Per Diem , Dont fall for the scam

2017 and 2018 I was only an employee. And I came out better off with my taxes for 2018. So saying that 99.9% of employee drivers got screwed is pretty inaccurate. My old company job was basically M-F, weekends off at the house. I only heard one or two guys out of 15 saying they had to pay in or pay more than previous years. Most of my ex-coworkers and myself came out better off with the doubling of the standard deduction. Based on that I would say a reasonable assumption would be that most regional drivers and this that are only gone a few nights a week likely benefitted somewhat or it was a wash. The guys who live in their trucks for 300+ days a year probably took a hit.

 

Well call me the .01 percent then.
Ironically I did exactly what you said and came out on top instead of getting screwed.

You also take can company perdiem and the standard deduction which was doubled last year.

 

Flat out impossible. At least according to some truck driver/accountant?

 

No, you screwed yourself here (in BOLD). You didn't itemize on Schedule A your per diem in 2017. You went company. Otherwise you can't take the standard deduction. The other two claimed deductions don't make sense either. Care to change your story?

 

Your right, here. I stand corrected.

 

Huh? I did itemize in 2017. The company paid me 9500 in per diem and I claimed the remaining amount I could claim and additional unreimbursed business expenses on schedule a. I DIDNOT take the standard deduction. That was misstated.

In 2018 I took the 9500 in per diem and the standard deduction and paid less in taxes on more income.

To say the new tax plan screwed over 99.9 percent of drivers is incorrect.

 

You don't get to take 100%, rather 80%. Perhaps that's where you figures differ.

 

Two sides to everything, it's better to take IF. Your not planning on a large purchase, like a new or second house. Where your buying power is based on your income. Or if your thinking about social security, unemployment, or disability.

 

This is also mostly incorrect. Most loan underwriters are familiar with this type of income setup and will be able to use your paystubs and W2, not just your income tax return, to verify your income and thus buying power. Also, many companies with a per diem plan put a "FOR FINANCIAL INSTITUTIONS" section on paystubs. If you are dealing with a mortgage company that doesn't understand this or is just unwilling to use your pay stubs for verification, then you're working with the wrong mortgage company and it's time to take your business elsewhere.

As for the rest of what you mentioned:

Social Security: don't depend on this. Invest and save at least 15% of your income once you're out of debt. It's nicknamed social insecurity for a reason. Those of us old enough to be thinking about using it soon will not likely be able to move the needle in terms of how much we get by the time it's time to start collecting. For those of us young enough to potentially move the needle by not participating in per diem will probably see social security go away or be greatly reduced by the time we start collecting, so back to the first thing I said about not depending on it.

Unemployment should not be a factor in your decision making as it is meant to be a temporary aid and you should also have 6 months of living expenses saved, or at least 3. Don't tell me it can't be done or that "most of us" can't do it. Yes you can. You just have to decide to do it and stick to it until it is done.

Disability: My points about both of the above also apply here. Don't depend on it to be there, have money saved, have long term disability insurance in place, and it's meant to be temporary.

 

not Sure on the amount, aprox 2,800 of your .10 per diem. When you file taxes you hv to pay taxes on your per diem . Anything over that amount. Anyone know if that is true ?

 

So should you take per diem or not? And can you still claim all trucking expenses at the end of year I mean like boots clothes or anything you purchase for the truck fridge micro