Way OT: question for Company truck drivers

blinwmiaol.com · Jan 28, 2014

The company I just started my driving career with offers a per diem option of 5 cents a mile. As I understand it, you are allowed $55 a day. If I do 700 miles a day I only get $35 so do I need to keep receipts for $20 a day to get the maximum tax savings? This is all new to me so appreciate any advice.

Adirondack case guy · Jan 28, 2014

Am I missing something here?? You spend a day driving 700 miles and get paid $35 bucks??.

john in la · Jan 28, 2014

I do not know the rate per day any more because I am not allowed to take it any more. I am home every night on the job I have now.

But this is how it works.
You are allowed as a truck driver to take off $XXX a day for meals. No recites are needed. The only thing you need to prove is that you were out of town on that day. Your log book will do this.

At the end of the year you claim the days you were gone times the amount per day. 250x55=13750 Then you will deduct what ever your employer gave you. It will be listed on the W2. 100,000 miles x .05 = 5000 So you would have 13750-5000= 8750 as your meal deduction. If I remember correctly this gets divided by a percentage to get the true amount you can deduct.

Anything else you buy besides meals such as unreimbursed motel bills you need to save the recites.

Some of these over the road guys could help you better but that is basically how it works.

blinwmiaol.com · Jan 28, 2014

No, 5 cents of my per mile pay is a per diem so it is not taxed.

john in la · Jan 28, 2014

No his company gives him .05 per mile per diem
This is tax free reimbursement for on the job expense.

This has nothing to do with his pay for work rendered.

jon f mn · Jan 28, 2014

I don't know about a company paying per diem, but for taxes you have to make a choice, either you take the 55 a day as a deduction on your taxes or if you think you spend more than that you can choose to itemize and save your receipts. This is only for personal living expenses while away from home, for food, hotels, showers and such. You can also claim 1/2 that for each part day on the road, so don't forget to add those in. How that works out when the company gives you cash I don't know.

willie in mn · Jan 29, 2014

I have been retired since 02, but prices have risen a bit since then. I never spent more than $15 a day for eating well. Didn't have any deductable expenses such as interest, so took standard tax rates.
Something most people don't consider, by recieving a per deim for travel expenses your W2 at end of the year will show somewhere around 10% less.
Normally this doesn't make any difference, but in case you want to borrow for a major purchase the lender will use the lower figure to determine whether or not you qualify for the loan. Also in case of a worker's comp or unemployment claim, it also will be based on the lower figure.
Willie

El Toro · Jan 29, 2014

When I traveled for the government back in the 1970's and 1980's you only received $18.00 and later to $25.00 per diem. My BIL lived in North Bergen NJ and he said that wouldn't buy you a good breakfast in that area and NY. Chicago was another area where it was high cost area. I went there 3 or 4 times when this heavy field dynamometer was being built in the late 70's.

When I was sent to St Jose CA, Tulsa OK and Huntsville AL costs were a lot lower. I even took my wife along and for her the motel charge was only another dollar. The government covered all the rental cars. You needed receipts for gas
and any toll charges. Hal

Anonymous-0 · Jan 29, 2014

I'd make sure and talk to an accountant. I was traveling working construction up until a few years ago, so it may be different for truck driver. But we would get $55/night. However there are different max per diem rates for different areas. I spent a lot of time in Indy and Chicago areas and they had high max rates. It worked out to something like a max tax free deduction of say $135 then subtract the $55 I got and I had $80 more deduction everyday I stayed out of town. Worked out to a heck of a return. But everywhere in the Midwest was well over $55. I'd seriously consider talking to a reputable accountant because it didn't matter what my receipts were one bit. All that mattered was I could have gotten the local max rate tax free and I only got $55 so the rest was deduction.

Way OT: question for Company truck drivers

blinwmiaol.com

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Adirondack case guy

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john in la

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blinwmiaol.com

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john in la

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jon f mn

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willie in mn

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El Toro

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Anonymous-0

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