How Per Diem works now

613164

{"text":"Okay. In a nutshell.For owner operators and lease operators, Per Diem has changed little, if at all. Other parts of the tax code have, but Per Diem has not.For company drivers, Per Diem has changed DRAMATICALLY and you need to understand it.Before this year, there were two ways to deal with Per Diem.The first method was to itemize your Per Diem, allowing you a 63 dollar per day tax deduction which would stack with mortgage expenses, charity deductions, medical and child credits, etc. THAT METHOD IS NOW DEAD FOR COMPANY DRIVERS.The second method was for your employer to separate your pay into two categories. They split your pay into Per Diem pay and Standard pay. Per Diem pay, like 401k deductions, are pre-tax income deductions. THIS METHOD HAS NOT BEEN IMPACTED BY NEW TAX LAW.Therefore, if you are a company driver, you can no longer itemize Per Diem on your taxes. If your company splits your income and pays you part of your income as pre-tax Per Diem, you then get a tax benefit because your gross income is reduced.I really do think the staff here should push hard to get the word out about this change. Because it's BIG.","pics":"[]","canComment":true}