Per Diem for Company Drivers!

I worked in the tech sector for more than 20 years and after i retired from that, i became a trucker. I was an OO for many years, but more recently a company driver. I voted for Trump in 2016 and that was a huge mistake! I have always been a Republican but I don't recognize that party anymore...its sad.

 

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The elimination of the per diem deduction for company drivers can have a noticeable financial impact. Here's a breakdown of how the per diem worked and the potential financial loss:

- **Per diem allowance**: The government allowed a per diem deduction of $68 per day for truck drivers. The IRS allows drivers to deduct 80% of this amount due to the nature of the job, meaning the deduction was effectively $54.40 per day.

- **Annual road days**: A typical long-haul truck driver might be on the road for 250-300 days a year.

- **Potential deduction**: If a driver is on the road for 250 days, the deduction would be 250 days × $54.40 = **$13,600** in deductions.

- **Tax savings**: If the driver was in the 22% tax bracket, the per diem deduction would have provided a tax savings of about 22% of $13,600, which is **$2,992**. For drivers in higher tax brackets, this amount would have been greater.

Therefore, the elimination of the per diem means company drivers could lose an annual tax savings of approximately $2,992, depending on how many days they spend on the road and their tax bracket. This loss translates to a lower net income, as they now pay taxes on a larger portion of their earnings.

 

Huh...much to the contrary. I was highly sucessful OO...but, take a look at the rates today. Too many OOs and competing for the same freight. You can make more money as a company driver. That's a no brainer!

 

No, actually I left trucking after tearing my rotator cuff and got back into tech. I sold my truck. When the Pandemic hit in 2020, I bought another truck and got back into trucking. I did really well until freight rates plunged because everyone and their brother jumped into trucking. The industry has been flooded with an over capacity of trucks, which is why you see some many OOs and companies going out of business. Recognizing this, I sold my truck and switched to the company side. Now as a company driver, i see the industry from a different perspective. Does that answer your question?