Why owner-operators and fleets should act now
Tax Day for 2025 returns is Wednesday, April 15, 2026. That deadline isn’t just for filing—several money‑saving moves remain available until that date. Here are seven practical steps tailored to truckers and small fleets to legitimately lower taxable income, improve cash flow, and avoid penalties this season.
7 simple moves to shrink your 2025 tax bill
- 1) Make a last‑minute retirement contribution. Self‑employed truckers can still set up and fund a SEP‑IRA for 2025 by the due date of the return—including extensions—potentially deducting up to 25% of net earnings (subject to annual limits). If you extend, you can contribute as late as October 15, 2026; otherwise, contribute by April 15, 2026. Traditional IRA contributions (if eligible) also remain open until April 15.
- 2) Top off your Health Savings Account (HSA). If you had qualifying high‑deductible coverage in 2025, you can contribute for 2025 up to April 15, 2026, and claim the above‑the‑line deduction. HSAs reduce adjusted gross income and are especially valuable for self‑insured owner‑operators.
- 3) Use the trucker per diem—at the right rate—and deduct 80%. Drivers subject to DOT hours‑of‑service limits can deduct 80% of meals while away from home. The IRS special transportation M&IE per‑diem is $80 within CONUS (and $86 OCONUS) for the current notice period; using the special rate simplifies recordkeeping versus actual receipts. Keep logs of days away to substantiate the claim.
- 4) Pick the optimal write‑off for new trucks, trailers, and shop gear. If you placed equipment in service in 2025, weigh Section 179 expensing against bonus depreciation. Under prior law, bonus depreciation phases down to 40% for 2025 and 20% for 2026; Section 179 remains available (subject to limits and taxable‑income caps). The right combo can accelerate deductions and free up cash—but model both options before you file.
- 5) Don’t leave the self‑employed health insurance deduction on the table. Premiums you paid for yourself, your spouse, and dependents may be deductible above the line. For 2025, use Form 7206 to compute and carry the result to Schedule 1; the deduction can’t exceed your net self‑employment income.
- 6) Lock in (and document) your choice of per‑diem vs. actual for meals and incidentals. You choose one method per year. For most long‑haul O/Os, the transportation per‑diem method yields a bigger, simpler deduction; local or regional operations with fewer overnights may fare better with actuals. Keep contemporaneous logs and settlement statements either way.
- 7) Square up 2026 estimated taxes now to avoid penalty hits. First‑quarter 2026 estimates are due April 15, 2026. Meeting the “safe harbor” (generally 100% of last year’s tax, or 110% for higher incomes) helps you dodge underpayment penalties—even if 2026 turns out stronger. Paying electronically and adjusting mid‑year as revenue changes can keep you out of the penalty box.
Penalty and filing reminders for trucking businesses
If you can’t file by April 15, request an automatic extension—but remember, the extension is to file, not to pay. The failure‑to‑file penalty is generally 5% per month (up to 25%) with a minimum $525 once the return is 60+ days late; the failure‑to‑pay penalty is typically 0.5% per month (up to 25%). Filing on time and paying what you can reduces both costs. E‑file with direct deposit for the fastest turnaround.
For fleets: coordinate driver reimbursements
Company drivers generally can’t deduct unreimbursed job expenses on their federal returns through 2025, so an accountable per‑diem reimbursement plan remains the best way to get tax‑efficient relief to W‑2 drivers while protecting your payroll tax position. Confirm your policy and documentation standards with counsel and your CPA.
Bottom line
There’s still real money on the table before April 15, 2026. Prioritize retirement and HSA contributions, make the right per‑diem and depreciation elections for your operation, and get current on 2026 estimates. Those moves can trim your 2025 tax bill and smooth cash flow for the road ahead. For complicated choices—like mixing Section 179 with bonus depreciation or coordinating owner and spouse per‑diems—run the numbers with a trucking‑savvy tax pro.
Sources Consulted: The Sun; Internal Revenue Service (Publications 463 and 969; SEP and estimated‑tax FAQs; penalty guidance); Iowa State University Center for Agricultural Law and Taxation; Kiplinger.
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This article was prepared exclusively for truckstopinsider.com. For professional tax advice, consult a qualified professional.
