[tdriver1959]

(b) Example 2. Taxpayer, a truck driver employee in the transportation industry, is paid a “cents-per-mile” allowance that qualifies as an allowance paid under a flat rate or stated schedule as defined in section 3.03 of this revenue procedure. Taxpayer travels away from home on business for 10 days. Based on the number of miles driven by Taxpayer, Taxpayer’s employer pays an allowance of $500 for the 10 days of business travel. Taxpayer actually drives for 8 days, and does not drive for the other 2 days Taxpayer is away from home. Taxpayer is paid under the periodic rule used for transportation industry employers and employees in accordance with section 4.04(4) of this revenue procedure. The amount deemed substantiated and excludable from Taxpayer’s income is the full $500 because that amount does not exceed $520 (ten days away from home at $52 per day).

This is taken off the irs web site

we us to have part of our per diem added to our pay check for it to have taxes taken out. December of 2005 it was changed and we have not had to pay taxes on the 52.00 we recieve and it is not added to our W-2's

[Rev.Vassago]

Originally Posted by tdriver1959

(b) Example 2. Taxpayer, a truck driver employee in the transportation industry, is paid a “cents-per-mile” allowance that qualifies as an allowance paid under a flat rate or stated schedule as defined in section 3.03 of this revenue procedure. Taxpayer travels away from home on business for 10 days. Based on the number of miles driven by Taxpayer, Taxpayer’s employer pays an allowance of $500 for the 10 days of business travel. Taxpayer actually drives for 8 days, and does not drive for the other 2 days Taxpayer is away from home. Taxpayer is paid under the periodic rule used for transportation industry employers and employees in accordance with section 4.04(4) of this revenue procedure. The amount deemed substantiated and excludable from Taxpayer’s income is the full $500 because that amount does not exceed $520 (ten days away from home at $52 per day).

This is taken off the irs web site

we us to have part of our per diem added to our pay check for it to have taxes taken out. December of 2005 it was changed and we have not had to pay taxes on the 52.00 we recieve and it is not added to our W-2's

AGAIN - only 75% of that $52 a day is deductible.

[tdriver1959]

Hey Rev

site the irs code that says that

[madii'swife]

My only major concern is a tax nightmare, especially since we're rather accustumed to BIG refunds, which is already likely to be reduced due to how much my hubby will make compared to normal.
However, I found this digging on the IRS site,

Revenue Ruling 2006-56 tells employers that if they routinely pay per diem allowances in excess of the federal per diem rates, but do not track the allowances and do not require the employees either to actually substantiate all the expenses or pay back the excess amounts, and do not include the excess amounts in the employee’s income and wages, then the entire amount of the expense allowances is subject to income tax and employment tax.

Sounds to me like it's only subject to taxes if it goes above the allowed rates?

For reimbursements for expenses for meals and other incidentals associated with business travel, employees get this exclusion for reimbursements for each day of travel up to the federal per diem rates without having to actually substantiate the amounts of the expenses. However, if an employer pays expense allowances that exceed the federal per diem rates, the excess amounts are subject to income tax and employment tax if they are not repaid to the employer, unless the employee actually substantiates all of the expenses covered by the per diem allowance.

Still sounds to me like you get the whole thing unless your employer goes over the allowed rate, and even then if you can prove it.

This was from an article published Nov 9, 2006 apparently. http://here= http://www.irs.gov/news...164208,00.html

I won't personally find out more until next year's tax season, just trying to figure it out now so I know what to expect.[/url]

[Rev.Vassago]

Originally Posted by tdriver1959

Hey Rev

site the irs code that says that

Hours of service limits. If you are subject to the Department of Transportation's “hours of service” limits (as explained earlier under Individuals subject to “hours of service” limits in chapter 2), use 75% instead of 50% for meals while away from your tax home.

http://www.irs.gov/publications/p463/ch06.html#d0e7933

[tdriver1959]

The 52 dollars that we recieve from the company is not taxed and we get it no matter how much we use for being out overnight. They will pay for a motel room if we dont have a sleeper to stay in. So I never keep any reciepts for itemizing on taxes as we get 52.00 even if we dont use it all

[Rev.Vassago]

Originally Posted by tdriver1959

The 52 dollars that we recieve from the company is not taxed and we get it no matter how much we use for being out overnight. They will pay for a motel room if we dont have a sleeper to stay in. So I never keep any reciepts for itemizing on taxes as we get 52.00 even if we dont use it all

Just because they give you the $52 doesn't mean that you don't have to claim it as income. :roll:

Your days out on the road are meant to OFFSET that money they give you. Don't believe me? Ask a trucker's accountant. Here are some I would recommend:

THE ALLIANCE: 1-866-43-TRUCK

AMERICAN TRUCK BUSINESS SERVICES: 1-888-640-4TAX

If you don't claim it, and the IRS finds out (which could easily happen, as your company is claiming that money as a writeoff), then you could very quickly get into some serious tax troubles.

You aren't required to spend the entire $52 per day - the IRS has made that clear. That is the STANDARD DEDUCTION that they allow. For people that aren't subject to HOS rules, they get 50% of that amount. For people subject to HOS rules, they get 75%.

That deduction is meant to OFFSET your added expense for meals away from home. The IRS assumes that if you were at home, you would eat (which wouldn't be deductible), so they offer you 75% of that $52 as the added expense (meaning they assume that if you were eating at home, it would cost you only 25% of what it costs you out on the road). It ISN'T free money, and it IS subject to taxes, above and beyond the standard IRS deduction of 75% of $52 per full day you are away from home.

[Karnajj]

Hey Rev, I got a question for you. This is the first year that I will be itemizing as a truck driver. I was out a total of 301 days last year. If I understand it correctly I get to deduct 75% of 301x52, correct? And this comes off the top of my yearly gross b4 other deductions? Also, why do they only allow 75% of the $52?

[Rev.Vassago]

Originally Posted by Karnajj

Hey Rev, I got a question for you. This is the first year that I will be itemizing as a truck driver. I was out a total of 301 days last year. If I understand it correctly I get to deduct 75% of 301x52, correct?

It depends. Were you out 301 days, or 301 overnights? If you were out 301 overnights, then your deduction would be $11,739 (301X52X75%). Any day that you are not out overnight cannot claim the deduction. Some accountants will claim a partial deduction for those days, but I haven't found anything in the IRS documentation to support it.

But let's say, for example, that your company gave you $52 a day per diem pay for every day you were out. If they gave you 301 days of per diem, that would equal $15,652. That means you would owe tax on $3913 of that per diem money they gave you (15,652-11,739). The employer didn't pay any of your taxes on it, but it is still considered income on your end.

And this comes off the top of my yearly gross b4 other deductions?

It isn't necessarily done before other deductions, but it is one of the deductions you claim to come up with your adjusted gross income.

Also, why do they only allow 75% of the $52?

Because they expect that you will have to eat, even if you aren't on the road. The reason this deduction exists is because it is expected that meals out on the road are more expensive than meals at home. For other people outside of trucking, they get 50% of that $52 (I am guessing that it is assumed that because they are not in a big truck, and are not subject to hours of service, their meal options are greater).

Think of it this way: The IRS, in their infinite wisdom, is assuming that if you were in a regular job where you are home every night, it would cost you $13 a day to eat. They are assuming that, because you are in a truck, that it will cost you an additional $39 a day to eat, which is why they give you a $39 a day meal allowance deduction. That doesn't mean you have to spend all $39 a day, though. If I spent $39 a day on food, I'd quickly top 300 lbs.

One very important thing to note is that this deduction only applies to drivers involved in operations that have them out overnight (for any amount of days) If you get home every night, then you cannot claim anything.

[BanditsCousin]

I heard you can't get the per diem deduction when you are overnight in your homestate-

Truth or CH19?