Any company drivers out there who has filed their W2 for 2018? Were you able to claim M&IE on your 1040? Thanks!
Will we lose per diem
Discussion in 'Trucker Taxes and Truck Financing' started by true122, Dec 2, 2017.
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Thank you sir for the quick reply. Good luck to us OTR boys/gals
Last edited: Mar 18, 2019
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born&raisedintheusa Thanks this.
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A quick explanation, the new tax law no longer allows non-reimbursed employee business expenses. For most employees, it wasn't a big deal. The doubling of the standard deduction more than made up for it for 99.999% of the occupations. The only one where there was a big loss was over the road drivers. Still, if your company pays you the meal allowance, it is not taxable. You just can't take it as a deduction on your taxes anymore. Your withholding is based on your taxable income. The meal allowance isn't taxable, so you won't owe taxes on it.GoBucks43228 and Ffx95 Thank this. -
I am a company driver for Highway Transport. They have a per diem program that reduces my taxable income every week. They take $66 per day and multiply it by number of days out. $462 for every 7 days out. They deduct this amount from my gross before taxing it so I pay less taxes out of my check. Then they add the $462 back in.
Is this going to bite me in the ### next year at tax time? According to the per diem plan info they sent me, it shouldn't.
Anyone else on this plan? -
I’m on the same plan. No worries here.Last Time Around and Bean Jr. Thank this. -
Negatives on the plan: lower AGI, so lower Social Security contribution, lower work comp insurance level, less ability to borrow money.
Positives on the plan: you get more money in your hands, so you can invest, save, and don't need SS or borrow money.
You should consider increasing your disability insurance to make up for decreased work comp coverage.kemosabi49 Thanks this. -
From my understanding talking to my tax preparer, 1099/owner operators/business owners can deduct per diem based on similar factors of 2017 tax laws. However, W-2 employees, company employees, can not directly deduct the per diem from their taxes anymore. But you can be reimbursed for those expenses incurred if you meet certain conditions. First, are they necessary for your work that requires you to travel from your tax home area (to complicated to explain especially when it comes to HOS). Second, are you a "reimbursed" employee or "un-reimbursed" employee. If you're a company driver and the company, when they file their taxes, they claim per diem to reduce their tax debt, you are a reimbursed employee, and the employer must pay you the amount equal to the amount they deduct from their taxes up to $66/day (80% in some cases). But you have to provide the employer with documentation of daily expenses to be reimbursed. If they don't take the deduction, then you can't get re-imbursed as a company driver. But as an owner/operator, 1099, independent contractor, you still have the per diem deduction but it only applies to actual meal cost. It no longer include lodging, laundry, etc...
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