Tax and bookkeeping built for drivers and carriers

IFTA fuel tax reporting

Interstate carriers must file quarterly IFTA reports tracking miles driven and fuel purchased in each jurisdiction. Errors in IFTA filings trigger audits. Most general accountants do not handle IFTA — it requires specialized knowledge of the reporting system.

Per diem deductions

Owner-operators who travel away from home overnight can deduct a per diem for meals and incidentals. The IRS rate for transportation workers is higher than the standard rate. Many drivers leave this deduction on the table because their accountant does not know to claim it.

Vehicle depreciation and Section 179

Trucks and trailers are expensive assets. Section 179 and bonus depreciation can allow you to deduct the full cost in the year of purchase — but the rules for vehicles over 6,000 lbs are different from passenger vehicles, and timing matters.

Multi-state income and apportionment

Owner-operators and carriers earning income in multiple states may owe income tax in those states. New York has aggressive residency and source-income rules. Understanding where you owe tax — and where you do not — requires state-by-state analysis.

Self-employment tax on owner-operators

Owner-operators pay both the employee and employer share of Social Security and Medicare — 15.3% on net income. An S-corp election with a reasonable salary can reduce this significantly once net income is consistently above $60,000.

Fuel, maintenance, and operating expenses

Fuel, repairs, tires, insurance, and tolls are all deductible business expenses — but only if they are tracked and categorized correctly. Many drivers mix personal and business expenses, which creates IRS exposure and understates deductions.

Rideshare and gig income reporting

Uber, Lyft, and delivery platform income is reported on 1099-K or 1099-NEC. Drivers often do not realize that platform fees, mileage, phone costs, and a portion of vehicle expenses are deductible against this income.

Lease vs. purchase decisions

Whether to lease or purchase a truck has significant tax implications. Lease payments are deductible as operating expenses; purchased trucks are depreciated. The right choice depends on your income level, cash flow, and how long you plan to keep the vehicle.

When:

Net income exceeds $60,000

Evaluate S-corp election to reduce self-employment tax

When:

Purchasing a new truck or trailer

Time the purchase to maximize Section 179 or bonus depreciation

When:

Operating in 3+ states

Review multi-state income apportionment and IFTA compliance

When:

Hiring your first driver

Set up payroll correctly — misclassifying employees as contractors is costly

When:

Profitable year with cash available

Maximize retirement contributions before year-end

When:

Rideshare or gig income

Claim mileage, phone, and vehicle deductions — most drivers underreport these