Per diem yes or no

Have not heard anything new after this article.

Tax bill likely sunsets meal per diem for drivers, cuts rates across the board

 

We claim our own perdiem based on number of logged service days away from home. The last time we did was in 2001. 306 service days came to around 13800ish against any taxes. There was a nice refund that year. It's not money you get for free because Uncle Sam does not pay out cash for less than zero in your favor. We had 100 going out to fed and 75 to the state every week from each of our earnings payroll because Arkansas is really expensive in taxes by percentage of income earned. I think we cleared about 65-67K gross that year. Half our potential because of excessive intercepting of lazy solos and saving accounts was half of our national mission that year.

 

That article has been posted all over the place.

I will say that reading some of the comments after the article is interesting. Some folks are actually hysterical at the thought of being weaned off a government teet.

 

I used to say the company paid per-diem was the biggest rip,and it was. It allowed companies to buy a great and easy tax brake from drivers for pennies on mile and then even charge them for the screw.

But now? Business can still claim the per-diem, but there is a sense that the driver per-diem deduction is gone. Who really knows yet?

If it will still be available for next years taxes, the standard deduction might increased enough the whole calculation of value for a company bought per-diem deduction has changed.

 

I'm interpreting that there is a carve-out that will allow for the old rules to remain effective but it's difficult to read through these things and makes heads or tails of them. For now and until I speak with my CPA in a few weeks, I'm going to assume I'm going to do my 2018 taxes the same way as I'm doing them today with regards to standard daily meal allowance rule of $63/80% daily away from home, and itemize that along with other expenses like paid showers and hotels, like I always have.

https://congress.gov/115/bills/hr1/BILLS-115hr1ih.pdf

Start reading from about page 237 and continue down through about page 242

 

It's amazing how congress can bury the people in mountains of paper...

Thank you STexan... great link.

 

DO NOT TAKE PER DIEM.

The company has to match your Social Security Tax. When you reduce your gross, you just reduced the amount the company had to put into your SS account. Now, you've reduced your payment in the end.

AND

At the end of the year you get to deduct that $62 for everyday you weren't at home. Yea, BIG number huh? Maybe $18,000 off the top.
You do not get to deduct it if you take the per diem up front. Plus the company charges a $.03 mile administration fee? WTF is that? It's all computerized.

Only suckers take the per diem pay. If it was a good deal for you they wouldn't offer it.

 

That only happens if the company gives you a "raise" via per diem. Otherwise it's just more net for the same gross.

 

You're missing the point. The per diem isn't included in your gross because it is a reimbursed expense. While your paychecks may not differ, your gross earnings will be lower on paper, making you less eligible for that mortgage, less likely to get that car loan, your vacation paycheck will be lower, if you're injured your disability checks will be lower, and when you retire your social security checks will be lower.