Per diem or non need help!

I use per diem to lower my gross income in order to avoid the obama care penalty.

Normal pay is 44 cpm. Using perdiem reduces it to 42 cpm. I only pay taxes on 33 cpm with the other 9 cpm is not taxed.

The total money I make is pretty much the same in the end.

 

Per diem only benefits the company since their workman's comp and unemployment rates are based on your wage they are the beneficiaries. You are entitled to per diem at the end of the year anyway. Software programs like QuickBooks business take this into account. You just enter the days x rate. The reason per diem laws are written is so you do not have to save receipts. You will receive %80 of $63 per day on the road Tax credit. Per diem rates usually change 4th quarter in the IRS eyes stay Up to date.

 

Ok, hopefully this won't sound like a stupid question but here goes. Why do you only get 80%? At 80%, your getting $50.40 a day. What's the deal with the other 20%? I don't see the point of having a set number if the IRS isn't actually going to give you the full amount.

 

Road Reject is Correct about workman's comp benefits and Social Security benefits and financing. Because per diem does not count as income. It is designed as a tax deduction. So you do not have to save receipts for meals. You still get to itemize your deductions at the end of the year and put per diem on top of it. last year mine was a $15,000 deduction.

 

I just got off the phone with my stepmom. She handles the taxes for her and my dad, and my dad is a trucker. She is telling me that the per diem has jumped to $64 per day, and that you get 100% of it. Not sure what the 80% that people are posting is all about, but it isn't accurate according to her accountant.

 

I fired my accountant because they did not know what a 179 was.

 

Not even sure what that means. Can you elaborate? Is her accountant correct?

 

Your best bet is to call the IRS and tell them what you do and what you need, they are more than happy to assist you.

 

This is my second business. The first one I built and sold for quite a profit. The first one I called the IRS and they were very happy to send me manuals or pamphlets I had no idea existed. Free of charge. Always get this type of information from the horses mouth, not rumors.

 

The even bigger question is: Why would you consider working for $0.32cpm when there are so, so many better options out there?