Per diem

I've been getting per diem for more than 25 years and I cannot imagine what bad side there might be to tax-free income. Please tell me where your hesitation comes from.

 

per diem is $59 a day for EVERY DAY you are away from home (10 hr break)

so $59 / 80% (thats he net tax write off) = $47.02 a day
so $47.02 / .08cpm = 590 miles each and every day, do you run that EVERYDAY...? thats 9.83 hours at 60 mph avg. each and every day you are out... i don't think so. can you say breakdown, waiting time, 34 hr restart are just a few reasons you won't run 590 EVERYDAY

i was out 302 days last year and didn't take der diem so my der diem write off for last year was $59 X 302 = $17,818.....!

if you get hurt on the job workmen comp looks at gross not gross plus per diem, banks don't have to count per diem, SS will be less (remember my gross was $17,818 higher) you go to get a car loan they don't have to add per diem, unemployment is based on gross not gross plus per diem.

get hurt on the job and miss 6 months of work,(and it does happen in trucking) remember that l & i will pay on gross not gross plus per diem so now your FREE MONEY just cost you $8,909 you will not get paid, get disabled on the job and your disability will be based on GROSS, so hows that free money working out now.

now do the right thing and don't listen to any of us on here and go and ask a tax professional and one that KNOWS trucking...!

 

Good advice. Talk to your tax professional so they can tell you to take all of the tax free money you can get.

Getting tax free money does not preclude you from itemizing your deductions should you be in a position to do so.

And the Work Comp situation is correct. Your benefits would be reduced. If something were to happen. But here again, any potential loss in unemployment income would easily be offset by the tax savings in the long term, some of which could be invested in disability insurance.

 

Your missing the point. You can take the deduction anyway and the money is still tax free at the end of the year when you file your taxes, and you dont have all the negatives that come with letting the company ^$% you by taking it out themself.

 

I second that 123456!!! It's not all that, really. At tax time you already get to claim $50-something a day. Once you get the per diem in it, it's no fun at all for the accountant. Do more research indeed.

 

I'm not missing anything, and we may just disagree on the subject. Not everyone is in a position to itemize and take advantage of the $59 per day write off. For those that are, I'm not suggesting that they not do so. What I am suggesting is that tax free money is always a good idea regardless of your tax situation.

You see negatives, I don't. None you can't overcome with the tax savings anyway. In other words its a net positive. If you want to itemize and take the $59 deduction, if your situation comes out better that way, then by all means thats what you should do. There is no argument there. I'm just trying to dispell some of the negativity regarding the per diem issue in general, especially for those with no choice in the matter. Its not a bad thing in my opinion.

What would be a bad thing though is itemizing, taking the $59 deduction, then coming up with the necessary documentation to prove your case when it comes audit time. Now thats negativity. I'll pass on that. Just give me the tax free money instead. I've been through a year long audit with the IRS before. And even though I didn't pay an extra dime when it was over, I'd rather not do it again.

 

That is what's so great about doing your research !!!!

Find 10 tax professionals that really know what they're doing,

most likely they would know all the advantages to taking the per diem every week.

Well, out of those 10 professionals, not 1 suggested I take the per diem !!!

And what really puts me off about it...............

alot of companies Charge You 1-2 cents per mile for taking the per diem !!!

I guess if you really need (and many drivers do) the extra money in your check this

week, per diem will be your best bet !!!!

Enjoy !!!

 

EVERYONE is in a position to itemize, all you need is the $59 a day detuction.

the only documentation required by the irs is your logs

 

Per diem is simply payment for cost for living expenses on the road.
Your .32 cpm includes .08 per diem??
That's a pretty bleak pay package bud.
I don't care how they slice it up .32 cpm is not a good rate.
I remember when companies paid in the .40's cpm ten years ago.
Truckin don't pay what it used to.

 

ok i'll go with the long winded way

driver A
.32 cpm drives 590 ml per day = $188.80 per day and is out for 302 days a year = $57017.06 gross taxed at 25% = $14254.40 in taxes or $42,763.20 in his pocket NO PER DIEM

driver B (your way)
.24 cpm drives 590 ml per day = $141.60 per day and is out for 302 days a year = $42763.20 gross taxed at .25% = $10690.80 in taxes or $32,072.40 PLUS per diem
.08 cpm for 590 ml per day = $47.20 per day and is out for 302 days a year = $14254.40 non taxed for a total in pocket of $46,326.80 so YOUR free money is $3,563.6

driver C (my way)
.32 cpm drives 590 ml per day = 188.80 per day and is out for 302 days a year -$57017.60 gross
per diem of $59 a day and is out for 302 days a year = $17818 deduction so he now has and adjusted gross of $39199.60 taxed at .25% = $9799 in taxes for a in his pocket if $47,218.60 and he gets the $59 a day no matter if he drives or not as long as he is not home...

thats $4455.40 more than driver A
thats $891.80 more than driver B