Per Diem lost..Companies need to pay up

Discussion in 'Experienced Truckers' Advice' started by smokey12, Feb 6, 2018.

  1. STexan

    STexan Road Train Member

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    That's interesting but I still don't believe their source has done his/her due diligence in reading the bill. I'm not switching to a per-diem plan based on someones's assumptions and rampant here-say. I know what I read in the actual bill. I highlighted and posted it elsewhere here. I'm done talking about it and rehashing it. Everybody can believe who/what they want to believe.

    Driving OTR is tough work, hard on family life, and with little pay, and the tax deduction was one of the few things that made the choice to drive OTR bearable and I can't see an entire huge segment of blue-collar workers being effectively penalized for their chosen occupation. Doubling the standard deduction might be helpful for most, it does not address real unavoidable costs of living/working away from home as a quarter of blue-collar workers do. (oil field, trucking, pilots, flight crew, etc)
     
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  3. 06driver

    06driver Road Train Member

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    Per diem pay is less period. It will also effect any income based benefits (workers comp, STD, LTD, unemployment, credit rating etc etc etc) in addition to cutting benefits from SS deposits both employer and employee.

    Personally in my opinion any company that mandates per diem should be avoided like a fleece program. In addition if you have any other income you can still itemize your deductions and claim the per diem.
     
  4. tucker

    tucker Road Train Member

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    Another thread about this?
     
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  5. tucker

    tucker Road Train Member

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  6. Toomanybikes

    Toomanybikes Road Train Member

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    Don't forget the personal exemption is gone. For many drivers this means much more taxes then doubling the standard deduction.

    Same with loosing the personal itemized deductions. Company drivers are getting the worse deal on that one, just some are not smart enough to know it.
     
  7. Ridgeline

    Ridgeline Road Train Member

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    If your accountant or tax preparer says that we lost it or anything like that

    Get another person to do your taxes, they are clueless.
     
  8. Brandt

    Brandt Road Train Member

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    Here's another thing explain the per diem and how company drives can't claim per diem on their 2018 taxes, if your company pays per diem then you still get it.

    "Additional good news for truckers in this bill is that HR1 does not change overnight per diems (Section 274(n)(3) of the IRC Code). That means truckers retain the ability to claim 80 percent of the $63 per diem for nights away from home ”. This statement is misleading and overlooks a significant difference between owner operators and company (employee) drivers. The article cited retention of per diem under Internal Revenue Code Section 274(n)(3) , which is correct. However, Sec 274 pertains solely to the meals expense disallowance and establishes the 80% deduction limitation for per diem of a truck driver during, or incident to, the period of duty subject to the hours of service limitations of the Department of Transportation. What the article failed to clarify was that:

    • Owner Operators (self-employed drivers) claim per diem under IRC Sec 162(a)(2)
    • Company drivers (employee) previously claimed per diem as a miscellaneous itemized deduction under IRC Sec 67 .

    The Tax Reform and Jobs Act (H.R. 1 Sec. 11045) amended IRC Sec 67 and suspended (eliminated) miscellaneous itemized deductions for employee drivers, which includes per diem and other unreimbursed employee business expenses . As a result, owner operators will still be allowed to claim per diem, but employee drivers will not.
     
    Last edited: Feb 6, 2018
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  9. double yellow

    double yellow Road Train Member

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    This trucking CPA guy has it right:
    Employees without company per diem lost it.

    The "special trucker carve out" refers to the calculation of the standard meal expense for truckers. Most professions can count 50% of the meal rate as an expense, but truckers can count 80%.

    The problem is that all employees lost the place on the tax form where they get to deduct that expense as unreimbursed.

    The IRS recognizes trucker per diem as a legitimate expense, but they give employees no place to deduct it. The IRS also recognizes specialized work clothing as an expense, but employees cannot deduct that either.

    Businesses can! If you are an independent contractor or owner operator, you get to claim it at the 80% rate of the special carve out. You can claim specialized work clothing too!

    If you are a fleet owner, you can choose to reimburse your employees for their work clothing. And you can choose to reimburse them for that standard meal deduction. You still get to deduct it as a business expense.

    So yes, the IRS did "carve out" a special bone for the trucking industry, but it can only be used by businesses/contractors and not employees.
     
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  10. smokey12

    smokey12 Road Train Member

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    double yellow exactly what I have read..its GONE for company drivers! What a swift kick in the balls. Since this is going to happen companies need to add per diem to pay or up cpm...or expect an.exodus of drivers.They sure are in a rush to implement self driving trucks..Its happening..
     
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