Quote:
Originally Posted by BeauteousRot
I live in Parkersburg, I'll spare you the details and let you google.
I did check with two tax preparers. One was a lady who I would not let do my taxes at H+R block because she argued that I could only claim 50 percent of the 52 in per diem. To me that showed her ignorance and she was the one who told me I would have been better off with per diem.
I asked the private preparer who did do my taxes... he stated, after looking at my numbers, I was much better off without per diem. I got a 17k deduction just from the 52$ figure. That and my receipts significantly reduced my tax BURDEN. I don't claim to know all the nuances of the system, but I do believe per diem is POOP. And I dont mean to turn this into a tax thread, but I had to explain my position and why I chose it.
Don't see how you can have a 17k deduction with just the $52 meal allowance. If you stay out all year 365 days. The math would be 365 x 52 x .75 = 14,235.00. For 2007 you can only take 75 % of the deduction.
The advantage of the Per Diem of $52 is that you get the whole $52 not just 75% if you write off the meal deduction at the end of the year. So in reality you are getting $13 bucks a day for other incidentials other than meals and you don't have to save receipts. If the average driver is out 280 days a year that is $3640 non tax income for stuff other than meals.
When you itimize at the end of the year you only save on income tax and not on social security and medicare taxes another 7.65%
The real savings is for individuals that do not have other deductions to get over the standard deduction on their return. If you are having to use your business expenses to get you over the standard deduction to be able to itimize. You will realize more non tax income if you take the standard deduction and per diem.
Now before I get slammed, everyone should be informed on this and I guess talk to a Qualified Tax Expert. I would not use HR Block or any other cookie cutter tax preparer. Find a local individual who is a licensed
Certified Public Accountant. They will cost a little more but well worth it in the end.
