can some one please explain per diem pay??

Discussion in 'Questions From New Drivers' started by Sami, Nov 14, 2006.

  1. buck and a half

    buck and a half Mr. Miles & Miles with Many Smiles

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    Aug 11, 2006
    madison,me
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    don't ever not claim per diem at yrs end taxes,thats a 10000 dollar deduction and you earned it,if you don't need it reinvest that amount into 401 and the diff over time and social security won't matter when you retire. also if a company gives you per deim of 12 cts a mile and its less than 54 in usa and canada is 58,you get to deduct the whole thing of the difference and you get all 54 not 75% of it.
     
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  3. dstockwell

    dstockwell Light Load Member

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    Oct 11, 2006
    Georgia
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    So if I elect to take .10 cpm per diem, which would be less than the $54 a day, you can subtract the difference they paid me from the $54, then take that amount as a deduction?
     
  4. munrkr

    munrkr Medium Load Member

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    Dec 14, 2006
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    I've read and posted on this subject quite a bit, and have come to a fairly good understanding of it. But could someone please tell me exactly where in an IRS pub does it show the 75$, 80% of the $52 we folk subject to HOS can deduct for per-diem? The closest I can get is IRS Pub 463 (Page 6), where it mentions the $52. Now it does go on to mention 75%, but only in the context of a partial day claimed ie, the day you hit the road or the day you return. I have seen countless references to the 75% (2006), on this site, and several others, but am unable to trace it back to the source (IRS). So if any of you can tell me where I can find this info on an IRS document, I would be most grateful. Thanx. :biggrin_25519:
     
  5. buck and a half

    buck and a half Mr. Miles & Miles with Many Smiles

    775
    54
    Aug 11, 2006
    madison,me
    0
    currently it is 54 in usa and if you run canada on those days you get 58.,it is 75% of the 54 or 58,but,if your company gives you any perdiem,figure what the difference each day is compared to 54 or 58, if your company gives you any perdiem at all,you can deduct the whole 54 or 58 dollars and not just get 75% of the 54 or 58, I learned this from xm on landline show thru a truckers tax pro of over 30 years,he said this is a loophole that the irs accepts,but,only if your company gives any perdiem up front. if not its 75% of 54 or 58,don't forget the half days,2 halves become one,it all helps. if you make it a habit to look for papers and free books at ta and fly j you can learn alot,I read all the time,the tax tips are in every year.
     
  6. dstockwell

    dstockwell Light Load Member

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    Oct 11, 2006
    Georgia
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    Cool, so if I choose to drive for the company I am looking at they offer .10 cpm per diem. The only possible bad thing could be pre tax 401K. How would that would affect if paid with by .22 regular, and .10 per diem.
     
  7. buck and a half

    buck and a half Mr. Miles & Miles with Many Smiles

    775
    54
    Aug 11, 2006
    madison,me
    0
    just want to clarify this,when a company,the ones I have worked for pays you the whole perdiem of 54 a day,you do get a separate check with no taxes out of it,you can only get 54 times 5 days each week you work,not at the end of the year. the gov. does give you this tax free,a company has this option.thus when you get it now thru your company it comes off before taxes,when you don't take or get it from your company,you are being taxed on it all year long and get probably half because you did not get it tax free from your company,it comes off just like med ex etc,before you pay taxes and ssi etc. so in essence uncle sam does give you 10000 plus with some companies. the only drawback is your scheduled gross is 10000 less if you needed a morgage or loan,they go by your gross and that could hurt you in getting approved for a loan.
     
  8. munrkr

    munrkr Medium Load Member

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    Like I said, direct me to the source (IRS) pub that spells this out. As much as I like to take your word for it, I would rather not. Nor would I advise others. Much appreciated.
     
  9. weggie

    weggie Light Load Member

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    May 3, 2007
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    sami asks,
    "can some one please explain per diem pay??"

    i guess the answer is no.
     
  10. munrkr

    munrkr Medium Load Member

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    Dec 14, 2006
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    10-4, but the hunt goes on!
     
  11. NevadaJim

    NevadaJim Light Load Member

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    Apr 14, 2007
    0
    Isn't per diem $52? Where did you get the $59 from. You got me confused now. I've seen $59 used in another posters computations as well. Shouldn't all these computations be using $52 as the base for per diem?
     
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