How Are Detention Pay and Layover Pay Taxed for Owner-Operators?

Detention pay and layover pay are both treated as ordinary taxable income for owner-operators, taxed the same way your regular freight income is — there's no special category or reduced rate for either type of payment. Detention pay is compensation you receive when you're held up at a shipper or receiver beyond the agreed loading or unloading time, and layover pay compensates you for downtime waiting on a new load assignment. Both represent income you earned through your work as an...