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Tax Help

Discussion in 'Trucker Taxes and Truck Financing' started by MrArtixx, Sep 17, 2018.

  1. Sep 17, 2018 #1
    MrArtixx

    MrArtixx Light Load Member

    62
    21
    Jun 8, 2018
    Pennsylvania
    0
    I’ll start off by saying I am 21 and I have never fully understood taxes. I’m a company driver. I know the government takes money from each paycheck and if you claim 0 then at the end of the year you will most likely get some money back. I also know that truck drivers get Per Diem which is around $60 a day they can claim to be tax free. My questions are as follows. 1. Say I drive 300 days a years. So that’s 18k that is tax free. At the end of the year if I do NOT itemize can I still claim that 18k?
    2. My company offers a thing where they pay me 12 cents not taxed of my 40cents a mile. So I’d get a bit more money each paycheck. Would this be a good thing to sign up for or would it be the same as getting a bigger refund check at the end of the year?

    Basically. Help me understand how this Per Diem thing works so I can figure out what works best for me.
     
    MrArtixx, Sep 17, 2018
    MrArtixx, Sep 17, 2018
    #1
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  3. Sep 17, 2018 #2
    keebler13579

    keebler13579 Heavy Load Member

    984
    1,963
    Nov 16, 2012
    0
    Company drivers can no longer claim per diem on their taxes. Only way to get it is through company pay offerings. Keep in mind it lowers the wages on w2 making it harder to qualify for loans and also affects your disability and social security a little bit since they are based off the w2 earnings. Get with a tax person who understands trucking and talk to them about it. John Turner out of Houston, TX is who I use and is good with truckers taxes
     
    keebler13579, Sep 17, 2018
    keebler13579, Sep 17, 2018
    #2
  4. Sep 17, 2018 #3
    MrArtixx

    MrArtixx Light Load Member

    62
    21
    Jun 8, 2018
    Pennsylvania
    0
    So since I’m a company driver the Per Diem can no longer be claimed. This was a recent change yes? My trainer at Melton told me he claimed it every year and he got 7k-10k back each year.
     
    MrArtixx, Sep 17, 2018
    MrArtixx, Sep 17, 2018
    #3
  5. Sep 17, 2018 #4
    tnevin225

    tnevin225 Road Train Member

    1,166
    1,601
    Jan 1, 2014
    0
    The change started this year, so take the perdiem otherwise you lose it.
     
    tnevin225, Sep 17, 2018
    tnevin225, Sep 17, 2018
    #4
    mjd4277 and keebler13579 Thank this.
  7. Sep 17, 2018 #5
    MrArtixx

    MrArtixx Light Load Member

    62
    21
    Jun 8, 2018
    Pennsylvania
    0
    Won’t be much for me since I am still on a trainers truck. But thanks for the help.
     
    MrArtixx, Sep 17, 2018
    MrArtixx, Sep 17, 2018
    #5
  8. Nov 9, 2018 #6
    Okie dokey

    Okie dokey Bobtail Member

    42
    25
    Jul 24, 2018
    0
    Don't take per diem pay by the company it can and will come back to haunt you. Qualifing for credit cards, mortgages, and cars will be much more difficult. Social security checks will be smaller a lot smaller once you start drawing social security or disability if that ever happens. I added the alot smaller because you are still very young and the way social security is determined your early years paying in are boosted through inflation. It will also make your unemployment checks a WHOLE lot less in the event your are laid off making job loss even more painful. If you contribute to a 401k plan less is taken out and that will also hurt your employer match.

    That's just reasons off the top of my head on why you should NOT take perdiem from your company as a form of pay. I saw that shnieder was offering it's employees something like 45 cpm or 30cpm and 15 cpm per diem. Taking the perdiem gets you some short term gain but can and probably will cost you alot more than the savings in the long run.

    Per diem pay can also be raised or lowered with zero prior notice whereas income can be raised without notice but cannot be lowered unless you agree to it. I could see companies that pay perdiem cut drivers pay when the economy goes south and there's not a thing you can do about it. If you are paid in wages no per diem in the same senerio the company would have get you to agree to a pay cut, terminate your employment(in which case you'd be eligible for unemployment) or suck it up and keep paying you the same.
     
    Okie dokey, Nov 9, 2018
    Okie dokey, Nov 9, 2018
    #6
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