New horizons with Holland Enterprises (Fargo,ND)

Perdium is actually listed on your w-2 as non taxable income.

 

Yes but as far as the Social Security Administration is concerned, you didn't earn the per diem portion and this will work against you when it comes time to get what's rightfully yours, especially if you're now into your "older years".

$75k becomes roughly $50k of SS earnings. And many lenders are only concerned about your Taxable earnings because they'll assume the per diem portion is mostly spent as fast as it was earned.

 

How can you not get back what you rightfully earned when you never paid it in the first place.

What little bit you won't be paying in will not affect you social security. Plus if you are married there is a marriage penalty which limits couple to a maximum of $3800 per month anyway.

In my case i will be getting back $2900 a month, even though my wife could get back over $2000 a month herself we will be limited to $3800 due to the marriage penalty.

So, why should I pay more now when I will not be getting it back anyway.

 

#1 18 cents in 40 cents is not a "little bit"

#2. The standard daily meal allowance for drivers is not going away. I'd much rather take this itemized expense than take a per diem which WILL negatively impact future SS draw potential.

As a driver who stays out 350 days a year and runs 150k miles, per diem makes no sense. Why should I help my employer and hurt me personally? I'll do better with 80% of $63/day, and not take the SS hit.

 

Truck Driver Pay | Per Diem or CPM

YOUR BUSINESS: Perplexed by forced per diem option?

 

To each his own...
I get the full $63 daily and at 61 it will not affect my social security... My accountant strongly recommended the perdium.

 

Okay. Good luck with that accountant. I suspect he's not splitting out the two and adjusting the AGI through a modified me&i. Sounds like you're trying to effectively take the meal allowance twice.

 

Nope...i file short form

 

From what I've gathered over the years, many cpa's are not understanding of how mileage (cpm) per diem company drivers are in a different per diem reality than most of their other clients who receive separate per diem payments that are separate and aside from standard pay or salary. With cpm drivers, the per diem is actually PART OF the wage structure and this becomes a problem for the employee, but a good thing for the employer.

 

I think a lot of the “help for truckers” was done with the creators of that “reform” banking on the the new standard deduction (12,000$). It sounds nice but if you live in a state like NY which doesn’t have the standard it you still have to itemize for the state income tax unfortunately my company doesn’t take out state income tax where I live(and with their pitiful communication skills neglected to inform me until I got my w2 the very next January after I started there), so basically whatever I save from the federal tax return I have to shovel it back into Albany’s coffers.