How Per Diem works now

I get per diem regardless. About 25% of my per mile pay. I don't mind it. Anytime I can save on taxes I am up for it. You can still itemize job related expenses too.

 

They also lose the ability to deduct the pay that they pay you in per diem, which can is quite a bit. A $.01 reduction in pay to cover their costs is fair. Any more is a ripoff

 

What you just said is nonsensical. The per diem is paid by the employer without taxes! There isn't anything to deduct. It's like if your employer reimbursed you for a $50 uniform that you bought with your own money. The uniform reimbursement is not taxed and therefore there's nothing to deduct because it's NOT INCOME!

 

And...Roger just summed up the entire site. OK, we're done, shut down the server, last one out grab the JB Hunt gimme cap.

 

Wow, I had no idea the law changed on this... so I guess I'd better call my tax guy and see what he suggests.

 

FYI: as per a new article (October 4, 2018):

“Company drivers can no longer deduct meal per diem from their income. The Taxs Cut and Jobs Act of 2017, the tax reform cleared last year by Congress, removed per diem deductions for company drivers starting for the 2018 filing year.”

Source: https://www.overdriveonline.com/irs-bumps-up-owner-operators-per-diem-allowance/

FMI: https://www.overdriveonline.com/tax-reform-means-annual-savings-of-2000-or-more-for-owner-operators/

 

Any driver that has to file a schedule c can collect per diem. Go talk to a tax proffesional.

Any driver. This statement companies drivers are not allowed is not accurate. Only if the entirety of you income comes from W-2 wages is that correct.

 

No that is not exactly correct. Lets say this week I work for someone that provides a W2 and next week I work as a 1099 contractor or under my own authority. I will file a schedule C at the end of the year but I can't legally deduct per diem for the week I was an employee. You CAN do it but it's not the legal thing to do.

Use Schedule C (Form 1040) to report income or (loss) from a business you operated or a profession you practiced as a sole proprietor

Yes, go ahead and yell and call me a fool etc etc

 

Only if you incurred legal perdiem expenses during the earnings of wages can you deduct against them.

If you drive as a company driver 300 days a year and work self employed 30 days, you can only take perdiem deductions for the 30 days you were self employed.

 

25% of the miles I drove were paid in per diem this year. Company driver. Others do it too.