The $50 they take out and then put back... are they taxing it or not taxing it and adding it back to income with no taxes taken out?
Travel expense question
Discussion in 'Trucker Taxes and Truck Financing' started by RegDriver, Feb 16, 2016.
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House is paid and not buying another one ever. As for SS, yeah, I see what you mean there. My future SS won't be based on these earnings. I just need to do this year's filing soon! I don't care if we get back the $500 we normally do but we have all that medical so we could itemize. I don't know how to treat the money I spend is all.
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Not taxing it.
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I assume it's so they pay less out for WC etc.
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Total up the 50 per day non taxed income. Figure out what you can deduct based on logs at the 59 and 63 rate according to the rules. That should be more than what they paid you non taxed. You can deduct the difference between the 2 from your taxable income if you have enough deductions (mortgage interest etc.) to itemize.
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Just remember --
Partial days from home - 75% of 59/63
Full days from home - 80% of 59/63
$59 from Jan 1 to Sep 31st
$63 from Oct 1 to Dec 31st. -
I believe that is 75% of the 80%
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Nope... on those days where you go/leave your home of domicile you claim 75%.of the Per Diem
On those days where you are gone 24 hours from your home of domicile you claim 80% of the Per Diem
Per Diem for Commercial Drivers from Jan 1 to Sep 31 is $59 a day and from Oct 1 to Dec 31 is $63 a day.
And if traveling to Canada the Per Diem is a different rate. -
I'm curious how badly this hits you on workmens comp if you get seriously injured on the job? This should be illegal.
I've never been on WC, but don't they already only pay you a percentage of your base income, like 60-70%?
How is that going to look when it's based on a wage that is already reduce by 1/4-1/3?
Scary.
If you had a family you could by living on ramen noodles and air sandwiches. -
Even if they did not take it out, when you personally file your taxes it will show as adjusted gross income after you subtract your Per Diem. So, the only way to show true gross income without any per diem deductions is not to take it, but then you are missing out on quite a bit of deduction then.
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