? Tax Planning Tips for Company Drivers Before the End of 2025

Please note: This is not legal or financial advice and should be used for entertainment purposes only. You absolutely will need to do a deeper dive research on each step and consult with an attorney [or multiple ones] to do this legally and safely. Consider a LegalShield Small Business plan as an option to save on your legal expenses.

Let’s face it—tax season hits hard if you’re not ready. Whether you’re hauling coast to coast or running local, the right moves before December 31 can make a big difference in your 2025 tax return and give you a head start on a smoother 2026.

Here’s what company drivers and employee truckers need to know now, before the clock runs out.

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? 1. Check Your Withholdings

If you got a surprise tax bill last year—or too big a refund—you might want to:

• Review your W-4 withholding settings with HR

• Use the IRS Withholding Estimator to adjust for 2026

• Make sure you’re accounting for bonuses or extra pay that might bump you into a higher tax bracket

Fixing this now can help you avoid underpayment penalties or letting Uncle Sam hang on to too much of your money all year.

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? 2. Track Reimbursements vs. Deductions

As a company driver, you likely can’t deduct most work expenses anymore due to tax law changes (thanks to the 2017 TCJA). But that doesn’t mean you’re out of luck:

• Make sure any out-of-pocket expenses were fully reimbursed (meals, tolls, parking, gear)

• If not reimbursed, track them anyway—rules can change, or your tax pro may find deductions under state or union rules

• Save documentation now for anything job-related

Ask your employer about per diem benefits too—some companies offer this tax-free, which helps you take home more without increasing taxable income.

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? 3. Maximize Retirement Contributions

This is a great way to legally lower your taxable income:

• Check how much you’ve contributed to a 401(k) or other employer retirement plan in 2025

• Consider making a catch-up contribution if you’re over 50

• If your company offers a match, make sure you’re at least meeting the minimum to get full employer contributions—it’s free money

If your company doesn’t offer retirement options, ask your tax advisor about opening an IRA before Tax Day in April 2026 to reduce your 2025 taxable income.

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? 4. Organize Work-Related Financial Records

Even if you’re not itemizing, keep records anyway:

• Copies of W-2s, pay stubs, bonus summaries

• Receipts for PPE, steel-toe boots, logbooks, or truck accessories

• Hotel stays, parking, and tolls (especially if not reimbursed)

• Union dues or job-related association memberships

Many states allow deductions that federal rules do not—so what doesn’t help you with the IRS might still lower your state tax bill.

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?‍?‍?‍? 5. Double-Check Your Filing Status and Dependents

If your personal situation changed this year (marriage, divorce, new dependents), your filing status and tax credit eligibility may shift:

• The Child Tax Credit and Earned Income Tax Credit (EITC) can offer significant refunds for eligible families

• Keep proper documentation for dependents (birth certificates, school records, custody papers if needed)

• If you split parenting time, know who will claim the child(ren) in 2025

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? 6. Talk to a Tax Pro Before Year-End

If your situation is even slightly complicated—bonuses, per diem, out-of-state runs, or multi-state taxes—speaking with a tax professional before year-end can save you big.

Ask them:

• “Is there anything I should do before December 31 to reduce my 2025 tax bill?”

• “Am I better off itemizing or taking the standard deduction?”

• “Are there any state-specific deductions or credits I qualify for?”

Planning now costs a little time—but it might save you hundreds or even thousands come April.

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? Looking Ahead to 2026

Finally, think about tax-smart goals for 2026:

• Want to buy a house or truck? Start organizing income proof and savings now

• Self-fund an HSA or IRA monthly next year

• Start tracking mileage and expenses now in case you switch to owner-operator or 1099 work later

The more proactive you are today, the easier it is to pivot later.

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In Summary:

Don’t wait until your tax forms are printed to start thinking about your finances. Company drivers who stay organized and plan smart before the end of the year have the best chance of keeping more of their hard-earned money.

From paperwork to pay stubs to per diem, taking care of the little things now can help you roll into 2026 with a lighter tax load and a heavier wallet.