Company driver per diem

Yep it seems to be a lot of opinion speculation at times, I'll plan for the worst & hope for the best until it's clarified to me by a reputable source, probably give it a couple months to get clarified.

Won't matter til next tax season anyway.

 

I’m tellin you with certainty it’s gone.

 

I thought that the deduction will be limited to above 2% of the ago.

 

dang, 50c/mi as a team? 4200mi a week? run from that guy!!! I have a team with accident on a record and I still pay them 57c/mi and they run more than 5000mi
I am not saying that you have to leave his company and work for mine, but just find realistic c/mi pay

 

That's sound better, and ask raise in 6th month( for a team every cent make huge difference)
What benefits that company provides, if any?

 

As @BrandonCPA said, it's most definitely gone (at least through 2025):


Page 35 of HR1 - 115th
H.R.1 - 115th Congress (2017-2018): An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018.

 

I just completed my return for 2018 and this is the last year I can claim per diem (earning less than $100,000 gross). The senior tax professional I have used for two decades, advised me to withhold a certain amount from federal and state so I would break even in 2019, if I continued to be OTR company driver. The other suggestion was to find a local driving position ASAP and be home every night to avoid the per diem issue all together. Many of her $100,000+ clients in the transportation industry will continue to enjoy per diem. Donald Trump's tax plan screwed the working class in the trucking, airlines, naval, anyone in transportation industries not earning over $100,000. I foresee many leaving OTR, Long Haul, Regional, looking for local positions. This will be my last year OTR if this tax code remains in place for this year. I wonder how the transportation industry is going to weather a mass exodus of drivers, pilots, navigators, etc, who will address the increase shortages of operators that will undoubtedly occur.

 

So there is an option for per diem at $100k+ gross income?

I thought it was gone completely as a W2 employee unless the company paid it to you directly or you were a business owner operator?

Between the doubled standard deduction & lowered tax rate, MY situation isn't going to change much & for see the same ballpark refund I usually get without extra paperwork proving days out & such.
YMMV of course...

Because the perdiem taken on taxes was always a DEDUCTION, it is not like it is taking $14-18k (depending on days on road) of your pocket; as opposed to company fronted perdiem on top of wages.

I imagine it makes more of an impact in situations other then my own.
Feel free to correct me if I am wrong on a point, I seek truth after all.

If the company will pay us perdiem on top of current wage & 2018 across the board raise, that would just be icing; it has been mentioned but they are still reviewing the full consequences of this changed tax plan & are waiting for the anticipated "corrections" in further revisions before committing to a rather drastic change in pay structure.

Funny how perdiem pay used to be a liability since it was claimable anyway & was viewed as a way to cheat drivers out of pay & corresponding benefits, but now it's a benefit to get with a company who will pay full/partial perdiem on top of a good wage.

BTW, I believe linehaul LTL gravy runs will be the first to go whenever law allows autonomous trucks free reign; my UPS guy already told me they are testing "convoys;" best go for P&D or food service & get your seniority in...IMO

The more people leave the industry, the more quality carriers will have to pay for qualified drivers to stay; with the side effect of possibly driving/keeping freight rates up as more untaken shipments become higher priority....I am optimistic