Per Diem question.

You have per diem and the DOT Standard Deduction plan confused. The per diem (9cpm) is non-taxable. You can't combine both plans together.

 

This is as far down as I got before I replied, so forgive me if it has been covered.

Per diem is a tax write off, and it is calculated on a per day basis.
When you take it with a company it is paid in miles, which doesn't usually add up to the allowed amount.

It is always a win for the employer because they pay less all the way around, but the only way it is a real win for the driver at the end of the year (or in retirement) is if there are other circumstances involved.

The driver shows less taxable income - so less gross income is shown for things like getting a loan.
It also reduces the social security benefits when one finally goes there.

I think the only win for a driver is when they are paying child support.
The child support is based on taxable income, and so a driver on per diem will be assessed a smaller child support obligation.

 

That link is for federal employees and has nothing to do with truck driver per diem rates.

 

You guys do realize this thread is from 2015?