Per Diem Screwup

Dave_in_AZ · Apr 8, 2017

Starboyjim said: ↑

All the tax people I've worked with advise to adjust your dependents so that your withholding, or your tax deposits, zero out at tax time, that's a plus/minus of $100. Works.
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That's what it is right there. Why in the world would you loan the government your money for free? I mean if you owe them the penalties and interest exceed the principle !!!!!!!!!

I just got my taxes back yesterday from the CPA. I owed the feds $370 & state $100. Both are in the mailbox now.
This seems to me to be the better way, but there are lots of people that disagree with me.

TequilaSunrise · Apr 9, 2017

Pedigreed Bulldog said: ↑

No, it isn't. Whether you get paid per diem or paid correctly, you still get the same deduction at the end of the year. Per diem, that deduction has already been figured, so you're just making sure they didn't over/under figure and either deduct or add the difference. If you were paid properly, you take that deduction. That alters your AGI, which is what the state income tax is based upon. The only way you'd make out better on your state income taxes is if you made less money...but then you really didn't do better at all.

It never ceases to amaze me how many people think these companies are looking out for the drivers. Whether we're talking lease purchases or per diem or any other number of schemes these companies have come up with that amount to nothing more than the company saving money while screwing the driver out of his, there are folks who are convinced they are LUCKY to have these companies so graciously offering to pick their pockets.

Per Diem works great for the company. There is no benefit for the driver. As has been noted, if you get a large refund at the end of the year due to the deduction allowed for being out on the road, change the number of dependents you're claiming to have less withheld. I don't understand people who are "happy" to get a large tax refund, even though it was nothing more than an interest free loan THEY gave to the government! IT IS YOUR MONEY they have been holding onto, and are just now giving back. What could you have done last year with an extra $200-300/month? Put it in a savings account @ 0.5% interest and you'd end up with more than the government is giving you back...because they DON'T pay interest. So you're going to use that $2400-3600 refund to pay off a high interest credit card? Imagine how much you would've saved on interest charges throughout the year had you had that extra $200-300/month to keep the card paid off? When folks brag about their big tax refunds, I feel like taking a Sharpie and writing "SUCKER" across their forehead...
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First year in trucking and unsure how my taxes would work out. My accountant made suggestions on how to reduce my refund next year because I can find thousands of things to do with my money on a monthly Basis

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Per Diem Screwup

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Per Diem Screwup

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