Per Diem , Dont fall for the scam

Discussion in 'Experienced Truckers' Advice' started by smokey12, Jul 4, 2019.

  1. smokey12

    smokey12 Road Train Member

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  3. x1Heavy

    x1Heavy Road Train Member

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    Don't take the Per diem, because you personally no longer benefit as a tax deduction as it used to be for you.

    If a company offers perdiem, do not take it. Take the whole thing in pay because that is what you are going to be taxed in. If they insist move on.
     
  4. snowwy

    snowwy Road Train Member

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    That very video was posted in another thread started yesterday.
     
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  5. smokey12

    smokey12 Road Train Member

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    This Marc guy is always right on the money
     
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  6. Flat Earth Trucker

    Flat Earth Trucker Road Train Member

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    And he looks like he started driving yesterday. :biggrin_25525:
     
  7. Bean Jr.

    Bean Jr. Road Train Member

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    Too bad you won't see this, but this is the only way that non-owner/operators can get the meals and allowance deductions. It does reduce your taxable income and workers' comp adjusters do look at it for calculating TTD and PD. The underwriters might get upset. And likewise most loan underwriters will look at it to.
     
  8. Brandt

    Brandt Road Train Member

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    I think he is wrong. Per Diem is not extra pay. It's only to off set the money we spend on food. Not all the money we spend on food. It just for taxes. Using his minder of $300 a week of per diem.. it not like you get $300 taken off your taxes. If you make $1,500 most regular jobs you pay taxes on the $1,500. We get per diem, so in his example of $300 a week
    Your pay of $1,500 -$300 is $1,200. We get paid $1,500 because that is 3,000 miles at $0.50 but we only taxes on $1,200. If you spent $300 on food, you don't pay taxes on that $300.
    If we don't spend any money on food we still get to claim per diem and still don't pay taxes on that $300. It not extra pay the company give drivers. It a tax discount the government has for drivers. If you make $1,500 and you have $300 in per diem your only pay taxes as if you made $1,200.

    So in his example $1,500 a week he takes home 72% or $1,080. So he paid $420 in taxes

    With per diem you of $300 you still get paid $1,500 but only taxes on $1,200. So $1,200 x 72% is $864. So he only paid $336 in taxes

    $420-$336 is $86 less taxes saving on your $300 a week per diem

    If a company charges $0.02 per mile fee for per diem 3000x.02 is $60 you still are $16 ahead. If company charges $0.03 on 3000 miles that would be $90 now your losing $4

    Plus today company drivers can't claim per diem any more the company has to pay it. So hopefully they don't charge more then. $0.02. Some companies don't charge anything like mine. They just take the per diem off the top pay. Get my correct taxe amount I have to pay taxes on. Then they add the per diem back into my pay tax free ! But it was never extra pay beyond my cents per mile rate
     
    Last edited: Jul 5, 2019
  9. Bean Jr.

    Bean Jr. Road Train Member

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    Marc goes according to his opinion regarding driver pay. Per diem is an expense that has a set rate. Instead of the tax payer having to prove meals and expenses by receipt, the IRS uses a set amount, and all the tax payer has to prove is that the person who is claiming it was not at home.

    Due to tax law changes, non-reimbursed employee business expenses are no longer allowed, so the only way to get the tax deduction is to allow the carrier to take it.

    Marc is right that you shouldn't allow a carrier to charge you for taking it as it reduced their share of the FICA tax, he is wrong in suggesting that 10 cents is a scam. It is the only way that company drivers can get the deduction.
     
  10. MysticHZ

    MysticHZ Road Train Member

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    The gentleman is just flat ignorant ... Per diem isn't pay ... It's a tax deduction.
     
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