extension.

Consider working with a tax professional

Filing taxes as an owner-operator can be complex and as a business owner, it is important to have your financial house in order. Working with a tax professional who can guide you through the process, provide recommendations, assist with filing, and help you maximize your deductions may be helpful. What’s more, they can also help you optimize your tax situation for future years so you can focus on growing your business.

We understand the unique challenges faced by owner-operators in the trucking industry, which is why we've partnered with American Truck Business Services (ATBS). As the nation's largest tax and accounting firm for owner-operators, ATBS specializes in trucking business solutions and can offer personalized advice and comprehensive financial services tailored to your specific needs. Through our partnership with ATBS, CloudTrucks aims to provide you with access to industry-leading expertise and support, helping you navigate the complexities of tax preparation, compliance, and business management with ease. For more information on how ATBS can assist you, visit our partnership page.

CloudTrucks gives owner-operators like you a business management platform to centralize much of your business operations – so when it comes time to do your taxes, you can refer to it to track your earnings and expenses.

If you are an owner-operator looking for a simple yet powerful solution to manage your trucking business day-to-day, check out our Virtual Carrier and Flex solutions. Virtual Carrier is for those who want to drive under our authority, and Flex is for those who have their own authority.

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