per diem so confusing

In a nutshell, per diem allows the company to deduct your travel expenses ( meals ) instead of you deducting it. As already stated earlier they have much to gain in doing this. You have much to lose by doing it. A company that forces the issue is doing so for a reason, and it's not in your best interest. Think about it.

 

IRS Publication 463, page six says transportation workers are allowed to deduct $59 per day. It says nothing about taking 20% of $59 per day. Does anyone know where I can find info on this 20% rule???

http://www.irs.gov/pub/irs-pdf/p463.pdf

 

^^^ This... Giving you a set amount a day, but dropping your pay per mile to compensate is not "per diem". That's a bait and switch scheme.

 

That's not tax fraud whatsoever. You're confusing deductions with dependents.

 

When you or your accountant do your taxes, the 20% reduction is included in the actual form you fill out.

 

Yeah it might be on the form, but I'd think its written in the publication somewhere. I know i've seen it before, but I had trouble finding it this year. The tax software did the calculation, as you said.

 

I read it this year in an IRS publication as I was doingmy 2012 taxes, but was unable to find it again when I first saw your question. I know its there, but it must be in some obscure section....

 

http://www.irs.gov/pub/irs-pdf/i1040sc.pdf

Page 9 left column.

Amount of deduction.


In most cases,
you can deduct only 50% of your busi-
ness meal and entertainment expenses,
including meals incurred while away
from home on business. However, for
individuals subject to the Department of
Transportation (DOT) hours of service
limits, that percentage is increased to
80% for business meals consumed dur-
ing, or incident to, any period of duty for
which those limits are in effect. Individ-
uals subject to the DOT hours of service
limits include the following.
Certain air transportation workers
(such as pilots, crew, dispatchers, me-
chanics, and control tower operators)
who are under Federal Aviation Admin-
istration regulations.
Interstate truck operators who are
under DOT regulations

 

do all trucking companys charge 2=3 cent a mile for per deim clerical fees

 

No, I'm told Maverick does not charge. There are probaboy others... But most do.