Here Is What I Am Thinking To Do About Per Diem, Income Taxes And A CPA As A Driver.

Taxman wrote:

...the fact that we're hanging out on an internet discussion forum means we've got time to waste.

Speak for yourself Taxman.

I'm too old to waste my time on trivial pursuits. I like most others who regularily contribute, willingly share knowledge and experience for the benefit of the whole. Better informed drivers, with a realistic set of expectations, focused on results and safety only serves to improve the working environment for all of us drivers.

As an outsider looking in, I'd caution you in making hasty observations like your above reply.

In reality - not dealing with Per Diem correctly on your tax return, could cost you tons of $$.

The example in a different thread recently - where the driver didn't have a "home" and tried to take 365 days of Per Diem (and got RED FLAGGED for it, audited, and it cost him a few thou in additional taxes, interest and penalties). Stuff like this IS IMPORTANT. Though it seems like we have spent an "inordinate amount of time" on it, over the last few days - I got some important "detail oriented questions" answered.

More important than understanding HOS , Trip Planning, or how to become a "top performing driver"?

No, not that important. But y'all know I'm a DETAIL FREAK, and now when questions regarding Per Diem come up - I can respond accurately.

Is Per Diem an important consideration for choosing a company? For most, the answer would be NO. For some, it can be a factor, in addition to other financial considerations.

As far as "time to waste" - I'm with G-Town (though not maybe as harshly). The long-time members here, contribute VALUABLE TIME, that they could use to be doing something FOR THEMSELVES, instead of trying to help others. Some (like myself) have more time to give than many others - but no ones contributions of their time should be considered "wasteful", or wasted.

The reason why this site is one of the most well respected sites for the industry (especially for newcomers) is the INVALUABLE/UNCOMPENSATED TIME that it's membership provides, for no reason other than to HELP OTHERS.

I appreciate the time Taxman has taken, to get some "lingering confusions" cleared up for me in this particular topic. I was willing to come out of pocket for an hour of someones time, so I could be able to share that knowledge with our members here. Taxman took care of it for FREE - and I'm grateful for his contribution of "wasted time".

Time accomplishing something POSITIVE - is NEVER WASTED.

Rick

I thought the per diem discussions were very interesting and valuable. I'm not sure why there is push-back and tension towards those who were willing to research and provide information on the subject.

RickS and Taxman, I appreciate the efforts you both made to help me better understand the issue.

I thought the per diem discussions were very interesting and valuable. I'm not sure why there is push-back and tension towards those who were willing to research and provide information on the subject.

RickS and Taxman, I appreciate the efforts you both made to help me better understand the issue.

I'm still stuck on the "any trained monkey can drive a truck" coming from someone without a CDL.

The push back isn't so.much we are saying its not important. Its like saying you want to run a Boston marathon before ever having tried on a pair of running shoes.

I just saw exactly this situation with someone at prime. In training he started giving lectures to anyone around about how great leasing is because his trainer makes so much money and is teaching him. Told me that I didn't understand mpg or trip planning cause his trainer knew better. Fair enough...the trainer's probably been driving longer. He went solo then BOOM.,...BOOM.....and a third BOOM. Three accidents in a matter of a month or two. Then he got fired and regretted all the over analyzing because he too thought any trained monkey can drive a truck. I guess he's beneath a monkey then.

Get the skills. Then succeed. Make money.

For lumpers, my company pays for them in full with EFS checks so I personally never had to use my own money, but IMO, as long as you get reimbursed in full and it's not taxed at the end of the pay week, I wouldn't worry about it. As for the per diem , I personally enjoying having the extra money now and don't mind getting less back with the tax refund, but that's just how I see it. As for the CPA, if you were an IC and had a lot more out of pocket business expenses other than buying the tools you need for every day use, I don't see it being worth it. Just keep the receipts you use and, when filing taxes when asked about business expenses (I don't believe food/drink is seen as a business expense, but a living expense), add the amounts up. I don't see a CPA being worth it to a company driver. But what I say with a grain of salt, I'm only 6mo experienced so far.

Per diem can make a significant difference in the amount you get to keep but another advantage is it's not considered taxable income so at the end of the year your yearly income is much lower putting you in a lower tax bracket. I am paid per diem, $59/day, which is about $300 a week difference in per diem/non-per diem net pay. I will say I have not filed taxes yet with per diem so this may be wishful thinking on my part :)