I would have to go back over my tax returnes but there are two per diem amounts, depending on where you were during the off time you can claim the higher amount but it does have to be documented. I think the higher amount is 62.00 or 65.00??? But a good accountant will know this.

Even the mob knows how important a good accountant is.

 

It depends. Any amount that they pay you for per diem that is NOT figured into your taxable wages cannot be claimed by you as a deduction. For example, my first company paid me 7 cpm as per diem and it was not reflected in my taxable wages on my W-2. This is one of the "acceptable practices" that the IRS allows. So, I paid taxes on the rest of my wages, and claimed no deduction at all for per diem. My company now pays me $30 per day as per diem and does not include it in my taxable wages. However, I can deduct an additional $29 per day FROM my taxable wages. [Actually, I believe my accountant shows the per diem paid as additional income, THEN deducts the total of $59 per day.]

I'm no tax accountant, but I did say I'd weigh in on this. Here's a few things I think I understand:

1) If your truck has a sleeper, you cannot claim motel expenses unless your truck is in the garage. That's why it's good to get your dispatcher to pay for motel rooms whenever you can get him to. If he pays for it, or reimburses you for it, you can't claim it as a deduction. I he provides you a truck with a sleeper and YOU decide to get a motel room.... it's on you.

2) The 85% or 50% rules don't really apply to us because the standard per diem amount will almost always be a higher amount. NONE of us can eat $70 - $120 or more of food a day! And you would have to do it every day to break even cuz whatever method you use, you have to use for the entire year. These rates are for salesmen who treat clients to expensive dinners and are designed to cut down on the extravagances of "gentlemen's clubs" and stuff.

3) The standard deduction is better than the individual location method for many reasons, not the least of which is, that the rates in certain areas are ONLY higher when you are deducting motel rates.

Now... here is the IRS reg that pertains: Publication 463 (2010), Travel, Entertainment, Gift, and Car Expenses

Scroll down about halfway down the page and find the bold heading that says special rate for transportation workers.

Here is the text:

Pay close attention to the section on departure and return dates and read the example of JEN. Not sure why they used this since she is not a trucker, but... the important part is that she/we is/are allowed to use method 2 whereas government employees are not. (remember, these rules are mostly written for gov't employees.)

It clearly states that under method 2, we can take the full $59 rate for all days that we are on the road. (I would think this would only apply if SOME meal was consumed, or in our case.... SOME part of a S/Berth or off-duty break was required.) By using the $59 (prorated/standard) rate, you are compensating for both the higher costs of meals in some areas, AND the "partial days."

So, IMHO, if you leave at 10 p.m. on day one, you probably shouldn't count that day. However, (and this is where split logging comes in handy,) IF you take even a 2 hour break for dinner and/or start a sleeper or off duty break BEFORE midnight.... I'd say you can take the whole $59 for that day.

Jen only spent two nights in a motel getting rest, but she had to EAT all three days. And this publication clearly shows that she can take the full rate for all three days (under method 2.)

There is another pertinent reg, #1452 I think it is, and I've read some stuff about "not being allowed if you return to your home," but... as I understand it, if you have to take an HOS break at any time during that day, you can claim the whole day.

I drive a dedicated route and get home every night, but because I'm a member of a team and have to SLEEP during that day while on the road, (as well as eating,) I am allowed to take the FULL per diem deduction for every day I work.

My advice to all is this: Take the full $59 deduction for every day you have a log sheet for as long as it includes a full 2 hr break or any part of a sleeper or 10 hr off duty break and take your chances against a one-in-a-milion tax audit! Worst that can happen is that they disallow a FEW days which will cost you a few dollars in additional taxes. It will be much less than the money you left on the table by claiming only 3/4 of the rate for all departure and return dates!

I also suggest you print a copy of the reg I linked for you, and IF you ever get audited... ask the auditor to explain why "my" interpretation is not substantiated therein. I'll bet he can't.

Hobo

 

Its very simple. Basically you don't need to keep reciepts. The reciepts won't do anything for you. If the allowed per diem is 59 dollars a day which I believe is correct than that is what you can claim wether your daily expenses come to more or less than that. On your taxes you have a standard deduction which is 5,950 for individuals for 2012. If your per diem of $59 X Days out comes to more than that you simply put that number in the place of the standard deduction. So lets say your husband is out for 300 days in 2012. 59 x 300=17,700. The IRS doesn't let you claim that 100%. You instead only get to claim 80% of that. There is then an additional 2% subtracted (can't remember for what). Its important to remember that the 2% comes off 80% adjustment. So $17,700 X 80% (or .80) = $14,160. Then you take $14,160 X 2% (or .02) = $13876. That is the number he will use instead of the 5950 default deduction. As for claiming more for being in the north east I doubt that is true. Turbo tax will be able to ask you all those questions. I use turbo tax every year and they have been great

 

To back others up here $59 a day, 80%, and 3/4 for partial days are all correct. It doesn't matter if you leave at 11:30pm, it's still 3/4 of a day per diem. Also it is my understanding that when filling out the per diem on TurboTax you put in the amount at 100% and it will adjust it properly. The same goes for using and accountant or whoever. If you give them the amount at 80% they may take another 20% off not know that you already did. Region doesn't change per diem. I've never heard of this additional 2% either.

 

Someone dredged up an old thread, and wanted to give advice.

I really don't care, cuz I have no questions about this. But... both of the last two posts were, at least partly, wrong.

If anyone is "tuning in" here for answers.... they may be confused by the last two posts. If not.... I will just let them slide.

Y'all can listen to whomever you choose. I'm just telling you that what they told you is wrong.

I know about the 2%, and jtannillo is wrong in her/his computations.

TK Trucker is wrong about the 3/4 day deduction. I already explained this.

I don't think anyone is really checking this thread, as it is an old one, but... it IS tax season. If anyone has a question, and (perhaps) has a problem with the MATH that someone posted...

I will go thru all of this again. I'm bored.