Per diem question

Here's what I found out, you can claim per diem on a 1099 on Schedule C. It's not itemization which is done on another form, it's business deductions. So as a trucker you could claim per diem 80% of $80 for every full day you are over the road and like half of it on the first day out and first day home. At the same time you can also claim the standard deduction and get your child tax credits like a W-2 employee. Since truck drivers are over the road most of the year per diem is massive and stacking it with standard deduction has you paying less taxes than if you were on a W-2. Even with the 15% self-employment tax. You can also write off half of the self-employment tax as a top of the line write off but you still have to pay 15% of whatever you get after Schedule C. On Schedule C you can also write off things you buy over the road for the job. You can write off half of your cell phone bill or whatever portion you use of it for work. You can write off hotel stays and Uber rides if you're using it to go get stuff for the truck. On days you spend more than $80 on food you can keep records and decide not to take per diem for that day and instead take 80% of that. Have to keep the receipts. Everything else you buy for the truck can be taken off 100%, like cleaning supplies, job related clothing and wipes. You can even write off instacart delivery fees and tips if you order stuff going back to your truck. It's very powerful. You'll generally be fine during an audit as long as you keep all receipts and records, it's not something to fear unless you're doing something wrong purposely.

 

The logs are just for per diem. It's really not that serious. They will ask about a certain deduction or whatever raised the red flag, you'll give a simple explanation and provide your receipts and Records. That's typically how it goes unless you're doing something extremely fraudulent.