Schneider charge 2 cpm administrative for perdiem ?

I'm

I'm almost positive that the meal deduction is a federal thing, not a state thing. I always claim it under the federal part of my taxes - at least, that's when TurboTax asks me about it, anyway.

 

This is definitely not been normal with my employers. Not only have I never been charged a fee for per diem, I had never heard of any company doing this until I read it on here. You can try to make excuses for a company doing this, but that doesn't make it true. The carrier I am with has 100 drivers and they have software that does all of this automatically. Their accountants aren't charging them more to file their taxes because they pay per diem.

 

So if I was company and took per diem it would've cost me 3020.00 for me to get 1200 more in tax break.

My math says keep the 3k.

 

It is federal allowance.

I live in Tn. So no state taxes anyways

 

This is exactly why I don't understand why anyone would agree to this. I may be missing something, but I can see no way this could be to the driver's advantage. Even if you ever came out slightly ahead, you are screwing yourself out of borrowing power by making your income smaller. It would not be worth the consequences to save a small amount in my opinion.

 

But your paying less taxes ....lol

Imagine all those per diem guys and all those miles x .02 how many accountants you could have.

 

Say on per diem your w2 says 50,000 and of it says 60,000. Since the meal deduction is federal your state taxes are based on the w2 and on pd you'd pay of 50k, and off it 60k. If you have a state income tax that extra 10,000 may be 500-1000 in taxes.

It all comes down to personal financial position. For a minority per diem works. For the rest of us it's not a good deal. The difference for me last year would have been lessb than 100.

 

Most of the guys that I talked to about, nothing mattered about exceptthem getting more money on their checks. Almost every single one of them knew next to nothing about proper tax filing for an OTR driver and all the stuff we can claim.

 

I have no problem with the per diem. I have a problem with a company charging for something that costs them nothing. It's not a benefit if they charge you to get it.

 

If your per diem pay is less than your standard 80% of $59 per day you can claim the difference. But the other is true and if you get more you are required to pay the taxes on anything over what your 80% of $59 per day