2011 per diem

Schedule C applies to Independents, l/o's, and o/o's.

Schedule A applies to company drivers with itemized deductions.

The AGI is Adjusted Gross Income.

I use Turbo Tax software as a company driver so the software does all the necessary calculations regarding AGI's and itemized deductions.

If you are unfamiliar with per diems, itemized decutions, or simply do not want to bother spending a couple hours of your time crunching numbers then by all means hire a reputable CPA or enrolled agent.

Here are 3 you may want to consider for your tax prep needs;

Know taxes by Esta Klatzkin.
The truckers Accountant by John Turner (Houston TX).
ATBS.

John Turner and Esta Klatzkin answer tax questions on the Dave Nemo Show and The Lockridge Report (satellite radio). Both seem to be very knowledgeable and competent.

 

The reason I'm asking is I've always had someone do my taxes but I think he has been dropping the ball on the Per diem thing. I've only been back to OTR for a year and a half and I want to file for it this year and do an amended return for last year. Because I always getting a little back or owe and I feel somethings not right.

 

2% of 50,000 isn't but 1,000.00 itemizing a schedule A in most cases is a waste of time. You better off if your company would give you a untaxed per deim and piss on th schedule A. Thats why I have never did the corp thing I make more in per deim deductions than it would cost otherwise.

 

We will have to disagree on this topic. Companies routinely deduct 2 cpm to "administer" a per diem plan. Then you still have to worry about the company overpaying you and then you are liable for the tax on the "additonal" untaxed money you received.

No sir. Per diems administered by a company are stacked in the companies favor thru reductions in pay roll taxes and workers comp claims.

It also reduces the drivers "wages" which could affect his ability to qualify for loans or at the very least will wind up with higher interest rates.

Lets break it down to illustrate the concept; 300 days on the road equates to $17,700.00 after 80% that is reduced to $14,160.00. Based on your 50k AGI that still leaves a $13,160. deduction.

The carrier in a per diem scam got away with not paying $1,327.50 in taxes for every driver they suckered into their "plan."

So the company not only "saved" themselves $1327.50 they also took .02 cpm from the driver which at 130,000 miles comes to another $2600.00 they took from the driver.

Folks take the deduction yourself on your taxes. Dont let a company screw you out of your hard earned money or short you on the tax and workers comp issues.

 

You should read and quit copying and pasting things. It could possiblly put you in a lower tax bracket and you'd pay less taxes. But you may be one of those who think the paying more is better and you will get a prize?
Getting easy loans is part of the reason we are in the situation we are now.
And if you take the time to read you would loose part of this money you think you could claim. The form 2106 instructions state you can only deduct meals on overnight trips away and also schedule A instructions state that meals during working hours aren't deductable. I see several possible problems during a audit. The companies can't short you on your taxes you are responsible for them either way.. You suffer from problem most people do inability to fully comprehend a situation. the only real thing that would change would be the social security deduction and do you think it will here twenty years from now?? Lowering your income could be helpful if you'd look at the real big picture, money would probally be more. Invision it this way lowering some of these companies cost of operation may make a job for someone else or preserve yours??

 

Thanks! I get it now (of course, I took H&R's tax course last year... but not this year... what was I thinking! Ah well, next year I'm doing it again!)

 

First of all I not only "read" the necessary irs sections online but I also read articles from other tax experts in the trucking indistry and even "listen" to satellite radio daily. Between John Turner and Esta Klatzkin answering truck driver questions I have a pretty good understanding of this topic. Funny how I can answer practically every question drivers pose on the air. Not bad for a dumb trucker huh?

Besides I use Turbo Tax software each year and it does the needed calculations for me.

How about we have some personal accountability? I would like to see this concept extended to our politicians and corporate governing bodies as well.

This refers to drivers that do not qualify for the per diem. Example; local drivers and drivers that return to their tax home each night. They are NOT permitted to deduct their meal expenses. Hey don't take my word for it call up John Turner or Esta Klatzkin and I am sure they will explain it to you. Heck maybe you want to hire them to do your taxes too.

If you are an independent, o/o, or l/o then yes you would be correct. If you are a company driver then you are 100% wrong.

http://www.irs.gov/businesses/small/article/0,,id=172179,00.html

You generally must withhold federal income tax from your employees' wages. You withhold part of Social Security and Medicare taxes from your employees' wages and you pay a matching amount yourself. To figure how much to withhold from each wage payment, use the employee's Form W-4 and the methods described in Publication 15, Employer's Tax Guide and Publication 15-A, Employer's Supplemental Tax Guide

Getting a little touchy here are we? If YOU think you are right then by all means continue doing things your way. I offer advice and point to my source material. I leave it to others to decide for themselves what is the best course of action for them. I also advise folks that they hire a reputable CPA or Enrolled Agent that specializes in truck driver tax returns if they are unsure of themselves or simply want an "expert" to figure out their taxes.

The key to surviving ANY audit is to substantiate your deductions. I not only cover this but in some cases drop some of my deductions especially when I do not gain any additional tax savings from listing them.

When would this happen? When you make too much money and fall into the Alternative Minimum Tax category. Sucks when that happens I assure you.

 

A o/o told me if your terminal-work place is cook county-Chicago,the per diem rate is 71.00 per day.This driving job pertains to Chicago railyards,traveling to other midwest states.I also found it on the irs website,now I just have to find an accountant that knows how to put it together.

 

great link. really makes the whole thing much easier to understand for a newb.

thanks a lot

 

Sure if every night away from home is in Chicago. Then you will have to look up the rate for every other town you spent a night in. (I believe 99% is a standard rate unless its a major city)

You gonna pay the accountant to review your log book or will you just make a list of each date and each city for him?

Somebody correct me if I'm wrong, but that is how I understand it in this particular case.