Per diem Question

Turbo tax didn't calculate it correctly in years past. I quit using it about 3 years ago.

 

3 years ago it didn't ask if I was a transportation worker. I use a book keeper now to do my taxes and an not looking back.

 

I like the idea of paying a transportation experienced tax pro to do it properly the first time then you at least know what to look for when doing it on your own. There is other tax preparation software out there, just a matter of finding one that allows me to do it the way the tax pro did it.

 

You never lost it, it was an untaxed amount paid to you in your check. A portion of your CPM was not taxed. You don't get any extra money. W-2's have a block where it shows how much per diem was paid during the year. It is non-taxable. If you have 200 or more days on the road you would probably come out better not using the per diem system. Most companies charge you .01 a mile to manage your per diem, that could be over $1000 a year you could be losing.

 

You don't have to itemize if you use the per diem plan. Per diem is not taxed on your W-2. If you use the DOT standard rate plan then you have to itemize, and then you can only use up to 80% of that amount. You can use only one plan when filing your taxes, you cannot combine them.