I'm looking for input as to how other states handle what is often called "per diem" deductions for truckers. Here's the background. My question is at the end.
When I filed our federal taxes for last year (the first year hubby was driving), it was no problem. Number of days away X $52 X 75% = MEI (meals, entertainment and incidentals). Our refund was going to be about $500.
When I went to file for PA (I use Turbo Tax), I had to split it between the different companies he worked for (4 last year). What was nice is that PA doesn't cut the deduction to 75%. I could take the $52 X days out for the deduction.
I got a letter from PA Revenue in July, saying to:
"Submit a signed letter from your employer verifying and supporting the figures shown on your PA Schedule UE, that these expenses were a condition of your employment and included no personal expenses, and that you received no reimbursement for your business expenses. The letter should break down how each item is applicable to your occupation as described in the PA-40 Personal Income tax forms and instructions booklet."
I called these "public servants (p-sants)" and explained that there was no way a company that no longer employed hubby was going to bother providing such a letter, let alone confirming or denying that his deductions were legit. The p-sants said I should copy his receipts for food, his driving logs, etc., and submit them. I politely (barely!) explained that, according to to IRS and PA-40, receipts weren't required for truckers.
I wrote a letter offering to bring his logs to the local office for them to verify that he was, indeed, only home 51 days last year, along with receipts for purchases of tools, his share of the cell phone bill showing calls received from his employer, and other expenses.
I received another letter, asking for the same letters from employers as the first letter. I spoke to a p-sant supervisor when I called, and they said that was their policy, and I either had to provide those letters or amend the return without the deduction (Over $15,000 in deductions). She said that I could appeal the decision, but they required all truckers to have their employer document the necessity of these expense deductions.
I have 2 questions:
1. Anyone from PA: Have you encountered this, and if you have, has a previous employer provided this type of documentation?
2. If you are not from PA, what state are you from and how is this deduction handled in your state?
I can't put this as a poll, because I need a little more detail than a poll would provide.
My reason for asking this is:
I feel like the truck drivers in PA are being screwed by the PA Department of Revenue. Our refund due to this deduction should have been $500. If there are 1,000 truck drivers in PA (a conservative estimate), the state is pocketing a half a million $$ in extra tax revenue from PA truckers because it seems like it's not worth the bother of fighting the state.
I'm going to file my amended return, and then appeal the assessment. Your input would be very useful in helping me decide if I'm going to spend the spring going after this additional "tax" on truck drivers in PA.
Thanks!
State Tax Question - More like a survey?
