Mandatory company per diem: what the what the what!

Double yellow if you decide to take all of your perDiem at the end of the year instead .And you have multiple itemized deductions such as phone and internet along with your perdiem are you saying that you cannot also include your $6000 standard deduction?

 

Again, it shows up on box 14 of your w2 as "other income." So it won't lower your income at any reputable lender. You may have to make some explanations to those not familiar with the industry, but it is common enough.

The standard deduction is meant to save the time and hassle (for you and the IRS) of going through your itemized receipts. If your receipts total more than the standard deduction, then you itemize. If your itemized items total less then the standard deduction, then you don't submit an itemized list and instead take the standard deduction. You cannot do both...

Company per diem is taken out before payroll so it never shows up as taxable income. You get that money tax free and are still eligible for the standard deduction. On the other hand, per diem claimed by company drivers at the end of the year is claimed on the itemized list so they can't claim the standard deduction too.

I should note that owner operators and IC's can claim per diem as a business expense, so they can still be eligible for the standard deduction. But since we're talking about "forced" per diem, I'll assume we are discussing company drivers.

 

So what you are saying is it would be beneficial to the driver to take the maximim Perdiem pay he can get up front on every weekly paycheck because at the end of the year if he doesn;t have to make any adjustments to his perdiem pay to fulfill the 47.20 a day he should have coming to him than he can stay away from itemized deductions and claim the 6200 standard deduction.

Believe it or not my sister is a 25 year veteran CPA but she has a golden Rule that you have to talk to her on the phone about personal #### chat for 1 hour 1st and than you are granted 1 and only one Tax question.

 

It can be if the company takes out enough, but everyone's tax situation is different. It wouldn't do much if you have a lot of real estate or other things going on and need to itemize regardless, but a lot of folks out here have pretty uncomplicated lives.

LOL Smart lady