Perdiem

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?

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

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.

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

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.

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.

Cool - notice I did say "most"?

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

Rick

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.

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.

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.

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.

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