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Meal allowance for 2007 taxes

anybody got a link for the IRS website. I couldn't find it. I know last year was $52/day. Has it changed for this year? Thanks

Re: Meal allowance for 2007 taxes

Quote:

Originally Posted by Templedawg

anybody got a link for the IRS website. I couldn't find it. I know last year was $52/day. Has it changed for this year? Thanks

See publication: http://www.irs.gov/publications/p463/ch01.html

Quote:

Special rate for transportation workers. You can use a special standard meal allowance if you work in the transportation industry. You are in the transportation industry if your work:

* Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck, and
* Regularly requires you to travel away from home and, during any single trip, usually involves travel to areas eligible for different standard meal allowance rates.

If this applies to you, you can claim a standard meal allowance of $52 a day ($58 for travel outside the continental United States) from January 1, 2007, through December 31, 2007.

Using the special rate for transportation workers eliminates the need for you to determine the standard meal allowance for every area where you stop for sleep or rest. If you choose to use the special rate for any trip, you must use the special rate (and not use the regular standard meal allowance rates) for all trips you take that year.

Travel for days you depart and return. For both the day you depart for and the day you return from a business trip, you must prorate the standard meal allowance (figure a reduced amount for each day). You can do so by one of two methods.

* Method 1: You can claim ¾ of the standard meal allowance.
* Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice.

kc0iv

thats what i was looking for. Thanks for the help.

Currently a student, should be trucking by April. Anyway, this is new to me. Are you telling me that when otr drivers do their taxes they get back money they paid on meals?

Quote:

Originally Posted by ericmrtt

Currently a student, should be trucking by April. Anyway, this is new to me. Are you telling me that when otr drivers do their taxes they get back money they paid on meals?

You don't get money back. You get to deduct your meal on your taxes. Just like any other expense you have while driving.

kc0iv

if you post a deduction, such as the meal expense, you get that subtracted from your owed taxes (the taxable value that is), in reality if you drive OTR and do not own any major assets (houses, real estate, stock, vehicles, etc), at the end of the year, you end up not even really paying taxes, you get almost all of it back, although the reality is most drivers out there own a home, a car or two, etc, and of course you cant get around paying taxes on those.

do we have to save reciepts or can we deduct $52 per day we were away from home regardless of how much we spent?

Quote:

Originally Posted by rebajosh

do we have to save reciepts or can we deduct $52 per day we were away from home regardless of how much we spent?

You do not have to save receipts. It is a $ amount set by the IRS. To be able to use it, you must meet the following requirements:

1. You must be subject to the HOS Rules.

2. You must have and keep your "logbooks" that justify the deduction.

3. You must do a 1040 long-form to take the deduction.

4. You must have a permanent "domicile", as in house, apartment, qualifying boat or RV. Especially if you use a PO Box for an address.

5. If you "live in the truck"....with no permanent domicile (see #4 above), you CANNOT take the deduction. This is because the truck is your home, thus you are never away from home, ergo...no deduction.

I recommend that if you use the standard deduction for HOS covered transportation workers...that you keep your logbooks for 7 years. This is because the IRS can audit you at any time, and failure to have the logbooks available to substantiate the deduction will result in you having a truly "crappy" day....that will last a long time and be very expensive.