How Per Diem works now

The other discussion is related to Daily Meals & Entertainment deduction (daily meal allowance allowed for workers who travel regularly) that employee drivers USED to be able to claim. This has nothing to do with carrier employer per diem plans. Contractor drivers and lease and owner ops still can itemize this deduction.

 

It could be said that with employer sponsored per diem plans (for employees), the tax savings (for the employer and the employee) are realized on the front end (less taxable income - more take home pay)

But using the itemized meal allowance deduction, the tax savings benefit is realized on the back end at filing time (business/job expense deduction)

 

As I said instead of listening to false explanations from drivers go talk to a tax professional.

What is posted here is incorrect.

Once you can not take the standard deduction and are forced to itemize you must itemize all deductions.

Folks do not listen to the false information drivers can not claim it. If that was the case the companies could not break out your pay. What has changed is the reporting mechanism in favor of a larger standard deduction. Taking per diem and taking the standard deduction may in fact get you in legal hot water.

Once again TALK TO A TAX PROFESSIONAL!

But know enough to ask them about it.

 

Yes, when I was 1099 i received a meal allowance of $35 a day, and $80 a day for hotel if I chose to use it.

 

How is an employee (with no business or self employment income) going to itemize if he’s no longer allowed to use form 2106? At least this is what I read in two different reputable sources.


This guy below seems to be be of the opinion employees can still itemize job related expenses if they exceed the higher standard deduction but that goes contrary to what else I’ve heard


Can Employees Write off Business Expenses? Learn the Rules

The IRS seems to be keeping everyone in the dark about the particulars of the new tax law. A search of their site has NOTHING except TY 2017 related forms, even in October. I don’t think most CPAs really know what’s going on related to changes for employee workers besides the higher standard deduction.

 

And if you have to file a schedule c.

 

There’s a problem for employee drivers. What full time employee driver ever filed a Schedule C?

 

The new tax law screws company drivers but gives extra benefits to O/Os. My advice would be to get your own truck. In a few months there should be a glut of used trucks on the market. This may have been mentioned already but I do have a personal example of how taking per diem cost us money last year when we were still company drivers. I changed my compensation to not have Perdiem as a separate form a pair but my wife did not in February 2017. I wanted to buy a house so I need to have more reportable income. We intended to change both of ours but our company forgot to change hers and at the end of the year I ended up with more than $1500 extra in my 401(k) because of the company match and contributions being larger in my account. If you are getting a company match you are leaving money on the table if you are paid per diem.

 

One that has other income that requires a schedule c for business expenses.