can some one please explain per diem pay??

I don't know. I also do not believe you will find the answer in the tax guides.

I would be curious if they had it in their manual. However, anything that would affect the income like this should be optional. Maybe they don't present it that way.

 

Thats a very good question, I do know that Interstate Dist. (IDC) out of Tacoma and Knight Transportation you are NOT forced, but they push it.. If I remember you have to sign something to opt out of the per diem.

 

Some company's force the per-diem, you never opt in, and you cannot opt out. When I was at Central .08 cpm was per-diem.
I just wish they would give me the full amount if they are going to do any. Give me 80% of 52 dollars a day, then I will not claim it on taxes.
Now I have to figure out my days out, subtract what I was already paid for it, then take the deduction.
I am out close to 300 days a year, so even after the .08 cpm I was paid for it, I still had a chunk to deduct

Also new this year, in the first housing package, you do not have to itemize to deduct your interest paid on your mortgage. Who knows if that will get dropped before tax time though. It was however signed into law.

As a company driver I should be getting back one heck of a return this year.
I am guessing, many new parts for my bike, and a chunk of cash for the little lady to waste.

 

A company wants you to take the per diem as that it is to their advantage if you do. Remember for every dollar you do not have to pay toward SSI that is a dollar they do not have to match as well.

Can they force it? Of course it is their perogative how they chose to set up their business. They could I-9 you as well if they wished. Just keep track of your days as you are doing and claim the difference.

My beef with the meal allowance is why is it 80% of 52? What is that amount? Why not just make the allowance hat dollar figure and be done with the 80% nonsense?

 

Congress does not like to readdress things every year that do not directly concern the average American, and when they can get the vote to go there way, they want the law around for a while.
So they set percentages. It has been going up 5% a year the last few years. Getting better all the time. So at least our tax right offs are increasing as food ect goes up, since most of us our pay is not.
But it is still a good amount. 100 days, 52 a day = 5200, x .8= 4160
That is a hefty right off. I am home more now, so lets say I am out 280 days. That is a deduction from my taxes of 11,648.
Meaning that I overpaid my taxes by a huge margin and will get back most of my money.

 

Not quite right . That means you have a deduction of $11,648 from your taxable income . Simply put , if you have $10,000 in per diem and you pay a 20% tax rate your taxes are reduced by $2,000 .

 

I have always gotten a good return though. Never owed.
That deduction, plus the change for this year on mortgage interest, I will have a larger return than ever.
I will admit I am not much of a tax man. I have always done my own, and I have missed deductions in the past. This year I am going to a tax prep company that knows trucking, to make sure I get back all I can. Since most local tax prep company's have no idea how to do it right for drivers subject to HOS.

 

That's a good idea . Make sure the preparer is an enrolled agent or CPA . Both have to pass exams given by the IRS and can represent you if you are audited or have to appear in court . The best time to consult a tax professional is not a tax time but at the beginning of the year or when starting a business so they can advise you to best benefit from deductions .

 

Frankly, I've never liked the fact that companies do this. In fact, I wouldn't doubt it if it was considered to be tax evasion on part of the trucking company.

Yes, I understand how people look at this...

If the company pays you the per-diem then you get the money now instead of later. However, They only do that so that THEY can get YOUR write-off at the end of the year.

Secondly, and probably the most important part of this, is whether or not you are paying taxes on the per-diem since it is added to your paycheck. If you are, then you are getting royally screwed. I am not with a company who does this so maybe one of you can answer this.

As far as a company making it mandatory...it is underhanded to say the least. If my company tried to implement a mandatory per-diem (in place of my write-off) I think I would have to go to court over it. It has been a while since I read the tax code on this, but if I remember correctly it is written in such a way that the only way you can take this deduction is if YOU are the one that spent the night on the road for work...you did, your company didn't.

Sounds to me almost like one of those tax-return loans...your company is fronting you the money that you would write-off later on.

As far as getting money back on it, I tend to brake even at the end of the year. I claim 4 during the year then file for 1 on my return. On that note, my wife and I file seperately and she claims the kid. I've filled out the forms both ways before (married, married filling seprately) and there is a HUGE tax penalty for filing married. Seperately, my wife gets a return and I brake even...married, we would have to pay over 2k. It is as if the government doesn't want you to be married, lol.

 

The company i'm looking into offers both per diem and non per diem. Starting pay for no exp. for per diem is 29 cpm. 1st year. Based on hhg route. (btw what is hhg route) Then it goes down to 27 cpm for practical route. (yes I need to know what a practical route is too)

Starting pay for non per diem hhg route is 34 cpm and 32cpm for practical.

The more I read about it the more confused I get. Any help would be greatly appreciated.