How Per Diem works now

No where near 15k. And it does not have to be all for that business. Yeah in the old days where there were two different forms you had to apportion deductions across wages. Now you either take the standard deduction, or itemize. If you are forced to itemize it is wide open. You can not take a 12k standard deduction, and a 3 k itemization for other income.


And who's to say you do not pick up items for resale as you travel?

 

The expessed purpose of the trip has to be to aquire said items. You can rationalize anything you want ... It's the IRS you have have to convince.

 

You're not a statutory employee ... Truck drivers don't qualify. Not to mention the employer has to qualify and indicate it on your W2.

 

Fair enough. Haven't been bothered. Only been audited once and they tried to tie some cattle sales to me. However they could not produce a single cancelled check, bill of sale, or any proof of said income other than a sale barn writing my name.

Folks this mentality that you have to prove crap to them is like saying Kavanaugh had to prove he did not gripe her.
That is not the way it works unless you allow it to. People are so scared of their government and particularly the IRS they forget it is innocent until proven guilty.

And yes if the auditor tries bullying you ask for a court date.

 

Mine is checked every year.

 

Then why all the crap ... You should already know how it works, because you would've been filling Schedule C every year that it was checked. You should also know that it is stand alone and does not have to be tied to any business. You should also know the new tax law doesn't apply change your status. And the tax accountant who has been advising you should have known how it works.

In other words given all that you don't know about your own tax situation, it is probably a good idea that you don't be passing on your lack of knowledge.

 

I really wish we could understand the word “per diem” and the context in which it is applicable. “Per diem” is not a deduction that can be taken (itemized). Per diem is income paid by another that is not reportable (taxable) income.

 

I'm just wondering why we company drivers should spend money on work specific items?
Such as boots, GPS, microwave, or even keep paying a cell phone bill?

Being none are a tax deduction or credit.

 

That's not quite right either. I pay my drivers M&IE ("Per diem"), but as a business owner, I itemize M&IE as an expense.

It's just not available as a deduction to a wage-slave.