Deductions?

If you are a company driver and getting a portion of your pay as per diem you are going to have problems. You may still qualify, but not for as much as you would like or think.

Look at your W-2 for last year and that will tell the story. If for example you are getting paid $35 but $.10 is per diem, as far as the IRS and the Money Lenders are concerned, you are making $.25 per mile income. The rest is Reimbursement.

What the other driver is saying about taking the deduction hampering you as well is if you are not getting a portion of you pay but rather claim the per diem deduction when you file your taxes.

 

@Flattie C . . . do you pay into your company's health insurance policy? Do you contribute to your 401k?
I'm pretty sure you are talking about withholdings more than 'deductions,' per se. . . but you've gotten a lot of answers; hope some help!
ps: If the answer to my two above questions is yes, then that's normal. Also, as an above poster stated, If you claim dependents (even your doggie) . . . you will get more on each check, and offset that, at tax time.
Good luck, gal. Be safe.

 

My company driver paycheck I lose about 30-35% for taxes, benefits, 401k. I'm single and contribute above average amount to 401k and pay below average for insurance. Don't confuse deductions from your gross paycheck with deductions on your tax forms.

 

Yeah part of my pay is perdiem. I don't likeit, but thats just the way it is. I can't opt out.

Hopefully I find a mortgage broker that understands that it is part of my income.

 

Good Luck

 

Don'tdeal with banks and so called 'direct lenders. Find yourself a good mortgage Broker. Maybe try a USDA loan;
With a USDA loan its a government program; as long as you meet THEIR guidelines it's Guaranteed financing, most of the time 100% as in NO MONEY DOWN and NO CLOSING COSTS (no out of pocket money, it's financed in with the loan)
http://www.usdaloanagency.com/faqs-usda-income-limits/

 

HUD is another homeownership option if the per diem is getting in the way when you are trying to buy a house. Click on your state info to see what programs are available
http://portal.hud.gov/hudportal/HUD?src=/states/texas/homeownership/buyingprgms

 

My sister got HUD financing, it was a new 3 bedroom brick home in a small town. If your income is lower and you qualify then you get reduced monthly mortgage payments because the interest is super low.

 

I won't be doing anything until next year. I do know that is this perdiem deal screws me up I am going to be fuming.

 

The company is claiming the per diem on your salary to financially help them. Maybe your income can financially help you buying a house at low interest rates. My sister got a brand new home with low payments.