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Per Diem (per day) is one of your largest tax deductions as an owner-operator, but what is it exactly? The Per Diem deduction is a tax deduction that the Internal Revenue Service (IRS) allows to substantiate ordinary and necessary business meals and incidental expenses paid or incurred while traveling for business while away from home. In this article, we address the specific rules around using this significant tax deduction. As a result of the Tax Cuts and Jobs Act, W-2 employees, sometimes referred to as company drivers, are no longer eligible to claim the Per Diem deduction. The IRS allows contractors and self-employed transportation workers, subject to the hours of service regulations, to deduct their meal expenses while traveling for business. The Per Diem rate is set by the IRS. The Per Diem rate, effective October 1, 2024, is $80 per full day and $60 per partial day in the Continental United States. You may see the deduction amount quoted as $64 per full day and $48 per partial day. That is because the IRS only allows you to deduct 80% of the Per Diem rate. Non-CDL riders who are performing other duties (bookkeeping, dispatching, assisting loading, and unloading) may deduct 50% of the $80 rate which comes out to $40 per full day. For travel outside the Continental United States, the Per Diem rate effective October 1, 2024, is $86 per full day and $64.50 per partial day. You may see the amount of the deduction quoted as $68.80 per full day and $51.60 per partial day. Non-CDL riders who are performing other duties (bookkeeping, dispatching, assisting loading, and unloading) may deduct 50% of the $86 rate which comes out to $43 per full day. IMPORTANT NOTICE: The Per Diem rate from January 1, 2024 - September 30, 2024, was $69 per day in the Continental United States and $68 per day in Canada. This means you will need to calculate your total Per Diem deduction using two different Per Diem rates . You need to keep this in mind when you are filing your 2024 taxes. If you need help calculating your Per Diem deduction and filing your taxes, please click here . In order to qualify for these deductions, IRS publication 463 states that you are traveling from home if: Your duties require you to be away from the general area of your tax home substantially longer than an ordinary day's work, AND You need to sleep or rest to meet the demands of your work while away from home. It further states that taking a nap does not satisfy the requirement. However, “you do not need to be away from home for a whole day, as long as your relief from duty is long enough to get necessary sleep or rest.” What does this mean to a driver? If you are an owner-operator, the rule is simple you get to claim the tax deduction for each day that you are away from your “tax home.” On the days that you depart and the days that you arrive at home, you must claim a partial day allowance instead of a full day allowance. The partial day allowance is 75% of the full day allowance. Things become a little more complicated if you are a local driver. Local and regional drivers are frequently away from their home much longer than an average eight-hour workday. Therefore, fulfilling the first part of the requirements is simple. However, notice the “AND” between the two requirements? This means that you must meet both conditions in order to claim the deduction. Another way to think of it is, drivers who start and end a trip at home on the same Department of Transportation (DOT) Hours of Service (HOS) work day cannot claim Per Diem. Easily keep track of your days away from home with the ATBS Per Diem Tracker! Furthermore, IRS publication 463 states that you must have a “tax home”. There are three tests to determine your tax home. In order to meet the requirements, you must satisfy at least two of the three following items: You perform part of your business in the area of your main home and use that home for lodging while doing business in the area. You have living expenses at your main home that you duplicate because your business requires you to be away from that home. You have not abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging. So what does this all mean? In a nutshell: You must be away from home for 'substantially longer than a normal work day', per the IRS. You must have a home from which to be away from. If you meet both requirements above, for any days on or after October 1, 2024, you can deduct $64 for each full day away from home as a driver and $40 as a ride-along that assists in business functions. You can deduct $48 per partial day as a driver. At ATBS, we believe that a good way to track is by using the ATBS Hub . Since the Per Diem rate changed during 2024, the ATBS Hub will track exact dates and changes in Per Diem rates. That way you can determine exactly how many full and partial days you have to report to your tax preparer . In order to substantiate your Per Diem, you may need to provide DOT electronic logging device information with time, date, and location. It is good practice to keep all receipts and documentation for this Per Diem deduction for at least three years. If you have any questions on Per Diem, please contact ATBS by clicking here or giving us a call at 866-920-2827.

As an owner-operator, you are just as much of a business owner as you are a truck driver. There is a lot more to manage that you previously didn’t have to as a company driver. Your ability to manage your business will determine whether or not your trucking company will be able to survive. Let’s take a look at a few of the major responsibilities that come with being an owner-operator managing your own trucking company. Manage Clients Managing the clients you work with will be critical. As an owner-operator with your own trucking business, nobody will tell you what you need to haul and where you need to deliver it. It will be up to you to create a consistent flow of work in order to keep your company profitable. It’s important for you to make new customer relationships and maintain them with hard work and good communication. An online load board is an important tool that can help you find new business if needed. There are a variety of free and paid subscription options available for you to choose from. When initially choosing a load board, keep in mind your budget and the reputation of the load board you want to use. Once you’ve found new customers, you will need to focus on maintaining good relationships. You can do this by planning your route and keeping a consistent schedule. This way you will be able to stay busy with work while being reliable for your customers. If anything happens that takes you off your schedule, communicate all details with your customers to stay on good terms. Manage Expenses As the owner of a trucking business, you need to focus on the money that is going out just as much as the money that is coming in. It’s important to keep good records of all your company expenses to make sure you're not losing money. If your expenses outweigh your income, you will need to change the way you manage your business. ATBS can help you manage expenses by working with you to build a profit plan and by providing monthly profit and loss statements to help you stay on track. Major expenses that you’ll face as an owner-operator include fuel, insurance , and maintenance on your truck. We go into detail on all of these expenses in our “ 5 Biggest Owner-Operator Expenses ” article. There will also be sporadic one-time and unforeseen expenses that you need to be prepared for. We recommend you keep an emergency savings fund to help manage these unexpected expenses. Over time, you will become better at managing the expected and unexpected expenses. Once you have an idea of how much you spend each month, it will be good for you to come up with ways to operate more efficiently to lower the cost of these expenses. It will be at this point that you will truly be managing your expenses. Manage Fuel As mentioned earlier, fuel is one of your biggest expenses as an owner-operator. However, fuel is an expense that you have the ability to manage more than your other major expenses. Even though you can’t control the price of fuel, you’re able to control how much fuel you are using . In our article, “ Top 25 Ways for Truck Drivers to Improve Fuel Efficiency ” we give many ways to help you save money on fuel. A few of the easiest ways to improve your fuel efficiency are: Monitor Tire Pressure Minimize Idling Moderate Braking Manage Cruise RPM These are changes that you can make immediately to help better manage your fuel. Keep track of your fuel expenses before and after you try a few of these tips and see how much your fuel bill decreases. Compared to other expenses like truck payments and insurance, you don’t have to sacrifice much to pay less for fuel. Manage Health Managing your health often goes overlooked when managing a trucking company. You are the most important asset of your trucking business and if you aren’t healthy enough to drive, then your company isn’t going to be able to make money. The combination of sitting for long periods of time, eating poorly, and not sleeping well can lead to a multitude of health problems. Fortunately, there are plenty of ways to improve your health: Whenever you are stopped for the day, get out of the truck to move around and exercise Consider cooking for yourself rather than buying cheap fast food Give up smoking in order to improve lung and heart health Drink plenty of water to avoid getting dehydrated Get plenty of sleep the night before to avoid drowsiness behind the wheel As an owner-operator, you don’t get sick days. Any day that you aren’t on the road is a day that you aren’t generating revenue. Of course, there will be days when you are too sick to drive, and that will be out of your control. Try to limit your days off the road to days when you are truly sick and can’t drive. Manage Taxes One of the biggest differences between a company driver and an owner-operator is the way taxes are paid. As a company driver, your taxes are automatically taken out of your paycheck by your employer. When you have your own trucking company, you are responsible for calculating your taxes due and paying the correct amount each quarter. It’s important for you to keep an accurate profit and loss statement of your company in order to pay the appropriate amount of taxes each quarter. ATBS recommends you set aside 25%-30% of your weekly net income for quarterly estimated tax payments. Not paying quarterly tax payments will result in penalties that will increase the amount you will eventually have to pay. If you don’t manage your taxes , your company will begin to fall behind and it will become increasingly more difficult to get caught back up. Owner-operators also have to fill out different tax forms (and often more complicated forms) than company drivers. As a company driver, you will most likely only fill out a W-2 form. When you manage your own trucking company, you now have to fill out a W-9 and you will receive a 1099 from anywhere you earn income. You will then have to file Form 1040 and likely additional schedules, which becomes significantly more complicated. Paying taxes on a quarterly basis and filing a different type of tax return are major differences between being a company driver and managing your own trucking company. Need help managing your trucking company? If you need help managing your trucking company, consider hiring ATBS to help you out. ATBS has been in the industry for more than 25 years and has helped over 150,000 owner-operators. We offer a variety of services including accounting, bookkeeping, and tax preparation, specifically for truck drivers. We also offer unlimited business consulting for our RumbleStrip Professional clients. If you’d like to learn more about ATBS services or want to get started today, give us a call at 866-920-2827.

When was the last time your CPA or tax professional updated you on the current Per Diem rates you are entitled to? Have they ever explained why you need to deduct actual expenses instead of using the standard mileage deduction? Did you know that you can deduct expenses for your dog as security for your truck in many cases? Taxes, in general, are complicated, but taxes for owner-operators are even more complicated. It’s crucial to have a tax professional who knows the trucking industry handle your business’s taxes. Unfortunately, the reality is that most tax professionals and CPAs are generalists - meaning they file taxes for people across many different industries, but they aren’t experts in any single industry or area. This lack of specific industry knowledge can lead to you paying more than you should in taxes. Or, in some cases, incorrectly taking deductions on your tax return that you shouldn’t have... which may put you at risk in the event of an IRS audit. Don’t get us wrong. Many CPAs or tax professionals can do a fine job of handling taxes for owner-operators. Still, their knowledge often doesn’t go deep enough to truly minimize your money owed to the IRS - simply because they don’t know the industry inside and out. One way to determine if your CPA or tax professional really knows the trucking industry is to ask some trucking-specific questions related to taxes. Here are five trucking questions that your CPA should know the answers to for their owner-operator clients. If they don't know the answers, maybe it's time to open up the conversation about finding a better, trucking-specific solution for your business' tax needs. Are you a self-employed truck driver that needs help with your taxes, accounting, or bookkeeping? Click here! Question 1) What Per Diem rate am I entitled to as an over-the-road Owner-Operator? Correct Answer: As of October 1st, 2024, you are entitled to 80% of $80 ($64) per day in the continental United States. How most CPAs/Tax Professionals answer: You are entitled to 50% of $80 ($40) per day because that’s the standard rate for most other professionals who are allowed to claim Per Diem - or, even worse, many CPAs will give you 50% of actual meal receipts, which is most likely not even close to $80/day in actual meal spending. Truckers are allowed to take 80% of the allotted amount, which tends to be one of the biggest missed deductions truckers face every year. If you claim 300 days per year of Per Diem, the difference between the full 80% deduction vs. the 50% deduction is nearly $6,000 of missed tax write-offs! Bonus Question: Can my spouse claim a Per Diem deduction if they ride in the truck with me? Correct Answer: Yes! Non-CDL riders who perform other duties related to your business operation (bookkeeping, dispatching, assisting loading, and unloading) may deduct 50% of the $80, which is $40/day. How most CPAs/Tax Professionals answer: No! This is another huge deduction that is often missed and leads to thousands of dollars in unclaimed deductions come tax time. Question 2: Can I use the standard mileage deduction method for my trucking business? Correct Answer: No, the IRS considers a tractor to be a qualified non-personal-use vehicle, which means you need to claim actual expenses instead of the standard mileage method. That means you need to track all of your reasonable and necessary business expenses and deduct them when you file your taxes. How most CPAs/Tax Professionals answer: Unfortunately, many tax professionals (especially at large-chain tax offices) will offer to use the mileage method to keep things simple for them when filing your taxes. This is a huge mistake since you aren’t allowed to do so! This could put you in serious trouble in the event of an IRS audit. Question 3: I’m a driver trainer. Can I deduct the meals I pay for my student drivers? Correct Answer: Yes! Many times trainers end up footing the bill to keep their students fed on the road, and you can claim this as a deduction. How most CPAs/Tax Professionals answer: Many times they say no because they figure the company you contract with will reimburse you for the expense. If you are not reimbursed for the meals you pay for, you can deduct those expenses on your tax return! Question 4: Can I deduct expenses for my dog that travels in the truck with me? Correct Answer: Yes! Many times your furry companion can be classified as a security system for your truck. There’s a lot of grey area here, but if your dog can meet the requirements, you can deduct expenses like pet food, vet care, etc. How most CPAs/Tax Professionals answer: They almost always say no! Why? Because they don’t know the industry. They don’t realize that your dog can qualify as a reasonable and necessary part of your business on the road - it all comes back to knowing the trucking industry inside & out! Question 5: Do you have a way for me to submit receipts to you electronically, 24/7/365? CPA/Tax Professional’s Answer: No, we don’t. ATBS’ Answer: Yes, we do! The ATBS Hub allows our Owner-Operator clients to submit paperwork/receipts/documentation 24/7/365, taking paperwork and bookkeeping tasks entirely off of their hands on the road. This lets our clients spend their non-driving time on more important things, like improving their business or enjoying their free time. Bonus Question: Do you help your clients year-round or only during tax season? CPA/Tax Professional’s Answer: Only during tax season… we’ll see you on April 15th! ATBS’ Answer: We work with our clients year-round! Why? Because properly managing your taxes - and ensuring you pay as little as possible to the IRS - requires 12 months of work. You need to manage your bookkeeping so you can track business performance each month, calculate & pay your quarterly tax estimates to avoid interest and penalties to the IRS, and continuously find ways to improve your bottom line by reviewing your business and benchmarking yourself against industry performance data. ATBS works with clients year-round to ensure they pay as little as possible to the IRS while also maximizing their net income at the same time - we work full-time, year-round, to help you manage your business, same as you! Bonus Question: Do you charge by the hour? CPA/Tax Professional’s Answer: Yes, even if we’re just answering simple questions instead of working on your tax returns… ATBS’ Answer: No, we charge a flat fee on either a weekly or monthly basis. We aren’t afraid to work with you as often as needed to help you run a successful business and keep the IRS off your back. Based on your ATBS service level, we can work with you as often as needed to help you succeed. At the end of the day, ATBS has been helping owner-operators for over two decades, and our entire business is dedicated to working with truckers. If your CPA or Tax Professional can answer all of these questions accurately, they have a pricing model that’s fair and reasonable, and you feel like they’re doing a great job, then there’s no need to think about potentially finding a new tax professional. However, if your CPA or Tax Professional: Couldn’t answer those questions accurately; Is only willing to work with you once per year; Charges you by the hour, even to answer simple questions; Generally doesn’t know trucking and isn’t interested in learning the trucking industry; Then it never hurts to look at other options! If you want to learn more about ATBS and our services, please visit our website to learn more and give me a call if you want to talk. And remember, we won’t charge you by the hour to talk about our services either!

The first half of 2025 has been tough for many owner-operators, with high costs and weak freight keeping profits tight. But some drivers are finding ways to thrive despite the challenges. In this article, we’ll dig into the latest numbers and answer questions, including: How can owner-operators benefit from the One Big Beautiful Bill Act? What are the latest miles, rates, fuel costs, and maintenance trends? What are large carriers saying about freight rates and volumes going forward? Why have maintenance costs shot up year over year? How are the best owner-operators thriving in a prolonged, difficult freight environment? Interested in learning more? Check out our full 2025 Mid-Year Owner-Operator Trucking Trends Webinar , where we give a more in-depth recap of how owner-operators have performed so far in 2025! Table of Contents Freight Rates Miles Revenue Fuel Maintenance Fixed Costs Net Income +1/-10 Rest of 2025 Outlook Freight Rates From May 2020 through April 2022, we saw one of the biggest increases in spot market load volumes and rates in the history of trucking. However, in April 2022, while contract rates remained somewhat stable, spot market rates and load volumes began falling dramatically. Here are some numbers to illustrate this shift in the market: Peak - November of 2021 Loads: 240 loads per 1 truck looking for a load. Rates: $2.74 per mile (without fuel surcharge). September 2024 Loads: 60 loads per 1 truck looking for a load. Rates: $1.84 per mile (without fuel surcharge) April 2025 Loads: 91 loads per 1 truck looking for a load. Rates: $2.13 per mile (without fuel surcharge) Today - September 2025 Loads: 88 loads per 1 truck looking for a load. Rates: $1.88 per mile (without fuel surcharge) As September rolled in, the load-to-truck ratio climbed to around 88. For independent operators who rely on the spot market, that means a few more freight opportunities and less downtime, though rates haven’t followed suit. The average spot rate remains flat at about $1.88 per mile, roughly where it was three and a half years ago. So while load availability is improving, pricing remains under pressure, suggesting continued bumpy conditions. Operators who stay disciplined with expenses and strategic about their loads will be best positioned when the market fully rebounds. Miles Miles continue to trend up year over year. This was needed in order for drivers to stay in business during a prolonged difficult market. However, drivers running more miles have had a direct correlation to more capacity, which has likely extended the down spot market! Overall, miles have dropped significantly over the past 20 years. In 2003, owner-operators averaged about 140,000 miles per year. At a minimum, in a booming freight market, it dropped to 85,000 miles per year. Today it is up to 94,000 per year. Some carriers think we are at the peak of miles now as truck drivers’ work-life balance. Revenue Owner-operator revenue per mile is down 3.7%, or 7 cents per mile on a year-over-year basis. A significant portion of that has come from the reduced cost of fuel resulting in a lower fuel surcharge. True rates have also fallen simultaneously. ICs are working a lot harder to reach the revenue needed to remain in business. Due to the increase in miles, total revenue is only down 2% and we are starting to see signs of recovery. Fuel Fuel cost per mile is down 10% and continues to go down. This type of trend can be expected to continue throughout the year. Many ICs perceive this as a good thing but savvy drivers know they can take advantage of high fuel costs by making money off the fuel surcharge. As freight rates have continued to decrease, we’ve seen owner-operators focus more on fuel mileage. Our average client is up to 7.12 MPG and we’ve seen increases in MPG across all segments. New technology on trucks and better driving habits can be attributed to why we’ve seen this increase. Maintenance Maintenance costs have risen more than any other expense this year—up about 10%, or roughly $100 more per month. Higher wages, pricier parts, and fewer new trucks on the market are all driving the increase, as many independent contractors keep older equipment running longer. Some drivers are also delaying maintenance due to cash flow issues, which can lead to even costlier repairs later. On average, contractors now spend around $1,234 per month on maintenance, though that varies by truck age, freight type, and miles driven. The key takeaway: maintenance planning isn’t optional anymore. A strong plan that covers repairs, fixed expenses, and downtime helps drivers stay prepared, protect their income, and keep rolling when surprises hit. Fixed Costs Fixed costs are up 2% or $1,189 year over year. Over the past few years, fixed cost averages have been a roller coaster. However, we seem to be back to normal levels for the first time since the pandemic as fixed costs increased accordingly with inflation. Net Income Overall, owner-operator net income is up 2.5% to $64,524. Reefer has hurt the worst but we’ve actually seen increases in dry, flatbed, and independents. Most of the damage to net income occurred last year and we are starting to see positive signs. The hungry drivers who have taken extra miles and focused on their fuel economy have started to see gains over the past few months. ATBS clients who are using our services effectively are averaging a net income of $87,614. +1/-10 Incremental and small changes are the best thing you can continue to do today. The two charts above illustrate the top two things the average IC can do to dramatically increase their income, increase their revenue, and decrease their costs. Increasing your revenue could just mean one more load a month, which is illustrated above. There are many ways to decrease your costs, but fuel is your biggest cost and the one you can control the most. Just one mpg better means taking home $8,000 or more in profit! If you do one of the two things above, you’ll increase your net income by $150 a week or $8,000 per year. If you do both, you’ll take home nearly $300 more per week, or $15,000 a year. It might not be possible to run 500 more miles a month or get one mpg better, but if you do a little bit of each, you’ll see drastic improvements to your net income. Rest of 2025 Freight Outlook The best businesses and owner-operators are still doing well. The bottom line is that owner-operators control their own destiny, and they can make changes today to ensure profitability and success!

Asking “How much do truck drivers make?” is not an easy question. This is because the amount of money a truck driver can make varies depending on many different factors. Some of these factors include freight type, where, how often, and how far a trucker drives, years of experience, and more. For example, each year, ATBS analyzes the average net income for its truck driver clients. Even though all of our clients are truck drivers, their average net income ranges anywhere from $50,000 to $1,000,000 depending on a multitude of factors. One of the best predictors of income for truck drivers is where the driver is in their career. This means looking at the difference in revenue potential between company drivers, lease-purchase owner-operators, owner-operators under carrier authority, owner-operators under their own authority, and owner-operators who are small fleet owners. Company Driver Company drivers generally earn, on average, anywhere from $50,000 to $75,000 a year depending on experience, licenses and certificates, driving record, and the type of fleet they drive for. Of the career stages, company drivers generally have the lowest revenue potential, although there are certainly exceptions to that. Generally, a company driver’s revenue is limited by the salary they are paid by their company. Each year, a company driver knows about how much money they are going to make and their potential to earn bonuses. There is always the chance a company driver can negotiate a higher salary depending on how they’ve performed over time, but their earnings will likely be capped at a certain amount. This is different from all the other career stages because, unlike the company driver, owner-operator truck drivers have a lot more control of their revenue and costs each year. This does not mean you can’t live a quality life as a company driver. Company drivers don’t have the same worries and stresses that come with being an owner-operator. When they are home, they don’t have to worry about truck payments, maintenance, finding loads, and other factors that come with owning a trucking business. Also, if you decide being a truck driver isn’t for you, it’s not hard to leave knowing you don’t have to get out of a lease or lose the money you’ve invested into the profession. Even though the earning potential for company drivers isn’t always as high as the other career stages, being a company driver comes with minimal expenses and less stress. Owner-Operator Under Carrier Authority (Pioneer and Hired Gun) Owner-operators under a carrier’s authority have the next highest earning potential of the truck driver career stages. We call drivers in this group Pioneers and Hired Guns. ( Learn more about the driver career journey here ). Lease-purchase owner-operators who drive under carrier authority and lease their truck are considered Pioneers. Owner-operators who drive under a carrier’s authority but own their trucks are considered Hired Guns. As a Pioneer or Hired Gun, you are still getting paid a percentage of the total revenue you are earning per mile by the carrier, but at a far greater percentage compared to a company driver. This is because you are taking the risk of being financially responsible for yourself and your truck. Pioneers and Hired Guns are independent business owners responsible for their own success or failure. Even though they are earning more revenue, they need to manage their costs in order to be successful. Failure to generate consistent revenue and control costs will end in a failed business due to inadequate earnings. The biggest difference between these two types of owner-operators is that owning your truck gives you greater choice and control over some of the truck expenses compared to leasing one through your carrier. This means that by properly managing these additional expenses you are responsible for, you can keep more money in your pocket than you would by leasing your truck through the company you drive for. Leasing your truck through the company you drive for can increase earning potential by 10% to 30% over a company driver, and owning your own truck while continuing to drive under carrier authority can increase earning potential by an additional 10% to 20%. Owner-Operator Under Own Authority (Lone Ranger) When you become an owner-operator under your own authority , your revenue potential can increase by up to 50% depending on how well you are managing your business and how good the current trucking cycle is. Owner-operators negotiate their rates directly with customers and don’t lose any of the revenue they earn to a company taking a percentage. This means that you are in complete control of your earnings based on your revenue and how you manage your expenses. Some of the expenses you have to consider include truck payments, trailer payments, insurance , different licenses, etc. You will also have to work to find your own customers as they won’t be provided to you by a carrier. Lastly, you must deal with market forces like the economy and how it affects the availability of freight and rates. So unlike a company driver, the amount of money you are going to make in a given year is not guaranteed. However, with proper business management skills, you really don’t have a ceiling on how much money you can potentially make. Even though there is a great risk when you decide to be an owner-operator under your own authority, when things are going well, the reward can be even greater. There is a huge upside to this career stage if you focus on working with high-quality customers who pay on time, and pay what you agreed to. Click here to download our list  of industry partners who provide services for truck drivers with their own authority and take advantage of exclusive discounts . Owner-Operator w/ Small Fleet (Trail Blazer) Being an owner-operator under your own authority with other trucks running for you gives you the most revenue potential you can have as a truck driver. In this stage of your career, your revenue is only limited by the number of trucks that you can keep productive. This means that your revenue potential is essentially unlimited, but this career stage comes with the most risk. Every time you hire a new employee, your revenue increases, but so do your costs and responsibilities. As a small fleet owner, you are in charge of all the freight, the employees, the trucks, the insurances, the liabilities, the laws & regulations, and any other responsibility that comes with running a business with people working for you. If you have the money and are confident that you have good business controls in place to manage your employees, the sky is the limit on the revenue you can earn. Of course, all of that revenue won’t go into your pocket as there are high costs that come with managing a small fleet. However, if each new employee wasn’t helping you make a profit, you wouldn’t have hired them in the first place. In this stage of your trucking career, the amount of money you can make is only bound by your motivation, desire, and market forces. So how much do truck drivers make? The simple answer is that it really just depends on your unique situation. The stage you are in as a truck driver and the risk you want to take are just some of the many factors that will affect how much you make. This means that if you are thinking about becoming a truck driver or changing where you are in the truck driver career path, it’s going to take some additional research and real-world experience to figure out what’s right for you!

Writing up your trucking business plan is one of the first things you need to do when you start a trucking company. Your plan will allow you to clearly define your trucking business and give you some direction before you get out on the road. Your plan should include your goals, define how your company will be different, explain how you will grow, how you are going to acquire clients, and a financial plan that shows how you are going to make money. This business plan will be a fluid document and should be updated every year or so. Steps to consider prior to creating a business plan for a trucking company Before you start writing a business plan for your trucking company, there are several important steps you need to take. These steps will help ensure that you’re officially registered, and in compliance, with trucking industry regulations. First, you'll need to register your trucking company as a business with the appropriate state and local authorities. This typically involves filing the necessary paperwork and paying any required fees. Not sure what business structure you should be? Click here to learn about the different options. Next, you'll need to obtain an Employer Identification Number (EIN) from the IRS. This number is used for tax purposes and is also required when applying for certain licenses and permits. In addition to the EIN, you'll need to obtain a USDOT number. This number is issued by the Department of Transportation and is required for any commercial motor vehicle that transports cargo or passengers across state lines. You'll also need to apply for a Motor Carrier number from the Federal Motor Carrier Safety Administration. This number is necessary if your company operates as a for-hire carrier and requires you to comply with FMCSA regulations. Another important step is filing a BOC-3, or a Designation of Process Agent form. This form designates a person or company to receive legal documents on behalf of your trucking company. Additionally, it's crucial to obtain truck insurance that meets the minimum requirements set by your state and the FMCSA. This will protect you, your drivers, and your client's cargo in the event of an accident or damage. Other steps to consider include setting up an International Registration Plan and International Fuel Tax Agreement , which allow your company to operate across state borders and file fuel taxes accordingly. Lastly, you'll need to obtain a Unified Carrier Registration, which is an annual fee paid to the UCR program. By completing these steps, you'll ensure that your company is legally registered and operating in compliance with industry regulations. This will not only give you peace of mind but will also help attract potential customers. Essential information for creating your trucking business plan When creating a trucking business plan, it is crucial to gather all the necessary information to ensure its success. Here is a list of key details that need to be considered: Determine assets and liabilities: Assess your financial situation, including the availability of trucks, finances, and other resources. Understand spot market vs. contract market rates: Differentiate between the two types of pricing models to develop a clear revenue strategy for your trucking business. Research going rates in freight lanes: Analyze the current rates in the specific freight lanes you plan to operate in to accurately determine your pricing strategies. Calculate operating costs and cash flow: Conduct a comprehensive analysis of all expenses , such as fuel, maintenance, insurance, and permits, to determine the company's financial viability. Know where to find loads: Research and identify reliable load boards or freight brokers to ensure a consistent stream of work for your trucking business. By obtaining this information, you can lay a solid foundation for your trucking business plan. Success in the trucking industry requires a thorough understanding of assets, liabilities, market rates, operating costs, and load availability. A well-informed and comprehensive plan will increase your chances of attracting potential clients, securing loans, and ultimately thriving against your competitors in the trucking industry. What to include in a trucking company business plan When starting a trucking company, having a solid plan is essential for success. A trucking company business plan outlines the strategy and goals of the business, as well as the targeted market and potential customers. It serves as a roadmap for the company's operations and provides crucial information for potential customers or lenders. In order to create an effective business plan, there are several key components that should be covered. This includes a company description, market analysis, operational plan, financial plan, and marketing strategies. Additionally, details about the management team, target market, types of freight, and potential competitors should also be considered. By including all of these essential elements, a trucking business can set itself up for success against its competitors. Executive summary This is a summary of your company and your personal reasons for starting a trucking company. It is important to highlight your unique qualities and make a positive impression. It is recommended to seek assistance from an editor to refine your executive summary. It is advised to write this section last for optimal results. Company Description Your plan should start with a general description of your company. Begin with the background of the business and how it got started. It should also include the overall mission statement of the company and some of the key facts. The overall mission of the company should go into what you plan on delivering and how you are going to differentiate yourself from the competition . Key facts could include when the company was founded, the number of employees on the team, what states you plan on operating in, and any other facts you feel are important about the company. Services Within the services section of your trucking business plan, explain what materials you plan on hauling and what industries you plan on operating in. You should also go into detail about how the service you provide will be beneficial to the clients in the locations you are operating in. This will help justify why you will be successful and why your services will be in demand. Market Analysis In the market analysis, you should portray how well you know the industry. It should give insight into where the industry is going and how you will capitalize on the changes. In addition to the industry outlook, your market analysis should include your target market, the characteristics of the market, the market's size, and how much of the market you want to capture. Thinking about these things will take time but will help you set goals you'd like to accomplish. Management and personnel If you plan to have staff or additional office help, your business plan should include details on your approach to hiring people. This should encompass your hiring process and how you will onboard new employees. Owner-operators will need to adhere to the compliance standards set by the shippers and brokers they collaborate with. It is important to familiarize yourself with basic industry standards, regulatory compliance, and safety records. Hiring skilled drivers with strong performance records will greatly contribute to the growth of your business, allowing for expansion into additional freight lanes. It is essential to have a retention plan in place due to the highly competitive market and high demand for qualified drivers. If you find that managing people and paperwork is not your strength, it may be worth considering hiring additional personnel or a trucking business service partner to assist with running your business. Sales and Marketing Knowing what part of the market you want to capture is only half the story. You need to figure out how you're going to get the word out about your company. Specifically, what channels you will utilize to market your business and where you want to promote your business will be important for not just acquiring customers but keeping them long-term. Through your marketing tactics, you will be able to build up a pipeline of potential clients. However, it is not likely that all your contacts will reach out to you first. You will need to come up with a plan for how you're going to engage those people who know about your company but aren't yet convinced they need your services. This part of the trucking business plan will be crucial for the success of your company. It is easy to describe your business and what type of customers you want to serve but actually coming up with a strategy to acquire those potential customers will take time and effort. Financial Projections Within your financial projections, you will prove how your company will be able to stay in business and meet its goals. You should provide basic statements like profit & loss , cash flow, and a balance sheet. You will also need a sales forecast for the next three to five years. Making financial projections might be difficult for those who are not experts in finance and who have never prepared information like this before. If you need assistance with your financial projections, give ATBS a call at 866-920-2827. We have been in the industry for over 25 years helping owner-operators keep track of their finances. Finishing your trucking business plan A trucking business plan may be time-consuming and seen as an obstacle getting in the way of getting out on the road. However, your plan will allow you to think about the big picture of your company and it will help you realize what it will take to be successful. You might also discover things that could stand in your way. Not all business plans need to look exactly like this and there are plenty of sources online to help you get started. Don't skip out on this important step in starting your trucking business!

Preventive Maintenance done on a regular basis and performed properly puts the owner-operator in charge. It drives costs down while simultaneously driving revenue up. That means real profits! A successful PM program will: Lower total maintenance cost Lower fuel cost through better MPG Lower tire cost Have fewer service failures Have zero towing costs Have less downtime which leads to increased revenue Be a major factor in running a business profitably Good PM’s Produce Repairs You should expect to see repairs if the PM is done right. The flip side is that if the PM is done improperly then you have to accept the consequences of unpredictable breakdowns plus all the extra costs that go with them. There are two types of repairs for purposes of this newsletter – planned and unplanned. (You can substitute “Controlled” and “Uncontrolled”.) Planned (controlled) repairs give you the opportunity to schedule the repair at the best possible time for you and at a negotiated or known price. Unplanned (uncontrolled) repairs mean it can happen at the worst possible time for you. Costs for the unplanned repair can escalate out of control. Since you can’t shop around you’re not in a good position to negotiate. You might feel pressured to make hasty decisions especially if the breakdown puts you behind schedule. Pre-Trip and Post-Trip inspections complement Preventive Maintenance. All have something in common – all three are intended to prevent costly breakdowns and promote safety. Pre-Trip and Post-Trip inspections should be performed personally and in a systematic way until they become natural and effortless. While a Pre-Trip inspection is required, the Post-Trip inspection can be the most beneficial to running a business. The Post-Trip gives you the opportunity to make repairs during a scheduled stop at the end of the day instead of at the beginning of the day when you should be running. A Post Trip can complement preserving your personal time and also can preserve your record for on-time service. Ten Preventive Maintenance Tips You Can Do Yourself 1. Set aside a maintenance reserve fund based on the age of your tractor. A major engine repair can cost you thousands of dollars so don’t spend the funds from this account on other things because you think you have enough saved for maintenance. If you save too much and don’t have to use it, it’s still in the bank! Consider the guidelines below: Age of Truck and Maintenance Savings New: 7 cents/mile 1 Year or 150,000 miles: 9 cents/mile 2 Years or 250,000 miles: 10 cents/mile 3 Years or 350,000 miles: 11 cents/mile 4 Years or 450,000 miles: 13 cents/mile 5 Years or 500,000+ miles: 15 cents/mile* *Add 2 CPM for every 100,000 miles over 500,000 miles 2. Get the correct maintenance manuals for your truck and its major components. Be sure that you have read them and understood them. 3. Obtain a quality Preventive Maintenance (PM) form and use it. This form should be customized for your truck and your type of work (long trips vs. short trips, light loads vs. heavy loads, on-road vs. off-road, etc.). 4. Commit to following the set intervals for your truck’s PM schedule. 5. Learn your truck’s grease points and grease your truck yourself. Grease is always cheaper than repair. “Lube it or lose it” is the way it works. This is not the place to skimp so use high-quality grease. You can set up a weekly rotation to grease a small part of the truck on a certain day of the week. This makes a big job smaller and easier. It’s a small thing, but if you grease your truck, wipe the dirt off of the zerks before pumping grease into them. If you don’t you’ll be pumping dirt into the joint. 6. Your driving will affect maintenance costs. 75 mph vs. 65 mph means that the engine and drive train components as well as brakes and suspension are all going to be working harder and they will wear out faster. Aggressive driving and high speeds cost you money – lots of money. 7. Check the oil level every day. Look for substances that shouldn’t be present like coolant or metal. 8. Check the tire air pressure for all tires with an air gauge, every day. When a breakdown happens the chances are really good that it will be related to tires and most of those tire failures are caused by simple under-inflation. 9. Cavitation will ruin your engine. Prevent cavitation damage by using the proper coolant and the proper coolant additive package. Coolant additive test strips will tell you the quality of your coolant package. Do this yourself and don’t trust this critical inspection to the service technician. Not all coolant is the same so look in the engine owner’s manual for the proper coolant for your specific engine. 10. When buying tires or parts, make yourself acquainted with the warranty before you buy. Then carry photocopies of the warranty and the receipt in the truck with you in case there are problems while over the road.

As an owner-operator, there are many ways to save money on fuel, truck maintenance, taxes, and business expenses . You can also be sure you never pay more than you have to in taxes , always have an up-to-date profit plan in place for your business, and keep an eye on your business performance each month to find ways to improve! If you are currently working with ATBS, you know that we can help you with all of these things! But on top of all of this, it’s important that you don’t forget about your personal spending! We wanted to give you a few tips on what you can do today, right now, to try and save money. With any kind of change, little steps are what lead to big results. We hope some of these ideas will help you shore up your finances. Here are some of the quickest ways for truckers to cut personal spending: Have a Budget or Spending Plan in Place Building a Budget (or, “Spending Plan”) is the single most important action you can take to weather any financial storm. It’s extremely difficult to take control of your money tomorrow if you don’t know where it’s going today. Consider this plan your roadmap, and it’s going to help you reach your destination of being financially secure during hard times! Narrowing your spending focus to the absolute essentials can help you prioritize. Dave Ramsey talks about focusing on your “ Four Walls ” when this happens: Food Utilities Shelter Transportation Once you nail down those key areas, focus on budgeting for the near-term right now. The economy goes through cycles of being up and down. So when times are bad, focus on keeping your head above water until it turns around! Stay Healthy Serious illness has the potential to be a double-edged sword: If you can’t work then you can’t earn money, and if you couple less money coming in with large medical bills going out, your financial situation can degrade very quickly. Do everything you can to keep your health your top priority on the road! There’s nothing easy about doing this while driving in your truck, but there are ways to do so, and there are many great resources available to help you manage . Dust Off Your Negotiation Skills Debt and obligations take up a large chunk of the average American family’s monthly income. You should be doing everything you can to find out what you can do to save money on those obligations. Make a list of all your debts including mortgage, car loans, student loans, personal loans, medical bills, credit card debt, etc, Then, dust off those negotiation skills and call everyone you owe money to each month and ask about the options you have regarding your monthly payments. Review Your Personal Car Insurance Do you have any cars or vehicles that you aren’t using back home? Talk to an insurance agent about your coverage options! It doesn’t make sense to pay insurance on a car you aren’t driving. If you aren’t going to use a vehicle at all, consider dropping or suspending coverage entirely. For vehicles you still need to use: Drive whichever vehicles have the best fuel mileage Consider moving to liability-only coverage for vehicles that are completely paid off Consider increasing your deductible on other vehicles that require full/comprehensive coverage This is obviously specific to your financial situation, so be sure to speak with an insurance agent prior to making any changes so you are still properly insured as needed! Review Your Other Recurring Service Subscriptions Let’s review some common services folks pay for each month that you should review to see if you can find more affordable options: Cell Phone/Internet Did you know most major carriers offer discounted services that use the same towers as the major provider? Look into a few of these: Verizon: Visible, Total Wireless, Xfinity Mobile AT&T: Cricket Wireless, h2o Wireless, Consumer Cellular T-Mobile: Metro by T-Mobile, Mint Mobile, Republic Wireless Sprint: Boost Mobile, Tello Mobile, Twigby Cable/Live TV First, decide if you really need Live TV! If you do, there are a ton of affordable options out there that could potentially save you some money each month - here are just a few: Sling TV YouTube TV Hulu + Live TV AT&T TV Now Philo All of these options are cheaper than most, if not all, major cable subscriptions today. Streaming Subscriptions Want to replace Live TV with a subscription service? Netflix, Hulu, Amazon, Disney+ (the list goes on & on) are all different companies offering streaming services these days. Take an honest and critical look at these services to figure out which ones you really want - if any - and cut the rest! Keep in mind that Netflix alone has (by some estimates) over 34,000 hours worth of content available to stream. Consider that before purchasing multiple services to get access to “more content!” Those monthly fees for each service can add up quickly, even if they’re each a small dollar amount. Music Subscriptions Do you really need to pay money to buy each song or album you want to listen to in the future? How about paying money each month to listen to your music without ads? If not, Pandora, Spotify, iHeartRadio, and many others offer you all the music/podcasts you need to get through the day at $0.00 to you! You just need to sit through a few advertisements every now & then, and everything you could ever want to listen to is at your fingertips! Home Energy Bills Energy bills don’t typically come to mind as something we can cut expenses on, since they’re not really “discretionary” because we have no choice but to pay them. However, there are plenty of ways to make sure you are running a tight ship at home to make sure you aren’t paying more than you have to! Update your light bulbs to CFL or LED to save on energy consumption. They may cost more up front, but they last longer & use far less electricity, so they pay for themselves in the long run! Keep an eye on the thermostat! Chilly? Put on a sweater! Too hot? Open the windows! Do what you can to regulate your body temperature without breaking the bank to do it. Consider lowering the temperature on your hot water heater. The Department of Energy recommends keeping your temperature at 120 degrees, but most default settings are 140+ degrees. Take a look and make sure you aren’t wasting money on keeping that water hotter than it needs to be! Unplug unused electronics. “Phantom” or “Vampire” charges are small electrical currents that stay connected to the item when it’s plugged in but not in use, which is a totally unnecessary waste of money, and is easily saved by unplugging devices that aren’t being used! Turn the lights off & any electronics when you leave a room/space that you aren’t using - simple, but a big one to remember! Seal off air leaks. Check the doors and windows to see if you can find any areas you can seal off to keep that thermostat steady! Reduce expenses on the rest of your personal spending Cut out the Vices (Smoking, Drinking, etc.) There are plenty of ways to manage stress, have fun, and keep a positive outlook on life without spending money on those items - just do it! Groceries Make a list before you go! Studies say up to 70% of impulse purchases happen when shopping for groceries takes place when you don’t have a defined list to work off of. Also, use coupon/rebate apps to cut down on costs and/or earn cashback! Ibotta, Checkout 51, Paribus, etc. are all free and all are easy to use! Online Purchases If you DON’T NEED it, DON’T BUY it! However, if you really want to purchase an item, wait 24-48 hours after you put that item in your online shopping cart. Many times online retailers will email you rebates/discounts as items sit in your cart. Not only will this potentially save you money, but you may decide you don’t really NEED that item in the first place after the initial excitement of purchasing it wears off! Preventative Maintenance (for your personal life!) You’re already a pro at preventative maintenance on your truck, why not take the same disciplined approach for the rest of the belongings in your life? Take care of your home, your vehicles, and your appliances! Build time into your schedule to take care of your things, so that you don’t have to spend money to fix them or you don’t have to take additional time off to fix them. Finally, consider decluttering your home by selling or donating There are many online marketplaces where you can sell your items. And, there are many people/families who are in need of a lot of items. If you’d like to give back, folks would be extremely grateful for your kindness! This list is full of ideas, but it doesn’t include all the ideas out there! Do your research, ask around for advice, and we’re sure there are plenty of other ways to reel in your finances! We hope this list will help you make some purposeful decisions regarding your expenses. Our goal at ATBS is to always provide you with as much help and guidance as we can, and hopefully, this will help you prioritize your spending. Thank you to all truckers for keeping the world moving forward!

Here is a list of the most commonly asked business questions we receive from owner-operators, and our answers to those questions. Q: How do I keep track of how my business is doing? A: The best way to track the health of your business is by keeping good records of your revenue and expenses. You can do this by saving and recording all of your receipts and using them to build a profit and loss statement. With this, you’ll be able to see how your business is performing month to month. You can drill down further into your profit and loss statements by keeping track of expenses by category. From here you’ll be able to see the areas of your business where you’re struggling and the areas you can improve. Q: What’s my breakeven point? A: Your business typically has to pay for its own costs and support your personal needs. Your business plan should help you determine at what revenue point (daily, weekly, monthly, or at how many miles) you have to hit to cover all these costs. This is known as the breakeven point or breakeven miles. Factor in your personal costs as part of your business plan and re-evaluate costs at least every six months or whenever there is a significant change in your business or personal life. For example, consultants at ATBS work with small business owners on this process regularly and help customize their client’s plans to become their personal “profit plan.” This is the minimum amount of money you should aim to make or miles you should plan to drive in order to at least keep your business from losing money. Q: Should I have a trucking business plan? A: Before you start a trucking business, the first thing you should do is write up a business plan . Understanding how your business is going to operate might change over time, but writing out the basics will provide you with a roadmap. Q: What is Per Diem? A: In its simplest terms, the Per Diem deduction is a tax deduction that the IRS allows to substantiate ordinary and necessary business meal and incidental expenses paid or incurred while traveling away from home. The Per Diem rate is set by the IRS. The current rate (as of October 1, 2024) is $80 per day in the Continental US. You may hear the amount of the deduction quoted as $64. That is because the IRS usually only allows you to deduct 80% of that rate. Q: What is IFTA? A: The International Fuel Tax Agreement (IFTA) is a pact between the lower 48 states and the ten Canadian provinces that require all interstate motor carriers to report fuel taxes. IFTA was put in place to replace the old fuel tax system, in which trucks were required to have a separate decal for every state they operated in. The current IFTA reporting system simplifies the hassle of reporting fuel tax for trucking companies (including owner-operators) who operate across IFTA jurisdictions by reducing paperwork and minimizing the compliance requirements. At the end of each quarter, you must submit an IFTA report that lists the miles driven and the gallons purchased. These reports will determine either the amount of tax still owed or the refund you are due. Keep in mind that IFTA is not an additional tax. IFTA was put into place to redistribute the tax to the states where the fuel is actually being used, not where it is purchased. This means no matter where you buy the fuel, you're paying the fuel tax in whatever states you're driving in. Q: What is HVUT? A: The Heavy Highway Vehicle Use Tax is a tax imposed yearly by the IRS on anyone who owns and operates a heavy highway vehicle (Class 6, 7, and 8 trucks are included) with a taxable gross weight of 55,000 lbs. or more on public roads. These taxes currently have a maximum of $550 per year (taxes increase as the taxable gross weight of the vehicle increases), and they are used for highway construction and maintenance. The FHUT tax season runs from July 1st until June 30th of each year, and is reported using the IRS Form 2290 . The form must be filed on the first month that the vehicle is used on public highways, not when the vehicle is registered. Q: What are the biggest expenses an owner-operator faces? A: Fuel, Truck, Insurance , Taxes, Food/Drink Q: How much should I plan on spending on fuel? A: On average, owner-operators may spend anywhere between $50,000 and $70,000 per year. Thanks to the ever-growing list of smartphone apps and fuel cards , you now have the tools you need to ensure you are paying the lowest price possible for fuel whenever you fill up. Q: How do I get the best fuel efficiency? A: Fuel is the largest annual business expense you will face every year as an owner-operator. Fortunately, it is also the expense that you have the most control over. You can control how fuel-efficient you make your truck/trailer, how fuel efficiently you drive with speed and braking, and even though you don’t control how much you pay for fuel you do have the ability to use fuel cards and other discounts to help reduce these costs. We have several resources in our Knowledge Hub about reducing fuel costs but a good place to start would be clicking here . Q: How much should I set aside for taxes? A: We recommend setting aside between 25% and 30% of weekly net income for quarterly taxes. Q: How much should I set aside for maintenance? A: At ATBS, we typically recommend saving between $0.07 - $0.15 cents per mile for general upkeep and repairs. Many factors play into this recommendation including age of equipment, driving habits, type of freight hauled, and more. Q: What business entity should I be? A: The three most common types of entities for owner-operators are sole proprietorship, S corporation, and a limited liability company (LLC). When deciding on your business structure, the two main factors to consider are owner liability and income taxation. Each structure comes with different tax consequences so it is important you make your decision based on your business needs. Here is a free e-Book that goes into much more detail on the different business structures. Q: Should I buy or lease my truck? A: It will be very difficult to purchase a truck upfront , which means you will have to decide whether to join a lease-purchase program with a carrier, or purchase a truck through a truck financing company. Through a lease-purchase program, you won’t own the truck, but you will be making monthly payments on the truck until the contract is up. At that point, you can purchase the truck or start a new contract with the same or different carrier. You can also decide to purchase a truck through a trucking-specific financing company. This way you don’t have to lease your truck through the carrier you decide to drive for. When you finance a truck, you slowly make payments on the truck until you eventually own it. Q: Should I drive on the spot market or lease onto a carrier? A: When a driver decides to become an owner-operator, most will make the decision to start by leasing with a carrier rather than getting their own authority . By doing this, you still have the freedom of being your own boss, but you will have the protection of a fleet to help you find loads and to help pay for some of the upfront costs. The breakeven point, as of 2025, for deciding between spot market and leasing onto a carrier is $.48/mile. If you can earn more than an additional $.48/mile by running on the spot market it might be worth making the switch. This $.48/mile is calculated from the additional costs that come with not leasing onto a fleet. You have to consider this along with the lack of security that comes with running on the spot market. Q: How do I decide what company to lease onto? A: A few of the things that should be considered are where you want to drive, what type of operation you want to run, and how the fleet treats owner-operators. Carriers will list what parts of the country you will be driving in and what types of freight you will be hauling. Once you have found a few options based on your driving preferences, you should do a little research on the reputation of each fleet. Figure out how much they pay per mile, if they pay their drivers on time, if they consistently have loads available, and any other information that is important to you in deciding what carrier to lease on to . Q: How much does it cost to get your own trucking authority? A: This list does not include the daily expenses owner-operators already face while leased onto a carrier, but rather new expenses unique to running with your own authority. The list also does not take into account the lost revenue from taking time off the road to make the switch to your own authority. The extra ramp-up expenses/lost wages must be considered in addition to what the table lists below: Truck: Lease: $1,600 - $2,500 per month Purchase: $50,000 - $200,000 Trailer: Lease: $500 - $600 per month Purchase: $25,000 - $50,000 Insurance: $15,000 - $30,000+ per year DOT number (Form MCS-150) and operating authority application (Form OP-1): A one time fee of $300 BOC-3 Form: A one time fee between $20 - $40 IFTA Decal: $10 per year IRP Credential: $1,700 per year Once you have an active U.S. DOT number, you must pay Unified Carrier Registration (UCR) fees: $59 per year Drug and Alcohol testing: $75 - $110 per year Load Board : $35 - $150 per month Of course, not everyone will experience the same expense totals during the switch to running their own authority. That said, we estimate that you should be prepared to spend an additional $30,000 for the first year under your own trucking authority. Another expense to consider is the cost to set up and run a business entity if you do not have one already. With these costs in mind, it’s important to look at your business & personal finances to make sure you are monetarily ready to make this switch. Overall, we estimate in the first year, you will need to generate, on average, $50,000 or $0.48/mile in additional revenue to make the switch financially worth it. Q: What insurance do I need? A: Owner-operators on their own authority need primary liability insurance, cargo, physical damage, bobtail, and non-trucking insurance. Owner-operators leased onto a carrier have primary liability coverage provided by the fleet, however, they usually still have to purchase bobtail, non-trucking, and physical damage insurance. Q: How much do owner-operators make a year? A: This can obviously vary drastically based on a multitude of factors, but the average net income for leased and independent operators combined is up to $64,000 in 2025. Q: How much should I pay myself? A: Oftentimes, lease-purchase owner-operators believe that if they decide to pay themselves a set salary then that is what they will be paying taxes on. Your "payroll" is the amount that is left over after all of your business expenses are paid and you’ve already set aside money for taxes. Q: How does ATBS help owner-operators? A: Over 150,000 owner-operators have made the choice to hire ATBS. We offer a variety of services, specifically for owner-operators, including accounting, bookkeeping, and tax preparation. We also offer unlimited business consulting for our RumbleStrip Professional clients. A dedicated business consultant will help answer your questions and assist you in keeping your business successful and profitable. If you’d like to learn more about ATBS services or want to get started today, give us a call at 866-920-2827 or chat with us at www.atbs.com .

We wanted to take a moment to thank clients for the valuable feedback you've shared with us regarding the new ATBS Hub . Your insights have been instrumental in shaping the user experience, and we are thrilled to announce some exciting new features that have been added based on your suggestions. Here's a brief overview of the enhancements we've made so far: 08/26/25 Updates Updates to QTE language Added resubmission feature 12/04/24 Updates Added a message center to allow the ATBS team to request documents or information from clients in a streamlined format. Added a link to a brand new process for clients to complete their annual Tax Organizer. 08/20/24 Updates Added resources for ATBS Ride Clients Fixed bugs relating to the mileage tracker and ATBS Ride client data 07/23/24 Updates Improvements for analytics tracking Improvements to per diem notes Improvements to the Open Banking connection Add YTD Savings info and summary info for clients in the Rideshare industry Fix minor bugs and install patches and updates 06/29/24 Updates Updates to tools for clients with business entities. A mileage tracking tool for clients in the rideshare and gig driver industries. Optional Trip Notes: Users can now add an optional note to each trip. CSV Export: Users can easily download a summary of all trips in CSV format for their records. 04/02/24 Updates Added "What If" sections to Profit Plan 02/23/24 Updates The 2023 Personal Tax Organizer is now available to clients as a DocuSign Powerform that clients can launch themselves directly from their client Hub. 02/06/24 Updates Links will now open in the app if it is installed on your device Fixed multi-page navigation on small screen sizes Fixed Per Diem calendar auto-returning to the current month Fixed "Upload File" button not working on first tap in mobile on Safari 01/22/24 Updates Fixed P&L / Balance sheet table scroll Added P&L / Balance sheet download Updated language on the home page  Updated login page language Added the app version number to home page menu 12/21/23 Updates Login Experience The Hub now includes a “keep me logged in” feature so that the user can choose to stay logged in on trusted devices for an extended period of time. Username and Password can be saved. This is dependent upon the OS, device, browser, and user settings/options. Documents Increased file size limits. Access your device’s Camera Roll from directly within the Hub. Share documents/files to the Hub from other apps on your device. For example, share a PDF file in your device’s Email app directly to the ATBS Hub. Improved usability of the cropping tool. Profit & Loss Statements and Balance Sheets Added charts for YTD Miles and YTD Expenses. P&L and Balance Sheet drill-downs now show images of documents sent from any source (app, email, and physical documents). Previously, only documents that originated from the mobile app were displayed in the drill-downs. Fixed bugs related to the display of some P&L information, including Fuel Surcharge Revenue displaying correctly in the YTD Charts and some categories that errored for certain clients. Per Diem Added a “Year” option that allows clients to view/update the per diem for any year. When the “Year” is selected, the Per Diem Summary tile and the Calendar automatically display the selected year. Profit Plan Personal Obligations section added. Tax Updated language on the Quarterly Tax Estimates to make it easier to pay estimates. Added Tax Returns for clients who have multiple Returns in a single year. For example, business entity and personal returns, and married filing single returns for husband and wife. General Fixed numerous back-end items to improve stability, speed, usability, security, reporting, automations, and various other items. We believe these additions will greatly enhance your overall experience with the ATBS Hub and provide solutions to the challenges you've shared with us. We will continue to update this page as new updates continue to be rolled out. Thank you once again for being an integral part of our user community. Your feedback is invaluable to us, and we look forward to continuously improving our services to meet your expectations.

Eating healthy in the semi is not the easiest thing in the world, as most drivers are aware. This is especially true for those of us who have specific dietary needs or restrictions. I make it my mission to avoid carbohydrates, and that is not the easiest thing to do given the options available on the road. This makes food prep during time at home a priority for me, because I want to be sure that I have snacks and meals that I love to eat without any of the guilt that goes with fast food or other options that don’t agree with my diet. I think for most people, there is danger in getting hungry and not having a quick way to satiate that hunger, which often leads to making poor food choices. To avoid this, I try to ensure that I have healthy snacks with me and within my reach, even when I’m driving. I like to have snack foods that aren’t going to veer me off course and keep me energized without spiking my sugars. I don’t eat very often throughout the day, which isn’t necessarily good. According to health experts, eating several small snacks or meals during the day actually keeps your metabolism running faster and more efficiently than having one big meal, which tricks the body into thinking it isn’t getting enough of what it needs, so it stores energy as fat! One of my go-to snacks is berries. They’re easy to put in snack bags and low in carbohydrates. I also recently invested in an egg cooker. It’s really small and convenient, and I can use it in the truck to make hard, medium, or soft-boiled eggs. The other great thing is that there are lots of places that actually sell cartons of eggs on the road, so boiled eggs have really become a go-to for me (and a boiled egg in the morning sets the pace for the metabolism). Another easy snack that I can keep right near the driver’s seat is a no-bake recipe, referred to as “energy balls.” They are really easy and fun to make, and you can whip up big batches and put them in gallon storage bags in the freezer or refrigerator. Actually, they don’t even need to be refrigerated. I just prefer them that way. These are a keto-friendly option, and they’re also gluten-free. They have minimal impact on the glycemic index. All you need is a big old mixing bowl and a few ingredients. The recipe can also be tweaked to your own specific taste: for example, if you like chocolate, you can use cocoa powder to enhance the recipe. I happen to be a cinnamon fanatic, so I add cinnamon to the recipe until I’m happy with the taste. This snack is extremely satisfying, and it will cure a sweet tooth craving without any guilt. If you’re interested in trying this recipe, here it is: Ingredients: 2 cups almond flour 2 cups coconut flour 1 cup unsweetened organic coconut flakes 1 cup Splenda brown sugar 0-calorie sweetener 1 cup Splenda (or store brand) granulated 0-calorie sweetener 1/2 cup Chia seeds 2 teaspoons fine-ground Himalayan pink sea salt 2 teaspoons ground cinnamon 2 cups peanut butter (of your choice) 1/4 cup honey Directions: Mix all of the dry ingredients together in a very large mixing bowl. I prefer to use a whisk for this step.  When all of the dry ingredients are thoroughly mixed (be sure to break down any of the brown sugar and no-calorie sweetener if it clumps), add the peanut butter and honey. The consistency should be slightly lumpy, but not wet. Form into packed balls about 1 inch in diameter (approximately 1 tablespoon of the ingredients). Store in a sealed container or sealable freezer bags. For best results, place in freezer or refrigerator after making the balls. They can be eaten directly out of the freezer or refrigerator without the need for thawing. Most of the carbohydrates in this recipe do come from the honey, so if you choose not to add honey, you can instead add a bit more peanut butter for the correct consistency to form the energy balls.  Yield: 56 (1-inch diameter) energy balls Nutritional information: (one energy ball) 130 calories, 4 net carbohydrates

Owner-operators are not just responsible for calculating and paying their own taxes , they’re also responsible for deducting expenses, which can significantly lower their tax burden. Because of this, we often get asked about the common tax deductions that owner-operators can take advantage of. In this article, we will help answer this question by discussing some of the most overlooked owner-operator truck driver tax deductions. Are you a self-employed truck driver who needs help with your taxes? Click here! Insurance Business-related insurance can be deducted as a business expense. This could include cargo insurance, physical damage insurance, bobtail insurance, etc. Some health insurance related expenses can also be deducted. Meal Expenses The Per Diem deduction is a tax deduction that the IRS allows to substantiate ordinary and necessary business meal and incidental expenses paid or incurred while traveling away from home. The current rate (as of October 1, 2024) is $80 per day and $60 per partial day in the Continental US. You may see the deduction amount quoted as $64 per full day and $48 per partial day. That is because the IRS only allows you to deduct 80% of the Per Diem rate. If you are an owner-operator, the rule is simple, you get to claim the tax deduction for each day that you are away from your “tax home”. On the days that you depart and the days that you arrive at home, you must claim a partial day allowance instead of a full day allowance. That is ¾ of the standard allowance. However, you can't claim the deduction if you depart and arrive home on the same day. Fuel and Travel Any of the fuel costs that you face on the road along with any of the fuel taxes you have to pay when filing your quarterly IFTA report are tax deductible. You can also claim other fees like tolls and parking if they are incurred while traveling for work. Truck Supplies Many of the truck supplies that you need can be deducted, lowering your taxable income. A few examples of the supplies that can be deducted are: Chains Fire Extinguisher Ice Scraper Coffee Pot Microwave TV Refrigerator Mattress If the supplies are common to your profession and appropriate or helpful in developing or maintaining your business they can be considered tax deductible. Trucking Business Fees Any expense that is directly related to your business can be deducted when it comes time to file your taxes. Some of the more common trucking business fees to make sure you remember are: Dispatch Fees Licensing Fees Subscriptions Association Dues Factoring Fees Bank Fees Remember, all of these have to do directly with your trucking business. That means subscriptions, associations, or any education that is outside of trucking can’t be deducted. Medical Expenses Truck drivers are required to get regular DOT medical fitness exams in order to maintain their CDL. You can deduct the cost of these exams as a business expense. Any medical exams or treatments that are not directly work-related are only deductible as personal expenses, not business, and you can only claim them if you itemize your deductions. Maintenance Generally, if a maintenance repair makes the equipment better, restores the equipment back to its normal condition, or modifies the property for a new or different use, then the expense can be depreciated over several years. Maintenance expenses that don’t fall under these categories can be deducted in full in the same year the expense was paid. A few examples of maintenance expenses that can be deducted are: Repairs Parts Labor Oil Tires Tools A simple rule of thumb when it comes to maintenance expenses is “If you repair stuff, you can deduct it”. Office Supplies Office supplies are tangible and traditional items regularly used in offices by businesses or organizations. A few examples of the office supplies that can be deducted are: Calculator Paper Pens Envelopes Stapler Any office supplies that were used during the year that were needed to help run the business side of your trucking operation can be considered tax deductible. Personal Supplies Not all personal supplies are considered tax deductible. In order for personal supplies to be considered tax deductible they have to be ordinary and necessary for operating your business. A few examples of personal supplies that can be deducted are: Uniforms Gloves Motel Boots Showers Reflective Vests Sunglasses Fire-resistant Clothing This is a broad tax deduction category that you will really have to think about. Keeping in mind the words ‘ordinary’ and ‘necessary’ will make it easier to decide whether or not an item is tax deductible. However, items such as shirts and jeans are considered everyday clothing and are not deductible. Communication Similar to the previously mentioned truck driver tax deductions, any technology needed for communication in order to run your business can be considered a deductible expense. As a truck driver, there are many methods of communication that you will be able to deduct from your taxes. A few examples of communication that can be deducted are: CB Radio Electronic Logging Device (ELD) Cell Phone Internet Radio Keep in mind that these methods of communication need to be used strictly for business. Non-Deductible Expenses Here is a list of some of the common expenses that aren’t tax deductible: Commuting expenses Clothing that isn't part of your uniform Personal trips Reimbursed expenses Make sure you aren’t claiming these examples or any other expenses that aren’t necessary and ordinary for your business. Want to know more about owner-operator truck driver tax deductions? Keep in mind that there are many other overlooked tax deductions that truck drivers aren’t aware they can take advantage of. For our complete list of owner-operator truck driver tax deductions, check out our Tax Deductions for Truck Drivers List . If you have any questions, give us a call at 866-920-2827.