What Trump’s “One Big Beautiful Bill” Means for Owner Operators

What Trump’s “One Big Beautiful Bill” Means for Owner-Operator Taxes

In July 2025, Congress passed the One Big Beautiful Bill Act (OBBBA), a sweeping update to the tax code that makes many popular tax breaks for independent truckers permanent. For owner-operators, these changes bring clarity, new savings, and fewer hassles at tax time.

Highlights for Owner-Operators

• 20% Qualified Business Income Deduction: The ability to deduct 20% of net business income from taxes is now permanent for sole proprietors and S-Corps a major win for small trucking businesses. 

• 100% Bonus Depreciation: Buy a truck or equipment? You can deduct the full cost right away (for purchases after January 19, 2025, through 2030). 

• Higher Standard Deduction: The standard deduction is permanently increased for all, reducing taxable income. However, personal exemptions are gone for good. 

• 1099 Thresholds Raised: You now only need to issue a 1099-NEC to contractors if you pay them over $2,000 (up from $600). For third-party payments (like PayPal), the threshold is now $20,000 and 200 transactions.
• Stable Tax Brackets: The seven-bracket income tax system continues, making long-term tax planning easier.