Perdiem

Topic 20058 | Page 1

Page 1 of 2 Next Page Go To Page:
Michael M.'s Comment
member avatar

A trucking company says they will not tax 20% of my gross wages weekly for perdiem. Will I have to pay taxes on that non taxed income?

Rick S.'s Comment
member avatar

Short answer - no.

Do you have a TAX HOME (that is a legitimate residence for tax purposes)?

Per Diem is for "meals and incidentals". It can be deducted from your taxes. Getting paid Per Diem in advance, the $$ is "untaxed". "Technically", it should be declared as a deduction by itemizing deductions. There is likely more you can deduct, other non-reimbursed expenses related to OTR trucking - plus the difference of additional allowable Per Diem. The advance Per Diem is deductible @ 100%, the non-advanced at 80%.

Rick

OTR:

Over The Road

OTR driving normally means you'll be hauling freight to various customers throughout your company's hauling region. It often entails being gone from home for two to three weeks at a time.

Per Diem:

Getting paid per diem means getting a portion of your salary paid to you without taxes taken out. It's technically classified as a meal and expense reimbursement.

Truck drivers and others who travel for a living get large tax deductions for meal expenses. The Government set up per diem pay as a way to reimburse some of the taxes you pay with each paycheck instead of making you wait until tax filing season.

Getting per diem pay means a driver will get a larger paycheck each week but a smaller tax return at tax time.

We have a ton of information on our wiki page on per diem pay

LDRSHIP's Comment
member avatar

Taking per Diem reduces your taxable income. You are entitled to per diem every day on the road. By a company paying you Per Diem they reduce their own tax liability. Whether you take your Per Diem up front or get it back at taxes you still get it. By taking Per Diem up front and reducing your taxable income the less Social Security is getting paid. Remember as a company employee, your employer is paying half of your social security tax.

Per Diem:

Getting paid per diem means getting a portion of your salary paid to you without taxes taken out. It's technically classified as a meal and expense reimbursement.

Truck drivers and others who travel for a living get large tax deductions for meal expenses. The Government set up per diem pay as a way to reimburse some of the taxes you pay with each paycheck instead of making you wait until tax filing season.

Getting per diem pay means a driver will get a larger paycheck each week but a smaller tax return at tax time.

We have a ton of information on our wiki page on per diem pay

Rick S.'s Comment
member avatar

Taking per Diem reduces your taxable income. You are entitled to per diem every day on the road. By a company paying you Per Diem they reduce their own tax liability. Whether you take your Per Diem up front or get it back at taxes you still get it. By taking Per Diem up front and reducing your taxable income the less Social Security is getting paid. Remember as a company employee, your employer is paying half of your social security tax.

The benefit of getting paid Per Diem "up front", is that it is 100% deductible under IRS Rules - the Per Diem deduction (Daily Rate For Transportation Workers) is only deductible at 80%.

My question about having a "Tax Home" (that is - a place that you pay rent for, call home, and go home to) - is that Per Diem (the deduction) only applies to people that are AWAY FROM A HOME BASE. If you don't maintain a home, you aren't eligible for the deduction - and under the rules, the company is NOT ALLOWED TO PAY YOU PER DIEM, if you don't have a "tax home".

I was on the phone with a Prime Recruiter this week to update my application. I asked about the Per Diem issue, for "homeless drivers", and he really didn't have an answer for me ("above my pay grade").

For better or worse - most companies today that do Per Diem pay - are "forced Per Diem" (in that, you don't have a choice).

Rick

Per Diem:

Getting paid per diem means getting a portion of your salary paid to you without taxes taken out. It's technically classified as a meal and expense reimbursement.

Truck drivers and others who travel for a living get large tax deductions for meal expenses. The Government set up per diem pay as a way to reimburse some of the taxes you pay with each paycheck instead of making you wait until tax filing season.

Getting per diem pay means a driver will get a larger paycheck each week but a smaller tax return at tax time.

We have a ton of information on our wiki page on per diem pay

G-Town's Comment
member avatar
For better or worse - most companies today that do Per Diem pay - are "forced Per Diem" (in that, you don't have a choice).

Swift offers Per Diem pay as an option.

Per Diem:

Getting paid per diem means getting a portion of your salary paid to you without taxes taken out. It's technically classified as a meal and expense reimbursement.

Truck drivers and others who travel for a living get large tax deductions for meal expenses. The Government set up per diem pay as a way to reimburse some of the taxes you pay with each paycheck instead of making you wait until tax filing season.

Getting per diem pay means a driver will get a larger paycheck each week but a smaller tax return at tax time.

We have a ton of information on our wiki page on per diem pay

Rick S.'s Comment
member avatar

double-quotes-start.png

For better or worse - most companies today that do Per Diem pay - are "forced Per Diem" (in that, you don't have a choice).

double-quotes-end.png

Swift offers Per Diem pay as an option.

Cool - notice I did say "most"?

What's up with the picture, instead of the old avatar?

Rick

Per Diem:

Getting paid per diem means getting a portion of your salary paid to you without taxes taken out. It's technically classified as a meal and expense reimbursement.

Truck drivers and others who travel for a living get large tax deductions for meal expenses. The Government set up per diem pay as a way to reimburse some of the taxes you pay with each paycheck instead of making you wait until tax filing season.

Getting per diem pay means a driver will get a larger paycheck each week but a smaller tax return at tax time.

We have a ton of information on our wiki page on per diem pay

G-Town's Comment
member avatar

double-quotes-start.png

double-quotes-start.png

double-quotes-start.png

For better or worse - most companies today that do Per Diem pay - are "forced Per Diem" (in that, you don't have a choice).

double-quotes-end.png

double-quotes-end.png

Swift offers Per Diem pay as an option.

double-quotes-end.png

Cool - notice I did say "most"?

What's up with the picture, instead of the old avatar?

Rick

Yes I noticed your qualifier; just noted that Swift falls outside of that.

Photo; changing it up a bit.

Per Diem:

Getting paid per diem means getting a portion of your salary paid to you without taxes taken out. It's technically classified as a meal and expense reimbursement.

Truck drivers and others who travel for a living get large tax deductions for meal expenses. The Government set up per diem pay as a way to reimburse some of the taxes you pay with each paycheck instead of making you wait until tax filing season.

Getting per diem pay means a driver will get a larger paycheck each week but a smaller tax return at tax time.

We have a ton of information on our wiki page on per diem pay

Sweet Jimmy's Comment
member avatar

This is interesting to me as we had a recruiter a couple of weeks ago that was telling us all the "great tax benefits" of being a driver.

Do any of you know of a resource for drivers to educate themselves on taxes for drivers?

He was telling us that any clothes or shoes that we had to buy should be bought out if our home state so they'd be a deduction. Is this true? I figured I better double check him as most recruiters came off like used car salesmen.

Errol V.'s Comment
member avatar

This is interesting to me as we had a recruiter a coupe of weeks ago that was telling us all the "great tax benefits" of being a driver. Do any of you know of a resource for drivers to educate themselves on taxes for drivers? He was telling us that any clothes or shoes that we had to buy should be bought out if our home state so they'd be a deduction. Is this true? I figured I better double check him as most recruiters came off like used car salesmen.

Tax advice needs to come from a "Tax professional". I'm not a Tax pro, but this discussion on per diem is pretty accurate. The stuff about clothing/boots/tools, etc needs a closer look. From Intuit/Turbo Tax:

If you have to buy a smart new suit for your paralegal job or uniforms for your National Guard duties, it might seem these are obvious work expenses and valid tax deductions. Not necessarily, according to the Internal Revenue Service (IRS). Work clothes that can double as street or evening clothes are no more deductible than anything else in your closet. To claim a deduction for buying clothes, the clothes have to be mandatory for your job and unsuitable for everyday wear.

I have no idea where the "home state" requirement came from. Consult your tax professional on that.

Per Diem:

Getting paid per diem means getting a portion of your salary paid to you without taxes taken out. It's technically classified as a meal and expense reimbursement.

Truck drivers and others who travel for a living get large tax deductions for meal expenses. The Government set up per diem pay as a way to reimburse some of the taxes you pay with each paycheck instead of making you wait until tax filing season.

Getting per diem pay means a driver will get a larger paycheck each week but a smaller tax return at tax time.

We have a ton of information on our wiki page on per diem pay

Michael M.'s Comment
member avatar

Thanks for the info

Short answer - no.

Do you have a TAX HOME (that is a legitimate residence for tax purposes)?

Per Diem is for "meals and incidentals". It can be deducted from your taxes. Getting paid Per Diem in advance, the $$ is "untaxed". "Technically", it should be declared as a deduction by itemizing deductions. There is likely more you can deduct, other non-reimbursed expenses related to OTR trucking - plus the difference of additional allowable Per Diem. The advance Per Diem is deductible @ 100%, the non-advanced at 80%.

Rick

OTR:

Over The Road

OTR driving normally means you'll be hauling freight to various customers throughout your company's hauling region. It often entails being gone from home for two to three weeks at a time.

Per Diem:

Getting paid per diem means getting a portion of your salary paid to you without taxes taken out. It's technically classified as a meal and expense reimbursement.

Truck drivers and others who travel for a living get large tax deductions for meal expenses. The Government set up per diem pay as a way to reimburse some of the taxes you pay with each paycheck instead of making you wait until tax filing season.

Getting per diem pay means a driver will get a larger paycheck each week but a smaller tax return at tax time.

We have a ton of information on our wiki page on per diem pay

Page 1 of 2 Next Page Go To Page:

New Reply:

New! Check out our help videos for a better understanding of our forum features

Bold
Italic
Underline
Quote
Photo
Link
Smiley
Links On TruckingTruth


example: TruckingTruth Homepage



example: https://www.truckingtruth.com
Submit
Cancel
Upload New Photo
Please enter a caption of one sentence or less:

Click on any of the buttons below to insert a link to that section of TruckingTruth:

Getting Started In Trucking High Road Training Program Company-Sponsored Training Programs Apply For Company-Sponsored Training Truck Driver's Career Guide Choosing A School Choosing A Company Truck Driving Schools Truck Driving Jobs Apply For Truck Driving Jobs DOT Physical Drug Testing Items To Pack Pre-Hire Letters CDL Practice Tests Trucking Company Reviews Brett's Book Leasing A Truck Pre-Trip Inspection Learn The Logbook Rules Sleep Apnea
Done
Done

0 characters so far - 5,500 maximum allowed.
Submit Preview

Preview:

Submit
Cancel

Join Us!

We have an awesome set of tools that will help you understand the trucking industry and prepare for a great start to your trucking career. Not only that, but everything we offer here at TruckingTruth is 100% free - no strings attached! Sign up now and get instant access to our member's section:
High Road Training Program Logo
  • The High Road Training Program
  • The High Road Article Series
  • The Friendliest Trucker's Forum Ever!
  • Email Updates When New Articles Are Posted

Apply For Paid CDL Training Through TruckingTruth

Did you know you can fill out one quick form here on TruckingTruth and apply to several companies at once for paid CDL training? Seriously! The application only takes one minute. You will speak with recruiters today. There is no obligation whatsoever. Learn more and apply here:

Apply For Paid CDL Training

About Us

TruckingTruth was founded by Brett Aquila (that's me!), a 15 year truck driving veteran, in January 2007. After 15 years on the road I wanted to help people understand the trucking industry and everything that came with the career and lifestyle of an over the road trucker. We'll help you make the right choices and prepare for a great start to your trucking career.

Read More

Becoming A Truck Driver

Becoming A Truck Driver is a dream we've all pondered at some point in our lives. We've all wondered if the adventure and challenges of life on the open road would suit us better than the ordinary day to day lives we've always known. At TruckingTruth we'll help you decide if trucking is right for you and help you get your career off to a great start.

Learn More