Tax Question

Actually partial days can be counted toward the per diem. Whichever method you use must be continued throughout the year though.

For example a few years ago it was common practice to divide the day into 4 increments of 6 hours each. Based on this you divide each day into quarters and then count accordingly.

Recently there have been a few more interpretations accepted by the IRS including counting partial days as .75 or 3/4 of a day and still another more aggressive interpretation that I heard on Sirius radio about a year back (someone from the drivers daily log program) that was advocating counting partial days as a full day.

Regardless of which method you use for calculating the actual days on the road the key is you must take a legitimate "rest period" away from your tax home before returning to your home base to claim the per diem. I read that as a 10 hour break as mandated by the current HOS.

 

I'm just a company driver. My company doesn't have a per diem program nor have I wanted to enroll in one. The logbook and $52- per day per diem rules seem pretty simple, actually, and I keep receipts for other business related purchases, such as the purchase for the CB radio and cell phone. Actually, I've found TurboTax to be nearly as good as a tax professional, a lot cheaper, and the IRS seems to like the electronic interface--I get my returns quickly deposited into my checking account without paying an extra fee to do so. So, again, does anyone know which of the several TurboTax programs covers the specific needs of the DOT driver per diem deduction?

 

Since you are a company driver, you will take as a deduction under Schedule A, misc deductions. form 2106.

 

I use the deluxe version of Turbo Tax. It has a very easy user interface and you simply check the box that states you are in the transportation industry. You will enter the full amount ($52.00 per day x # of days worked) of the per diem and the software will adjust the figure down to 80% automatically and place the amount in the correct location on the tax forms.

This year Turbo Tax is offering free electronic filing of the Federal returns and $19.95 for the State.

I would like to see Turbo tax come up with an add on for local taxes for Pa as well but in the meantime it is a pretty good program for the price.

 

Deluxe turbo does it? That's great, except that version doesn't cover capital gains/losses, so I assume the next turbo version up, Premier, must also include DOT driver per diem calculations?

 

I helped a friend do his tax return on tax act and it cost him 13.95 for the state. The federal was free and the version allowed for per diem and all of the schedules for capital gains and whatever.

 

Thats good to know. There are so many companies out there hawking tax software it is nice to see there are free (or close to free) alternatives.

I am just waiting for the news that a hacker group got into Intuits files and stole tax payers private info. Heck the major retailers have had credit card receipts and customer records stolen many times lately.

Makes me nervous even though I use the software and file electronically.

 

Oh my gosh! The more I read on this subject the less I know and I consider myself a fairly bright guy. Which is better for a husband and father of two with a mortgage, per diem or no per diem? I plan on being home on weekends....

 

Never take the per diem plan offerred by a company. It is to their advantage not yours.

Do a search on the topic. There have been many threads on this.

 

Yeah, remember when financial advisors were talking about how Social Security won't be there for you when you retire? With this Wall Street and private sector meltdown, the government is all many have. Make sure your trucking company doesn't cut corners and short your Social Security contributions even if it means few dollars in your pocket each week!