Per diem or non need help!

Dont take per diem up front.
End of year,you can deduct $46,or $51 per day out,and subtract it from your taxable income.
Youll get a better tax return,and your company will pay the full amount into your ss account.

 

Getting paid 'per diem' in the manner some sleazebag trucking companies pay it, hurts you.
It reduces your taxable income, or your 'base' wages on paper.
Many drivers think this is a good deal, until they get hurt on the job, and workmans comp payments are substantially less than if they go paid the 'normal' way.
Want to buy a house? You may not qualify for a loan base on the earning you make under the 'per diem' hocus pocus.
Your $50,000 a year looks like $30,000 a year on paper.

Unemployment? SSI? Reduced also.

It's only a winning situation for the company, since now they can deduct your 'road' expenses, not you.

When companies do this and use a part of what should be a normal per mile rate as 'per diem', they're ripping you off.
(But they'll smile and tell you what a wonderful deal it is)

The rest of the world gets paid per diem ON TOP of a normal wage, not as part of it.

 

You don't really need to keep receipts unless you are spending $50 or more a day on the road.
If you are doing that you have other problems.

Just keep track of how many days a year you are in the truck, away from home. This can be done with your logs.
In 30 years of claiming per diem on my taxes I have never been asked to present receipts, but i guess if you claim an outragious amount...it's possible.

 

Guess who's making more money from this deal?

 

I dont do per diem, I do itemized tax return at the end of the year and get better tax return vs getting per diem.
Very convenient for company , not yourself in most cases.

 

Log book is good enough for the IRS. I was audited and they accepted my logbook. Be sure to keep all logs while you are claiming Per Diem at the end of the year.

The amount changed in Oct. You might have to Google Per Diem rates for professional drivers to see what the amount is.

80% for full days away from home
75% for partial days away from home.