Per diem Question

Discussion in 'Questions From New Drivers' started by Hazardous, Feb 19, 2016.

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  1. Hazardous

    Hazardous Light Load Member

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    So I'm getting my taxes done right now and the lady told me that the amount of money for my per diem will be removed from my taxable n income, and not refunded back to me. Is this the way it should be done? If not....how do I get my money back?!
     
    Hazardous, Feb 19, 2016
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  2. tucker

    tucker Road Train Member

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    The per diem lowers your taxable income,
    Say you made $100,000 and your per diem deduction amount is $30,000.
    You wouldn't pay Federal tax on the 30 grand.
     
    tucker, Feb 19, 2016
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  3. rachi

    rachi Road Train Member

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    Make sure the person doing your taxes undertands per diem. You wont pay taxes on per diem pay you recieved.
     
    rachi, Feb 19, 2016
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  4. Longarm

    Longarm Road Train Member

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    Are you speaking of per diem paid weekly on your paycheck or the $64(?) daily allowance?
     
    Longarm, Feb 19, 2016
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  5. rachi

    rachi Road Train Member

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    Its the same thing. If your getting paid per diem by the company then you dont take the daily allowance. If you dont get paid per diem, then you take the daily allowance when you do your taxes.
     
    rachi, Feb 19, 2016
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  6. Redtwin

    Redtwin Road Train Member

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    And if the per diem pay received by the company is less than the daily $64 allowance, what then?.

    As I understand it, OTR company paid per-diem is by the mile. A day spent at a truck stop not driving is still a day away from home while on the job, but 0 miles results in 0 per-diem pay.
     
    Redtwin, Feb 19, 2016
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  7. wsyrob

    wsyrob Trucker Forum STAFF Staff Member

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    At tax time you total up all the per diem you are allowed to deduct for the year as per the rules. You then subtract what the company paid you for the year and you can deduct 80% of that amount as a itemized deduction on Schedule C
     
    wsyrob, Feb 19, 2016
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  8. MysticHZ

    MysticHZ Road Train Member

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    Can't do schedule c as an employee.
     
    MysticHZ, Feb 19, 2016
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  9. Redtwin

    Redtwin Road Train Member

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    So how would you go about claiming unpaid Per Diem?.

    If it isn't already apparent, my tax filing knowledge doesn't extend much beyond the 1040EZ. ;)
     
    Redtwin, Feb 19, 2016
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  10. wsyrob

    wsyrob Trucker Forum STAFF Staff Member

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    Maybe it's schedule A. It's the same place mortgage interest is deducted. Any company driver not itemizing is missing out. The per diem deduction alone is usually over the minimum. That's another reason not to work for a company that forces you to take it as part of your pay.
     
    wsyrob, Feb 19, 2016
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  11. wsyrob

    wsyrob Trucker Forum STAFF Staff Member

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    You have to itemize to take advantage of the per diem deduction. Most OTR drivers are out enough for that alone to meet the minimum. For example 200 days at $62 is enough. I use turbo tax. There is a question asking if you are in the transportation industry. I have to total the per diem and enter it as a yearly total.

    My advice is have a tax pro do it the first time. Then you will have that return to go off of in the future.
     
    wsyrob, Feb 19, 2016
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