Per diem Question

The per diem lowers your taxable income,
Say you made $100,000 and your per diem deduction amount is $30,000.
You wouldn't pay Federal tax on the 30 grand.

 

Make sure the person doing your taxes undertands per diem. You wont pay taxes on per diem pay you recieved.

 

Are you speaking of per diem paid weekly on your paycheck or the $64(?) daily allowance?

 

Its the same thing. If your getting paid per diem by the company then you dont take the daily allowance. If you dont get paid per diem, then you take the daily allowance when you do your taxes.

 

And if the per diem pay received by the company is less than the daily $64 allowance, what then?.

As I understand it, OTR company paid per-diem is by the mile. A day spent at a truck stop not driving is still a day away from home while on the job, but 0 miles results in 0 per-diem pay.

 

Can't do schedule c as an employee.

 

So how would you go about claiming unpaid Per Diem?.

If it isn't already apparent, my tax filing knowledge doesn't extend much beyond the 1040EZ.