Deductions?

I started this thread off topic cause I haven't been a company driver in over 20 years. I thought they were needing info on tax return deductions. I forgot there was an employee payroll deduction.

 

Well the best explanation I can give you, as there was confusion at first about whether he was actually talking about deductions, of which per diem is one, which led to a discussion of that.

 

I think she was referring to deductions for taxes, if they were taking too much.

 

I'm just giving info that perdiem can disqualify you with the messed up calculations that loan officers use when your looking to get a home loan.

 

Yes I pointed that out a couple Pages ago

 

It seemed the op, a company driver wanted to know if $600.00 was too much to be deducted from a $2,000.00 paycheck. Op claimed one exemption, which would be around 30% total deductions from the check. A little high, but it seems to be in the right range.

If you want to get a larger net, claiming more exemptions may work for you, as you will be claiming per diem on your tax return. That will lower your net income, but not your FICA base.

 

FICA is figured from your gross income? Per diem just helps by lowering what you have to pay on your yearly tax return cause being on the road is expensive, so the IRS gives you a tax break?

 

All this crap is why I wanted Ted Cruz and his postcard.

XD

 

Yes, but if he is receiving part of his paycheck from his company as per diem, that is considered reimbursement and not income so that is where it will affect his FICA.

That's why companies like to offer it, t lowers their FICO responsibilities also.

 

I think it is finally clicking what you guys are talking about. Banks don't consider the Perdiem portion of your pay as income even though it technically is?.

Is there anyway to tackle this other than switching companies to one that doesn't use a perdiem program?.

I plan to go mortgage shopping next year so want to be prepared.