K&B TRANSPORTATION (S. SIOUX CITY, IA)

Yeah, we don't exactly have top-notch drivers (geeeez, the mouth breathers they hire!) but I only get the red lite on the pre-pass about one time in 30 or 40 (for open scale) and I haven't been inspected in over three years, so we can't be that bad.

 

For those arguing about getting less savings with per diem as opposed to tax deduction, are we considering that (for reasons maybe someone here will explain) we can only claim 80% of the road expense deduction?

Also, are we considering that if you take the per diem, then your taxable income is less which means less tax and a lower tax bracket - that seems a significant point.

 

Yes I'm paying income tax but you said it's a deduction not a refund so if they don't charge me 16,000 bucks on my taxes then I would receive that money. So please tell me how it' aa gift when I receive nothing.

 

A tax deduction is a deduction from your taxable income.

You only get a refund if your taxable income is less then what you paid in tax already. The portion of the per-diem deduction that is a refund is dependent on what you paid in taxes already.

What you receive in tax refund depends on your tax status and your deductions. So what is your point? Or what are you asking?

This whole per-deim discussion started with you stating how you did the math and what a great deal per-diem pay from the trucking company is, yet you seem to don't even know what a tax deduction is. How is then you know how to do the math?

Weather you get ripped by the per-diem pay or wisely take the tax deduction at the end of the year, you can thank the government for giving it to you; you would pay more in taxes otherwise.

 

Please stop while your ahead

You just can't convince some. My effective tax rate was 7% last year. Would have been less but I did too much local work. If you look up the history of per-diem it is kind of a gov kickback because we are doing essential services for the economy.

 

Would you please say a few things or direct us to some other threads/sources about reducing our taxes?
I pay about 23% in payroll deductions (not counting insurance).
Do I need to get a p.o. box in another state and pretend to live there ...or what?

Also, when you say "7%" are you counting or not counting social security and state tax?

 

You can technically pay whatever you want in taxes until you’re audited then like Wesley snipes you may end up in the slammer

 

The 7% is for my fed gross income tax. I use a 1040A form & schedule C

Take everything to a tax pro familiar with trucking & or itemize. Tax prep costs are also tax deductions I use software that runs me through every possible deduction & any questions are answered through online chat. It cost me $75 that is tax deductible & I file with IRS in minutes after my return is rated for any red flags that will put me on audit radar. I have my return wired within 2 week direct to my account

FEDERAL TAXES and O-T-R & O-O TRUCKERS DEDUCTIONS LIST - Trucker Blog

 

I was audited in 1998 and the feds had to pay me $4,100 after I filled a 1040X. They claimed I owed $13,000 because of a bookkeeping mistake by my accountant.
Tax preparers now face a $1000 fine for each mistake on a return.

 

I think you misunderstood me. If per diem is so horrible and me getting the tax free money is a rip off and at the end of the year I don't pay any taxes in, how does a deduction help me in any way? I usually get back a good portion of my taxes. If I didn't have per diem, how would that benifit me? I did the math, a deduction does not benifit anyone that doesn't have to pay in since there is nothing to deduct from.