Per diem, Standard deduction and itemized

I've found that just buying tubro tax and doing it that way is the easiest way to do my taxes, it saves so much on the headaches and brain damage, plus, you can deduct the cost of it.

 

Love TurboTax. Been using it for years. Actually did phone tech support for Intuit during tax season 1994, before all that got shipped out to India. My area was Quicken for Mac though, not TurboTax. Intuit had just merged with Chipsoft at the time, the company that invented TurboTax.

 

Me, too. I do mine every year with the online version. Then I go through and do them by hand. Some years TurboTax has found deductions and credits I hadn't; some years I've found things in the newsprint instructions that TurboTax couldn't have known because I didn't know to tell it. It really doesn't take me long when I use the previous year's forms as a guide, and scan the current year's instructions for anything new.

 

This really is a case by case situation. It has been a while since I have had to look at this but some companies will increase your effective per mile rate. If they do not increase your rate then don't take it.

If they do, then ALWAYS talk to someone that understands taxes to help you determine.

If it is done properly and legally it will only benefit the employee. But it is rarely done the correct way.

 

I have no idea why you could possibly think it would ever benefit an employee.

But then, my background is taxes.

 

So my question for this matter, if they take out more, and pay back less...At the end of the year do I get back more in taxes. The company I work for, does it that way. Not worried for SS benefits, as I'm 26 and will never see those benefits anyways. Un-employment may be something to consider it for if I lose my job, but hoping for the best there. So other than that, is it worth the benefit of taking it out? Will I get more money back at end of year. Just started trucking and haven't gotten this all figured out yet...

 

So many things to consider.

Are you married?
If so, does your wife work?
Do you have kids?
Do you have a mortgage?
Where are you working?
What type of per diem plan?

The list goes on.

 

Yeah, I read the other thread trying to gather more info on this. It helped me to consider I was more confused than ever. So I will get in touch with our tax guy and go from there.

As far as the questions you ask, if I answer them maybe you can give me insight as to how this affects me...

yes
yes
no
yes
USA
25cpm flat rate/12.5cpm+10cpm per diem

 

Just from the info you provided, it is possible that the per diem would not hurt you and that you would not be in position to benefit from the Itemized deductions as much.

However, if you plan on buying a house or car it becomes an issue. If you get injured it becomes an issue as well.

 

Already have the house loan, and wife works and has the good credit anyways. Cars we both have, and have no desire for anything new anytime soon. Worker's comp, would be the only issue, but if it benefit's me in the long run I'll risk it. Wife makes enough to cover the bills, so should be able to squeeze by on workers comp, until I could get back to work. If we both got injured at same time, well then I guess we'd be screwed...lol

Luckily she works, and makes good money. I can stand to wait til end of year to receive money back though, I just thought this per diem thing was supposed to be beneficial in the long run.

So just as examples and not using real numbers because IDK what those will be yet...

If I recieved

12.5cpmx1000=$125+$100per-diem=$225-25 for taxes=200net (do I get anything else back at eoy this way?)

or

25cpmx1000=$250-75 for taxes=$175net (then do I get to take out perdiem at eoy this way, and will afterall get more back at the eoy to make up for the wait?)


Basically which way is more beneficial when it's all said and done?
If I receive more on my paycheck, but get less on tax day
If I receive less on my paycheck, but get more on tax day...Which one ends up with the most money all together...

As I said I'm young and SSI will be long gone when I get there. If I can get a lump sum back at tax time, and make more money doing so, then I am more likely to invest that money, than spend it on the road. If I get more back on the company controlled per-diem, then I'll have to learn to invest more with each paycheck, rather than blow it on all the good food at the truck stops...

Thanks again for your help, just getting into trucking and came into orientation with no clue about per-diem. I knew how per-diem worked as for construction, but this isn't them same. This is basically, you pay for everything, and get money back at eoy, or we'll help you pay less taxes, so you have more money to buy big macs...