What’s the total number of employee drivers? Of those, how many are misclassified as 1099? Of the ones left how many are long haul OTR? How many are regional? How many are home daily?
If a driver leaves Monday and gets home Friday for 50 weeks per year that’s 225 days they can claim the meal allowance. That’s basically a wash with doubling the standard deduction. Even someone missing out on a few thousand compared to the standard deduction is only going to be out a few hundred at tax time. Not enough to get your shorts all bunched up.
Motels? I used to spend $2k or so per year when I was staying out a lot. So that woykd be $5-600 you miss out on.
And yes there was probably a lot of things employee drivers were deducting that were in a gray area.
Per Diem for Company Drivers!
Discussion in 'Trucker Taxes and Truck Financing' started by breaker1919, Sep 19, 2024.
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You’re seriously that butthurt over a few hundred dollars a year?
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duplicate
Last edited: Sep 20, 2024
Reason for edit: correction -
- **Per diem allowance**: The government allowed a per diem deduction of $68 per day for truck drivers. The IRS allows drivers to deduct 80% of this amount due to the nature of the job, meaning the deduction was effectively $54.40 per day.
- **Annual road days**: A typical long-haul truck driver might be on the road for 250-300 days a year.
- **Potential deduction**: If a driver is on the road for 250 days, the deduction would be 250 days × $54.40 = **$13,600** in deductions.
- **Tax savings**: If the driver was in the 22% tax bracket, the per diem deduction would have provided a tax savings of about 22% of $13,600, which is **$2,992**. For drivers in higher tax brackets, this amount would have been greater.
Therefore, the elimination of the per diem means company drivers could lose an annual tax savings of approximately $2,992, depending on how many days they spend on the road and their tax bracket. This loss translates to a lower net income, as they now pay taxes on a larger portion of their earnings. -
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Highly successful so I quit. LOLBean Jr., TurkeyCreekJackJohnson and Oxbow Thank this. -
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