what exactly is the trucking industries definition of it is? How much? and how is it fiqured on taxes at the end of year. Is it a good idea to request it or not?
Basically per diem pay is an "advance" on your meal allowance deduction that you can take at the end of the year on your taxes.
If a company you think you would like to work for only offer per diem pay do not let that keep you from seeking employment with them, but other wise per diem does not favor the driver.
There is no exact amount a company pay on per diem. Most companies figure part of the mileage pay, which in turn is not taxed. IE 30 cpm with a 5 cpm per diem. 25 cpm is taxed normally, 5 cpm is not.
The reason that this is not good for the driver is that it reduces your taxable income which will effect things like workers comp payouts, loan considerations, unemployment, etc that are based on your taxable income.
In the military we had per diem when we went off on missions but we didn't have to do anything special in regards to taxes at the end of year. I'm still confused if you don't get per diem advanced do they still pay set amount later or have to save all receipts for end of year for taxes?? I have seen companies say that they offer per diem advance but you have to request it.
At the end of the year you can claim a percentage of a set amount per day for every 24 hour period you are away from home. I do not remember exactly what it is but it is something like 75% of $52 per day right now. (I am sure someone will come along with the current exact numbers).
The claim the standard meal allowance deduction all you need is proof you were away from your tax home for each 24 hour period you are claiming. For an OTR truck driver your log books fill this requirement.
You can of course save all your reciepts for the year and claim the actual amount.
06-24-2007 06:57 PM by
One
75% is correct if my tax software is correct. $52 per day sounds right too...
What was it in 04 and 05??? anyone know? $46?