A Truck Driver's First Tax Year: W-2 or 1099, What You File, What You Keep

For a new truck driver, the first tax question is whether you are paid on a W-2 or a 1099. On a W-2 you file a personal Form 1040 and your on-the-road expenses are not deductible federally. On a 1099 you file a 1040 plus Schedule C: expenses are deductible, but nobody withholds tax for you and you owe self-employment tax. Here is what each one involves and which records to start keeping now.

Company drivers on a W-2

You file a personal Form 1040 and that is it. One thing to know up front: money you spend out of pocket on the road (meals, phone, tools, boots) is not deductible on your federal return. The 2017 tax law suspended unreimbursed employee expenses, and the 2025 One Big Beautiful Bill Act (OBBBA) made the suspension permanent; it now sits in IRC §67(h) with no end date. Per diem works the same way. It only matters if your employer pays it to you; you cannot claim it yourself.

W-2 drivers save tax elsewhere: retirement accounts, health coverage, household deductions. There is no point collecting trucking receipts.

Drivers on a 1099

The IRS treats you as running a business. You file a 1040 plus Schedule C. Trucking expenses go in as costs, and you can claim per diem yourself (see our 2026 Per Diem guide; it applies only to overnight long-haul runs, not local or drayage work where you sleep at home).

The trade-off is that nobody withholds tax for you. On top of income tax there is 15.3% self-employment tax, computed on 92.35% of net profit. For a full year of driving, the two together commonly exceed $10,000. Start setting money aside from the first month you get paid.

One common arrangement: you drive the carrier's truck, own no tractor, and get paid on a 1099. In that case the deductible items are few: overnight per diem, phone, DOT physical, CDL and endorsement fees, work gear. Fuel, repairs, and insurance belong to the truck owner, not you.

If you have already registered an LLC, 1099 income still goes on Schedule C, and the company owes three things in its first year. See A New California LLC's First Year: Three Payments Due.

Records to start keeping now

If you are on a 1099, keep these starting this month. Photos in a dedicated phone album are enough:

• Settlement statements from every payout
• Fuel card statements and fuel receipts (if you own the truck)
• Repair and maintenance invoices, tires included (if you own the truck)
• Insurance policy and payment records (if you own the truck)
• Phone bills
• DOT physical, drug test, CDL and endorsement fees
• Work boots, gloves, and safety vests worn only on the job
• Departure and return dates for every trip, which is what per diem is calculated from

W-2 drivers can skip this list.

Spouse and children still overseas

A green card holder reports worldwide income. A spouse with no U.S. status can be included on a joint return or left off a separate one; children living abroad cannot be claimed. That topic has its own article: Filing Taxes When Your Spouse and Children Are Still Overseas.

FAQ

I only started driving in August. Do I still file for this year?

Yes. Income counts from the first dollar, not from a full year. On a 1099, remember nothing was withheld, so even a few months of income means income tax plus self-employment tax due in April.

Can a W-2 driver deduct meals on the road or a phone?

Not on the federal return. The unreimbursed employee expense deduction was suspended in 2018 and made permanent by OBBBA. Per diem paid by your employer is not taxable income to you; the deduction belongs to the employer.

How much does a 1099 driver owe at year-end?

Income tax plus 15.3% self-employment tax, the latter computed on 92.35% of net profit. A full year of driving commonly means more than $10,000 combined. Quarterly payments with Form 1040-ES avoid one large bill in April.

I drive the carrier's truck and get a 1099. What can I deduct?

Overnight per diem, phone, DOT physical and drug tests, CDL and endorsement fees, and gear worn only on the job. Fuel, repairs, and insurance belong to the truck owner.

What do I need for my first return?

SSN or ITIN for you and your family, your W-2 or 1099s, settlement statements, the records above, and a bank account for direct deposit. If you bought insurance through Covered California, add Form 1095-A. There is no prior-year return to bring in year one.

This article is general tax information and is not tax, legal, or accounting advice for your individual situation. Confirm current rules with the IRS or consult a professional advisor such as Mingtu.