per diem

Not sure where you got the 1%. But if the 55,000 is the agi, it would be 2 %.

Your example would be okay for an individual, but when you look at the married, the standard deduction is already 12,200.00. Then you have to consider the spouse earnings too.

It is the main reason that I state that each situation must be looked at separately.

 

So per diem is like a 401k on your W/2? You have what you made but then you have the box filled in for what is your taxable income?? Im confused on this.

 

Most w-2 only reflect the reduced earnings that I have seen.

 

I work for H&R Block and am a trucker's wife. Everything depends on whether or not you can itemize deductions. Basically, when the company holds out that per diem, you will have a lower amount of income to be taxed and if they don't withhold the whole 59 cents a mile, then you can still itemize the difference with a lower adjusted gross income on your tax return.

Per diem adjustment by the company is the best way to go if you can't itemize. It can go either way if you can itemize.

 

Ok thanks I understand now. I was just confused after reading some posts on this.

 

So let's say I decide to go the company per diem route....

I don't gain anything by itemizing. Do I just take the standard deduction like always at the end of the year?

Is there anything else to it?

 

That's it.