Per Diem Rate Question

first .10 per mile is tax free on the per diem.

 

like db said, Millis gives you .10 per mile tax free on per diem. Come tax time, there is a set amount per day you can claim and do the math. If the per day rate is higher than what Millis gave you, you can claim the difference in your tax return.

 

for audit purposes, yes. because they already take some out, you are only able to claim the difference. if you don't take the per diem plan you can claim the full amount at the end of the year on your taxes since you paid taxes on 100% of your income.

also you can only claim per diem on the nights you were unable to sleep in your own bed. normally logs would serve as proof for audit purposes but I keep a journal in my notebook with the load information in case there are questions later since I am on elogs. also, technically, if they give you too much you are supposed to pay it back, but at .10 per mile I doubt you would ever be in this situation unless you are home every night.

 

for got to mention that you can't claim the full rate on per diem come tax time for all of the days. this is where it gets complicated...

on a given run, say 14 days or more, you can claim 75% of the full rate on the first and last day of the run and 100% of the rate for days in between (the other 12 days in this example)

I run regional and am home every weekend so I can only claim 100% on three days and claim 75% on the other two on any given week, assuming I am not by the house during the week.

 

per diem pay. The 10 cent perdiem pay doesnt count as money earned therefore you can claim standard deduction at end of year. nonperdiem you have to keep all your receipts and itemize at end of year. Below the line deductions are standard deduction and itemized deductions. You cant do both. Per diem pay is great for people paying child support or alimony or people with children that can get you down to earned income credit level. Lets say you make 40000 your first year with millis. twelve thousand is perdiem pay. you have one child. now your agi is 28,000 and your in eic level. Put a thousand in 401k and your down to 27,ooo. Ask a tax professional which pay is best. obviously a couple making 100,000 a year together perdiem wouldnt benefit you. All pay scales are good, it means you have a job. Perdiem pay is a gift that keeps on giving if you have children and your wife does not make much.

 

Since I have no mortgage (no house and corresponding deductions) or family living with me, just a car payment ( with no interest deduction), it appears i'd be better off taxwise to take co. perdiem.
Otherwise I'd have a huge tax bill. Does this sound about right?
Thanks
Mary

 

People filing single aren't going to meet earned income criteria. It is a tossup. But you can take perdiem;gift number one, and take standard deduction come tax filing time; gift number two. You dont have to keep up with receipts and you get one extra vacation for the first two years;gift number three. at millis they also pay extra for safety bonus and you get 6 holidays with pay. For the best possible tax advice see a tax professional. gift 4 and gift 5

 

You dont have to keep up with personal receipts with per diem. You have to keep company receipts though.