[clarkstatestudent]

today first day of orientation .... i signed up for per dium pay while in training anyone have any comments about this type of pay? pllzzzz comment after training we get to choose again what kind we want per dium or regular.. i guess per dium u get paid 1 cent less per mile.... thx for the replys if sent

[Lady18wheels]

Why get paid 1cent less when you can claim the same deduction at the end of the year on your own? JB Hunt takes 2cents. In my opinion it's a big rip off that's somehow been made legal.

My company gives me a $38/day per diem tax break and they don't keep anything. They figure my gross first,
then subtact the $38/day for the # of days I was out,
then figure my taxes on the difference.

Plain and simple.

[clarkstatestudent]

im just glad im doing it during training when the miles dont count yet.... but when i start getting paid on the mile i dont think im taking per dium

[Lady18wheels]

Talk with HR Block or somebody. (I used to be a bookkeeper.) If you do it by your logbook, some places rate MORE than $38/day. Because if you take deductions by your receipts, chances are you'll find you don't spend that much.

[Hanged_Man]

My company pays 9 cents per mile and layovers tax free. Basically at the end of the year when they give me the tax forms, it only shows the remaining taxable income, not my actual income. When I get my paycheck a portion isn't taxed, and at the end of the year the government will tax me only on the smaller reported income (The 9 cents doesn't even show up there). Also, when I do my taxes at the end of the year, I'll claim $33 US day for food, and $7 US day for showers - about $50 CAD. They don't ask for receipts as long as I show I qualify for the deduction by showing the summary of the trips I did.

[Rob_0126]

How bout a breakdown of just what exactly per diem means to a driver. I have no idea what you are talking about, except that it's about taxes.

[macdoogle]

Originally Posted by Rob_0126

How bout a breakdown of just what exactly per diem means to a driver. I have no idea what you are talking about, except that it's about taxes.

The new rate is $41/day.
You can deduct 70% of it.
Meaning, if you use long form for taxes you can NOT pay taxes on this amount of income.

Say you are out 300 days in a year.
300x41=12,300 x .70 = 8610.00
Say you are paying 25% tax rate, then you would not have to pay taxes on this 8610 bux, putting an extra 2152 bux in your pocket.

BUT, then you can take standard deduction ala short form. So you have to look at your total income and all possible deductions to see which is better.

As I understand it, though, if you have the company do the per diem, then you can still file the short form yet get the income as non-taxable, but I'm not totally clear on this. Also, you ARE making less per mile overall, too. After all, if you do say just 2,000 miles per week for 50 weeks, that penny = $1,000 less income.

So you have to look at your total options/income.
And talk to a tax person.

Mac

[Rob_0126]

Originally Posted by macdoogle

The new rate is $41/day.
You can deduct 70% of it.
Meaning, if you use long form for taxes you can NOT pay taxes on this amount of income.

Say you are out 300 days in a year.
300x41=12,300 x .70 = 8610.00
Say you are paying 25% tax rate, then you would not have to pay taxes on this 8610 bux, putting an extra 2152 bux in your pocket.

BUT, then you can take standard deduction ala short form. So you have to look at your total income and all possible deductions to see which is better.

As I understand it, though, if you have the company do the per diem, then you can still file the short form yet get the income as non-taxable, but I'm not totally clear on this. Also, you ARE making less per mile overall, too. After all, if you do say just 2,000 miles per week for 50 weeks, that penny = $1,000 less income.

So you have to look at your total options/income.
And talk to a tax person.

Mac

Thanks for the info.

I think I would be going the long form then, and tell them to stick the 'per diem' somewheres else.

If you run local or regional, can you still go long form or is it just for OTR?

[macdoogle]

Originally Posted by Rob_0126

If you run local or regional, can you still go long form or is it just for OTR?

AFAIK, any 24 hour day out when you don't sleep in your own bed, the deduction is legit. Maybe even part of it can be claimed for daily runs, not sure.

Again, talk to accountant...

Mac

[roamnredhead38]

hey
i'm thinking of going with werner so would you pllllzzzzz let me know how it goes :lol: