Interesting per diem question

you get the same deduction for per diem at the end of the year.

your are saying you want .11 cents tax free right now. more money in your pocket right now that doesn't count towards you at the end of the year as income...

make your full income, no mileage per diem... at the end of the year, the guy doing your taxes, looks at your w-2 subtracts the standard deduction for perdiem, this cuts your taxable income down to just what it would be with the company program.

difference is your company has had to pay workmans comp on a guy making your full pay day instead of -11 cents per mile.

get hurt on the job...??? what kinda check do you want coming in???

full workmans comp check??? or check based on earnings minus -11 cents per mile???

how's about the refund? you want 5k back at the end of the year??? or do you want 15k back at the end of the year??? if you qualify for the eic you still qualify for the eic.

 

I don't understand that last post. Do you get to take the 52 dollars deduction a day even if you don't have the reciets to back it up? There is no way that I will spend 52 a day and have the receits to prove it. If I make say 45 how in the world would I stay under the amount for the EIC? I don't see were all the deductions are going to come.

 

Yes, you get the deduction without receipts.

 

So you just say at the end of the year that you used 52 dollars a day and you don't have to prove it at all? This just doesn't make a lot of sence to me. I think i am missing something on this. I am in orentation so I can't call any tax people to find out any advise.

 

The IRS publication is 463 page 6. The rules allow a truck driver to deduct 52.00 per day without receipts and trying to determine what locations they were at. You are also allowed to deduct 58.00 per day for travel in Canada.

 

ever taken the 500 dollar standard deduction for charitable contributions?

yes you can bring in receipts from church and prove you gave more... but if you don't have receipts the GOV agrees all those nickles probably equaled $500.00 bucks. It's a gimme....

tucking... it's 52.00 for being gone.

50 weeks on the road... 4 1/2 nights a week gone. (proven by your log book... X's $52.00 a day...

ka'ching... $11,700.00 deduction, no questions asked.

besides...
if you ate baloney you've earned and deserve that deduction

 

per diem is catch 22. it's all about have your money now while you can still work or what til later when you can no longer work and get it. i got my social security report the other day and i have seen how per diem has effected it. i make less now in the future if i retire than if i would have retired years ago before i messed with per diem. i am gonna have to get off it in the near future to build back up my social security money when i retire in the future. basically it comes down to , if you take per diem, take that money and put it in an account and don't touch it and let it become a retirement fund.

 

Ok last question. I looked it up on the irs report thing. It says it is for 2007 will it be any differant in 08?

 

Those have not been announced yet. When they are, they will cover the year most likely.

 

nope no changes that i have heard of.