Tax Advice for 1099 Truck Drivers

Every year there are changes to tax laws that may go under the radar for some 1099 truck drivers. Not knowing what these changes are may cause people to miss out on significant savings when it comes time to file their taxes. That's why we wanted to provide a few pieces of advice to make sure you aren't making the same common mistakes other owner-operators are making.

Are you a self-employed truck driver who needs help with your taxes? Click here!

1. The Standard Deduction increased again, make sure to take it if it’s greater than your Itemized Deduction

An estimated 90% of taxpayers use the Standard Deduction. This percentage is not expected to change due to the Standard Deduction increasing to $15,750 for single taxpayers, up from $14,600, $31,500 for married couples filing jointly, up from $29,200, and $23,625 for head of household, up from $21,900.

2. Student Loan Phase-Out Increased

You may be able to deduct $2,500 of student loan interest paid. The deduction is subject to income limitations which have gone up for 2025. For joint filers, the deduction begins to phase out with a modified AGI of $170,000 and reduces to zero at $200,000. For single and head of household filers, the phaseout begins at $85,000 and reduces to zero at $100,000. For married filing separately filers, the deduction is not allowed.

3. 1099-K

The 1099-K is not likely to affect the trucking business per se, but if your spouse has a business or you have a side business you may see one this year. Many platforms such as eBay, Venmo, Zelle, Etsy, and PayPal to name a few, will potentially be issuing these forms. The threshold for issuing 1099-Ks has changed to $20,000 and 200 transactions in 2026. This is a much higher threshold, meaning people will receive fewer of these forms for small transaction amounts.

4. Key Change for Retirement Income

For those in or approaching retirement, the age for taking required minimum distributions (RMDs) has increased to 73. RMDs are required for retirement plans like 401(k), 403(b), 457(b), traditional IRAs, SEP, and SIMPLE IRAs. For those who turned 73 in 2025, you must take your first RMD by April 1, 2026. You must also take your 2nd RMD by December 31st, 2026. The penalty for failing to take the RMD is 25%, and that penalty is decreased to 10% for timely corrections.

5. Don’t miss out on the QBI Deduction

The 20% QBID has officially become a permanent part of the tax code. For owner-operators, this is one of the most valuable deductions available. It allows you to deduct 20% of your net business profit before calculating income tax, lowering your total tax burden significantly.

77% of owner-operators received a QBI Deduction for 2025 because they had a net profit. If a business operates at a loss for the year, a QBI Deduction can't be claimed. The average deduction received was $7,700. As an owner-operator, chances are you will qualify for this deduction, so if you didn't take this deduction last year make sure you look into it this year.

6. Don’t Wait

The most important aspect of tax time is paying tax due by April 15th. For self-employed individuals, quarterly tax payments are critical to the process of paying tax in full by April 15th. Paying estimated taxes throughout the year greatly reduces the chances of being assessed penalties and interest. Extensions can be provided for additional time to file, however, extensions are not available for deadlines to pay your taxes. Organize and send all your tax documents as early as possible to get a head start on filing.