Should 1 Sign Up 4 Per Diem?

You did right 60 ×300 days on road = 18 k right off don't give your company your deduction .

 

Not sure about that , I do know not choosing per diem will keep more of your social security money when you're old.
Per diem benefits companies more than drivers from what my boss told me way back.

 

Take per diem...why give the government more of your money or interest free loans.

 

At tax time you will claim the full per diem amount, less what your company pays you... assuming you have enough deductions to itemize. If you don't, at least the per diem payments are nontaxable. That's the upside. The downside is per diem payments decrease your contributions to stuff like soc security, lower your potential workman's comp payments, and may decrease your borrowing power if you decide to purchase a house.

 

Per diem should only be taken if it is on top of your max pay...if you get paid 40cpm and they offer you per diem,tell them to add it to your base pay..40cpm plus a 19 cpm per diem..total pay of 59 cpm..is the ONLY time it is acceptable..

 

There are many things to consider.

First estimate the per diem reduction amount to your income and figure the taxes projected.
Second, estimate the non taking of the per diem and then figure the taxes on the itemized with the limits and such.

Then read all of the threads on the per diem and consider your own situation and make the proper decision for your interest.

 

Does your company charge an admin fee for per diem? If so, yes you are smart. If not, you probably would have been better off with per diem.

 

You obviously don't understand how per Diem works. It is not extra pay. I make .40 cpm. I have opted to utilize the per Diem. What that means is that I still make .40 cpm, but the federal govt allows me to not pay federal income tax on a portion of that .40. My pay stub shows 2 rates of pay for all the miles that I run. Say that I ran 2500 miles last week. It will show on one line that I get paid .28 cpm for that 2500, and federal income tax will be deducted on that $700. I will also have to pay a percentage of that $700 into social security and Medicare, and my employer must match what I pay into ss and Medicare. The second line will show me getting paid for that same 2500 miles at a rate of .12 cpm. That $300 is not taxed and it is not used to pay into ss and Medicare.

Per Diem is a tax break that the federal government allows truck drivers to help cover the expenses of living on the road. That is all it is and all it ever was.

 

8thnote,You obvioulsy don't understand how per diem works.Per diem SHOULD NEVER EVER BE SUBTRACKED from your base pay...if you agree to that your stupid...I completely and fully understand how the tax break works,it is NOT supposed to be a break on your earnings,but it is as you said..."A tax break for truckers ( NOT TRUCK COMPANIES)to ease the cost of being on the road...but the way your company uses it they are also taking advantage of YOUR tax break by lowering their share to disability,SS,workers comp,and such...In calif we pay our state law makers out here about 90k a year plus 30 k a year in per diem which is non-taxable...for a total of 120k..Your example is good but it goes in the wrong direction..And there is a big difference between a tax deduction and non tax-able money...I stand by my claim if the company subtracts per diem from your base..you are getting HOSED !!!!