1099 Tax question: Expenses

This is TRULY & GENUINELY the best tax advice that can be given on a public forum.

God bless every American and their families! God bless the U.S.A.!

The absolute sheer driving force of our national economy - without truck drivers, our entire national economy would come to an absolute standstill - if not outright be dead.

Over the mountains, through the woods, into the valleys, coast to coast, from sea to shining sea - truck drivers can and do go anywhere and everywhere, every day, every night, all year round.

 

You're right about that because it's not his truck. But I have another question for you: Can I claim the food per diem AND the standard deduction?

 

Since you don't own any equipment you don't really have anything to deduct. You're going to get royally screwed on your taxes. You'll also be paying an extra 15 percent in socialism taxes.

 

If the company is giving per diem, which is unlikely through a 1099 company, you won't be able to claim that. Your W-2 will separate that. The per diem is actually a tax break for the company. You'll really only be able to claim the standard deduction and dependents on a W-2.

 

I'm sorry, I should have been more clear. If I got paid on a 1099, can I claim both the per diem AND the standard deduction?

 

The answer is NO. Per diem used to be claimed under "unreimbursed employee expenses", but with the latest tax reforms which increased the standard deduction, deductions for unreimbursed employee expenses are no longer allowed. The same goes for sole proprietors. There's no place in the tax code where you can deduct per diem. Showers, meals, supplies, etc, yes, but not a flat per diem.

HOWEVER, if you form an LLC, then the LLC can pay you a wage as well as a per diem, and the LLC then deducts the wages and per diem as a legitimate business expense. This deduction alone will usually cover the expense of creating, maintanance and annual tax filing of an LLC.

 

Everything I've read says we can deduct meals at a rate of $69 a day, and due to the China Virus, we can claim all 100% instead of the usual 80%. This was done last October. So apparently there is a per diem allowed SOMEWHERE.

 

you lost all credibility once you said “ China virus”

 

How so?

 

Because if that’s you’re interpretation of everything that has happened over the past few years , I’m definitely not going to trust your reading comprehension skills when it comes to taxes!