Practical vs. Speedometer

Thats very true. You always need to go over your taxes thoroughly. Why allow the gov to keep more than they deserve.

The per diem is usually a non starter for me. But, I'm dealing with it at the moment myself. I figured I would just up my savings to offset the Social Security snafu caused by the per diem.

 

As a general rule, I'd take the hub (speedometer) miles. If you take a run that book (practical/Rand McNally/HHGMG) shows is 100 miles, that pays $34.00. That same run on hub miles will probably be closer to 110 miles which would work out to $34.10. That assumes only the one stop in a town. Company I used to work for paid hub miles. When I'd go to Chicago and deliver 6 or 7 stops, I'd easily put on a 100 miles just in the Windy city alone. So looking from that point, that 100 mile run paid book miles would short your paycheck big time. In other words, what started as a 100 mile run, was actually closer to 200 when all was said and done.

On the per diem issue, I've never worked for a company that paid it. Therefore, never bothered to look up how it would affect me. One of these days, I might get around to looking it up.

Hub miles for me.

 

Thank you all for your responses on this topic. I am leaning toward the company that pays the hub miles, one of the main reasons is that I have driver for them in the past and I know how they run and what they expect. The second reason is this company has nicer equipment, I will be starting out in a 08 Freightliner Columbia, over the other company that I would be in an International. Nothing against international I just like freightliner better.

 

If you are not paid per diem you should be taking the deduction when filing taxes . For most OTR drivers the deduction would be several thousand dollars . If you don't have mortgage interest the per diem amount alone will make it worthwhile to itemize . Then you can add smaller deductions like tools , phone bills , cleaning supplies , etc.