Per diem or non need help!

I'm not considering it, I'm just simply asking why people are posting that you only get to claim 80% of the per diem. If you can answer that, I'd really appreciate it.

 

Per Diem is an alternative and convenient way to deduct your business travel expenses (Lodging, Meals and Incidentals), because when you use it, the IRS allows you to deduct up to a certain amount WITHOUT receipts. That amount varies by location, and the rate for each location can be found here: http://www.gsa.gov/portal/content/104877

When I was working a traveling construction job, my company paid me the full GSA per diem rate (not taxed) for every night that I was away from home - which was months at a time. That added up to $875 per week, or more for some high cost locations. I was responsible for paying for my own hotel and food out of that check. That's the way per diem SHOULD be done.

I think that truck drivers are allowed to take only a percentage of the GSA per diem rate, because they already have built-in sleeping accommodations - and the GSA rate covers Lodging, Meals and Incidentals. And the GSA rate varies, depending on where you actually spend your overnight. Washington, DC would have a higher rate than say Spokane, WA. because hotels and food are more expensive there. I believe that the $64 per day is 80% of the average GSA per diem, and is done to make it simpler to calculate at the end of the year since you're generally going to stay in a different place every night

The standard lodging per diem rate for 2016 is $89. So $64 is probably the percentage that truck drivers are allowed to claim.

I'm curious to find out why truck drivers aren't allowed to claim Meal and Incidentals per diem (standard is $51) while overnight away from home.
.

 

Thank you so much for such a succinct and knowledgeable response. It is greatly appreciated. Very helpful.

 

This is from OOIDA's website. It appears the 80% rule no longer applies.


Q. I am a company driver. What is deductible when I’m on the road?
A. While self-employed individuals can generally deduct any expenses incurred to earn their income, company drivers are limited to non-reimbursed expenses required by their employer. You are entitled to per diem for overnights and motel expenses. A good rule to follow for deductions would be any expenses incurred that are necessary or required in the performance of your job and/or operation of the truck but are not reimbursed by your company, such as uniforms, gloves, logbooks, maps, cell phone, CB, tools, Windex, paper towels, showers, etc. Remember, as a company driver, these deductions are only available if you itemize and are not available if you take the standard deduction.

Q.What is the per diem rate?
A.The per diem rate for meals on October 1, 2015 changed to $63 per day

The per diem rate for meals in 2014 was 80% of $59 per day.
The per diem rate for meals in 2013 was 80% of $59 per day.

 

one TE="windsmith,19, member: 71002"]Per Diem is an alternative and convenient way to deduct your business travel expenses (Lodging, Meals and Incidentals), because when you use it, the IRS allows you to deduct up to a certain amount WITHOUT receipts. That amount varies by location, and the rate for each location can be found here: http://www.gsa.gov/portal/content/104877

When I was working a traveling construction job, my company paid me the full GSA per diem rate (not taxed) for every night that I was away from home - which was months at a time. That added up to $875 per week, or more for some high cost locations. I was responsible for paying for my own hotel and food out of that check. That's the way per diem SHOULD be done.

I think that truck drivers are allowed to take only a percentage of the GSA per diem rate, because they already have built-in sleeping accommodations - and the GSA rate covers Lodging, Meals and Incidentals. And the GSA rate varies, depending on where you actually spend your overnight. Washington, DC would have a higher rate than say Spokane, WA. because hotels and food are more expensive there. I believe that the $64 per day is 80% of the average GSA per diem, and is done to make it simpler to calculate at the end of the year since you're generally going to stay in a different place every night

The standard lodging per diem rate for 2016 is $89. So $64 is probably the percentage that truck drivers are allowed to claim.

I'm curious to find out why truck drivers aren't allowed to claim Meal and Incidentals per diem (standard is $51) while overnight away from home.
.[/QUOTE]
That is what the 80% of 64 basically covers $51 meals and incidentals if I were to get a hotel room I would then Itemize that as Lodging .

As a company truck driver you would be a fool not to itemize.

 

That is what the 80% of 64 basically covers $51 meals and incidentals if I were to get a hotel room I would then Itemize that as Lodging .

As a company truck driver you would be a fool not to itemize.[/QUOTE]
Oida is not the IRS

 

This is from the IRS hand book. The bottom line is that the 80% rule no longer applies.

Special rate for transportation workers. You can use a special standard meal allowance if you work in the transportation industry. You are in the transportation industry if your work: Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck, and Regularly requires you to travel away from home and, during any single trip, usually involves travel to areas eligible for different standard meal allowance rates. If this applies, you can claim a standard meal allowance of $59 a day ($65 for travel outside the continental United States) from January 1 through September 30, 2015, and $63 a day ($68 for travel outside the continental United States) from October 1 through December 31, 2015. Using the special rate for transportation workers eliminates the need for you to determine the standard meal allowance for every area where you stop for sleep or rest. If you choose to use the special rate for any trip, you must use the special rate (and not use the regular standard meal allowance rates) for all trips you take that year.

Source is Publication 463 Cat. No. 11081L Travel, Entertainment, Gift, and Car Expenses For use in preparing 2015 Returns