Per Diem and Student Loans - Truckers' Trucking Forum | Message Board

krispb · **^ Top** #1 10.11.2008

Question about per diem. I'm default on some old student loans (about $10,000.00)(I know stupid me) and there for I have gotten no federal tax return the past couple of years because they keep it. With all of the deductions on living on the road (per diem). Will I get totally porked come tax time? I don't have a job yet, I'm still in school (2/5paid by state .3/5 insurance(life))

Lilbit · **^ Top** #2 10.11.2008

It depends on whether you itemize your deductions or take the standard deduction. If you take the standard deduction, you won't be able to take the daily per diem. You'll have to look at it both ways and see which is going to work better in your case. What ever you do, don't take the per diem deal that companies offer you. You end up with a lower income, which means less social security later in life.

RickG · **^ Top** #3 10.12.2008

I don't know how you figure repaying a delinquent loan getting porked but look at it this way . The more per diem and other expenses you deduct the quicker the loan will be paid off . Sounds like you porked yourself paying for a $10,000 wasted education .

munrkr · **^ Top** #4 10.12.2008

What does 2/5 paid by state and 3/5 paid by life insurance mean? Just curious.

krispb · **^ Top** #5 10.12.2008

I wouldn't consider it a wasted education, I was in the field for 12 years but it's a dieing field(machinist) due to outsourcing. But it was stupid of me to ignore the loans, but I have to accept that. So I guess anyway I look at it, with the tax write off of living on the road that will pay it off.

A retraining program through the state of Mass (mass rehab) is paying about 2/5th of the program, and my father passed away suddenly in March and he had a small life insurance policy that is being used for the schooling, about 3/5th's .

RickG · **^ Top** #6 10.12.2008

O.K. maybe it wasn't wasted . I had no idea you owed $10,000 on a 12 year old loan .

Roadmedic · **^ Top** #7 10.12.2008

It really makes no sense to not take the best tax write offs available when doing your return. Failure to take proper deductions is just like standing in front of a fan and taking a leak, it makes no sense.

Sure the government will take the refund, but the more paid is a reduction of the interest and the time involved.

krispb · **^ Top** #8 10.13.2008

So basically spend as little as posible and pick up every recept I find on the ground?

Lilbit · **^ Top** #9 10.13.2008

Quote:

Originally Posted by krispb

So basically spend as little as posible and pick up every recept I find on the ground?

I like that! Actually, you don't need to collect receipts as the IRS has a standard per diem that is special for truckers. You also don't have to keep track of how much time spent in each city, etc. It's an average for each day that you can take for meals, etc while you are on the road. It's somewhere in the neighborhood of $54 or something like that. If I'm off on that dollar amount, someone will correct me! You take that for each day on the road, and a percentage for the first day out and last day out when coming in for or going back from home time. That could add up pretty quick, especially if you are single with no kids.

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