I've heard allot of information put out on the forum about the deductions allowed to a worker in the Transportation Industry. Here is the IRS publication that tells the whole story. It's IRS Publication 1542, Per Diem Rates For Travel in the Continental United States.

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And there you have it.

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I still think I need a A lwayer and a Tax Advisor to help me out with this lol
But bottom line I don't think I'll take the 8 cents.

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Swift has it where 10 cpm of your money is tax free. It means about an extra 1000.00 buck in your pocket at the end of the year. I think I'll just take the federal deduction of 39.00 per day. Next year it will go up to 41.60

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Suppose you were an idiot and suppose you were a member of Congress. But I repeat myself.
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Yes the standard meal deduction is clearly the way to go for an OTR driver. Sure, I get up to Canada a few days every year, but why bother...when I did my taxes a few weeks ago I just multiplied $39 times 300 days to get $11,700, and then subtracted 2% of my adjusted gross income to arrive at the actual figure that's deductible (this is all laid out on the IRS form...it's not rocket science).

As the other driver stated 39 dollars per day away from home but still in the United States is the meal expense you want to deduct . (75% of $52 or $58 in Canada or Mexico)


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Individuals subject to “hours of service” limits. You can deduct a higher percentage of your meal expenses while traveling away from your tax home if the meals take place during or incident to any period subject to the Department of Transportation's “hours of service” limits. The percentage is 75% for 2007.


Special rate for transportation workers. You can use a special standard meal allowance if you work in the transportation industry. You are in the transportation industry if your work:

• Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck, and
• Regularly requires you to travel away from home and, during any single trip, usually involves travel to areas eligible for different standard meal allowance rates.

If this applies to you, you can claim a standard meal allowance of $52 a day ($58 for travel outside the continental United States) from January 1, 2007, through December 31, 2007.
Using the special rate for transportation workers eliminates the need for you to determine the standard meal allowance for every area where you stop for sleep or rest. If you choose to use the special rate for any trip, you must use the special rate (and not use the regular standard meal allowance rates) for all trips you take that year.

Travel for days you depart and return. For both the day you depart for and the day you return from a business trip, you must prorate the standard meal allowance (figure a reduced amount for each day). You can do so by one of two methods.

• Method 1: You can claim ¾ of the standard meal allowance.
• Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice.

Not being a Tax Professional, I don't know if you can be paid a Per Diem and also collect the Drivers Meal Allowance.

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