Aren't you limited to earnings, while collecting social security Bruce? limiting your earning power, to not lose your benefits? Ya know the Gov'ment wants us all to be broke lol
PD save on taxes, I would've went to it if still driving, since we got that big CPM boost back in May, Would'a helped save paying big taxes weekly on income....60 cents a mile was a big boost in pay from 42 cents. So a full year at that rate I would have paid in BIG !
Drivers are often paid by the mile and it's given in cents per mile, or cpm.
When a violation by either a driver or company is confirmed, an out-of-service order removes either the driver or the vehicle from the roadway until the violation is corrected.
Steve, I'm not too worried about losing my Social Security benefits. I donated most of my construction equipment to a non-profit organization that does construction projects to help disadvantaged youth to learn skills, get their HS diploma and driver's licenses. As a result, I have a huge tax credit that should offset my income for several years. I know I need to talk to a CPA or tax attorney soon, but I wanted to pick the brains on TT first.
I know I need to talk to a CPA or tax attorney soon, but I wanted to pick the brains on TT first.
Agreed. A chat with a CPA would be good. That said, a good friend of mine IS a CPA, and since I'm nearing full retirement age, he and I had this conversation not too long ago.
Short version: it depends upon your age vs. your Social Security full retirement age. If you are of full retirement age, then you can earn as much as you want with no penalty. Example: my full SS retirement age is 66 years and 4 months. If I don't file for SS until that time, I can still earn as much as I want UNDER CURRENT LAW. I emphasize that because congress can always change the law.
However, if I start drawing SS now, before I reach 66 and 4 months, I am limited to earning $18,960 (for the year 2021) before penalties occur.
There's a higher limit if you're already drawing SS, but reach full retirement age during that year.
This link may explain it better than I can. May have to copy/paste the link.
https://www.ssa.gov/benefits/retirement/planner/whileworking.html
Wilie, yes I'm past full retirement age. 69 years old on 10/04/2021
I believe the only impact for you would be that you would pay less in Social Security taxes (and income taxes) on your earnings with the per diem option. Since you are already receiving Social Security benefits, you do not need to worry about the lower earnings history that will result from staying under the per diem plan. You need to pay those Social Security taxes on our wages (not per diem) even if you have those tax credits from the generous donations you've made.
Our son is only 23 and receiving per diem of $.175 from Marten which seems higher than most. He can lose some Social Security benefits in maybe 55 years from now but I suggested he just save and invest the income tax savings he'll have and he would be money ahead.
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
I would suggest talking with a CPA that knows trucking tax answers. Try connecting with John Turner of Able Tax Relief. I've been listening to him each Thursday on the Dave Nemo Show for the past several years.
Yep Bruce you are GOLDEN being past your retirement age, since you CAN earn as much $$$ as possible, without messing up your S.S. lol Had chat with my mentor, who is 66, about this topic, and he said that's correct.
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Schneider has a per diem pay arrangement. Drivers are automatically enrolled at the time of employment. But any driver can opt out if they choose. I'm on Social Security and Medicare. What would be the factors that I should consider to decide if I should stay enrolled or opt out?
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
OOS:
When a violation by either a driver or company is confirmed, an out-of-service order removes either the driver or the vehicle from the roadway until the violation is corrected.