Ok, per diem - as I understand it...

Wrong. My construction per diem was counted when I bought a car last year - just showed them the pay stubs.

Are you really going to depend on social security income? Unemployment is capped at a certain level, so if you make more than about $500/week without per diem, it's a non-issue. Worker's comp - we don't get hurt at work!

I know about construction per diem, but I'm not sure about trucking, so someone correct me if I'm wrong here. The GSA sets per diem rates for different areas of the US. There is a minimum rate split into Meals, Lodging and Incidentals. Currently the standard rate is $77 for lodging and $46 for Meals and Incidentals. That means that I can deduct $123 / day from my taxable income for every day that I'm on the job WITHOUT having to show receipts. If my company reimburses me $100 / day, then I can still deduct $23 / day over and above that - and I don't pay tax on the $100. In many areas of the US where there is seasonal fluctuation or generally higher cost of living (think ski resorts, beaches, tourist areas), the per diem rates are significantly higher. Cities like New York, Washington DC, etc.

I believe that the lodging portion can also be deducted, despite using the sleeper and not shelling out for a hotel room. Correct?

 

Per diem is not taxable income, and is therefore not reportable as such. Per diem is a reimbursement. When you travel for work, the IRS allows you to deduct a set amount per day to cover your meals, lodging and incidental expenses without having to provide receipts. The minimum for lodging is $77.00, and the minimum for meals and incidentals is $46. If your employer chooses to reimburse you in cash, and they reimburse you less than what the IRS allows for the area that you are working in, then it is not reportable. If your company reimburses you for MORE than what is allowed, then you must report it as income.

 

Per diem in the trucking industry is pretty weird that's for sure. I read on a company's website what it is. To make it simple, if you make $200 a day just for round numbers and get $20 per diem, you are only taxed on $180 ($200 - the per diem). So, it is simply a tax savings. At the end of the week, you still have a gross of $200 for that day.

 

Per diem is SUPPOSED to be paid in addition to - and not in lieu of - your regular pay. The shell game that the bottom feeders are playing is what makes it confusing.

 

10-4......

 

Thank you! You have cleared it up for me. I understood that this company I am starting with on Monday, automatically has you checked to receive per deum unless you catch it, and UN check it. I now understand that it wouldn't benefit me, so they can just keep it!

 

So, if I understand correctly, any OTR driver gets to deduct like $60/day for food?