Have not heard anything new after this article.
Tax bill likely sunsets meal per diem for drivers, cuts rates across the board
Per diem yes or no
Discussion in 'Questions From New Drivers' started by Lonewolf2000, Jan 8, 2018.
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I will say that reading some of the comments after the article is interesting. Some folks are actually hysterical at the thought of being weaned off a government teet. -
I used to say the company paid per-diem was the biggest rip,and it was. It allowed companies to buy a great and easy tax brake from drivers for pennies on mile and then even charge them for the screw.
But now? Business can still claim the per-diem, but there is a sense that the driver per-diem deduction is gone. Who really knows yet?
If it will still be available for next years taxes, the standard deduction might increased enough the whole calculation of value for a company bought per-diem deduction has changed. -
I'm interpreting that there is a carve-out that will allow for the old rules to remain effective but it's difficult to read through these things and makes heads or tails of them. For now and until I speak with my CPA in a few weeks, I'm going to assume I'm going to do my 2018 taxes the same way as I'm doing them today with regards to standard daily meal allowance rule of $63/80% daily away from home, and itemize that along with other expenses like paid showers and hotels, like I always have.
https://congress.gov/115/bills/hr1/BILLS-115hr1ih.pdf
Start reading from about page 237 and continue down through about page 242Last edited: Jan 8, 2018
x1Heavy Thanks this. -
It's amazing how congress can bury the people in mountains of paper...
Thank you STexan... great link. -
DO NOT TAKE PER DIEM.
The company has to match your Social Security Tax. When you reduce your gross, you just reduced the amount the company had to put into your SS account. Now, you've reduced your payment in the end.
AND
At the end of the year you get to deduct that $62 for everyday you weren't at home. Yea, BIG number huh? Maybe $18,000 off the top.
You do not get to deduct it if you take the per diem up front. Plus the company charges a $.03 mile administration fee? WTF is that? It's all computerized.
Only suckers take the per diem pay. If it was a good deal for you they wouldn't offer it.Pedigreed Bulldog and x1Heavy Thank this. -
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Dave_in_AZ and dwells40 Thank this.
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